The Plan for Change is a bold commitment to drive sustainable change across our business, amongst our customers, people, and communities, and for our planet. Launched in 2020, with a five-year horizon leading to 2025, the Plan outlines clear goals and commitments for our Group.

shaping our sustainability strategy and plan for
2030

GRI 2-23, 2-24

Areas of Focus

GRI 3-1, 3-2

These priority topics – concerning Products, People, and Planet – represent the areas of greatest opportunity for positive impact; where our actions have the potential to create the most meaningful change. Our sustainability commitments are mapped against industry-specific and broadly-accepted topical areas for responsible business, which address the issues, opportunities, and challenges that are shaping our future and the future of the apparel industry.

In 2024, approaching the penultimate year in our Plan for Change cycle, we began the process of re-evaluating our focus areas and identifying new matters that are material to our business and stakeholders.

Propelling our Plan for Change

GRI 2-12, 2-13, 2-14, 2-16, 2-17, 2-24, 2-27, 408, 409

The highest governing bodies at MAS, alongside senior executives, played an active role in shaping our Plan for Change. They are also involved in developing, approving, and updating the Group’s policies, goals, and the overall sustainability purpose.

Guided by ongoing materiality assessments, strategic leadership of governing boards, and consultancy from our Sustainability Advisory Council (SAC), we prioritise sustainability initiatives that address the most critical environmental and social issues. The effectiveness of these processes is also reviewed regularly, to deliver measurable results.

Clear goals are communicated across the Company, and cascaded down from our CEOs. These goals encompass Hoshin KPIs (strategic objectives) and Foundational KPIs (core performance metrics), covering sustainability in relation to the three Plan for Change pillars focused on Product, Lives, and Planet. Sustainability KPIs are reviewed periodically alongside the Company’s broader KPIs.

KPIs are monitored and reviewed monthly by each pillar and the respective divisional leads, who track achievement against KPIs each month, and compiled to assess performance against the year-end goal. This continuous monitoring process allows teams to bring up concerns or roadblocks that they see in achieving goals. Any such roadblocks are discussed, and identified solutions are recorded and put into practice. Discussions take place at a Group level, enabling learnings from other SBUs to also be channelled into the process, allowing for decision-makers to develop holistic and viable solutions.

Concerns that require leadership-level intervention or direction are initially addressed by the Group Business Director. If further direction or approval is required (especially for decisions that impact the entire Group, or require a large investment), these are raised at the SAC.

The Group’s Sustainability Advisory Council (SAC) is made up of members of the MAS Capital Board, including the CEO. The SAC advises the Director – Group Sustainable Business and plays a pivotal role in the implementation of our sustainability strategy. Mandatory council meetings are held quarterly, outside of which, members are contactable for consultation when the need for guidance on sustainability topics arises. Quarterly SAC meetings bring together the Group CEO, Group Legal Director, Group HR Director, Business Director and a Non-Executive Director. The meeting agenda includes key risks that would affect achievement of Plan for Change KPIs. The SAC prioritises topics based on their scale and impact, which then guides execution plans.

CEOs personally review key reports, including MAS’ Communication on Progress (CoP) to the UN Global Compact (UNGC), and the annual sustainability report that provides stakeholders with a comprehensive picture of how the Group is managing impacts, responding to sustainability-related risks and opportunities, and progressing against sustainability commitments.

Ongoing formal training conducted by experts, as well as the Centre for Creative Leadership, ensures our Directors and Senior Leadership are equipped with up-to-date information and requisite knowledge to make informed decisions regarding sustainability.

Internal and external stakeholder concerns, queries, and feedback are also escalated to Senior Leadership through designated channels and code officers – such as the Director – Group Human Resources, who sits on both the Sustainability Advisory Council (SAC) and the Apparel Board. In fulfilling their role, the Director – Group Human Resources has the authority to inform our CEOs of any critical issues. Additionally, an independent Audit Committee with direct access to the chairman and shareholders, provides an additional layer of oversight, and ensures transparency and accountability throughout our enterprise.

These systems constitute a robust framework, wherein we gain knowledge and awareness of applicable laws and regulations impacting MAS, globally. We periodically review applicable legal requirements, and ensure internal monitoring processes are in place to evaluate compliance against the same; with outcomes of compliance evaluations being presented to the Board.

Moreover, the Group’s governance process is empowered with adequate resources, robust policies, standardised procedures, and integrated KPIs that are cascaded across operations.

We have an established formal escalation mechanism for labour-related compliance issues and violations, where plant or SBU-level Compliance Teams identify violations, if any, through either self-audits, government and regulatory audits, or customer audits. Such violations are escalated to the respective Divisional Compliance Team who, together, would design a corrective action plan to address the same. These issues would also be reported to the Director – Group HR; either on a quarterly basis or immediately, where seriousness of the issue required timely attention and action. As such, there have been no significant cases of labour compliance violations reported; and no incidents of child labour or forced or compulsory labour within company operations during the reporting year.

Stakeholders as Partners

GRI 2-29, 408-1, 409-1

At MAS, we believe that sustainable systemic change requires concerted collaboration across our entire ecosystem. Many of our stakeholders, from employees to customers, play a key role in the MAS Plan for Change and our strategies to create collective impact. In turn, MAS has long been a critical stakeholder in the industry and supply chain, and amongst our communities. Our engagement, support, and collaboration help them to thrive and flourish. Engagement with stakeholders begin with comprehensive mapping that helps us identify priority groups. We consider our specific business model and the stakeholders who play a crucial role in our operations and value chain; then we assess the operating landscape we occupy; and benchmark ourselves against industry standards and regulatory requirements. Thereafter, we utilise an Impact-Influence Matrix to ascertain our sphere of impact: identifying significant stakeholders who are affected by the business, and those who can influence our operations.

This analysis guides our actions, interventions, channels, and frequency of engagement with stakeholders. Which in turn leads to strategising and structuring of proactive, formal, and informal interactions and engagements, which are implemented at various levels within the Group. We consider our primary stakeholders – customers, employees, suppliers, and communities, as critical enablers in driving our plan for change. As such, our engagements take an approach of partnership that incorporates continuous communication, collaboration, learning, and sharing. We strive to maintain strong relationships with regulatory authorities, civil society organisations, and other institutions who share our commitment to transforming systems, communities, society, and the planet, for good. Where required, we provide timely and accurate information on our initiatives, business developments, compliance, risks, and financial position, and work to strengthen the systems and institutions around us. We also advocate for positive transformation to champion change in areas and spaces where collective effort is essential. Since incorporation almost four decades ago, MAS has grown to encompass an innovative and vertically integrated ecosystem beyond needlepoint. While we have minimal engagement with end-consumers of the products we manufacture, we work with leading brands who are closely aligned with the needs and aspirations of a wide-ranging consumer base. When partnering with our customer brands, from concept-to-delivery, we exercise a duty of care and incorporate the precautionary principle in all our dealings; maintaining stringent standards for product quality that ensure consumer safety.

Stakeholder category	Principal mechanisms to engage stakeholders	Topics of discussion and engagement	Frequency of engagement
Customers	Vendor Summits/Roadshows Customer Feedback Surveys, Vendor Touch base with Strategy sessions In-person meetings – MAS Customer Facing and development teams Meetings, emails, phone/ conference calls Calls/meetings with Leadership/Management Teams Product and Design Development Reviews/Customer Touch bases	Strategic business partnering Raw material and product innovation and development Innovation and technology beyond product and raw material (digitalisation, automation, etc.) Collaborations on product, sourcing and manufacturing Risk mitigation – Product deliveries, product pricing/production planning and manufacturing capacities Sustainable collaborations and initiatives on product, social and environment projects	Based on need/special projects: Monthly Quarterly, Biannually, Annually
Employees	Organisational Health Index survey Quarterly Townhalls Q&A Employee satisfaction surveys on various benefits and work-life balance initiatives Performance reviews L&D feedback surveys, open door policy at all management levels Joint Consultative Committee/ Employee resolution Board meetings Division specific counsellors and supported employment officers Intranet communications through Yammer/email communications/ social media	Work-life balance including parental support and flexibility Safety and wellbeing/diversity and inclusion Community/Volunteering engagement activities Supported employment Career development Learning and Development/Engagement opportunities Employee grievances	Ongoing/Routine, Monthly, Biannually, Annually
Suppliers	Supplier Audits (Third Party) Management level meetings, supplier Touch base on situations Collaboration meetings to further partnerships (project based, event based, or ongoing) Supplier onboarding/Supplier production and quality meetings	Development of long-term mutually beneficial partnerships for sustainable supply chains Adherence to contractual obligations	Ongoing/Routine, Monthly, Biannually Annually
Communities	Feedback surveys for projects Community grievance mechanism Flagship CSR projects and Operations teams in SBUs connect with local communities on their needs Specific engagement with identified vulnerable groups	Issues and challenges faced by communities Disaster management programmes Community grievances Providing health related engagements Positive social community impact Supporting sustainable community development in terms of economic, education, and social aspects	Ongoing/Routine, Monthly, Biannually, Annually
Banks and Financial Institutions	Review meeting for past results Annual audited accounts Quarterly meeting, quarterly consolidated accounts Meetings, emails, phone/ conference calls	Future growth and utilisation of funds – value generation Investment and financing opportunity scoping and management Risk management Financing options, credit facilities, cash management Consistent economic performance Adherence to financial and taxation regulations	Ongoing, Biannually, Annually
International and Local Media	MAS website, social media platforms, press releases, media correspondence and engagement activities, public relations and advertising, thought leadership panels and forums Feedback on PR and public media presence	Corporate updates and announcements – product innovation and launches Corporate Governance Industry Insights and thought leadership on key topics Brand reputation and public perceptions Build awareness and engagement Commitment to CSR, Environmental and Product Sustainability	Regularly, Quarterly, Annually
Regulatory Authorities	Certifications and accreditations Licenses, memberships and approvals and site inspections/meetings and disclosures System Certification Audits Environmental Audit	Business operations in compliance with laws, regulations, social and environmental standards	Ongoing, based on needs/projects
NGOs	Partner feedback meetings Forums on key social and environmental topics Associations of private/ public partnerships	Issues faced by vulnerable communities and environments Industry insights and thought leadership on key topics Opportunities for impactful partnerships Commitment to Social, Environmental and Product Sustainability	Ongoing, based on requests/projects
Consumers	Carry out consumer testing on new innovative products for feedback on socialisation and review	Product safety and responsible chemical use	Based on projects

Our Commitments, Partnerships, and Advocacy

Our Plan for Change is the culmination of MAS' comprehensive approach to sustainability. It is aligned with commitments and initiatives that are inspiring and aligning action toward achieving change at a global scale.

As a partner in the manufacturing-side of the apparel value chain, these are also important nexuses of collaboration where we share learnings, amplify the voice of our stakeholders, and add to discourse that is shaping the industry; ultimately advocating for systemic change that can only be achieved, together.

Commitments

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United Nations Global Compact (UNGC) Principles

From strategies, to policies and procedures, we uphold ethical business practices, respect human rights, labor standards, environmental protection, and anti-corruption measures; in line with the 10 principles of the UN Global Compact (UNGC). MAS has maintained alignment with these principles since 2003.

Women’s Empowerment Principles

Since 2011, we endorse and incorporate the Principles in our Group-wide efforts to drive women’s empowerment and gender equality. MAS’ exemplary Women Go Beyond programme, which is enshrined in the Plan for Change and closely aligned with the seven principles, serves as our roadmap to fostering a diverse and inclusive workforce where women can thrive.

Business for Peace (B4P) Platform

MAS endorsed the B4P initiative in 2013, as one of its founding participants, recognising Sri Lanka’s unique context and the opportunity for our initiatives to advance peace – in the workplace and the wider community.

Better Work Programme

We actively participate in, and comply with, the Better Work Programme; as part of MAS’ broader commitment to employees that is outlined in our Plan for Change – working toward empowering women, providing meaningful employment, and creating world-class workplaces.

Caring for Climate (C4C) Initiative

Since engaging with the Caring for Climate (C4C) initiative in 2008, we began implementing systematic changes at strategy, policy, and activity-level; to ensure MAS is positioned to address the challenges presented by climate change. These foundational steps have informed our Plan for Change and culminated in MAS setting ambitious Science Based Targets for emissions reduction.

Science-Based Targets Initiative (SBTi)

In 2020, we signed up to SBTi; setting and validating ambitious targets for absolute emission reduction within our operations, and committing to drive climate response across MAS’ supply chain.

Products Changed for Good

Lives Changed for Good

Our Planet Changed for Good

MAS Foundation for Change

Memberships

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CASCALE

An industry-wide non-profit alliance representing the global value chain; including brand retailers, manufacturers, supply chain partners, and others.

Joint Apparel Association Forum Sri Lanka (JAAFSL)

The apex body presenting a common front for Sri Lanka’s apparel industry, its representative associations, and businesses.

Global Compact Network SL: Board, Steering Committee, and Working Groups (Human Rights, Climate Action)

Local Network contact point for the United Nations Global Compact (UNGC), which is working to mainstream sustainable business practices in Sri Lanka.

Advocacy

Achieving our Plan for Change targets and realising transformational change at scale require collective action. This necessitates a proactive voice in shaping industry standards, policies, and practices.

Throughout the year, we actively engaged in various high-level forums and collaborative initiatives, championing best practices and advocating for impactful interventions across critical environmental and social domains. Our commitment extends beyond our operations, as we strive to drive systemic change within the apparel sector and beyond.

Key Advocacy Activities and Engagements in 2024

• International Engagement:
  Participation in prominent global platforms including the Global Fashion Summit and the Business of Fashion roundtable in London. Panelist participation at Forward Faster Now: Accelerating Sustainable Business on the Asia and Oceania Region in Kuala Lumpur, Malaysia; facilitated by the United Nations Global Compact Network (UNGC).
• We co-authored and launched a White Paper on Financing Decarbonisation. This supplier-led initiative, developed in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and industry leaders like NITEX Pte Ltd, Pactics Trading International Limited, Artistic Milliners Pvt Ltd, Epic Group, and TAL Apparel; provides a vital roadmap for accelerating decarbonisation efforts across the supply chain.
• Shaping National Dialogue:
  Participation in the 6th SL Association of Young Scientists Open Forum on INDUSTRY 5.0 – highlighting MAS’s Vision for a Greener Future, addressing policy requirements, research gaps, and opportunities.
• Sharing insights on “Top Techniques to Scale Sustainability Measurement and Management”, moderated by Worldly’s VP of Customer Success, Loretta Tam.
• Panelist attendance at the Environment session of the ESG Summit 2024, organised by the MBA Alumni Association of the University of Colombo. And, panelist engagement at the National HR Conference 2024.
• Active advocacy for a more inclusive work environment by participating as a panelist at two events – Inclusive Threads: Creating opportunities for Persons with Disabilities (PWDs) within Sri Lankan Apparel Industry, organised by IFC, ILO, and Better Work Sri Lanka; and Towards a more inclusive work environment for PWDs, organised by GIZ and Bconnected.

In addition, our ongoing representation at key industry bodies ensures continuous advocacy:

• United Nations Global Compact:
  As a participant, we align with the Ten Principles, advocating for human rights, labor standards, environmental responsibility, and anti-corruption through public reporting and collaborative projects.
• Cascale (formerly Sustainable Apparel Coalition): Through Cascale, we support industry-wide sustainability standards, share best practices, and contribute to the evolution of the Higg Index for supply chain impact measurement.
• ZDHC: We are actively involved in ZDHC’s efforts to promote sustainable chemical management across the supply chain.
• PUCSL: We contribute to national discussions on energy regulation, renewable energy integration, and sustainable utilities policies.

Tools for Transparency

We believe that achieving real change requires not only ambitious targets, but also a commitment to rigorous standards, verifiable measurements, and transparent disclosure.

We leverage a range of internationally recognised standards, certifications, accreditations, and tools to uphold accountability across our interactions with regulators, customers, suppliers, and employees. They also provide clarity and credibility as we track progress against the ambitious goals of our Plan for Change, and strive for real sustainability across the industry.

Many of these standards and commitments extend to our Suppliers in the apparel value chain.

Higg Index

As a founding member of the Sustainable Apparel Coalition – SAC (now Cascale), since 2011, MAS has actively participated in developing and utilising the Higg Index – a standardised set of tools for measuring environmental and social impact at facility-level.

Our Design and Merchandising teams also utilise the Higg Materials Sustainability Index (Higg MSI) and Higg Product Module (Higg PM) for a data-driven approach to evaluating impacts of the products we manufacture; thereby enabling teams, customers, and end-consumers to make more sustainable choices.

	2024	2023	2021	2020	2019
No. of facilities with verified assessments	41	43	41	32	18
No. of facilities with self-assessments	41	4	1	9	22
Average FEM score	79.2	85	78	78	71

International Certifications and Accreditations

Certification List	Intimates	Kreeda	Active	Bodyline	Matrix	Noyon	Texo	Linea Aqua	Total*
BSCI	1	–	1	–	–	–	–	–	2
C-TPAT	–	–	–	–	–	–	–	1	1
ISO 45001	1	10	7	–	–	1	–	1	20
ISO 14001	14	10	7	4	1	1	–	3	40
ISO 50001	–	1	1	–	–	–	–	–	2
SCOPE – GOTS	7	–	–	3	–	1	–	–	11
FSLM (SLCP)	14	7	3	3	1	1	–	2	31
HIGG FEM	14	10	6	4	1	1	1	3	41
Oeko-tex 100	15	–	1	3	–	1	1	1	22
GRS and RCS	13	1	6	4	1	1	–	3	29
ISO 14064	16	10	8	4	1	1	–	3	50
OSH Transformational Leadership – IOSH, UK	–	1	–	–	–	–	–	–	1
ILO Better Work Program	–	3	–	–	–	–	–	1	4
OCS	1	–	–	–	–	–	–	–	1
Fair Trade	–	1	–	–	–	–	–	1	2
GSV – Global Security Verification	–	–	–	–	–	–	–	2	2

*Number of Facilities (SBUs) that have received the certification or passed the audit in 2024 (if they have a continuing certification, this counts as well).

Awards and Recognition