Sustainability Report

Published by Alpa. English edition, October 2026.

The clothing industry is in upheaval. Fast fashion, price competition and constant trend cycles set the direction for the whole sector. We have consciously chosen a different path. Our company has built its business on timelessness, quality and longevity, against the industry's rapid turnover and throwaway culture.

Alpa's strategy has been built on specialisation: focusing on one material, alpaca wool, and on products that are meant to stay in use for years.

We don't try to follow fashion trends. Instead, we want to offer an alternative to fast fashion and build demand around durable products.

Alpa has also gone against the current in its business model. At a time when many companies are pulling out of physical retail and focusing on fast online sales, Alpa has invested in its own stores and in building the brand for the long term. Our decisions are guided by the belief that consumer values are shifting towards more sustainable consumption and more considered purchases.

Alpa's story reflects a wider change: even though the industry as a whole struggles to combine profitability and sustainability, it is possible to build a growing business based on quality, transparency and long-lasting products. In this report, we show how this approach works in practice across Alpa's operations and value chain.

We have reported on our sustainability for five years now, in increasing detail. This year, we took a critical look at which metrics genuinely guide our work and which easily end up being measured for measuring's sake. We want to focus on what is practical and on the areas where we can make a real difference, and to report on them clearly.

For this reason, we have simplified our calculations and now use only the carbon footprint calculator of the Carbon Neutral Textile Industry 2035 commitment. Previously, we used several other calculators alongside it. Our calculations are still based on the GHG Protocol, the world's most widely used carbon footprint standard. Please note that total emissions are not directly comparable with previous years, as the calculation method has developed in various ways every year. We are happy to share more detailed information on the calculations and the underlying data on request, for example with journalists and organisations.

Please don't hesitate to get in touch if you have any questions.

Enjoy the read!

Responsible consumer habits directly help reduce the textile industry's carbon footprint and make clothes last longer.

4.3. Product safety

No chemicals classified as hazardous are used in making our products, and production complies with EU chemicals legislation.

Yarn dyeing

Alpaca wool naturally comes in many shades, but most farmed alpacas are light-coloured, as light wool works best as a base for dyeing. This makes undyed options in other shades rare and more expensive. So far, the only undyed yarn in Alpa's knitwear has been natural white. Alpa's scarves come in more undyed colours. The yarns are dyed in Peru at Michell's factory with synthetic dyes, which produce durable, bright and versatile shades.

All the undyed and dyed yarns we use are free from heavy metals and AZO chemicals, are OEKO-TEX certified and also comply with the EU REACH regulation.

All the dyes used are free from heavy metals and AZO dyes, REACH compliant and OEKO-TEX certified, in other words they contain no chemicals harmful to people. Michell has its own wastewater treatment plant, so dyeing water does not end up in nature unfiltered. The alpaca wool is washed with a GOTS-certified detergent, and the yarn is treated with GOTS-certified paraffin. The wool we use is not treated or coated with the superwash process.

5.1. Packaging materials

Alpa products are packed in 100% recyclable and reusable packaging, so exchanged and returned products can also be put back into circulation.

Our main packaging suppliers are the Finnish companies Pussikeskus Oy, Tojapak Ky and Cabassi Oy.

Around 86% of our packaging materials come from renewable or recycled sources. This includes, for example, the paper mailing bags used by our online store, brochures included with products, price tags, exchange and return forms, as well as paper bags in our stores and cardboard boxes in our warehouse. The only non-renewable and non-recycled materials are the plastic bags used to pack products and the fasteners on price tags.

Each Alpa product is packed individually for transport and storage in an FSC-certified paper bag and, at the factory, in thin, lightweight plastic packaging (PE-LD/LDPE). The plastic packaging protects products during transport and storage: it prevents them from getting wet or damaged and protects them from pests, for example, which reduces unnecessary waste.

Although plastic has an environmental impact, using it is necessary for now. We encourage customers to recycle plastic packaging properly or reuse it, for example as bin bags, supporting the circular economy of plastics. Alpa is aware of the environmental impacts of plastic, such as microplastics entering waterways and the emissions from producing plastic, and aims to increase the share of ecological packaging materials as better alternatives become available.

Yarn and finished knitwear arrive in cardboard boxes, which we reuse, for example, for deliveries to our stores. Boxes that can no longer be used are recycled properly.

5.2. Logistics

Our alpaca yarn travels from Peru to Finland by sea or air freight in large, infrequent batches, which reduces the environmental impact of transport. Our yarn warehouse in Jyväskylä makes it possible to order large batches from Peru at once. Both the yarns from our warehouse to our partners and the finished knitwear back to our warehouse in Jyväskylä are transported by road.

Our main transport partners are Posti, Matkahuolto, Jyväskylän Tavaralähetit, PostNord, DHL, GLS, HRX, FedEx and United Parcel Service.

Air freight usually accounts for most transport emissions, even though yarns are mainly shipped by sea and finished knitwear by road. A more detailed breakdown of freight emissions can be found in section 6.4.

Our online store warehouse is located in Jyväskylä together with our store, a logistically central location for the Finnish market. In addition, our products are actively sold internationally through our online store.

Alpa offers a 30-day right of exchange and return. We don’t charge for returns, but return shipping costs may apply depending on the country. Returned products are inspected and put back on sale at full price. Although returns cause additional shipping and packaging emissions, they are a better option for the environment than products that are never used. To avoid unnecessary orders and returns, we help customers choose the right size with size guides, detailed product information and customer reviews.

5.3. Waste management

In 2024, Alpa's premises in Jyväskylä produced a total of 2,423 kg of waste, corresponding to around 454 kg CO₂e of emissions. Most of the waste was mixed waste. Although the share of mixed waste rose by almost 20%, this is mainly explained by the amount of cardboard waste falling by as much as 47%. This in turn is partly explained by more efficient internal reuse of cardboard boxes, following the opening of our stores in Helsinki and Tampere. In 2023, the amount of waste was 2,825 kg, so the total amount of waste fell by 14.2%. (Note: the figures do not include the Helsinki or Tampere stores.)

In our own operations, waste is sorted into energy waste, cardboard, paper, plastic, bio-waste, glass and metal. In 2024, the recovery rate of waste produced at our Jyväskylä premises was 100%, of which 64% was recycled and 36% was used for energy production. Unfortunately, the recycling rate fell from the previous year, partly due to the growth of our operations and the resulting increase in mixed waste. We still have work to do in improving our internal recycling.

Alpa aims to minimise production waste by knitting most of its knits to shape. Faulty products and prototypes are either reused by unravelling them or sent to our Jyväskylä premises to await upcycling. Material waste in knitwear production is around 10–15%, and like take-back knits, it is collected in Jyväskylä for upcycling. So far, we have collected around 1,400 kg of yarn waste from production.

The calculations include the emissions from Alpa's operations in Finland as well as emissions from transport, production, yarn manufacturing and subcontracting.

The 2024 carbon footprint calculation is the sixth calculation in Alpa's history to cover the climate impact of all our operations.

Our business grew by 18.9% in 2024, and our emissions relative to revenue grew by 11% from the previous year. Our goal is for emissions to grow less each year relative to revenue growth.

For the first time, the 2024 emissions calculation included the purchased services listed below. These services added as much as 107 t CO₂e to the calculation.

• Marketing services
• Software
• Legal and consulting services
• Accounting and auditing services
• Insurance and occupational health services
• Training services

Scope 1

In 2022, Alpa built its own premises in Jyväskylä, which are heated with geothermal energy. As Alpa does not own any vehicles or produce energy itself, Alpa's Scope 1 emissions are 0 kg CO₂e.

Scope 2

In 2024, Alpa's electricity consumption was 86,150 kWh, but all the electricity we use comes from renewable sources. Therefore, the share of Scope 2 emissions is 0%.

In our own premises, Alpa uses EKOenergy, 100% green electricity with guarantees of origin, certified by the Finnish Association for Nature Conservation. Its production generates no carbon dioxide emissions or nuclear waste.

Scope 3

All of Alpa's emissions fall under Scope 3, as is typical in the textile industry. Scope 3 covers all indirect emissions that result from a company's operations but are not owned or controlled by it. These include, for example, production, transport, purchases, packaging materials, waste, business travel and purchased services.

In 2024, Scope 3 emissions were 863 t CO₂e.

6.2. Emissions from Alpa's operations in Finland

The Scope 1, 2 and 3 breakdown doesn't directly show where emissions arise geographically. That is why we look separately at emissions arising in Finland and outside Finland, regardless of whether they relate to our own operations or to production.

Emissions from our operations in Finland include, for example, emissions from products made in Finland, as well as domestic logistics, business travel, waste management, purchases for our premises, purchased services and online store deliveries. Emissions from packaging materials are allocated to production, even if some of them are made in Finland. As we use digital services in Finland, they have been included in the calculation for our operations in Finland, even though some of them are foreign services. This is because separating IT services by country is neither significant nor a sensible use of time at this stage.

In 2024, emissions from Alpa's operations in Finland totalled around 184 t CO₂e. In 2023, the corresponding figure was 52 t CO₂e, so emissions grew significantly from the previous year.

The growth was driven especially by:

• Including digital purchased services in the calculation
• Opening our Tampere store in 2024
• Purchases related to our premises and purchased electronics

In 2024, the carbon footprint of Alpa's production was an estimated 709 t CO₂e.

In 2023, it was 575 t CO₂e, which means production emissions were 23.4% higher than the previous year.

Production emissions consist of, among other things:

• yarns and accessories
• buttons and other components
• packaging materials
• knitwear care products

The increase in emissions was mainly due to buying more yarn again in 2024. At the same time, knitwear production volumes grew, but this did not increase emissions, as our knitwear production runs on 100% renewable energy.

However, yarn shipments accounted for less than one per cent in 2024, as the largest shipments did not take place within the reporting period.

Other areas have a minor impact:

• scarf production accounted for the second largest share of production emissions at 3%
• beanie and glove production runs on 100% renewable energy
• components and care products account for less than 1% of emissions

Making alpaca yarn requires water, especially in the dyeing stage. The water footprint of the yarn Alpa bought in 2024 was an estimated 533,276 litres, as much as 70% more than in 2023. The increase is mainly due to the larger amount of yarn ordered.

Producing the yarn for one knit uses on average:

• 13.3 litres of water (dyed knit)
• 10.5 litres of water (undyed knit)

(Michell)

The calculation only includes water used for making the yarn, as data on the alpacas' drinking water relative to production is not available. Its effect is, however, estimated to be fairly small overall. The water consumption figures for yarn production come directly from our yarn supplier.

For comparison:

• Making one T-shirt uses around 2,700 litres of water
• Making a pair of jeans uses up to 10,000 litres of water at worst

(VTT, 2024)

The water footprint of an alpaca wool knit is therefore significantly smaller than that of many common garments.

6.4. Freight emissions

Carbon footprint of outbound freight

In 2024, outbound freight emissions totalled 10 t CO₂e.

Outbound freight covers all online store deliveries to customers. 95% of shipments went by road and 5% by air. Measured by emissions, the split is shown in figure 5. In 2023, outbound freight emissions were 14 t CO₂e, so emissions fell by as much as 27%, mainly because our logistics partners have moved to lower-emission transport solutions. Posti's transport emissions in particular fell relative to the number of parcels sent.

Although some of our logistics partners offset their emissions, all emissions have been included in the calculation. Offsetting does not remove the emissions produced; it only balances them elsewhere.

• Most logistics companies are moving from offsetting towards 100% fossil-free logistics
• The aim is to replace fossil fuels with, for example, electric and bio-based transport solutions

Carbon footprint of inbound freight

In 2024, inbound freight emissions totalled 4 t CO₂e, significantly less than the previous year. This is mainly because the largest yarn shipments did not take place within the reporting period.

These figures do not include online store deliveries to customers.

The key finding is the large impact of air freight on emissions. Although less than 1% of shipments went by air, air freight accounted for 4% of total emissions. The air freight share of emissions was as much as 95% lower than the previous year.

The fall in emissions was driven by:

• larger yarn orders in 2023 and therefore smaller ones in 2024
• our logistics partners moving to lower-emission transport solutions

The transport chain is divided as follows:

• air freight: yarn and scarf shipments from Peru to Finland
• sea freight: yarn and knitwear shipments between Lima and Helsinki
• road freight: yarns to production in Lithuania and finished knitwear from Lithuania to Finland

Reducing air freight remains a key area for improvement, as its impact on total emissions is significant.

Global poverty is a major challenge, and Alpa aims to make a difference within its own value chain. We operate in countries where poverty is common, which is why it is important to ensure fair wages for workers when choosing our partners.

What we do in practice:

• Long-term cooperation: by running a sustainable business, we can, in the long run, employ people even in poorer countries and help preserve their livelihoods.
• Monitoring wage levels: we regularly ask our yarn supplier in Peru for information on workers' wages and make sure they are at least equal to the country's minimum wage.

All of the operations and yarns of our most important partner, Michell, hold the Fair Trade Peru certificate, granted by PROMPERÚ.

Fair Trade Peru Good Practices certification principles

• Supporting economically disadvantaged producers and other stakeholders
• Transparency and accountability
• Following fair trade practices
• Developing skills and capabilities
• Promoting fair trade
• Ensuring good working conditions
• Fair pay
• Preventing child labour
• Non-discrimination, gender equality, women's economic empowerment and respect for freedom of association
• Respect for the environment

The Peruvian Fair Trade Good Practices standard (BPCJ) is divided into ten criteria and corresponding indicators, designed to accurately assess the social and environmental management of organisations. These criteria and indicators are derived from the FLO and WFTO systems and are consistent with international standards such as ISO. Their aim is to improve the living conditions and wellbeing of disadvantaged producers, make it easier for them to integrate and gain visibility through fair trade networks, and promote equity in world trade.

Alpa's Code of Conduct

Alpa works closely with its yarn suppliers and partners to ensure a responsible supply chain. Before we start working together, every factory must sign Alpa's Code of Conduct.

Alpa's Supplier Code of Conduct sets out the minimum requirements for the entire supply chain. It is based on international sustainability principles and covers environmental responsibility, labour and human rights, and ethical business.

Alpa's Supplier Code of Conduct requires suppliers to:

• comply with laws and applicable regulations
  
• conduct ethical, transparent and responsible business
  
• source raw materials responsibly and ensure supply chain traceability
  
• reduce environmental impacts and manage chemicals, water and waste responsibly
  
• respect animal welfare
  
• respect workers' rights, avoid discrimination and prohibit child and forced labour
  
• provide safe and healthy working conditions as well as fair pay and working hours
  
• cooperate in audits and report any violations openly.
  

Our most important partner and yarn supplier, Michell, has signed Alpa's Code of Conduct and committed to complying with the regulations of the Peruvian Ministry of Labour. The company keeps wages up to date and offers its employees safe working conditions as well as the opportunity to give anonymous feedback on their work and working conditions, which is reviewed weekly when needed. The most recent minimum wage set by the Peruvian ministry in 2025 was 1,130 soles a month, around €291 (wageindicator.org), but a living wage varies enormously by region. Alpaca wool producers in rural Peru often work informally, so not everyone necessarily receives the wages required by law.

Michell has stated that alpaca shearers and weaving workers are paid above the minimum wage, and shearers' assistants are paid the statutory minimum wage. Employees are also offered additional benefits such as a family allowance, school bonuses, a Christmas hamper and the option of a loan.

Customers

Alpa invests in personal, high-quality customer service: every customer is a key customer to us. We are in constant dialogue with our customers in our stores, by email and on social media, on Instagram and Facebook.

We regularly collect customer feedback, including through the review and feedback systems on our website. Customer wishes are taken into account in our knitwear design, and we aim to respond to them as well as we can.

Alpa also provides customers with information about the environmental impact of the clothing industry and ways to reduce it, and communicates openly and transparently about its operations. As a rule, we don't run big sales campaigns, as our products are timeless and last for a long time. Instead, we help customers extend the life of their clothes, for example through proper care and repairs.

Our people

In 2024, Alpa had 45 employees in Finland, of whom 31 were women and 14 men. The average age of our employees was 30. 55% worked full-time and 45% part-time. 15% had fixed-term contracts.

Most of our people work at our premises in Jyväskylä, which are bright, spacious and calm, supporting wellbeing at work. Alpa's staff, our crew, share common values around sustainability, and our work community supports cooperation and pulling together.

Alpa offers the option of hybrid work, except in sales and warehouse roles. Recreational and wellbeing activities are organised locally for employees, and occupational health services are provided by Heltti.

Since 2024, Alpa has offered its employees Smartum employee benefit packages.

7.2. Economic responsibility

Alpa’s financial operations are based on responsibility, transparency and a long-term view:

• Consistent pricing: we don’t run large sales campaigns, so the price reflects the value of the product all year round.
• Long-term partners: we choose reliable and responsible partners over the cheapest supplier, and build lasting relationships with our factories and yarn supplier.
• Products that keep their value: care advice, repairs and resale help Alpa knits stay in use and keep their value for years.
• Quality over quantity: we make products in small batches and replenish stock as needed, to avoid overproduction.
• Impartiality: Alpa does not take part in religious, ideological or political activities.
• Collaborations and influencers: all campaigns, for example with social media influencers, are clearly labelled; our activities are non-aligned and impartial.

Key figures

• Financial year: ends on 31 March; the figures cover 1 April 2024 – 31 March 2025.
• Revenue: €3.6 million (+18.9% on the previous year)
• Operating profit: €290,000
• Wages and salaries: €818,000

Climate-related risks in the supply chain

Alpa's most important raw material, alpaca wool, is produced in the Peruvian Andes, one of the mountain regions in the world most vulnerable to the effects of climate change. Global warming has changed the timing of rainfall and increased drought as well as more severe frosts and weather fluctuations, which makes raising alpacas harder and reduces the productivity of grazing land.

The Andean glaciers have retreated rapidly in recent decades. Melting glaciers reduce the water supply to mountain meadows and wetlands, especially in the dry season. These wetlands are key grazing areas for alpacas, and their deterioration could, in the long term, reduce both the wellbeing of alpaca herds and wool production.

The effects of climate change also affect local communities whose livelihoods depend on raising alpacas. Drought, water scarcity and the deterioration of grazing land can weaken rural vitality and increase migration away from the Andes. Raising alpacas nevertheless remains an important part of the region's culture, biodiversity and local economy.

In the long term, climate change may affect the availability of alpaca wool, production costs and the stability of the supply chain.

Although alpacas are also raised elsewhere in the world, most of the world's alpaca wool production is still concentrated in Peru, which is why changes in the region's climate can be considered a significant long-term risk for our supply chain.

We monitor the situation as part of our supply chain sustainability work and see long-term partnerships as an important way to strengthen the resilience of our supply chain.

Transport emissions from raw material sourcing

Sourcing raw materials such as wool from outside the EU also creates an environmental risk, especially in terms of transport emissions. Long supply chains, for example from South America, increase the carbon footprint of logistics and increase dependence on international transport. This highlights the need to reduce transport emissions, for example by optimising supply chains, making use of the efficiency of sea freight and planning material sourcing so that total transport emissions can be reduced without compromising the quality or availability of raw materials.

Challenges and opportunities of European production

Challenges

Knitwear production in Lithuania, and in Europe more widely, faces significant global competitive pressure, mainly due to the lower production costs of manufacturers in Asia. This creates a structural challenge for European production, especially in price-sensitive product categories, where production easily moves to lower-cost countries. Competitiveness is also affected by energy and labour costs and by the stricter regulatory environment in the EU, which raises production costs but also increases transparency and sustainability requirements.

Advantages

In terms of risk management, the competitiveness of European knitwear production is increasingly based on quality, flexibility and supply chain transparency rather than price. Short lead times, small and agile production runs and high sustainability standards are key competitive advantages over global players. At the same time, EU-level policy and regulation support the continuation of local production by emphasising security of supply, traceability and sustainable value chains, which in turn strengthens the strategic position of European production in the long term.

What we do in practice:

• Reducing emissions through practical actions, such as using lower-emission freight, reducing waste and recycling more efficiently.
• The textile industry's joint climate commitment: Although Alpa has been carbon neutral in its own operations (Scope 1 & 2) since 2022, working towards carbon neutrality is also important in Scope 3, where all of our company's emissions indirectly arise.
• Annual carbon footprint calculation: we calculate our emissions with the carbon footprint calculator developed for the textile industry, which we received as part of the Finnish Textile and Fashion (STJM) commitment.
• Recycling waste material: We recover all knitting waste from production as well as customers' take-back knits, and aim to upcycle this valuable material for new uses.
• Offering care, repair and circular services: We invest in the care, repairability and resale of our products so that they stay in use for as long as possible.

Sources

Yleistä kamelideista [General information on camelids]. (n.d.). Suomen alpakka- ja laamayhdistys ry. https://www.alpaca.fi/tietoa-elaimista/yleista-kamelideista/

The History of the Alpaca. (n.d.). Retrieved 9 July 2026, from https://www.michell.com.pe/en/alpaca

Dittmann, M. T., Runge, U., Lang, R. A., Moser, D., Galeffi, C., Kreuzer, M., & Clauss, M. (2014). Methane emission by camelids. PloS one, 9(4), e94363. https://doi.org/10.1371/journal.pone.0094363

Hiilineutraali tekstiiliala 2035 -sitoumus [Carbon Neutral Textile Industry 2035 commitment]. (n.d.). Suomen Tekstiili & Muoti. https://www.stjm.fi/palvelut-ja-tietoa-yrityksille/hiilineutraali-tekstiiliala-2035-sitoumus/

amfori. (n.d.). Amfori ESG Risk Compass. Amfori; amfori. https://www.amfori.org/en/solutions/governance/amfori-sustainapass/amfori-esg-risk-compass

Fast fashion: EU laws for sustainable textile consumption. (2020, 29 December). Topics | European Parliament. https://www.europarl.europa.eu/topics/en/article/20201208STO93327/fast-fashion-eu-laws-for-sustainable-textile-consumption

Minimum wage—Peru. (n.d.). https://wageindicator.org/work/minimum-wage/countries/peru/

Miksi yritykset valmistuttavat tuotteita eri maissa? [Why do companies have products made in different countries?] (n.d.). Suomen Tekstiili & Muoti. https://www.stjm.fi/tekstiili-ja-muotiala-suomessa/tiesitko-taman-tekstiili-ja-muotialasta/miksi-yritykset-valmistuttavat-tuotteita-eri-maissa/

The high-altitude quest to save alpacas. (2022, 19 January). Environment. https://www.nationalgeographic.com/environment/article/the-high-altitude-hunt-for-a-way-to-save-alpacas

Sources for the fibre comparison:

Materials Dashboard. (n.d.). Textile Exchange. https://textileexchange.org/materials-dashboard/

Australian Wool Innovation. (n.d.). Retrieved 9 July 2026, from https://www.wool.com/

www.fibre2fashion.com. (n.d.). Global Raw Material Prices—Current & Historical Trends—TexPro. Retrieved 9 July 2026, from https://www.fibre2fashion.com/market-intelligence/texpro-textile-and-apparel/raw-material-prices

Wool & Acrylic Fiber Market Prices – EmergingTextiles.com. (n.d.). Retrieved 9 July 2026, from https://www.emergingtextiles.com/fiber-market-prices/wool-acrylic-fiber-market-prices/

Textile Worker Salaries by Country | Salary Calculator by Country—ERI SalaryExpert. Economic Research Institute. (n.d.). https://www.salaryexpert.com/salary/browse/countries/textile-worker

Sources for the carbon footprint calculation:

Hae päästökertoimia [Search emission factors]—OpenCO2.net. (n.d.) https://www.openco2.net/fi/hae-paastokertoimia?sortBy=updatedYear&sortOrder=desc&page=1

OpenCO2net. (2021, 12 October). Tekstiilialan hiilijalanjälkilaskuri yrityksille [Carbon footprint calculator for textile companies]. OpenCO2net. https://www.openco2.net/fi/asiakastarina/tekstiilialan-yrityksille-uusi-hiilijalanjalkilask/

Homepage | GHG Protocol. (n.d.). https://ghgprotocol.org/

We receive freight emissions data directly from the freight companies.