Transparency in the value chain is difficult but controlled through the Code of Conduct. With the complex supply chain involved in producing a garment, the mapping must be broken down into manageable bits and pieces and be handled step by step.
Important governance tools are the Amfori BSCI Code of Conduct for working conditions in factories, and our Chemical Management Program (including our Restricted Substances List), which are all implemented in the supply chain. Compliance with these requirements is followed-up continuously and is integrated into our overall Supply Chain Management Program.
Our transparency in different parts of the supply chain:
Tier 1 Through our Code of Conduct, we have full transparency in tier one, our garment manufacturers.
Tier 2 All components/materials: Fabrics, elastics, thread, labels and packaging.
Tier 3 Weaving and Spinning: We increase our volumes from nominated fabric suppliers, but still have a challenge in finding resources for control.
Our manufacturing partners are key for us to reach out to the second and third-tier level of our production chain, their sub-contractors, in cascading our requirements further. We factor environmental performance into our supplier evaluation. We perform a supplier evaluation twice per year, covering several performance areas of which sustainability is one. Supplier engagement and willingness to improve are evaluated as well. Each manufacturer receives a total score in our evaluation, and those with good scores, and particularly those that improve over time, have a chance to get more business (purchase volumes) from us.
All vendors share their tier 1 with us, which means that we have full transparency in tier 1. We have started requesting information on fabric suppliers and dye houses from some suppliers and have received answers. However, the percentage of tier 2 and tier 3 that are mapped so far is low (around 5% each).
We have also started mapping our vendors for other parts of the organisation and now have full transparency in tier 1 suppliers for marketing, trade solutions, and packaging.
Our products (own production*) were produced by 11 vendors in a total of 21 factories during 2019. The majority of our factories are based in China.
* Own production refers to factories contracted by Björn Borg, excluding factories contracted by licensees (such as for footwear and bags).