Social & Environmental Responsibility in our Supply Chain

Transcription

1 d Social & Environmental Responsibility in our Supply Chain Information & Working Guideline for Bestseller Suppliers This document is a guideline for all suppliers on the expectations and requirements of all Bestseller brands. This includes information and directions on working with: Bestseller s Code of Conduct Bestseller s Chemical Restrictions Bestseller s Environmental Work d Social & Environmental Responsibility Bestseller A/S 1/10/2008

2 Contents 1. Responsible Production in Bestseller SER Department Structure Bestseller s Code of Conduct Introduction to the COC Overview of New Supplier Procedure Adding new factories to production Sub contractors & suppliers of materials Bestseller s Audit Program Bestseller s COC Rating System Bestseller s Child Labour Policy Non compliance to the Code of Conduct Education & Training Bestseller s Chemical Restrictions (CR) Introduction to the CR Overview of general working procedure for CR Control of Production & how to comply REACH Bestseller Testing Requirements (Overview) Sending Samples to the testing laboratory Non compliance to the Chemical Restrictions: procedure for failed styles Bestseller s Environmental Work Introduction Approach and expectations Environmental Rating System Examples of best practice techniques Overview of textile production & the environment Overview of general requirements for a Bestseller Supplier

3 1. Responsible Production in Bestseller Bestseller designs, develops and supplies fashion apparel for our 10 brands, which are targeted at young men and women, as well as children of all ages. We sell products in our own shops and through independent retailers. As we do not own producing factories, we cooperate with a number of independent suppliers globally who manufacture our styles according to our specifications. The majority of production occurs in China, but we are also producing substantially in Turkey, Bangladesh, India and Italy. Production is controlled and regulated through Purchase Offices located in these countries. Our supply chain is very complicated and involves many different countries and cultures. We take our responsibility as an international company very seriously, and work hard to ensure that our global business activities are carried out in a socially and environmentally responsible manner. This work will also help to protect and develop our business, and to create a more sustainable future for us and our suppliers. Bestseller s Social & Environmental Responsibility Department was set up to coordinate the efforts of Bestseller in ensuring our business activities meet a certain standard. This has initially been focused on our supply chain, but has recently begun to encompass our internal activities and those in our offices and shops. The Code of Conduct was developed stating the minimum requirements for the working conditions inside the factories and the Auditing Program was later developed to ensure that our suppliers were meeting our agreements. In addition, the SER department develops and updates the Chemical Restrictions and (in cooperation with Quality Assurance) coordinates the Chemical Testing Program to check that our goods are reaching the standards. Over the past year we have placed more focus on the environmental impacts of our business, which is something that will continue to increase over the next few years. We have focused on integrating the activities of the SER department with the rest of the company, as it is essential to recognize that we can only be effective in achieving our goals of being a socially and environmentally responsible company when all parts of the business are involved and working together. We expect to have a close relationship with our suppliers, and that the SER department, the purchase offices, the buyers and suppliers can all communicate together effectively, and each take part of the responsibility to ensure responsible production. As a Bestseller supplier we require that you work accordingly within our Code of Conduct and Chemical Restrictions, respect our policies and procedures in the management of our supply chain, and continuously strive to improve your performance in social and environmental issues. 3

4 2. SER Department Structure The SER department consists of more than 20 colleagues, situated in Denmark and throughout our production countries. Each purchase office has an employee responsible for SER activities, who will be the main contact with all suppliers connected to that office. All suppliers should contact this person for any queries relating to Bestseller s Code of Conduct, Chemical Restrictions or Environmental Work. Those suppliers attached to the Danish purchase office should contact the SER department in Denmark directly. Factories will then be assigned to a COC colleague depending on their location. Those suppliers producing in regions where BS SER colleagues are not located will need to arrange for an external auditing company to perform a social audit at this factory prior to it being accepted as a producer for Bestseller. Bestseller China, Beijing Shanghai Hong Kong BS Studio (SH) BS Fashion Group (BJ) Bestseller Turkey, 4337 Etiler/ Istanbul Bestseller Head Office, Brande, Denmark Bestseller India, New Delhi Bestseller Bangladesh, 1213 Dhaka Bestseller Italy, Bologna Diagram 1: SER department, General Structure 4

5 Bestseller s Code of Conduct

6 3. Bestseller s Code of Conduct 3.1 Introduction to the COC Bestseller s Code of Conduct is a code of practice for all Bestseller suppliers, written in 2002 and updated yearly. The COC states the minimum working standards in the producing factories, and covers, among others, issues of health & safety issues, social responsibility, environment protection and animal welfare. Commitment and compliance of our suppliers to the COC is very important to Bestseller, and we will not work with suppliers that do not respect this. Our work with the COC has been developing rapidly since 2002; the following sections give suppliers details of the current working procedure and requirements. 3.2 Overview of New Supplier Procedure All suppliers and their factories/ subcontractors must read and sign agreement to the Code of Conduct Supplier must declare all factories/ subcontractors / homeworkers that will be involved in the manufacturing process of Bestseller products Supplier must allocate a responsible person within their company for all SER related issues A social audit will be arranged at all factories that will potentially be involved in the making up of Bestseller garments Factory will be prepared for audit by SER colleagues. Supplier will be required to complete pre audit information Audit report will be written and sent to SER Denmark and buying departments A development plan will be devised for the factory which must be agreed to by the supplier, the factory and Bestseller Production facilities will be rated according to Bestseller's Rating System Supplier will only be accepted if they are seen to be working within our Code of Conduct. Accepted suppliers will be given access to Bestseller s Supplier Portal which holds all the information of the company and factories, and is where orders are placed and accepted We expect that our suppliers continuously work to improve in social & environmental issues, and meet any deadlines set in the Development Plan 6

7 3.3 Adding new factories to production Our suppliers can only produce in factories that we have registered in the supplier portal and which have been approved by the Social & Environmental Responsibility department. When accepting orders suppliers must select the specific factory that will produce that order in the Bestseller system. If a supplier would like to add a new factory to their production they will need to contact the purchase office and request for an audit at the factory which must be rated at least with a yellow BS rating prior to any orders being placed there. Suppliers attached to the Danish buying office (Bestseller AS) The main suppliers will be handled from Denmark. If they are producing in factories in countries where we have our purchase offices these factories will be handled by the COC responsible for this region. They will be placed under the COC Office of that country and enter the Bestseller auditing program. Factories in regions where there are no purchase offices are required to have a social audit from an external auditing company. If a supplier is found producing Bestseller orders in a factory that is not registered on our system and has not been approved by the Social & Environmental Responsibility Department we will immediately end cooperation with this supplier. 3.4 Sub contractors & suppliers of materials It is important that the principles of Bestseller s Code of Conduct are effectively communicated down the supply chain. It is therefore important that our supplier s source from reliable companies, ideally with some form of certification in regards to both quality and Social Responsibility. The supplier must ensure that the products they are buying are made in accordance with our requirements and restrictions, as well as the law. The suppliers of materials, and any washing, dyeing & printing facilities must be provided during factory audits. It is important that we know whether these facilities have any official certifications. 7

8 3.5 Bestseller s Audit Program All factories producing goods for a Bestseller brand must be involved in the Audit Program, whereby the factories will be checked and monitored by a Bestseller SER colleague. It is important that all suppliers are involved with this process and ensure that all factories associated to them are working in accordance to the Code of Conduct. Required Attendees: There should always be a supplier representative present at the factory audit, as well as the factory manager and the Bestseller SER colleague. Announced or Unannounced: Initial audits will always be announced and arranged well in advance to ensure that all paperwork and parts of the factory will be available for the audit. Some follow up audits may be unannounced and we reserve the right to check factories at any time. Time: The time taken for an audit depends on a number of factors the size of the site, the number of employees, if this is a new supplier or a new factory for a current supplier, etc. It is a general principle in Bestseller that a full day is used for each audit to ensure that all aspects of the audit program can be executed effectively, and the supplier and factory should allow for this. Pre Audit Preparation: The SER colleague will inform the supplier and factory of the structure of the audit and the documentation that they will require to see during the audit. The supplier must ensure that all paperwork requested is available or it will be counted as not present. Suppliers applying for new sub contractors should perform an audit themselves first to ensure that the factory is up to BS standard. Due to the number of suppliers we have we cannot waste time on unprepared factories. Audit Structure: A Bestseller audit will include the following 1. Pre audit preparation 2. Opening Meeting 3. Factory Tour 4. Workers Interviews 5. Examination of Documentation 6. Closing meeting Please note that the audit structure and the sequence of events can differ, and that each individual auditor will adopt the most effective structure for their audits. Factories will be re audited every 6 12 months. Suppliers are responsible for ensuring that agreed developments are completed effectively and on time 8

9 3.6 Bestseller s COC Rating System Once the factory Audit Form has been completed, the findings will be assessed and the factory will be given a Bestseller rating. d d d d d Factory is in compliance with Bestseller s Code of Conduct Factory is basically complying with Bestseller s Code of Conduct, but which still has a few minor issues to be improved Factory is below the standard of Bestseller s Code of Conduct, with more than 5 minor issues, or any serious issues which need to be improved Factory is below the standard of bestseller s Code of Conduct, and has a number of critical issues which need to be improved Factory is far below the standard set in Bestseller s Code of Conduct, and the management is showing no will to improve d Green d Yellow d Orange d Red d Black Factory is working according to Bestseller s COC Factory demonstrates a number of best practices Factory is basically compliant Minor issues are found Factory is making continuous progress Factory is non compliant to the COC Serious issues are found Factory is non compliant to the COC Critical issues are found Factory is showing the will to make improvements Factory is non compliant to the COC Factory is making no progress Management lacking the will to improve Bestseller are satisfied with the work this factory is doing in regards to SER issues Factory is not regarded as perfect and should always be working to improve further and maintain a high standard in order to keep rating No more than 5 minor issues highlighted as being needed for improvement More than 5 minor issues or serious issues found in the factory Any critical issues found automatically result in a red rating. Extensive negligence in regards to workers health & safety will also result in a red rating Management refuses to make improvements to meet standard Audit shows too many critical issues & factory is too far below our standards to approve Bestseller production will not occur The accumulative factory ratings will determine the overall rating of the main supplier (always based on the lowest rated factory). The rating will be visible in the supplier portal, the buying system and on all order forms. Factories rated black will automatically be closed and cannot be used for production. 9

10 3.7 Bestseller s Child Labour Policy Bestseller has made a commitment that we will continuously work to ensure that no child labour occurs in our producing factories. Bestseller s Code of Conduct identifies that any person under 15 years of age is defined as a child (based on ILO s convention no. 138). In some regions that national law defines a child as being older than 15 and in these cases the National law will always apply. If the National law sets the definition of a child at 14 years the National Law will also apply in these cases. These levels are normally based on when the completion of basic education will occur. Action if non compliance is found When suppliers sign the Code of Conduct they are agreeing to respect the Child Labour Policy, which outlines the procedures taken if an underage worker is found in a factory. Cases of underage workers can vary from case to case, and it is understood that different actions may needed to be taken accordingly. Bestseller s Child Labour Policy was developed in order to take the best interests of the child into account and will be implemented if any underage workers are found in factories. General principles of the Child Labour Policy If a child is identified Bestseller will take direct contact with this child so as to obtain full control of the situation The child must not be dismissed from the factory The family will be contacted, and an agreement between the child, and the child s family on a place of education should be met. This should be arranged until the child has reached at least the legal working age. The supplier must continue to pay wages to the child during the school period This case will be closely followed up on by Bestseller Action for the Supplier The supplier will receive a clear written warning from Bestseller The supplier must agree to and carry out all agreed actions based on the Child Labour Policy without question. The supplier must show how the employment policy and documentation check will be improved in the future. If the situation arises again the co operation with Bestseller can be terminated. 10

11 3.8 Non compliance to the Code of Conduct We understand the difficulties that factories can face in regards to working within the Code of Conduct. There are many complications and unforeseen problems can often arise. Consequences of non compliance to the Code of Conduct will vary according to the specific circumstances, which will be reviewed on a case by case basis. We will of course always discuss the situation with the supplier to work out how that problem occurred and what can be done to prevent similar problems in the future. Suppliers should be aware that a serious breach of the COC, or continuous breaches, may result in the supplier being removed from Bestseller s supplier list. Orders will be removed from the supplier and new orders will not be authorized through the system. It is essential that suppliers declare all production units, which must be checked according to the COC. If Bestseller production is found in non registered factories, Bestseller will end the relationship with the supplier. It is important that we are honest and open we must know where all products are made. Less serious, but recurring problems, such as not meeting deadlines and agreements set in development plans, will result in a warning from Bestseller. Suppliers will need to show that they are committed to improving and developing and to moving towards becoming a more socially responsible company. If necessary a supplier will be asked to give regular feedback on the work and progress that they are making. We expect that our suppliers also take some responsibility to get better in these areas and not rely on being guided through by Bestseller. Suppliers should also be aware that Bestseller brands are working in different ways with the COC, some brands may have specific extra requirements for their suppliers COC performance. All brands are determined to only work with suppliers who are able to meet the standards set in the COC. We are here to help and to have honest and open discussions about any issues that may arise. Problems that are found that we have not been informed about, or have been deliberately hidden during audits and meetings, will be taken very seriously. If, however, we are informed early on of problems we can work together to find solutions. 11

12 3.9 Education & Training In Bestseller we believe in having a close relationship with our suppliers so that we can develop and improve together in all areas of our business. We understand that working with social and environmental issues is often difficult, and therefore we hope to provide our suppliers with as much information and as many working tools as we possibly can. If suppliers have any questions regarding the Code of Conduct, or the work of the SER department we hope that you will immediately contact the SER responsible to your purchase office, or directly to Head Office, Brande (all contact information in appendix). Better Suppliers Programme The Better Suppliers Programme is being developed, and will be launched from the beginning of The Better Suppliers Programme will be a resource for our suppliers to gain further information and skills in a number of different topics to help improve their status as a socially responsible company. The training will focus on enabling supplier to increase social compliance whilst still developing as a business. We also hope that the training meetings will be an opportunity for suppliers & factories to meet up and discuss ideas and experiences, and to share knowledge. Training will occur approximately 2 times per year the expected participation of a supplier will vary depending on the amount of business that they do with Bestseller. Bestseller will also start producing booklets from January 2009 intended to give the workers more information on Bestseller as a company and the Code of Conduct. These training sessions and booklets are intended to improve communication between suppliers, factory managers and factory workers. We respect our supplier s business techniques and strategies; the aim of the supplier training is to create a resource for developing and sharing information, and to reach further down in the supply chain to where it matters most. Suppliers should contact local purchase offices for further information. 12

13 Bestseller s Chemical Restrictions

14 4. Bestseller s Chemical Restrictions (CR) 4.1 Introduction to the CR Bestseller s Chemical Restrictions describe the limitation and prohibition of substances in products manufactured for Bestseller. These restrictions are developed based on a concern for the health of our customers, the working conditions inside the factories producing our goods, the preservation of the environment, as well as law and legislations. All suppliers producing for Bestseller must abide by the list of forbidden and restricted substances. Suppliers must have tight control over their production networks and materials suppliers and ensure that they are working within the CR. The following section describes our expectations of how suppliers should be working with the CR, and the control and testing procedures from Bestseller. 4.2 Overview of general working procedure for CR All suppliers will read and sign agreement to Bestseller s Chemical Restrictions and in doing so they take full responsibility for ensuring that all products meet the standards required. Suppliers must communicate the Chemical Restrictions to all points in their production network (dye houses, print houses, washing facilities, suppliers of raw material, accessories suppliers etc) and ensure that they are in full control of entire production process. At no point during the production process can substances on the Forbidden Substances List in the CR be used. Other chemicals must be strictly controlled. All suppliers will be included in Bestseller s Testing Procedure whereby styles will be tested for compliance to the Chemical Restrictions according to both risk assessed and random selections. Testing must be done in Bestseller approved internationally recognized laboratories and in coordination with the CR responsible at your local Purchase office. Any problems found in relation to the CR will be taken very seriously. Action taken will depend on the seriousness of the individual case and will be based on the CR non compliance consequences (p.20) and managed in coordination with SER Department, the relevant buyer and the supplier. 14

15 4.3 Control of Production & how to comply Due to the nature of chemicals and textile production, it is rare that restricted chemicals will be found on un treated raw material. Forbidden and restricted chemicals can be used during the preparation, dyeing, printing, washing and finishing of garments, and it is therefore important that suppliers have strict control over all parts of their production network. Suppliers must make sure that the companies that are doing the dyeing, printing and finishing are selecting products that are accepted by Bestseller s Chemical Restrictions. We must protect our customers and the environment, as well as our businesses, by controlling production carefully. Bestseller expects suppliers to set up a strict quality control program, whereby they have full control over every material that is involved in the manufacturing process. Suppliers should regularly test raw materials coming in, as well as finished goods leaving the factory. Factories should not use fabric or accessories from their stock unless they test this item to guarantee the chemical safety and composition. Suppliers should not source any materials from small uncertified suppliers or markets this will cause a big non compliance risk. Bestseller requests that in order to minimize the risk of non compliance, suppliers source materials from fabric and thread suppliers that are Oeko tex 100 certified (or similar). Bestseller recommends that suppliers work with dye and print companies that are using reputable and certified colorants only (for example Huntsman, Clariant, Dystar or similar). This will greatly minimize the risk of non compliance. More information on dye stuffs and dye manufacturers suppliers can visit (Ecological Toxicological Association of Dyestuffs) which lists reputable dye manufactures globally. Suppliers should demand to receive MSDS sheets and up to date inventories of chemicals from all parts of the production network. Suppliers should be able to provide Bestseller with relevant MSDS sheets for any product when requested. If a supplier has any questions or requires further assistance in production network control the relevant SER colleague responsible for your purchase office should be contacted. 15

16 4.4 REACH What is REACH? Regulation (EC) No 1907/2006, of the European Parliament and the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH). REACH has been introduced as a means to more effectively monitor and control the import of chemicals into the EU. It aims to ensure that all manufacturers and importers of chemicals identify the substances that they are bringing in, and that this is effectively managed to identify and limit the risks that these chemicals may pose to human health and the environment. Producers and importers of articles have to notify REACH if their article contains Substances of Very High Concern (SVHC s). All chemicals relevant for textiles in the SVHC list are restricted for use in production in Bestseller s Chemical Restrictions. We would, however, like to request that all suppliers visit the REACH webpage ( regularly and ensure that they remain fully upto date with this regulation. Suppliers should be prepared for further introductions of banned and restricted chemicals for further information and a list of chemicals that may appear on the SVHC list suppliers can visit the REACH SIN (Substitute It Now) webpage ( 16

17 4.5 Bestseller Testing Requirements Bestseller require risk based as well as random chemical testing on finished garments as a further control to prevent products that do not meet our requirements being sent to our shops and customers. Chemical Testing is controlled through the purchase offices, and all results are stored centrally on the supplier portal and can be seen in the buying system. For details of the chemical testing program, and the contact details for the approved laboratories in your region, please contact your purchase office contact. Testing requests are made either through the CR/ Quality departments in the purchase offices, or directly through the purchase order system from the buying departments in Denmark. The amount of tests requested will vary depending on the style types and the supplier set up and history. Suppliers should test risk products automatically regardless of a request from Bestseller. Suppliers should be aware that we are testing a large amount of products delivered in Denmark as a final precaution prior to distribution to our shops. We hope that all suppliers will follow these requirements carefully, and will ensure strict control over their production network. Compliance to the Chemical Restrictions is an essential part of doing business with Bestseller. Any supplier found to disregard this will be blocked as a style supplier for all Bestseller brands. 17

18 4.6 Sending Samples to the testing laboratory When a style is selected to be tested according to Bestseller s Chemical Restrictions, suppliers must observe the following requirements: 1 sample in each specified colour should be taken from the bulk production near the start of production (If problems are found then there will be time to correct the production) Samples should be individually wrapped in air tight bags and labeled with the specific style number, style name and BS order number Samples should be sent to the internationally recognized testing laboratory approved and specified by Bestseller. For further information on approved laboratories please contact your purchase office Suppliers should send an to the testing laboratory and the CR responsible in the relevant purchase office stating: Style name and number Brand name Quantity of samples being sent Required tests Results must be sent to BS representative as well as supplier (if supplier is requesting the test) Results and test reports will be recorded and uploaded on the Bestseller supplier portal system. Bestseller have a record of all tests that are done this is why it is important if a supplier tests products that all reports get sent to Bestseller so that we have the record and do not request testing on styles that have already been tested. 18

19 Social & Environmental Responsibility Non compliance to the Chemical Restrictions: procedure for failed styles Problems found prior to shipment Problems found after shipment Supplier must ensure that the shipment does not leave Depending on the violation products may need to be re which will be handled by the called from shops/ customers buying departments. The production must be modified/ cancelled/ remadee depending on the problem Goods thatt are known to contain illegal/ dangerous chemicals will be destroyed in Denmark The supplier must provide a passed test report prior to shipment Supplier will cover all costs and claims and take full responsibility (as agreed in CR) Shipment samples and styless sent to shops are likely to be tested again from BS Denmark to ensure supplier has met requirements in all shipped goods Serious violations will result in the supplier being blocked from receiving further orders Non serious violations occurring more than once will result in the supplier being blocked from receiving orders Suppliers must provide full explanation as to why the problem occurred and how they will prevent this from happening in the future. Supplier must prove that they have stricter control over their production network prior to receiving future orders and will be subject to increased testing. 19

20 Stage of production Classification of chemical problem found CLASS C CLASS B CLASS A STAGE 1 Violation of CR is found by either the supplier or Bestseller prior to shipment Non serious violation of the CR: Supplier must identify source of problem and control Depending on situation product will not be shipped until problem rectified and product re tested Violation of the CR: Product must not be shipped Problem must be identified, controlled and regulated Reproduction and re testing necessary Serious violation of the CR: Product is a danger to health and illegal Product must not be shipped Re production necessary Supplier will cover costs of delay STAGE 2 Violation of CR found by either supplier or Bestseller following shipment Non serious violation of the CR: Depending on situation part recall/ claim may be necessary Supplier must identify problem and control Supplier will receive warning Violation of the CR: Product contains significant levels of restricted substances Recall may be necessary case specific Supplier will receive 1 warning before orders are blocked Serious violation of the CR: Product is a possible danger to health Product is illegal Re call necessary Supplier will be blocked from receiving BS orders Please note all cases are subject to an individual review by the SER department prior to action being taken. STAGE 3 Violation of CR found by external party (customers, press, authorities etc) Non serious violation of the CR: Depending on situation part recall/ claim may be necessary Supplier must identify problem and control Supplier will receive warning Violation of the CR Product contains significant levels of restricted substances Recall may be necessary case specific Supplier will receive 1 warning before orders are blocked Serious violation of the CR: Product is a possible danger to health Product is illegal Re call necessary Supplier will be blocked from receiving BS orders Class A: Serious violation of the CR involving chemicals from the forbidden substances list or restricted substances at levels which are illegal Class B: Violation of the CR involving any restricted substances in levels clearly above the limit set Class C: Minor violation of the CR involving borderline levels of restricted substances Red cases will result in either immediate termination of the supplier relationship or severe penalties to the supplier Supplier will receive a written warning. More than 3 cases could result in termination of the relationship & penalties Non serious violations that are found prior to shipment will be closely followed up, but will result in no action against the supplier

21 Bestseller s Environmental Work

22 5. Bestseller s Environmental Work 5.1 Introduction Bestseller s Code of Conduct stipulates that our suppliers must follow all national & regional environmental laws. All factories must set up, and continuously develop, an environmental management plan in order to minimize the effect of our business activities on the environment. In recent years our work on environmental issues throughout our business has become more focused as our expectations for achieving a more sustainable business approach have become higher. Bestseller s environmental work follows the product from the cradle to the grave. The following information however, is aimed at our supply chain, and the beginning of the life cycle of our garments. Throughout the supply chain we are focusing on the use of water. The textile industry is responsible for using huge quantities of water every year during the pre treatment, washing, dyeing, printing and finishing processes as well as the tanning of leather goods. Our Environmental work aims to ensure that our suppliers are using water responsibly as well as disposing and treating wastewater responsibly. We are also looking at water and energy saving techniques; whereby our suppliers can minimize their use of such resources and aim for cleaner production and a more sustainable future. For more details on our environmental work please contact your local purchase office. 5.2 Approach and expectations Approach Step 1: Focus on the evaluation of wastewater treatment systems throughout the supply chain Step 2: Focus on the practices and details of the entire production network of Bestseller suppliers Step 3: Suppliers are rated using the Environmental Rating System. Suppliers will be provided with information and training on cleaner production techniques to improve resource use efficiency Bestseller expectations on suppliers All suppliers must ensure that all parts of their production network involved in the use of water during production have adequate wastewater treatment plants operating in accordance to the law. All suppliers must be able to provide documentation and readings from the wastewater treatment plant in all relevant sites. Suppliers should prepare by mapping entire production network, stating company names and addresses as well as details on their production. Suppliers should be able to provide any information requested in regards to Bestseller s CR and the environmental work, for example chemicals that are used, certifications etc. Suppliers should continuously aim to improve their environmental status and aim to implement Cleaner Production techniques over time. 22

23 5.3 Environmental Rating System The environmental performance of suppliers will be rated using a system similar to the Code of Conduct rating system. Due to the obvious connection the environmental rating will also take into account the suppliers control and compliance to the Chemical Restrictions. Green Yellow Orange Red Black Fully compliant Demonstrates best practice in environmental work & cleaner production Basically compliant Minor issues are found Factory making progress Non compliant Serious issues are found Factory making progress & showing will to improve Non compliant Critical issues are found Factory making progress & showing will to improve Non compliant Factory is making no progress Management lacking the will to improve All dyeing, printing and finishing sites (DPFs) used by the supplier have been evaluated concerning waste water and rated fully compliant 1 All DPFs demonstrate best practice cleaner production techniques No problems in meeting requirements set by Bestseller s Chemical Restrictions All DPFs used by the main supplier have been screened concerning waste water and rated basically compliant and have a documented wastewater plant in compliance with the national law. Lacking transparency in their supply chain Missing plan for environmental and waste management Lacking documentation & evidence of wastewater treatment in one or more DPFs used by the main supplier Breach on national environmental law for any step in the supply chain Inadequate or missing wastewater treatment in one or more DPFs used by the main supplier Repeated failure to meet Bestseller s Chemical Restrictions 5.4 Examples of best practice techniques Does the site use an automated dosing & dispensing system for chemicals? Is the site recycling the condensed water in the boiler system? Does the site recover the heat from hot wastewater streams by heat exchange with the in going cold process water? Is there a heat recovery system for hot off gasses? Are the most concentrated alkali baths from mercerization (of cotton/ viscose) recovered and recycled? Are pre washing and bleaching combined into one step? Are dyes with high fixation degrees used (i.e. high utilization)? This should be at least 70% 1 A fully compliant site will have provided documentation of an efficient waste water treatment plant in compliance with the bench mark set by the Sustainable Water Group (SWG). Testing Standards.pdf 23

24 5.5 Overview of textile production & the environment The below table gives an overview of the key environmental and health issues involved in each stage of textile production, and recommendations for effective management of the risks. Supply chain step Clothing manufacturer Print-house Dye-house Pre-treater Processes Environmental and health key features Recommendations / (potential future Bestseller requirements) Making up - cutting and sewing only for most products - for more complex products adding of fillings etc. Garment finishing - garment washing and special garment finishing's like stone or acid washing of jeans. Printing including pre-treatment processes like kiering, washing, bleaching, desizing etc. and finishing processes like softening and coating. Dyeing including pre-treatment processes like kiering, washing, bleaching, desizing etc. and finishing processes like softening and coating. Including tanning of hides and pre-treatment processes like e.g. kiering, washing, bleaching, desizing etc. Solid waste (textiles, packaging's), monotonous repetitive work, chemicals in textiles (e.g. formaldehyde). Separation of waste, recycling of textiles and packaging's (waste management). Implement job rotation. Chemicals in waste water. Waste water treatment is important for garment washing/finishing with chemicals. Use of "biostoning" (with enzymes) in stead of acid- and stonewashing. Chemicals and impurities in waste water, chemicals in exhaust air and textiles, energy and water consumption, solid waste (primarily packaging's). Chemicals and impurities in waste water, chemicals in textiles, energy and water consumption, solid waste (primarily packaging's). Chemicals and impurities in waste water, energy and water consumption, solid waste (primarily packaging's). Knitter Knitting. Dust, noise, use of knitting oils, solid waste (packaging's). Weaver Weaving and sizing. Dust, noise, sizing agent in waste water, solid waste (packaging's). Spinner Spinning and other related processes e.g. Dust, noise, energy use, use of spinning oils, solid carding, combing etc. waste (textile fibres and yarns, packaging's). Fibre manufacturer Textile accessories manufacturer Natural fibres Agricultural processes e.g. cotton crop growing, sheep farming. Man-made fibres (e.g. viscose and polyester) - Industrial chemical processes like polymerisation. Accessories of textile origin like embroideries and fillings - in principal processes similar to the clothing chain. Other standard components like buttons, zippers etc (plastics e.g. polyester, metals e.g. brass etc.) - industrial processes related to the specific materials. Use and emission of various agrochemical (to air, water and soil) e.g. fertilisers, pesticides. Exposure of workers to agrochemicals can be lethal. For cotton water consumption can be significant. Energy use, chemicals in waste water and exhaust air. In principal all of the above mentioned key features from fibre manufacturing to clothing manufacturing. Energy use, chemicals in waste water and exhaust air, solid waste (e.g. from mining of metals). Treatment of waste water essential. No use of certain known hazardous chemicals. Apply certain known cleaner production options to reduce consumption of energy, water and chemicals (e.g. use of dyestuffs with high degree of utilization). Separation of waste, recycling of packaging's (waste management). Treatment of waste water essential. No use of certain known hazardous chemicals. Apply certain known cleaner production options to reduce consumption of energy, water and chemicals (e.g. use of dyestuffs with high degree of utilization). Separation of waste, recycling of packaging's (waste management). Treatment of waste water essential. No use of certain known hazardous chemicals. Apply certain known cleaner production options to reduce consumption of energy, water and chemicals (e.g. combining pre-washing and bleaching in one single step). Separation of waste, recycling of packaging's (waste management). Protect workers from occupational exposure (dust, noise). Use biodegradable knitting oils. Separation of waste, recycling of packaging's (waste management). Protect workers from occupational exposure (dust, noise). Separation of waste, recycling of packaging's and sizing agents (waste management). Protect workers from occupational exposure (dust, noise). Use biodegradable spinning oils. Separation of waste, recycling of fibres and packaging's (waste management). No use of certain agrochemicals that have been banned or severely restricted. Protect workers from occupational exposure to hazardous agrochemicals. Controlled use of irrigation in cotton crop growing. Treatment of exhaust air and waste water extremely important. Recovery and recycling of processing chemicals is very important. Substitution of certain hazardous chemicals. Use of spin finishes application that are not harmful to environment and health and that are readily biodegradable. In principal all of the above mentioned recommendations from fibre manufacturing to clothing manufacturing. Treatment of exhaust air and waste water extremely important. Recovery and recycling of processing chemicals is very important. Substitution of certain hazardous chemicals.

25 6. Overview of general requirements for a Bestseller Supplier Bestseller s Code of Conduct Bestseller s Chemical Restrictions Bestseller s Environmental Work Full compliance to BS COC Appointed COC responsible in company Constant development and focus on social & environmental issues in collaboration with BS COC colleagues Bestseller suppliers will only produce in registered and COC approved factories Commitment to applying COC standards and ethics further down the supply chain Full compliance towards BS CR Close follow up on REACH regulations Appointed QC/CR responsible in company Strict policies controlling the source and quality of materials entering the factories to produce garments Use of respected and high quality facilities for dyeing, printing, finishing etc. Full details and mapping of supply chain, and knowledge of all chemicals and the quantities that they are used. Completion of BS testing requirements on finished products Full compliance to all environmental laws and specifications by SER department Appointed responsible person in company who can coordinate activities and provide required information to SER department Full control of production network use of respected and high quality print, dyeing & finishing establishments Full details and mapping of supply chain Control of wastewater treatment and willingness to supply documentation and details to Bestseller on request. Application of best practice techniques in regards to cleaner production

26 This guideline is intended for use by all suppliers working producing for brands connected to Bestseller AS. The latest update of this information will always be available on the supplier portal. Suppliers are also required to watch out for news updates from the SER department that are placed on the front page of the supplier portal. Any external party with queries or comments on this guideline, please contact our Social & Environmental Responsibility Department in Denmark on SER Department, Bestseller A/S. Brande, Denmark. October 2008.