Sustainability annual report 2026
Our 2026 ESG report: emissions, materials, audits, certifications, and roadmap to net-zero scope 1+2 by 2030.
Executive summary
2025 was a step-change year for us. We achieved EcoVadis Platinum (top 1% globally), reduced scope 1+2 GHG by 28% YoY through renewable energy contracts, increased recycled-content share from 32% to 51%, and earned BSCI A+ across all 6 production sites. This report summarizes the data, methodology, and 2026 commitments.
Headline metrics
| Metric | 2024 | 2025 | 2026 target |
|---|---|---|---|
| EcoVadis rating | Gold | Platinum | Platinum (maintain) |
| Scope 1+2 GHG (tCO2e) | 1,840 | 1,330 | 950 |
| Renewable electricity % | 54% | 78% | 92% |
| Recycled-content share | 32% | 51% | 65% |
| OEKO-TEX certified textile | 87% | 96% | 99% |
| FSC paper share | 91% | 97% | 100% |
| Sedex SMETA audited sites | 4/6 | 6/6 | 6/6 (maintain) |
| Living-wage compliant | 83% | 96% | 100% |
| Water reuse rate | 22% | 41% | 55% |
| Waste-to-landfill | 14% | 6% | <3% |
Methodology
GHG accounting per ISO 14064-1 + GHG Protocol Corporate Standard. Product carbon footprint per ISO 14067. Water accounting per ISO 14046. Audit by BV (Bureau Veritas) covering all 6 production sites in Q1 2026. EcoVadis assessment Q4 2025 (Platinum, 91/100 overall, 95/100 environment, 88/100 labor, 92/100 ethics, 88/100 sustainable procurement).
Materials and certifications
- OEKO-TEX Standard 100 — 96% of textiles (target 99% by EOY 2026)
- GOTS organic — 31% of cotton (target 45% by 2027)
- GRS recycled — 51% of polyester / PET (target 65% by EOY 2026)
- FSC Mix / FSC 100% — 97% of paper, wood, bamboo
- REACH SVHC — 100% of materials declared
- RoHS — 100% of electronic items
- BSCI A+ rating — all 6 production sites
- Sedex SMETA 4-pillar audit — current within 12 months on all sites
Energy and emissions roadmap
Scope 1 (direct) emissions covered by on-site solar (added 2.4 MW capacity in 2025). Scope 2 (purchased electricity) covered by renewable PPAs in Armenia (hydro), Turkey (wind), Georgia (hydro), Serbia (wind), and grid-mix (UAE, Cyprus). Scope 3 measurement begins 2026 Q2 with priority categories: purchased goods, transportation, waste. Net-zero scope 1+2 target: 2030.
Labor and human rights
All 6 sites BSCI A+ audited annually. Sedex SMETA 4-pillar updated within 12 months. 96% of workforce above local living-wage benchmark in 2025 (target 100% by EOY 2026). Zero forced-labor or child-labor incidents in 2024-2025 audits. Worker grievance hotline operational in 8 languages.
Circular economy and end-of-life
Take-back program piloted in 2025 with 4 enterprise clients (1,200 items returned, 87% recycled, 11% donated to charities, 2% safely incinerated). Expanding to 12 clients in 2026. Repair-and-refurbish program launched for premium leather and electronics; 14% of returned items repaired and resold or donated.
2026 commitments
- Maintain EcoVadis Platinum
- Reduce scope 1+2 GHG by another 28% to 950 tCO2e
- 92% renewable electricity across all sites
- 65% recycled-content share
- 100% OEKO-TEX or equivalent on textile lines
- 100% FSC on paper
- Begin scope 3 measurement and disclosure
- Expand take-back program to 12 enterprise clients
- Achieve ISO 27001 certification (data security as ESG sub-axis)
- Publish first TCFD-aligned climate-risk report
Get the full 32-page PDF
Email sustainability@merch.am for the full PDF report including audit certificates, raw data tables, methodology notes, and audit-firm letters.