Social Purpose Corporation 2022 Annual Report

Our Mission

Evrnu is a social purpose corporation that aims to transform the fashion industry by using cotton textile waste to create new raw materials. We believe in a circular economy where nothing goes to waste, and resources are used efficiently. Our mission is to create a net neutral industry by 2050.

Our Accomplishments

In 2022, we made significant progress towards achieving our mission. We launched our first commercial product, a capsule collection with Zara, made from our NuCycl r-lyocell renewable fiber. This fiber was made using textiles from Zara’s consumer product returns and is designed for disassembly, enabling recycling up to 5x more times with no loss in performance.

Our product sold out in the first week, which was a tremendous success. This demonstrates the potential of circularity by using post-consumer waste and designing garments for easy recycling. We are now working on the next phase of our partnership with Zara.

Our Impact

According to the Ellen MacArthur Foundation, 25 million tons of cotton are produced annually, and eventually ends up in landfills, where it releases methane, a potent greenhouse gas. Landfills can emit 7 tons or more of CO2e emissions per ton of cellulose, totaling 100 million tons of CO2e per year worldwide.

At Evrnu, we can turn the world's 25 million tons of annual cotton waste into more than 25 million tons of new fiber while using no farmland or forestry and less than 5% of the water necessary to produce cotton fiber. We estimate that every kilo of fiber we make will divert one kilo of cotton waste from landfills and prevent 3 to 5 kilos of CO2e emissions from landfills, potentially giving NuCycl fiber a negative carbon footprint. Once we are scaled up to 11 million tons, the landfill gas emissions prevented could be equal to the annual greenhouse emissions of all cars in the UK.

Our Culture

At Evrnu, we believe that our organization is at its best when all team members feel heard and cared for. We are committed to creating a culture of continuous improvement where individual differences are respected, and all employees are treated respectfully and equitably.

We are focused on hiring and retaining talented people with a wide range of different characteristics, such as ethnicity, religion, cultural background, sexual orientation, age, and gender. We have strengthened Evrnu’s anti-discrimination policies in the updated employee handbook.

Our Future

Our goal is for all textiles to be successfully recyclable by 2030, creating a net neutral industry by 2050. We are working towards this goal by expanding our production capacity and developing new technologies to create even more sustainable fibers.

In three years, Evrnu will be making 9,000 tons of fiber per year, which will significantly reduce resource extraction and CO2e emissions from the production of synthetic fibers and landfill/incineration. We are excited about the potential impact that we can have on the industry and the environment.

Conclusion

2022 was an exciting year for Evrnu. We launched our first commercial product, achieved significant progress towards our mission, and continued to foster a culture of inclusion and continuous improvement. We are grateful for the support of our shareholders, partners, and employees, and we look forward to continuing our work to create a more sustainable future.