Translations

ESPRIT, ethical and environmental commitment of the ready-to-wear brand in the supply chain.

5. Fair Operating Practices

Responsible purchasing

Sector

Year 2016

Country Germany

Transmitter

Context

Esprit is a California-based company which became a German brand in 2002, the world leader in ready-to-wear clothing. Since the collapse of the Rana Plaza building in 2013 in Bangladesh (killing 1,134 people and injuring more than 2,500) social and environmental responsibility in the supply chain is a significant challenge for the major ready-to-wear clothing brands. Esprit, although not part of the Rana Plaza retailers, is particularly committed to this approach.

Objectives

• Social responsibility: Promoting ethical practices that respect the law of each country and the rules of the ILO for suppliers

• Environmental responsibility on 5 improvement points: recycling, packaging, sustainable materials, water, carbon emissions

APPROACH

Social responsibility

- Implementation of a Social Compliance-On-Boarding-Process for suppliers: the potential supplier must accept a code of conduct based on the ILO conventions prior to any new collaboration.

- Monitoring is carried out not only during integration but on a continuous basis by means of audits conducted at least once a year in order to improve working conditions (collaboration with BSCI).

- Zero tolerance in case of non-compliance: sanctions or aid to remedy the deficiencies.

Environmental responsibility

- Chemical products: working with laboratories and external partners to identify problematic chemicals.

In 2012, Esprit become a member of the Zero Discharge of Hazardous Chemicals (ZDHC) and works alongside other companies in the sector to eliminate chemicals in the supply chain.

The long-term goal of this group is zero discharge of chemicals by 2020.

- water and energy: in 2014, Esprit worked with an external partner to reduce its consumption of water and energy, particularly in the process of creating high-demand products such as jeans.

CONTRIBUTION TO COMPANY PERFORMANCE

• Reduction of costs that would have been incurred if Esprit had not committed itself

• Reduction in energy consumption in new stores by two-thirds.

Benefits

• Improvement of working conditions: if after an audit it turns out that the suppliers is not in compliance with the charter, a dedicated team of Esprit works with the factory to improve the working conditions.