Delta Apparel(US:DLA)2023-12-27 16:00Sustainability and Environmental Impact - In 2023, electricity usage at the Ceiba Textiles facility was reduced by 30.8% compared to the 2018 baseline due to the installation of a solar power array[50]. - Total greenhouse gas emissions were reduced by 26.7% in 2023 compared to the 2018 baseline, avoiding the equivalent of 12,634 metric tons of CO2 emissions[51]. - The company implemented a system that reuses leftover dye water, saving approximately 4 million gallons of water per year[56]. - In 2023, water intensity rose by 2.6% against the 2018 baseline, primarily due to reduced fabric production, while absolute water consumption decreased by 26.6%[57]. - The steam textile dryer installed in 2022 is capable of drying 66% more pounds of fabric per week while using 25% less energy[54]. - The company has maintained a "Green" status for compliance with dyes and chemicals since 2017, indicating the highest level of compliance[66]. - The company is committed to sustainable sourcing and does not source cotton from regions with water stress[68]. - The company is subject to various federal, state, and local environmental laws and regulations, including wastewater discharges and air emissions[96]. - Compliance with environmental standards incurs annual capital and other expenditures, but the company does not expect these to materially affect operations or financial condition[97]. - Future changes in regulations could require substantial additional expenditures, although current compliance is believed to be satisfactory[97]. Production and Sourcing - In fiscal years 2023 and 2022, approximately 60% and 80% of the fabrics used in internally produced garments were manufactured in-house[40]. - Less than 10% of total products were sourced from third-party suppliers in fiscal years 2023 and 2022[40]. - Over 90% of Delta Apparel's garments are created with U.S. cotton, which is known for its quality and sustainability practices[68]. - Delta Apparel purchased approximately 13,276 metric tons of yarn during fiscal year 2023[71]. Customer and Market Engagement - The company shipped products to approximately 6,600 customers in fiscal year 2023, with no single customer accounting for more than 10% of total sales[45]. - The company operates seven distribution facilities across the U.S. to support quick-turn needs of customers[42]. Employee Relations and Safety - Delta Apparel's 2023 incident rate for total recordable cases was 0.2%, significantly lower than the apparel industry average incident rate of 1.7%[85]. - Delta Apparel provided more than 114,000 hours of professional development and safety training for employees in 2023[82]. - Approximately 90% of employees at two facilities in Honduras are party to multi-year collective bargaining agreements, indicating strong labor relations[76]. - Delta Apparel's employee base consists of approximately 6,811 employees, with a diverse gender distribution of 47% male and 53% female[78]. Corporate Strategy and Assessment - Delta Apparel's self-assessment using the Higg Index resulted in a total score in the upper quartile compared to industry competitors[72]. - The company aims to maintain competitive advantages through integrated design, manufacturing, sourcing, and marketing capabilities[93]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[227].