GFG is committed to being fair to the people making our private label products and collaborative in working with our brand partners to drive continuous improvement on social and environmental impacts in their own supply chains. We recognise the responsibility that we share with our suppliers to source products in an ethical manner and we want our employees and customers around the world to be confident that the people who make our products are treated fairly, enjoy decent human rights and are not exposed to unsafe working conditions. We place significant emphasis on our ethical trade standards in our relationships with suppliers and will only work with companies who demonstrate our shared values.

Our Ethical Trade Targets

Target

Progress in 2020

50%

Own-brand factories participated in training programs

67%

15%

Own-brand product made from sustainable materials

2.5%

100%

Top 30 brands engaged on sustainability

17%

100%

Regions with a sustainable fashion edit

100%

10%

Group sales from product that meets sustainable product criteria New target 2021

100%

Own-brand water footprint mapped and plans in place to reduce impact Due to commence 2021

OUR ETHICAL TRADE FRAMEWORK

GFG stocks third-party brands, white label and own-brand ranges. For our own-brands, which apparel, footwear and accessories, we design and develop the products ourselves and they are sold in the LATAM, SEA and ANZ regions of our business. The majority of our factories are in Brazil, but we also work with facilities in China, Argentina, Indonesia, India and Bangladesh.

Lists of the Tier 1 factories we work with for our own brands are published on Latam (Brazil), SEA and ANZ websites and include the name and address of the facilities and the gender profile of the workers employed there and are updated on a regular basis. GFG has partial visibility of Tier 2 suppliers for our own-brands, including inputs such as dye houses, printers, wash facilities, spinners and componentry such as zips and embellishments.

Our Factories

0

own-brands

0

factories

0

sourcing countries

13 3 4 54 306 28

Find the private label factory lists for THE ICONIC, ZALORA and Dafiti on their website.

 

In recognition of our growing transparency in 2020 Dafiti, a first time entrant in the Brazillian Fashion Revolution Transparency Index, scored 42% and came 8th out of 40 brands overall.

All suppliers, factories and subcontractors are required to abide by the standards set out in our Supplier Code of Conduct and these standards are incorporated as a part of the contractual agreements with suppliers. Our Supplier Code of Conduct which sets out our social and environmental performance expectations to all suppliers, both to our own brands and of third-party providers of goods or services to GFG. This is inclusive of, but not limited to, suppliers’ vendors, agents, factories, mills, farms involved in production of materials, inputs and raw materials further down the supply chain, even where GFG or its subsidiaries do not trade with them directly.

Supplier Code of Conduct

All tier one factories which manufacture for GFG own brands are required to provide a comprehensive social audit, assessing the working conditions in that location, before trading commences. These are either conducted by independent third party audit firms or by internal audit teams and involve independent and confidential worker interviews and cover elements of our Supplier Code of Conduct including labour rights, wages, working hours and health & safety. Each audit is rated within GFG’s in-house audit classification system which grades each non-compliance between minor and highly critical depending on its severity. New factories with unresolved critical or highly critical non-compliances will not be onboarded. Where an existing factory is re-audited (which happens at least every 2 years and most commonly every 12 months) and found to have a critical issue there is a timed and limited remediation period, the length of which is determined by the nature of the issue, during which trade continues with the factory and we support the remediation process. If the non-compliance is not resolved within the timed period, production ceases and orders cannot be placed until the remediation is completed.

Who Made My Clothes? - Fashion Revolution

THE ICONIC is on a journey to better manage our social and environmental impacts and as part of this, we have been working closely with the manufacturers of our own-brands to understand and improve the working conditions provided to workers.

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CASE STUDY

Worker Training and Independent Grievance Mechanisms

It is essential to GFG that we have a full understanding of what is happening on the ground in the factories we trade with. Therefore we are committed to building on our factory audit program to engage directly with workers in the supply chain and find opportunities to build on in-factory grievance mechanisms in our own-brand supply chain.

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Environmental Impact of Our Own-Brand Supply Chain

GFG recognises that some of our most significant environmental impacts are caused by the processing of the materials used in the products we sell and that we have a responsibility to make decisions which facilitate the reduction of these impacts. Therefore transitioning the materials used for our own-brand products to be made from less environmentally impactful alternatives is a key priority, in line with our target to reach 15% of own-brands made from less impactful materials by the end of 2021.

To support buying teams across the group with their decision making, GFG has developed a Preferred Materials Benchmark. The Benchmark ranks materials based on the environmental impact they have at each stage of the lifecycle, including raw material, production, the use phase and at the end of life from A-D, A being the most preferred and D being the least preferred. The Benchmark is informed by the material impact scores from the Higg Material Sustainability Index (MSI) of the Sustainable Apparel Coalition and by lifecycle studies. Buying teams across the group have been provided with training on the Benchmark and they are also supported by a comprehensive set of internal resources to verify claims made by suppliers.

GFG Preferred Materials Benchmark

The benchmark ranks materials based on their environmental impact.

Capacity Building of Buyers and Suppliers

Beyond the training of the Preferred materials Benchmark, we provide training to buyers across the Group to build their awareness of ethical trade issues, GFG’s requirements and the processes we have in place to assess our suppliers against them. Similarly, although in 2020 this was shifted to delivery online, we have continued to focus on building on the capacity of our own-brand suppliers to understand and implement our requirements progressively over time. Training programs have been delivered to suppliers in SEA, ANZ and Brazil in the local language on GFG’s ethical trade requirements and the audit program, as well as specific topics such as wage systems and working hours and overtime management.

Third Party Brand Supply Chain

Although we have much greater ability to influence our own-brand supply chain, we recognise that we have a responsibility (and an opportunity) to influence the third party brands we work with to manage and mitigate their social environmental impacts. Our Supplier Code of Conduct is also applicable to our third party brand partners and incorporated into our contractual agreements. We will not hesitate to exit brands that demonstrate they are not aligned with our values, however commercially significant.

We have analysed the publicly available information on sustainability for our most commercially important brands. An in-house developed points based system, the analysis assesses the policies, systems, strategies and memberships detailed by a brand and uses the disclosure as a proxy to assess their overall performance. This analysis is being used as a platform for further engagement with those brands to understand whether their result reflects their actual performance and where necessary to influence improvement. GFG is committed to providing training and capacity building to our brand portfolio where required in order to proactively drive change.

Driving Sustainable Consumption

GFG believes that it plays an important role within the fashion ecosystem in respect of influencing demand for and supply of more sustainable fashion. By supporting customers to understand the sustainability credentials of products and by integrating them within our assortment, we can enable customers to make more mindful choices when shopping without compromising fashionability or accessibility. In turn, we can assist our brands understand customer expectations and preferences in relation to more sustainable shopping and encourage them to provide products that have a lower impact on people, animals or the environment. We believe it is only with these two drivers that the industry will make more sustainable fashion mainstream and a core element of successful fashion businesses.

It is for this reason we have sustainable shopping edits live in all regions as a result we have made more sustainable fashion more easily accessible to millions consumers. Items within the sustainable shopping edits must meet at least one sustainability credential and each item is verified internally as meeting the specific criteria.

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CASE STUDY

Sustainable Shopping Edits Launched in LATAM, CIS & SEA

Our research suggests that whilst, irrespective of region, many of our customers have previously purchased more sustainable products there generally remains a narrow range available to them in the market.

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