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Managing labour standards and human rights in the supply chain.

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How is this calculated?


History

Level 1: Build a foundation and set ambitions

G-Star maintains a publicly available Code of Conduct supporting ethical sourcing and labour standards, including a commitment to uphold the International Labour Organization (ILO) core conventions and the UN Declaration on Human Rights. G-Star has a documented process to ensure all suppliers (CMT, sub suppliers and mills) sign the Code of Conduct. This Code of Conduct forms part of G-Star's overarching labour standards strategy. In addition to communicating expectations, G-Star maintains systems to monitor labour rights risks within its supply base. This comprehensive foundation is reflected in a level 1 score of 100%.

Level 2: Make steady progress

G-Star has established systems to implement its Code of Conduct, working with accredited third-party auditors to monitor compliance, and identify and address non-conformities. G-Star maintains an internal audit trail, with a dedicated CSR team taking responsibility for ethical trade, and training buying teams on labour standards. The team regularly monitors and reviews level of human rights risk by supplier location. These activities resulted in a level 2 score of 84%.

Level 3: Adopt best practice

G-Star regularly invests in the wellbeing of the communities where their supply chains are located. Through the GSRD Foundation, set up in 2007, G-Star focuses on educational and entrepreneurship programmes in countries such as China, India, Bangladesh and Peru. G-Star is building supplier capability through initiatives such as the Better Work Programme in Vietnam, the Bangladesh Accord on Fire and Building Safety, and direct supplier training. Furthermore, G-Star has also developed a programme to engage suppliers with living wages. However there remains scope to align internal incentives and purchasing processes in support of improved labour standards resulting in a score of 46% for level 3.


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