Fashion Revolution’s Transparency Index reveals that the top 100 global fashion brands still have a long way to go towards transparency
Many of the biggest global brands that make our clothes still don’t disclose enough information about their impact on the lives of workers in their supply chain and on the environment, new research reveals.
The way fashion is made, sourced and consumed continues to cause suffering and pollution. Fashion Revolution believes that this urgently needs to change and that the first step is greater transparency.
Transparent disclosure makes it easier for brands, suppliers and workers, trade unions and NGOs to understand what went wrong when human rights and environmental abuses occur, who is responsible and how to fix it.
The Fashion Transparency Index 2017, released today, reviews and ranks how much information 100 of the biggest global fashion companies publish about their social and environmental policies, practices and impacts.
The research found that even the highest scoring brands on the list still have a long way to go towards being transparent. The average score brands achieved was 49 out of 250, less than 20% of the total possible points, and none of the companies on the list scored above 50%.
Adidas and Reebok achieved the highest score of 121.5 out of 250 (49% of the total possible points), followed by Marks & Spencer with 120 points and H&M with 119.5 points. However, only 8 brands scored higher than 40%, while a further 9 brands scored 4% or less out of 250 possible points, of which Dior, Heilan Home and s.Oliver scored 0 because they disclose nothing at all.
Out of the premium and luxury brands reviewed, 9 scored between 21-30% of the total possible points, which was higher than the average. The other 10 scored 15% or less.
The good news is that 31 brands are publishing supplier lists (tier 1) including ASOS, Benetton, C&A, Esprit, Gap, Marks & Spencer, Uniqlo, and VF Corporation brands since April 2016. This is an increase from last year when Fashion Revolution surveyed 40 big fashion companies and only five were publishing supplier lists. This year 14 brands are publishing their processing facilities where their clothes are dyed, laundered, printed or treated. However, no brand is publishing its raw material suppliers. Banana Republic, Gap and Old Navy scored highest on traceability (44%) because their supplier list includes detailed information such as types of products or services and approximate number of workers in each supplier facility.
Meanwhile few brands disclose efforts on living wages, collective bargaining, and reducing consumption of resources (on average 9% of the information required in these categories was disclosed), sending a strong signal to brands to urgently look at their own business models and purchasing practices.
There is a long way to go in order for the industry to pay a living wage, as only 34 brands have made public commitments to paying living wages to workers in the supply chain, and only four brands — H&M, Marks & Spencer, New Look and Puma — are reporting on progress towards achieving this aim. This shows that much more needs to be done and faster by brands to ensure that workers, from farm to retail, are paid fairly.
Fashion Revolution Co-founder Carry Somers said: “People have the right to know that their money is not supporting exploitation, human rights abuses and environmental destruction. There is no way to hold companies and governments to account if we can’t see what is truly happening behind the scenes. This is why transparency is so essential.”
“Through publishing this research, we hope brands will be pushed in a more positive direction towards a fundamental shift in the way the system works, beginning with being more transparent.”
Dr. Mark Anner, Director, Centre for Global Workers’ Rights Penn State University said: “The time has come for brands and retailers to make their entire supply chains transparent. The time has also come to establish sourcing practices that are conducive to the human development and empowerment of the workers who work so hard every day to make the clothes we wear.”
Brands were awarded points based on their level of transparency across 5 categories, including: policy & commitments, governance, traceability, supplier assessment and remediation and spotlight issues which looks at living wages, collective bargaining and business model innovation. Brands were selected to represent a cross section of market segments including high street, luxury, sportswear, accessories, footwear and denim sectors.
The data revealed that:
Policy & Commitments – overall score = 49%
The highest concentration of brands scored in the 71-80% range with 11 brands scoring between 81-90% and 16 brands scoring 20% or less. By and large, brands are disclosing the most about their policies and commitments on social and environmental issues.
Governance – overall score = 34%
The largest number of brands (37) score 10% or less. 13 brands fall in the 41-50% range. Marks & Spencer is the only brand to score 100% meaning that they’re disclosing who in the team is responsible for social and environmental issues, along with their contact details, board level accountability, and how other staff and suppliers are incentivised to improve performance.
Traceability – overall score = 7%
Overall brands are disclosing few details about their suppliers. 31 brands are publishing supplier lists (tier 1). 14 brands are publishing their processing facilities. No brand is publishing its raw material suppliers. 23 brands disclose having updated their supplier list at least in the past 12 months, while Target says it uploads its supplier list quarterly and ASOS promises to do so every two months.
Know, Show & Fix – overall score = 16%
The highest concentration of brands (36) fall in the 11-20% range whilst another 31 score less than 10%. Adidas and Reebok score highest at 39%, with 7 other brands joining them in the 31-40% range. Brands often disclose their supplier assessment processes and procedures. However brands share little information about the results of their supplier assessments, and brands don’t publish much about the results of the efforts made to fix problems in factories.
Spotlight Issues – overall score = 9%
Overall, brands are disclosing little about their efforts to pay living wages or to support collective bargaining and unionisation. Few brands are disclosing their efforts to address overconsumption of resources. Marks & Spencer, New Look and H&M scored in the 41-50% range, and no brand scored above 50%. The majority of brands scored less than 10%.
The report provides recommendations for how consumers, brands and retailers, governments and policy makers, NGOs, unions and workers can use the information contained in the Fashion Transparency Index to make a positive difference.
Major footwear and garment brands react to serious human rights issues in their leather supply chain and promise collective action
Around 2,5 million workers in the Indian leather industry often face unacceptable working conditions that violate their human rights and seriously affect their health. Toxic chemicals used in tanneries often very negatively impact the health of the workers. Less known are the many labour and other human rights issues in the leather industry like wages below the stipulated minimum wage, child labour, the exploitation of home-based workers, the difficulty to organize in trade unions and the discrimination of Dalits (‘outcastes’).
‘Do leather workers matter?’
This is in short the plight of leather workers that is described in more detail in the report Do leather workers matter? Violating labour rights and environmental norms in India’s leather production.
The report explores labour conditions in the leather industry that are steeped into deep-rooted social inequalities in Indian society based on caste and gender discrimination. The main pillars of this study are literature research and field research at three production hubs that supply hides, leather, garments, accessories and footwear for export, namely Kolkata, Agra and the Vaniyambadi–Ambur cluster in Tamil Nadu. The report depicts labour conditions in a cross section of production units varying from homeworkers, tanneries, workshops in the informal sector to large modern export units. Of course these conditions do vary between production units.
Dalits (‘outcastes’) and Muslims make up the majority of the workforce in the leather industry. The low wages of the Dalit leather workers reflect their low status and the low status of their work in the leather industry, being dirty and polluting. In Tamil Nadu for example the official minimum wage early 2016 for leather workers is less than 2 euro per day, being less than half of the official wage of an apprentice in the textile industry. Often this minimum wage is not even paid.
Female homeworkers, responsible for a highly labour-intensive part of shoe production, are also among the most precarious workers. They face insecure and unprotected work, receive poverty wages and work under unsafe conditions. Moreover, children are often involved in leather production in India, mostly in the unorganized part of the sector, working in smaller tanneries and workshops.
Response of footwear and garment brands
A large range of major brands are sourcing footwear, leather garments, leather goods and accessories from India, which include H&M, C&A, Primark, Armani, ECCO, Esprit, Tommy Hilfiger, Zara, Mango, Walmart, Gabor, PUMA, Pentland, Prada and Marks & Spencer among many others. The report does however not look into the supply chains of specific brands, but more generally sketches human rights violations in leather and leather goods production in India.
India is the world’s second largest producer of footwear and leather garments. The footwear sector in India specializes in medium to high priced leather footwear, particularly men’s wear. Almost 90% of India’s footwear exports goes to the European Union.
A draft version of this paper was initially shared with a wide range of companies and CSR initiatives. In a joint statement 12 member companies of the Ethical Trading Initiative (UK) welcomed the ICN report and said that ‘taken together we recognize the very concerning issues in the leather supply chain’. They also said to agree that ‘there needs to be a collective response to these issues’ and ‘We commit to working with international and national stakeholders to develop a strategic response to the issues in our leather supply chain.’
In total 19 companies, including the 12 ETI members like C&A, H&M, Primark, Inditex, Marks & Spencer, Next, TESCO, Sainsbury and Pentland, reacted to the report as well as two CSR initiatives: the Leather Working Group and MVO Nederland (CSR Netherlands). Most companies recognize the urgency to address the issues identified in this research and some shared concrete commitments to combat adverse human rights and environmental impacts in their supply chain.
The report contains nine recommendations to companies and CSR initiatives in the leather and footwear industry on (the need for): due diligence, mapping of supply chains, transparency, long-term business relationships, collaboration to increase leverage, the mandatory written contracts and equal treatment and the importance of unions, collective bargaining, company level grievance mechanisms and space for civil society.
ASBCI (Association of Suppliers to the British Clothing Industry) has announced to hold a Spring Conference 2017, which will take place on 5th April 2017 at the Marriott Hotel in Peterborough, Canada. Agenda of the conference will be ‘DOING THE RIGHT THING? – Best practices for sustaining our people, planet and profits’ and the event will be chaired by Simon Allitt, ASBCI Event Committee Vice Chairman and Head of Retail, TUV Rheinland.
It may be mentioned here that sustainability is placed on top of the global fashion industry’s agenda and according to ASBCI, ten years ago Marks & Spencer launched its game-changing Plan A. Since then most big brands and retailers have implemented their own robust ethical and environmental sustainability programmes with the collective objective of protecting people and the planet.
The ASBCI sustainability conference has assembled speakers with unparalleled experience of the most effective and commercial, sustainable initiatives and innovations. The speakers will share their experience, insight and vision in a bid to give attendees a sustainable and profitable future.
The conference will have following sessions: Are You Doing the Right Thing (Rakesh Vazirani – Director of Product Traceability & Environmental Information Management TUV Hong Kong), Plan A 10 Years On (Mike Barry, Director Plan A, Marks & Spencer), Striving for sustainability in the clothing industry – an Overview of working with WRAP (Prof. Tim Cooper, Professor of Sustainable Design and Consumption, Nottingham Trent University), Fashioning Fibres for the Future (Robin Anson, Editorial Director, Textiles Intelligence), Cottoning On (Graham Burden, Director, Sustainable Textile).
Post-lunch session will cover topics such as, Water Use in the Textile Supply Chain (Elaine Gardiner, Sustainability Manager, Berghaus), Sustainability Together (Guido Rimini, Head of Marketing, Apparel Europe, Freudenberg Performance Materials Apparel SE & Co. KG Solutions), Closing the Loop (Ross Barry, Lawrence M Barry & Co) and Supply Chain Transparency – What have you got to lose (Tara Luckman, Fabric & Sustainability Manager, ASOS.COM)
Mass retailers like H&M, Zara, UK-based Marks & Spencer, Belgium-based CNA and Gap Inc., which owns Gap, Old Navy, Banana Republic and Athleta, have begun sharing the names of the factories they work with in an effort to improve working and environmental conditions, streamline cluttered supply chains, and get on the right side of the mindful consumer. This is a departure from traditionally standard retail practices, which saw companies keeping their factory names closely held in order to protect themselves from competition.
The timing is right: Corporate brands are looking to become more transparent during a moment of increasing customer consciousness. Transparency is, on some level, a feel-good buzzword for an industry plagued by environmental and ethical issues, as becoming more transparent doesn’t require as much internal overhaul as becoming more sustainable. And it’s not for nothing: When retailers identify what factories they work with, as well as what compliance guidelines they follow, it can help improve worker conditions and bring manufacturer malpractice to light.
“The supply chain is really complicated, but it’s a positive step from a global labor union perspective to be transparent,” said Christina Hajagos-Clausen, textile and garment director of global union IndustriALL, which has contracted agreements with H&M and Zara. “Customers appreciate it, as well. If you have nothing to hide, you can show it.”
But as big brands take steps to bring their supply chains out of the shadows, they haven’t trumpeted that message as loud-and-proud as one would expect. Gap Inc. announced its factory list in a bland investor relations announcement. H&M and Zara share some updates on the subject on their social media accounts, but they’re sporadic enough to get buried by product posts and lifestyle content.
Compared to brands like direct-to-consumer retailer Everlane, these brands have kept transparency volume to a whisper. Everlane’s entire brand ethos is predicated around transparency: Its motto is “Radically Transparent,” and it hosts “Transparency Tuesdays” Q&As on Snapchat. In addition, it takes customers on video tours of new factories. The pricing structure for every product is laid out online, and interested customers can read about each of the 17 factories Everlane works with on its website.
Customers have clearly embraced this share-everything approach to retail. Everlane grew its revenue by 200 percent year-over-year in 2015, according to Bloomberg, and the brand does little marketing, accruing a customer-base mostly around mission-driven word of mouth.
But Everlane’s “radical transparency” is missing key specifics. Factory names aren’t disclosed, and the company adheres to a list of unspecified “compliance guidelines” when sourcing new factories. Meanwhile, Gap, Zara and H&M all have named factories and detailed compliance guidelines on their investor sites.
Founder and CEO Michael Preysman said in an email that the reason Everlane doesn’t disclose its factory names is that factory partners have asked them not to.
“Everlane makes products in the same factories as luxury brands,” he said. “We make the same quality product as these other brands, pay the same cost, but charge a much lower markup. We may jeopardize their business.” He added that when factories allow, the names are shared. Such factories currently include Nobland in Vietnam and Mola in Los Angeles.
Preysman said that Everlane’s requirements for factory transparency include being able to document them, share what products are made there and complete audits on worker health, pay, safety and paperwork. However, in leaving some aspects—like their names—open-ended, Everlane’s practices are subject to interpretation.
“Not releasing factory names makes you less accountable if something happens,” said Natalie Grillon of Project Just, an online resource for customers wanting to find out how and where clothing from different brands is made. “They say it’s for competitive reasons, but in reality, a lot of these factories produce for multiple brands at a time. It’s more about protecting yourself.”
Customers of Everlane and other brands like American Giant and Reformation that built their brand messages on the back of transparency and conscious shopping appreciate the respite they offer from corporate facelessness. So as such corporations as Gap and Zara make transparency efforts, customers are repelled. A message of transparency from a fast fashion brand lacks the magic word: authenticity. When you’re H&M, firing off a tweet about sustainability efforts falls on highly skeptical ears.
“H&M comes under fire a lot for their initiatives because they do publicize it,” said Grillon. “When really, they’ve made a ton of effort in support of better wages. But then they talk about it a lot, and then they come under fire a lot for anything at all that goes wrong.”
Small brands looking to break the unsustainable retail system are the underdog, so customers are more willing to work through the problematic issues with them, said Grillon. For corporations, not so much. Grillon said Gap is hesitant to flaunt its transparency efforts because, unless they’re perfect (which, thanks to the messy state of retail’s supply chains, is impossible), they’ll receive backlash. It’s also hard to trust that bigger brands aren’t falling back on transparency in lieu of sustainability.
“Transparency is a means to an end,” said Bayard Winthrop, founder and CEO of American-made brand American Giant. “We believe it has to be part of our value system because the customer is going to find everything out. But being transparent isn’t the end goal.”
Without a believable value system in place, big retail is hard to pass off a message beyond anything other than profit.
“When you talk about ethical fashion, you’re talking about working toward better conditions, higher wages, fewer chemicals,” said Grillon. “That’s going to require raising prices, and that’s a hard pill to for brands to swallow.”
Marks & Spencer is working its way up your closet. Hot on the heels of its first line of sustainable shoes, the British department store has launched a line of womenswear made with recycled cotton and recycled polyester fabrics. Inspired by streets of East London, the 16-piece “Limited London” collection combines punchy florals, statement denim, and urban-chic silhouettes to create high-impact pieces that “not only look great, but also have a conscience,” the retailer says. Prices are consumer-friendly, as well, ranging from £9.50 for a crop top to £69.50 for a sleeveless longline jacket.
The capsule arrives in stores just as Marks & Spencer announced additional commitments
to improve transparency in its clothing supply chain.
The retailer noted in its 2015 “Plan A” sustainability report that it will publish an annual list of its active clothing manufacturers by 2016.
“We’ve been working with our suppliers on many of these for some time, but this is the first time we’ve included them in our global sourcing principles,” it noted in the report. “Next year we will report on how we’re supporting our suppliers to meet these standards.”
Other ongoing initiatives include procuring 70 percent of its cotton from sustainable sources by 2020, improving its volume and value of textile recovery, and working to achieve its goal of zero discharge of hazardous chemicals from the manufacture of its textile and apparel products by 2020.
LONDON – Marks and Spencer has said it will develop the business’ role in developing a circular economy, by scaling up projects such as its charity textile recycling initiative Shwopping. M&S today launched its 2015 Plan A sustainability report, the first since it launched the third stage of its Plan A sustainability initiative – Plan A 2020.