Sustainability Report
2024
- Managing Our Environmental Impact
- Our Environmental Strategy
- Our Environmental Goals
- Sustainable & Innovation Products
- Sustainable Innovation
- Wipes
- Fabric and Feminine Hygiene Products
- Managing Our Carbon Footprint
- Albaad's Carbon Footprint
- Energy Consumption and Intensity
- Carbon Reduction Initiatives
- Renewable Energy and Solar Installations
- Cleaner Heating
- Water and Wastewater
- Water Efficiency Improvements
- Wastewater
- Waste Management
- Waste reduction initiatives reuse and recycling
- Hazardous Waste
- Responsible Supply Chain and sustainable sourcing
- Supplier Qualification and ESG Alignment
- Using Sustainable Raw Materials
- Deforestation Risk Management
Managing our Environmental Impact
Our Environmental Strategy
Albaad is firmly committed to responsible environmental management, which is integrated into our corporate governance and strategic planning. We recognize that safeguarding natural resources and minimizing our ecological footprint are not only regulatory imperatives, but also essential drivers of long-term business resilience and stakeholder trust.
Our environmental strategy is integrated into Albaad’s core operations and product development processes. The company adheres to environmental regulations across all jurisdictions and continuously seeks operational efficiencies through innovation. Key areas of focus include energy optimization, water use reduction, waste minimization, and improvements in product and packaging design aligned with circular economy principles. As part of our commitment to environmental responsibility, we comply with the following international standards: ISO 14001-Environmental Management System, Forest Stewardship Council” (FSC-C006017) – Responsible Forest Management, RSPO – Sustainable Palm Oil, and OEKO-TEX – Textile Safety for Humans and the Environment.
Given the nature of the industry, which involves significant resource consumption and complex supply chains, improving environmental performance presents ongoing challenges, as well as strategic opportunities. Issues such as climate change, water scarcity, and plastic waste require practical, scalable solutions, which Albaad addresses through targeted initiatives and process improvements.
Our environmental strategy is integrated into Albaad’s core operations and product development processes. The company adheres to environmental regulations across all jurisdictions and continuously seeks operational efficiencies through innovation. Key areas of focus include energy optimization, water use reduction, waste minimization, and improvements in product and packaging design aligned with circular economy principles. As part of our commitment to environmental responsibility, we comply with the following international standards: ISO 14001-Environmental Management System, Forest Stewardship Council” (FSC-C006017) – Responsible Forest Management, RSPO – Sustainable Palm Oil, and OEKO-TEX – Textile Safety for Humans and the Environment.
Given the nature of the industry, which involves significant resource consumption and complex supply chains, improving environmental performance presents ongoing challenges, as well as strategic opportunities. Issues such as climate change, water scarcity, and plastic waste require practical, scalable solutions, which Albaad addresses through targeted initiatives and process improvements.
Our approach is guided by a long-term vision aligned with global sustainability goals, including our internal roadmap toward 2030.
In 2024, we continued to work on improving our environmental performance with measurable actions and system-wide improvements. By the end of 2024, approximately 50% of our total sales were derived from products featuring plastic-free nonwoven fabrics-a clear demonstration of our commitment to reducing plastic dependency. Our approach is guided by a long-term vision aligned with global sustainability goals, including our internal roadmap toward 2030. We remain focused on enhancing transparency, using ongoing monitoring systems, to gain better insights into operations and enable us to react quickly to any event that may disrupt our efficiency efforts, and foster a culture of continuous improvement.
As an industry leader, Albaad is committed to setting high standards for environmental performance. We believe that innovation and sustainability go hand in hand, and we strive to deliver solutions that benefit both our customers and the environment. Our environmental strategy is not static-it evolves with the needs of our stakeholders, the expectations of our markets, and the challenges of our time.
Our Environmental Goals
Albaad has adopted in 2024 a comprehensive set of long-term sustainability goals, focusing on reducing our environmental impacts and enriching our sustainable solutions.
As part of this process, Albaad had committed to decarbonization goals in line with the SBTI (Science Based Targets initiative) standards. These targets focus on reducing greenhouse gas (GHG) emissions across all three scopes (1, 2, and 3), implementing responsible production practices, and driving sustainable innovation. As part of this process, we have reevaluated our areas of impact and are continuously working toward further improvement.
It is important to note that adopting the SBTi framework is a highly complex endeavor. It requires scientific precision, full transparency, and third-party validation of the targets. SBTI is one of the most rigorous global standards for climate action, demanding that companies demonstrate alignment with the Paris Agreement’s goal of limiting global warming.
Albaad is proud to be among the first companies in Israel to fully embrace the SBTI framework. This reflects our deep commitment to corporate responsibility and our willingness to lead meaningful changes within both the local and global industry. Our decision to adopt SBTi is not merely a declaration- it is a strategic, measured, and externally verified process that places Albaad at the forefront of the fight against climate change.
As part of this process, Albaad had committed to decarbonization goals in line with the SBTI (Science Based Targets initiative) standards. These targets focus on reducing greenhouse gas (GHG) emissions across all three scopes (1, 2, and 3), implementing responsible production practices, and driving sustainable innovation. As part of this process, we have reevaluated our areas of impact and are continuously working toward further improvement.
the SBTi framework requires scientific precision, full transparency, and third-party validation of the targets. Albaad is proud to be among the first companies in Israel to fully embrace the SBTi framework
It is important to note that adopting the SBTi framework is a highly complex endeavor. It requires scientific precision, full transparency, and third-party validation of the targets. SBTI is one of the most rigorous global standards for climate action, demanding that companies demonstrate alignment with the Paris Agreement’s goal of limiting global warming.
Albaad is proud to be among the first companies in Israel to fully embrace the SBTI framework. This reflects our deep commitment to corporate responsibility and our willingness to lead meaningful changes within both the local and global industry. Our decision to adopt SBTi is not merely a declaration- it is a strategic, measured, and externally verified process that places Albaad at the forefront of the fight against climate change.
Sustainable & innovative products
2030 Target
Progress by the end of 2024
>90%
natural fibers (based on cellulose) content~50%
natural fiber content in nonwoven fabrics Across all manufacturing sites.
5
new sustainable developments annually- New minimalistic formula with 99.45% water
- New preservation system for non-plastic- nonwoven material
- New laminate development that contains 30% PCR (Post Consume Recycling)
- Developed flushable nonwoven that contains hemp, a more sustainable raw material
- Incorporating upcycled materials in the formula made from apple seeds
6
products to undergo LCA and Implementation of LCA recommendationsLCA will be carried out in 2025 on
3 nonwoven products
Sustainable packaging
2030 Target
Progress by the end of 2024
100%
recyclable packaging71%
of the Group’s total packaging was recyclable across all manufacturing sites.
Introducing packaging
A that will contain
at least 30%
post-consumer recycled (PCR) materialsNew laminate type approved for use
Sustainable Innovation
Transitioning to plastic-free, natural ingredients
Albaad continues to lead the hygiene industry in Europe and the United States, not only through scale and quality, but through its unwavering commitment to sustainable innovation. As part of its long-term ESG strategy, the company has set ambitious goals for 2030, including transitioning 90% of its nonwoven products to be fully biodegradable and plastic-free.
In aligning with our goals we have achieved five major developments in 2024 that exemplify our commitment to eco-friendly solutions and circular economy principles. A new minimalistic formula containing 99.45% water, reducing chemical additives and supporting clean- label trends. A green preservative system for non-plastic nonwoven materials, enabling plastic-free wipes without phenoxyethanol. A laminate incorporating 30% post- consumer recycled (PCR) content, reducing virgin plastic use and advancing packaging sustainability. A flushable nonwoven fabric containing hemp, a renewable and biodegradable fiber that complies with EU single-use regulations. Upcycled apple seed materials integrated into wipes formulations, reducing food waste and promoting resource efficiency. The apple seeds used in our innovative formula are sourced from locally collected apples near our production sites, reinforcing our commitment to a sustainable product roadmap and circular resource utilization. These innovations reflect Albaad’s strategic approach to combining product performance with environmental responsibility, while addressing evolving regulatory requirements and consumer expectations.
As part of its long-term ESG strategy, the company has set ambitious goals for 2030, including transitioning 90% of its nonwoven products to be fully biodegradable and plastic-free.
Albaad operates on a broad scale, integrating innovation and advanced technologies across various stages the product lifecycle. We are fully committed to developing eco-friendly, plastic free alternatives that reduce environmental impacts both within our operations and for end users. With sustainability being part of our strategic plan, our products development is guided by customer expectations as well as emerging regulatory requirements. Combined, these considerations support the creation of products that deliver value in an evolving global market.
Albaad’s Research & Development division focuses on enhancing product performance, ensuring alignment with regulatory requirements, and integrating environmental considerations into product design.
Wipes
In 2024, the Wipes R&D team advanced several initiatives focused on improving product sustainability and skin compatibility. Efforts included incorporating upcycled ingredients such as apple seed oil and nutshells that were originally destined for disposal and reducing the use of synthetic chemicals. New formulations were designed to support skin health, including the use of post-biotic components that enhance the natural microbiome and provide soothing and protective benefits. The team also included milder surfactants that are gentle on skin, help preserve their natural oils and protective functions, and are more suitable for babies, the elderly, and individual with dermatological sensitivities.
In addition, we developed cleaning wipes that feature dedicated antibacterial agents designed to effectively eliminate bacteria, ensuring thorough cleanliness and high hygiene standards.
In addition, we developed cleaning wipes that feature dedicated antibacterial agents designed to effectively eliminate bacteria, ensuring thorough cleanliness and high hygiene standards.
Fabric and Feminine Hygiene Products
Innovation within this product group focuses on flushability and biodegradability ensuring that products can be safely flushed and fully break down through biological processes. Development efforts also ensure compliance with European single-use regulations, as well as alignment with market requirements and client expectations. In 2024, we also continued the transition to organic cotton-based textiles and explored biodegradable packaging solutions.
Managing Our Carbon Footprint
Global climate change is a key challenge that companies around the world are grappling with and significant efforts are required to mitigate its impacts. At Albaad, we are committed to doing our share to reduce our greenhouse gas emissions through a variety of strategies that include implementing energy efficiency programs and transitioning to low or zero carbon energy sources. We recognize that sustainable energy consumption is both an economic and environmental imperative, which supports the company’s long-term sustainable growth.
As part of this commitment, Albaad has adopted the Science Based Targets initiative (SBTI) – a framework that ensures our emissions reduction targets are aligned with the goals of the Paris Agreement.
Our efforts to reduce emissions support global sustainability goals, enhance our operational efficiency, and reinforce Albaad’s position as a forward-thinking, environmentally conscious manufacturer.
As part of this commitment, Albaad has adopted the Science Based Targets initiative (SBTI) – a framework that ensures our emissions reduction targets are aligned with the goals of the Paris Agreement.
Our efforts to reduce emissions support global sustainability goals, enhance our operational efficiency, and reinforce Albaad’s position as a forward-thinking, environmentally conscious manufacturer.
Albaad's Carbon Footprint
We measure our greenhouse gases (GHG) emissions according to the GHG Protocol methodology and it is comprised of the following:
Scope 1 emissions – Our direct emissions, derived from fuel combustion (including natural gas, petrol, diesel and LPG) both by our manufacturing operations and by our vehicle fleet.
Scope 2 emissions – Our indirect emissions from the electricity we purchase. Scope 2 is calculated in a market based approach.
Scope 1 emissions – Our direct emissions, derived from fuel combustion (including natural gas, petrol, diesel and LPG) both by our manufacturing operations and by our vehicle fleet.
Scope 2 emissions – Our indirect emissions from the electricity we purchase. Scope 2 is calculated in a market based approach.
Energy Consumption and Intensity
During 2024, our energy consumption stemming from fuels and electricity consumption, totaled 364,745 GJ, and our energy intensity was 1.4 GJ/ton of product manufactured.
Carbon Reduction Initiatives
Transitioning from carbon intensive fuels
Liquefied petroleum gas (LPG) and residual fuel oil (RFO) are recognized as carbon-intensive fuels. Their combustion results in significant emissions of greenhouse gases. Recognizing this, between 2017 and 2023, Albaad made a strategic decision to significantly alter its fuel mix, and make natural gas the primary fuel source. By 2023 it accounted for 95% of our fuel consumption. This shift involved a substantial reduction in the use of other fuels. In 2022, we successfully phased out residual fuel oil entirely and nearly eliminated LPG use by 2023. Since 2023, all but one of our sites had transitioned to using 100% natural gas for production. Natural gas emits less GHGs and other air pollutants compared to other fossil fuels, and supports our commitment to reducing our environmental impact. Diesel is currently used to heat-process water for a specific product manufactured on demand at a specific site, meaning consumption varies based on customer requirements. An external assessment was conducted to evaluate switching to natural gas; however, given the relatively low consumption levels, the change was deemed not feasible.
Liquefied petroleum gas (LPG) and residual fuel oil (RFO) are recognized as carbon-intensive fuels. Their combustion results in significant emissions of greenhouse gases. Recognizing this, between 2017 and 2023, Albaad made a strategic decision to significantly alter its fuel mix, and make natural gas the primary fuel source. By 2023 it accounted for 95% of our fuel consumption. This shift involved a substantial reduction in the use of other fuels. In 2022, we successfully phased out residual fuel oil entirely and nearly eliminated LPG use by 2023. Since 2023, all but one of our sites had transitioned to using 100% natural gas for production. Natural gas emits less GHGs and other air pollutants compared to other fossil fuels, and supports our commitment to reducing our environmental impact. Diesel is currently used to heat-process water for a specific product manufactured on demand at a specific site, meaning consumption varies based on customer requirements. An external assessment was conducted to evaluate switching to natural gas; however, given the relatively low consumption levels, the change was deemed not feasible.
Renewable Energy and Solar Installations
As part of our commitment to reducing GHG emissions we strive to use renewable energy wherever possible in our operations. By the end of 2024, 19% of Albaad’s total electricity consumption came from renewable sources- an 8% increase compared to 2023, primarily due to our sites in Spain and Germany, which source 100% of their energy from renewable resources. Additionally, photovoltaic (PV) systems have been installed at our facilities in Poland, Massu’ot, and Dimona. Our new warehouses, built in 2024 in Germany are now heated using geothermal energy combined with heat pumps powered by renewable electricity.
Cleaner Heating
In 2024 we began operating a new 14,000 m2 warehouse in Germany which is heated entirely by a heat pump instead of gas. This transition enabled us to replace external warehouses that were operated by contractual partners, significantly reducing freight traffic between our production and storage facilities. As a result, more than 150 weekly truck trips were eliminated, along with their associated CO2 emissions.
Water and Wastewater
As water remains a crucial resource in many of Albaad’s operations, mainly in our nonwovens and wet wipes manufacturing, we prioritize reducing our water consumption. This environmental challenge has become increasingly significant in recent years, as climate change intensifies global water scarcity, including in some of our countries where we operate. Accordingly, Albaad’s water management strategy focuses on minimizing freshwater use, especially in water-stressed areas.
During 2024, Albaad consumed a total of 654,638 m3 of water. While committed to reducing our water consumption, Albaad must also meet stringent purification standards required by customers, which in some cases necessitate higher water consumption.
During 2024, Albaad consumed a total of 654,638 m3 of water. While committed to reducing our water consumption, Albaad must also meet stringent purification standards required by customers, which in some cases necessitate higher water consumption.
Water Efficiency Improvements
Several initiatives were implemented to improve water efficiency across Albaad’s sites. The Caesarea site achieved a significant reduction in water consumption, decreasing its freshwater use in 2024 by 17% compared to 2023 (from 6,239 m2 to 5,171 m2) thanks to enhanced monitoring, and rapid response to anomalies.
In Spain, measures were taken to reduce water consumption for one of our wipes’ formulas, by transferring emulsions at a higher temperature, thereby avoiding the need for cooling water. In Germany, approximately 180,000 m2 of water per year is separated from oils and transferred to the municipal wastewater treatment plant, where it is reused after purification. These measures contributed to a more sustainable use of water resources.
The potential for reusing treated water in production was evaluated in multiple sites. In Dimona, 60% of the water that does not evaporate is filtered and reused internally. Although reuse is limited in other locations due to strict hygiene standards and technical constraints, Albaad continues to explore opportunities to expand water reuse as part of its sustainability goals.
In Spain, measures were taken to reduce water consumption for one of our wipes’ formulas, by transferring emulsions at a higher temperature, thereby avoiding the need for cooling water. In Germany, approximately 180,000 m2 of water per year is separated from oils and transferred to the municipal wastewater treatment plant, where it is reused after purification. These measures contributed to a more sustainable use of water resources.
The potential for reusing treated water in production was evaluated in multiple sites. In Dimona, 60% of the water that does not evaporate is filtered and reused internally. Although reuse is limited in other locations due to strict hygiene standards and technical constraints, Albaad continues to explore opportunities to expand water reuse as part of its sustainability goals.
Wastewater
In 2024, Albaad generated a total of 350,050 m3 of industrial wastewater from its production facilities. This wastewater was either treated onsite or transferred to an industrial wastewater treatment plant where it was purified and discharged to the municipal sanitary sewer system.
As part of the production processes at the various sites, chemicals are used in accordance with applicable local environmental regulations. In order to ensure that discharged effluents remain within permitted quality limits, wastewater quality is regularly monitored. Moreover, we prioritize the use of chemicals with lower environmental impact wherever possible. When exceedances are identified, corrective actions are taken immediately. For example, In Dimona, effluent analysis revealed traces of aluminum. In response, the facility initiated an investigation to identify alternatives and successfully reduced the use of a specific polymer that seemed to be the source of the issue, demonstrating Albaad’s proactive approach to minimizing environmental impact.
As part of the production processes at the various sites, chemicals are used in accordance with applicable local environmental regulations. In order to ensure that discharged effluents remain within permitted quality limits, wastewater quality is regularly monitored. Moreover, we prioritize the use of chemicals with lower environmental impact wherever possible. When exceedances are identified, corrective actions are taken immediately. For example, In Dimona, effluent analysis revealed traces of aluminum. In response, the facility initiated an investigation to identify alternatives and successfully reduced the use of a specific polymer that seemed to be the source of the issue, demonstrating Albaad’s proactive approach to minimizing environmental impact.
Waste Management
Albaad continues to implement a wide range of practices aimed at minimizing waste generation and promoting sustainable waste treatment across its global sites. In 2024, all sites maintained their commitment to improving material use efficiency during production, thereby reducing waste at the source. Once waste is generated, our focus remains on maximizing reuse and recycling, while minimizing landfill disposal.
Waste reduction initiatives: reuse and recycling
In 2024, several of Albaad’s sites achieved notable reductions in waste generation. The Massuot Yitzhak site reported a 28% reduction in landfilled waste compared to 2023. This improvement resulted from stricter waste separation on the production floor in both Massuot facilities- the wet wipes plant and the non-woven plant, as well as the introduction of new recycling bins placed in laboratories for expired or test products.
In Germany, a wide range of materials, including silicone labels, treated wood, and electronic waste, are sorted at collection points for reuse and recycling.
The Dimona site achieved a 73% reduction in landfilled waste thanks to effective waste-source management and the reuse of fabric cores. As part of our resource efficiency strategy, lotion waste in Germany is collected on-site and transferred for repurposed alternative use in industrial cleaning processes. This approach helps minimize waste and enhance circular resource utilization, in line with our sustainability goals.
In Israel, fibers and tampons waste is sent to a facility in North Macedonia for use as raw material in rag production, demonstrating industrial symbiosis.
In Germany, a wide range of materials, including silicone labels, treated wood, and electronic waste, are sorted at collection points for reuse and recycling.
The Dimona site achieved a 73% reduction in landfilled waste thanks to effective waste-source management and the reuse of fabric cores. As part of our resource efficiency strategy, lotion waste in Germany is collected on-site and transferred for repurposed alternative use in industrial cleaning processes. This approach helps minimize waste and enhance circular resource utilization, in line with our sustainability goals.
In Israel, fibers and tampons waste is sent to a facility in North Macedonia for use as raw material in rag production, demonstrating industrial symbiosis.
Hazardous Waste
In 2024, Albaad sites generated a total of 21.5 tons of hazardous waste, compared to 52 tons in 2023, a significant 59% decrease in hazardous waste volume. This decrease reflects a one-time removal of a large quantity of hazardous waste from the wastewater treatment facility at Massuot Yitzhak in 2023, which significantly increased that year’s total.
Responsible Supply Chain and sustainable sourcing
Our responsible supply chain practices reflect our unwavering commitment to sustainability. By promoting ethical, sustainable, and inclusive practices throughout our supply chain, we aim to help minimize the indirect impact our operations have on the environment.
Our supplier selection process and procurement decisions incorporate considerations and criteria of social responsibility, ethical conduct, and environmental performance. Our dedication to sustainable and ethical procurement is reinforced through the cooperative efforts of our supply chain partners.
We actively encourage potential suppliers, through direct engagement, to share information on their sustainability initiatives through a Supply Chain Sustainable Purchasing Questionnaire. This feedback is valuable in guiding collaboration with suppliers who share our commitment to sustainability. When selecting suppliers, preference is given to those with stronger environmental performance, ensuring alignment with our policies.
Our supplier selection process and procurement decisions incorporate considerations and criteria of social responsibility, ethical conduct, and environmental performance. Our dedication to sustainable and ethical procurement is reinforced through the cooperative efforts of our supply chain partners.
We actively encourage potential suppliers, through direct engagement, to share information on their sustainability initiatives through a Supply Chain Sustainable Purchasing Questionnaire. This feedback is valuable in guiding collaboration with suppliers who share our commitment to sustainability. When selecting suppliers, preference is given to those with stronger environmental performance, ensuring alignment with our policies.
Through our procurement processes, we strive to protect human rights, promote adherence to labor, environmental, and anti-corruption standards, and meet broader social responsibility expectations.
Our procurement policy prioritizes raw materials sourced through methods that safeguard labor rights and the environment. We implement structured procedures including supplier selection, approval, purchase orders, and audits. Beyond conventional criteria such as quality, service, and logistics, we prioritize suppliers with leading quality, safety and sustainability certifications such as: ISO 9001, BRC, ISO 22716, HACCP, and ISO 14001. Suppliers are expected to demonstrate financial stability, environmental awareness, and adherence to social responsibility standards. In Germany we comply with the German Supply Chain Security Act, and have therefore begun identifying high-risk countries based on AMFORI classification, a global business association that promotes open and sustainable trade.
We foster long-term partnerships with suppliers, emphasizing technological and manufacturing proficiency, and expect best practices in governance, labor standards, and environmental stewardship. Local suppliers are preferred when it is feasible to support regional economies and reduce emissions. Supplier engagement includes on-site visits to ensure reliable deliveries and operational insights. Relevant suppliers are required to comply with Albaad’s Code of Ethics, and contractors also undergo periodic safety training.
Our procurement policy prioritizes raw materials sourced through methods that safeguard labor rights and the environment. We implement structured procedures including supplier selection, approval, purchase orders, and audits. Beyond conventional criteria such as quality, service, and logistics, we prioritize suppliers with leading quality, safety and sustainability certifications such as: ISO 9001, BRC, ISO 22716, HACCP, and ISO 14001. Suppliers are expected to demonstrate financial stability, environmental awareness, and adherence to social responsibility standards. In Germany we comply with the German Supply Chain Security Act, and have therefore begun identifying high-risk countries based on AMFORI classification, a global business association that promotes open and sustainable trade.
We foster long-term partnerships with suppliers, emphasizing technological and manufacturing proficiency, and expect best practices in governance, labor standards, and environmental stewardship. Local suppliers are preferred when it is feasible to support regional economies and reduce emissions. Supplier engagement includes on-site visits to ensure reliable deliveries and operational insights. Relevant suppliers are required to comply with Albaad’s Code of Ethics, and contractors also undergo periodic safety training.
Supplier Qualification & ESG Alignment
Albaad applies a structured qualification and requalification process for all suppliers, using a standardized evaluation form that assesses performance across multiple dimensions. Our scoring methodology assigns quantitative weightings to key ESG indicators, enabling objective comparison and selection of partners who demonstrate measurable progress in sustainability and ethical practices.
New suppliers are required to complete and sign the qualification questionnaire. In cases where a supplier fails to meet the required standards, the matter is brought to the procurement manager for review and decision regarding continuing the engagement.
For materials associated with significant environmental risks, Albaad may request the submission of relevant sustainability certifications that correspond to the specific type of material. For example, while RSPO (Roundtable on Sustainable Palm Oil) certification may be required for all suppliers of palm-oil-based raw materials, many of our suppliers hold valid RSPO certifications in accordance with customer expectations and market practices. Likewise, suppliers of pulp and viscose fibers are encouraged to provide documentation demonstrating that the materials are sourced from responsibly managed forests under recognized certification schemes, or PEFC (Program for the Endorsement of Forest Certification) documentation. Depending on the nature of the service or material provided, additional documentation, such as a valid business license or other recognized certifications- may be required to ensure alignment with our responsible sourcing. Our supplier questionnaire also integrates ESG- related topics, including environmental practices, ethics, alignment with the Corporate Sustainability Due Diligence Directive (CSDDD) in Germany and PDCA cycles. In 2024, to the best of our knowledge, there were no cases of supplier violations of our sustainability criteria for raw material sourcing.
By promoting ethical, sustainable, and inclusive practices throughout our supply chain, we aim to help minimize the indirect impact our operations have on the environment
New suppliers are required to complete and sign the qualification questionnaire. In cases where a supplier fails to meet the required standards, the matter is brought to the procurement manager for review and decision regarding continuing the engagement.
For materials associated with significant environmental risks, Albaad may request the submission of relevant sustainability certifications that correspond to the specific type of material. For example, while RSPO (Roundtable on Sustainable Palm Oil) certification may be required for all suppliers of palm-oil-based raw materials, many of our suppliers hold valid RSPO certifications in accordance with customer expectations and market practices. Likewise, suppliers of pulp and viscose fibers are encouraged to provide documentation demonstrating that the materials are sourced from responsibly managed forests under recognized certification schemes, or PEFC (Program for the Endorsement of Forest Certification) documentation. Depending on the nature of the service or material provided, additional documentation, such as a valid business license or other recognized certifications- may be required to ensure alignment with our responsible sourcing. Our supplier questionnaire also integrates ESG- related topics, including environmental practices, ethics, alignment with the Corporate Sustainability Due Diligence Directive (CSDDD) in Germany and PDCA cycles. In 2024, to the best of our knowledge, there were no cases of supplier violations of our sustainability criteria for raw material sourcing.
Using Sustainable Raw Materials
Albaad remains diligent in evaluating the environmental impact of its raw materials sourcing practices. In 2024,
the company continued to expand its use of sustainable materials across its product lines:
Natural & Synthetic Fibers
We expanded the use of lyocell and other natural fibers in 2024 and continued the transition to organic cotton-based textiles. Our focus remained on flushability and biodegradability in fabrics and feminine hygiene products, ensuring compliance with European single-use regulations and client expectations.
Carded Pulp
We are exploring carded pulp fibers alternative, an innovative nonwoven material made by combining pulp and viscose fibers through a carding and hydroentanglement process, offering a soft, strong, and fully plastic-free alternative to conventional spunlace fabrics. A new production line based on this technology is planned to open in 2025 in Dimona, and Life Cycle Assessments (LCA) will be conducted to evaluate the environmental impact.
Plastics
We continued our efforts to replace conventional plastics with more environmentally friendly, biodegradable, plastic-free alternatives in our nonwoven fabrics and mono-material plastics in packaging and product design.
Chemicals (Wipes formulations)
We act to reduce the use of synthetic chemicals in our wipes by incorporating upcycled ingredients such as apple seed oil and nutshells originally destined for disposal. Introduced post-biotic components to support skin health without the stability challenges associated with live probiotics. We also adopted milder surfactants that are gentler on skin and more suitable for babies, the elderly, and individuals with dermatological conditions.
While product specifications are often guided by customer requirements, Albaad actively promotes environmentally conscious alternatives and works closely with suppliers to integrate sustainability principles into procurement decisions.
The company’s commitment to responsible sourcing is reflected in its engagement with certified suppliers and
The company’s commitment to responsible sourcing is reflected in its engagement with certified suppliers and
local partners. These efforts not only support Albaad’s internal sustainability goals but also generate positive impacts across the supply chain and the communities it engages with. In response to increasing customer demand for sustainable products, Albaad has broadened its use of certified materials and initiated new formulations that incorporate elements of industrial symbiosis, thereby reducing waste and enhancing resource efficiency.
Packaging Materials
We have made substantial progress in reducing the environmental impact of our packaging materials. In 2024, our Germany site has transitioned to 93% recycled cardboard packaging and expanded the share of recyclable laminate films to 97%, including increased use of post-consumer recycled (PCR) content. It also shifted from rigid plastic canisters to soft packs, that contain less material, contributing to plastic waste reduction.
Additionally, biodegradable nonwoven fabrics and recyclable mono-material plastic packaging are increasingly integrated into product designs. Progress has been made in recyclable laminate and PCR content integration, with specific initiatives focused on optimizing the recyclability of sachets and dryer sheets. Albaad is also collaborating with suppliers to validate the recyclability of new packaging formats. These developments align with Albaad’s 2030 goals of achieving 100% recyclable packaging and implementing 20% of the recommendations of the Life Cycle Analysis (LCA) we carried out.
Deforestation Risk Management
Deforestation is a significant global environmental challenge, with direct implications for climate change, biodiversity loss, and ecosystem degradation. For companies operating in industries that rely on plant- based raw materials – such as pulp, viscose, other cellulose-derived fibers, and palm-oil-based ingredients – deforestation risk is increasingly material. These risks may arise from unsustainable land-use practices, illegal logging, or lack of traceability in complex supply chains. Managing deforestation risk requires a proactive and integrated approach, including supplier engagement and certification schemes such as Forest Stewardship CouncilTM (FSC-C006017) or PEFC and RSPO. By effectively addressing these risks we are not only reducing our environmental footprint but also strengthening resilience, ensuring compliance, and enhancing the trust of our stakeholder.
Sourcing of Natural Fibers from Sustainable Forests
All viscose fibers, a key component in Albaad’s nonwoven and feminine products, are sourced exclusively from sustainably managed forests under certified forest management systems, including Forest Stewardship CouncilTM (FSC-C006017)) certification. They provide an alternative to synthetic materials that are derivatives of oil, and contribute to the conservation of wild forests. Through our certified forest management system, we help support forestry practices that adhere to strict environmental and social criteria.
Sourcing of Natural Fibers from Sustainable Forests
All viscose fibers, a key component in Albaad’s nonwoven and feminine products, are sourced exclusively from sustainably managed forests under certified forest management systems, including Forest Stewardship CouncilTM (FSC-C006017)) certification. They provide an alternative to synthetic materials that are derivatives of oil, and contribute to the conservation of wild forests. Through our certified forest management system, we help support forestry practices that adhere to strict environmental and social criteria.
Sourcing Sustainable Palm Oil
Palm-oil-derived components are present in a range of chemicals incorporated into Albaad’s formulations. Palm oil is widely utilized across numerous industries, yet its production is often associated with environmental and social risks, including deforestation, biodiversity loss, greenhouse gas emissions, and impacts on local communities. These challenges underscore the importance of responsible sourcing practices, particularly for companies operating within complex, global supply chains.
Recognizing these risks, Albaad has maintained its membership in the Roundtable on Sustainable Palm Oil (RSPO) since 2015. In line with customer requirements and market expectations, RSPO-certified materials are sourced whenever requested, ensuring alignment with rigorous standards that address deforestation, biodiversity loss, greenhouse gas emissions, and community wellbeing.
Through these practices, Albaad supports responsible palm-oil supply chains, strengthens stakeholder trust, and contributes to broader sustainability objectives across its value chain.
Palm-oil-derived components are present in a range of chemicals incorporated into Albaad’s formulations. Palm oil is widely utilized across numerous industries, yet its production is often associated with environmental and social risks, including deforestation, biodiversity loss, greenhouse gas emissions, and impacts on local communities. These challenges underscore the importance of responsible sourcing practices, particularly for companies operating within complex, global supply chains.
Recognizing these risks, Albaad has maintained its membership in the Roundtable on Sustainable Palm Oil (RSPO) since 2015. In line with customer requirements and market expectations, RSPO-certified materials are sourced whenever requested, ensuring alignment with rigorous standards that address deforestation, biodiversity loss, greenhouse gas emissions, and community wellbeing.
Through these practices, Albaad supports responsible palm-oil supply chains, strengthens stakeholder trust, and contributes to broader sustainability objectives across its value chain.
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