Our Commitment
Softy Panda Manufacturing ("Softy Panda," "we," "us," or "our") is deeply committed to environmental sustainability, social responsibility, and ethical governance. As a hygiene products manufacturer headquartered in Panama City, Republic of Panama, we recognize that our operations have a direct impact on the environment and the communities we serve across Central America.
This Sustainability Policy outlines our comprehensive approach to minimizing environmental impact, promoting responsible resource management, and fostering community development. Our sustainability framework is guided by the United Nations Sustainable Development Goals (SDGs), Panama's National Environmental Authority (ANAM) regulations, and internationally recognized environmental management standards including ISO 14001.
We believe that sustainable manufacturing is not merely a corporate obligation but a strategic imperative. By integrating environmental stewardship into every facet of our operations — from raw material sourcing to final product delivery — we aim to set the standard for responsible hygiene manufacturing in the Central American region.
Environmental Stewardship
Environmental stewardship is the cornerstone of Softy Panda's operational philosophy. We are committed to conducting our manufacturing activities in a manner that protects and preserves the natural environment for current and future generations. Our environmental management system encompasses the following principles:
Pollution Prevention
We proactively identify and mitigate potential sources of pollution across all manufacturing processes, implementing best available technologies (BAT) to minimize emissions, effluents, and waste generation at the source.
Resource Efficiency
Our production systems are designed to maximize resource utilization and minimize waste. We continuously monitor and optimize raw material consumption, energy usage, and water intake per unit of production.
Regulatory Compliance
We comply with all applicable environmental laws and regulations of the Republic of Panama, including General Environmental Law No. 41 of 1998, and maintain all required environmental permits and licenses for our manufacturing operations.
Continuous Improvement
We set measurable environmental objectives and targets, conduct regular environmental audits, and implement corrective actions to drive continuous improvement in our environmental performance.
Environmental Commitment: Softy Panda has committed to achieving carbon neutrality in our direct operations (Scope 1 and Scope 2 emissions) by 2030, with a 50% reduction target by 2028 from our 2026 baseline.
Water Conservation
Water is a critical resource in paper manufacturing, and Softy Panda is committed to responsible water stewardship. Our water conservation program addresses the entire water lifecycle within our operations, from intake to treatment and discharge.
Closed-Loop Water Recycling System
Our manufacturing facility employs an advanced closed-loop water recycling system that captures, treats, and reuses process water. This system reduces our freshwater intake by up to 65% compared to conventional paper manufacturing operations. All recycled water undergoes multi-stage filtration and quality testing before reintroduction into the production cycle.
- •Multi-stage mechanical and biological water treatment
- •Real-time water quality monitoring and automated controls
- •Target: 75% water recycling rate by 2028
Wastewater Management
All wastewater generated by our facility is treated to meet or exceed the discharge standards established by Panama's Ministry of Environment (MiAMBIENTE) under Executive Decree No. 75 of 2008. Our on-site wastewater treatment plant utilizes primary, secondary, and tertiary treatment processes to ensure that all discharged water meets the highest quality standards.
- •Regular third-party water quality testing and reporting
- •Zero discharge of untreated wastewater into natural waterways
- •Compliance with all Panamanian water quality regulations
65%
Water Recycling Rate
0
Untreated Discharge
75%
Target by 2028
Sustainable Sourcing
Softy Panda is committed to sourcing raw materials responsibly and ethically. Our sustainable sourcing policy ensures that the virgin pulp and recycled fibers used in our products are obtained from suppliers who adhere to the highest environmental and social standards.
Forest Stewardship Council (FSC) Certification
We prioritize sourcing virgin pulp from FSC-certified forests, ensuring that our raw materials come from responsibly managed forests that provide environmental, social, and economic benefits. Our target is 100% FSC-certified or equivalent virgin pulp by 2028.
Recycled Content Integration
Our Eco-Friendly product line utilizes 100% post-consumer recycled materials. We are actively increasing the recycled content across our entire product portfolio, with a target of 40% recycled fiber content in our standard product lines by 2029.
Supplier Due Diligence
All raw material suppliers undergo rigorous environmental and social due diligence assessments. We require suppliers to demonstrate compliance with applicable environmental laws, labor standards, and anti-deforestation commitments. Suppliers found in violation of our standards are subject to corrective action plans or contract termination.
No-Deforestation Policy
Softy Panda maintains a strict no-deforestation policy. We do not source raw materials from suppliers engaged in illegal logging, conversion of natural forests, or destruction of High Conservation Value (HCV) areas. This policy is enforced through supply chain traceability systems and regular audits.
Waste Management
Softy Panda is committed to minimizing waste generation and maximizing material recovery across all operations. Our waste management strategy follows the internationally recognized waste hierarchy: prevent, reduce, reuse, recycle, and recover, with disposal as the last resort.
Waste Reduction
We implement lean manufacturing principles to minimize production waste. Our precision cutting and converting equipment reduces material waste to less than 5% of total raw material input, with continuous optimization efforts underway.
Recycling & Recovery
Production trimmings, off-spec products, and packaging waste are collected, sorted, and recycled. Paper waste is repulped and reintroduced into our Eco-Friendly product line. Non-paper recyclables are sent to certified recycling facilities.
Packaging Optimization
We are transitioning to 100% recyclable or compostable packaging materials by 2028. Our packaging design team continuously works to reduce material usage while maintaining product protection and shelf appeal.
| Waste Category | Management Method | Recovery Target |
|---|---|---|
| Paper production waste | Repulping & recycling into Eco-Friendly line | 95% by 2028 |
| Plastic packaging waste | Certified recycling partners | 90% by 2028 |
| Cardboard & corrugated | Baling & recycling | 98% by 2027 |
| Chemical & hazardous waste | Licensed hazardous waste contractors | 100% compliant disposal |
| General office waste | Segregation, recycling & composting | 80% diversion by 2028 |
Energy Efficiency
Energy efficiency is a critical component of our sustainability strategy. Softy Panda is committed to reducing energy consumption per unit of production and transitioning to renewable energy sources to power our manufacturing operations.
Renewable Energy Transition
Panama's abundant renewable energy resources — including hydroelectric, solar, and wind power — provide a unique advantage for sustainable manufacturing. Softy Panda is actively pursuing the following energy initiatives:
- •Solar Panel Installation: Planned rooftop solar array to generate up to 30% of facility electricity needs by 2028
- •Green Energy Procurement: Power purchase agreements (PPAs) with certified renewable energy providers in Panama
- •Energy-Efficient Equipment: All production machinery meets or exceeds international energy efficiency standards (IE3/IE4 motor classifications)
- •LED Lighting & Smart Controls: 100% LED lighting with motion sensors and daylight harvesting throughout the facility
- •Heat Recovery Systems: Waste heat from production processes is captured and reused for drying operations, reducing thermal energy requirements
30%
Solar Energy Target
20%
Energy Reduction Goal
100%
LED Facility Lighting
2030
Carbon Neutral Target
Carbon Footprint
Softy Panda is committed to measuring, reporting, and reducing our greenhouse gas (GHG) emissions in alignment with the Greenhouse Gas Protocol and the Paris Agreement objectives. Our carbon management strategy encompasses:
Scope 1 — Direct Emissions
Emissions from on-site fuel combustion, company vehicles, and manufacturing processes. We are transitioning to electric vehicles for company fleet and optimizing combustion efficiency in production equipment.
Scope 2 — Indirect Energy Emissions
Emissions from purchased electricity and steam. Our renewable energy procurement strategy and on-site solar generation will progressively reduce Scope 2 emissions toward zero.
Scope 3 — Value Chain Emissions
Emissions from raw material transportation, product distribution, and end-of-life treatment. We collaborate with logistics partners to optimize routes, consolidate shipments, and transition to lower-emission transportation modes.
Softy Panda will publish an annual Carbon Disclosure Report beginning in 2027, providing transparent accounting of our emissions, reduction progress, and offset activities. We are exploring verified carbon offset programs, including reforestation projects in Panama's Darién Province and mangrove restoration along the Pacific coast.
Eco-Friendly Products
Softy Panda's Eco-Friendly product line represents our commitment to providing consumers with sustainable alternatives without compromising quality or performance. Our eco-conscious products are designed with the full product lifecycle in mind:
100% Recycled Materials
Our Eco-Friendly line uses exclusively post-consumer recycled fibers, diverting waste from landfills and reducing demand for virgin pulp. Each ton of recycled paper saves approximately 17 trees, 7,000 gallons of water, and 4,100 kWh of energy.
Biodegradable & Compostable
All Softy Panda products are fully biodegradable and septic-safe. Our Eco-Friendly line packaging is transitioning to compostable materials made from plant-based polymers, eliminating plastic waste from the product lifecycle.
Chemical-Free Processing
We use chlorine-free (ECF/TCF) bleaching processes and non-toxic, biodegradable processing chemicals. Our products are free from harmful dyes, fragrances, and formaldehyde, making them safe for sensitive skin and the environment.
Carbon-Reduced Manufacturing
The Eco-Friendly line is manufactured using 30% less energy than conventional products, resulting in a significantly lower carbon footprint per unit. We are pursuing third-party carbon footprint certification for the entire line.
Certification Goal: Softy Panda is pursuing FSC Recycled certification, EU Ecolabel equivalency, and Panama's "Best Panama Product" environmental designation for our entire Eco-Friendly product line by 2028.
Regulatory Compliance
Softy Panda operates in full compliance with all applicable environmental, health, safety, and labor laws of the Republic of Panama and the broader Central American region. Our legal and compliance team, in coordination with our HR department, ensures adherence to the following regulatory frameworks:
General Environmental Law (Law No. 41 of 1998)
Comprehensive environmental protection framework governing all manufacturing operations in Panama, including environmental impact assessments and pollution control requirements.
Executive Decree No. 75 of 2008
Water quality standards for industrial discharge, governing our wastewater treatment and discharge practices.
Labor Code of Panama
Full compliance with labor laws including fair wages, working hours, occupational safety, and employee rights. Our HR policies exceed minimum legal requirements.
Law No. 81 of 2019 (Data Protection)
Protection of personal data of employees, customers, and stakeholders in all sustainability reporting and community engagement activities.
ANAM/MiAMBIENTE Regulations
Compliance with all environmental permits, monitoring requirements, and reporting obligations established by Panama's environmental authority.
In addition to local regulations, Softy Panda voluntarily adheres to international standards including ISO 14001 (Environmental Management), ISO 45001 (Occupational Health & Safety), and the UN Global Compact principles on environment, labor, and anti-corruption.
Community Impact
Softy Panda believes that sustainable business must create shared value for the communities in which we operate. Our community impact programs are designed to address critical social needs while supporting Panama's broader development goals.
Local Employment & Economic Development
Our manufacturing facility creates direct employment for over 50 Panamanian workers, with a commitment to hiring from local communities. We prioritize local procurement, sourcing supplies and services from Panamanian businesses wherever possible. Our operations contribute to Panama's GDP through tax revenue, employee spending, and supply chain multiplier effects.
Education & Skills Training
We invest in workforce development through technical training programs, apprenticeships, and partnerships with Panamanian educational institutions. Our training programs cover manufacturing skills, environmental management, quality control, and occupational safety, equipping workers with transferable skills for long-term career growth.
Hygiene Awareness Programs
Softy Panda sponsors community hygiene education programs in underserved areas of Panama, providing free hygiene products and educational materials to schools, community centers, and healthcare facilities. Our goal is to reach 15,000 families annually with hygiene awareness initiatives by 2028.
Charitable Partnerships
We allocate a portion of annual revenue to charitable organizations focused on environmental conservation, public health, and poverty alleviation in Panama and Central America. Our partnerships include local NGOs, international development organizations, and government social programs.
Employee Wellbeing
From an HR perspective, Softy Panda recognizes that our employees are our most valuable asset and that their wellbeing is integral to our sustainability mission. Our employee-focused sustainability initiatives include:
- Occupational Health & Safety: We maintain a comprehensive OHS management system aligned with ISO 45001 standards. All employees receive regular safety training, personal protective equipment (PPE), and access to on-site first aid facilities. Our target is zero workplace injuries.
- Fair Wages & Benefits: All employees receive wages that meet or exceed Panama's minimum wage requirements, with additional benefits including health insurance, paid leave, retirement contributions, and performance bonuses. We conduct annual wage reviews to ensure competitiveness and fairness.
- Diversity & Inclusion: Softy Panda is committed to building a diverse and inclusive workforce. We prohibit discrimination based on race, gender, age, religion, disability, sexual orientation, or any other protected characteristic. Our hiring practices prioritize equal opportunity and merit-based selection.
- Employee Wellness Programs: We offer wellness programs including mental health support, ergonomic workplace assessments, fitness incentives, and work-life balance initiatives. Our HR department conducts regular employee satisfaction surveys to identify and address workplace concerns.
- Whistleblower Protection: Employees are encouraged to report environmental, safety, or ethical concerns through confidential reporting channels without fear of retaliation. All reports are investigated promptly and thoroughly by our compliance team.
Supply Chain Responsibility
Softy Panda extends its sustainability commitments throughout our entire supply chain. We hold our suppliers, contractors, and business partners to the same high standards of environmental and social responsibility that we maintain internally.
Supplier Code of Conduct
All suppliers are required to acknowledge and comply with our Supplier Code of Conduct, which addresses:
We conduct periodic supplier audits and assessments to verify compliance. Suppliers demonstrating exceptional sustainability performance are recognized through our Preferred Supplier Program, which offers priority consideration for future contracts and collaborative sustainability projects.
Goals & Targets
Softy Panda has established ambitious yet achievable sustainability targets aligned with the UN Sustainable Development Goals. Our roadmap includes the following milestones:
| Goal | Target | Timeline |
|---|---|---|
| Carbon Neutrality (Scope 1 & 2) | Net-zero direct emissions | 2030 |
| Water Recycling Rate | 75% of process water recycled | 2028 |
| Renewable Energy | 50% of electricity from renewables | 2029 |
| Zero Waste to Landfill | 95% waste diversion rate | 2029 |
| FSC-Certified Sourcing | 100% certified virgin pulp | 2028 |
| Recyclable Packaging | 100% recyclable or compostable | 2028 |
| Community Hygiene Outreach | 15,000 families reached annually | 2028 |
| Employee Safety | Zero workplace injuries | Ongoing |
Reporting & Transparency
Transparency is fundamental to our sustainability commitment. Softy Panda is committed to regular, honest, and comprehensive reporting on our environmental and social performance.
- Annual Sustainability Report published on our website, beginning 2027
- Carbon Disclosure Report aligned with GHG Protocol standards
- Water stewardship reporting in accordance with CDP Water Security framework
- Third-party environmental audits conducted annually by accredited auditors
- Stakeholder engagement through regular sustainability forums and feedback mechanisms
- Compliance reporting to MiAMBIENTE and other relevant regulatory authorities
We welcome feedback from all stakeholders — customers, investors, employees, community members, and regulators — on our sustainability performance and encourage open dialogue about how we can continuously improve our environmental and social impact.
Contact Information
For questions, suggestions, or concerns regarding Softy Panda's sustainability practices, please contact our Sustainability & Compliance team:
Softy Panda Manufacturing
Environmental, Social & Governance (ESG) Department
sustainability@softypanda.org
Panama City, Republic of Panama
softypanda.org
We are committed to responding to all sustainability-related inquiries within 15 business days. For urgent environmental concerns or to report potential environmental violations, please contact us immediately at the email above or reach out to Panama's Ministry of Environment (MiAMBIENTE) directly.
This Sustainability Policy was last reviewed and approved by Softy Panda's Board of Directors on January 1, 2026. It is subject to annual review and update to reflect evolving best practices, regulatory requirements, and stakeholder expectations.