Corporate Responsibility Review 2019 - Pentland Group
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Pentland Group Corporate Responsibility Review 2019
Introduction
A view from our Chairman, Stephen Rubin 3
Who we are 5
UN Global Compact 9
2019: a year in review 11
This Pentland Group Corporate
Responsibility Review evaluates
the progress we made in 2019,
Corporate Responsibility
and outlines our plans for 2020. at Pentland Brands Limited
You can view our previous Positive Business strategy 18
Corporate Responsibility
Brands with purpose 19
reviews here.
Our footprint 32
Our future 44
Corporate Responsibility
at JD Sports Fashion plc
People 51
Energy and the environment 56
Ethical sourcing 61
The JD Foundation 64
2
A view from our Chairman,
Stephen Rubin
Looking back at 2019, it is clear that the business performance benchmarks and working towards its broader The Rubin Foundation continued to support charities
context for corporate responsibility has changed ambition for all its existing global operations to be powered focused on climate change, inequality and education.
considerably. Building a sustainable business has by renewable energy by 2025. The Foundation continued to support the Pentland
never been more important to our stakeholders - Centre for Sustainability at Lancaster University,
Our people remain at the heart of what we do, and our
our people, our partners and our consumers. funding disadvantaged young entrepreneurs through
employees play a vital role in our success. Pentland Brands
The Princes Trust and a public policy scholarship for
As one of the original members of the UN Global continues to champion diversity and inclusion (D&I),
developing countries with UCL. The JD Foundation
Compact, and continued advocate of the UN with three D&I networks in the UK and a working group
continued to support charities working with
Sustainable Development Goals, I am pleased with in Asia playing a vital part in shaping its initiatives. In
disadvantaged young people in the UK focused on
the progress of our businesses in supporting and September 2019, it celebrated its third Global Inclusion
mental health and homelessness. Pentland Brands
fulfilling our sustainability ambitions in 2019. Week, which saw employees come together to discuss
continued to support charity partners in communities
ideas for improvement.
Pentland Brands Limited accelerated its Positive where they operate working to help disadvantaged
Business strategy, sharing plans and ambitions A key focus area for our businesses is to maintain an ethical young people through empowerment and sport.
to take action for people and our planet. This new supply chain where people are treated fairly, honestly and
I am proud of the progress our businesses have made
direction is driven by employees, who are passionate with respect. Both Pentland Brands and JD have evolved
in 2019 and I am confident in their ability to build on
and like-minded individuals, and believe in building their approaches to ethical sourcing, with Pentland Brands
this in the years to come. Together, we will continue
a better future for the world we live in. obtaining ‘achiever’ level with the Ethical Trading Initiative
to take action for the causes that we believe in, working
(ETI) and JD introducing its new Code of Practice, to
JD Sports Fashion Plc continues to recognise the together to make a difference and create a positive
ensure all products created by its brands and suppliers
importance of protecting the environment and environmental and social impact. I look forward
are manufactured in safe and fair conditions.
minimising the impact of its operations. It has to sharing our progress with you.
taken steps to advance its reputation as a sustainable The Group continued to give back to those in need
Stephen Rubin
organisation by participating in environmental during the year in a number of different ways.
Chairman, Pentland Group
3
COVID-19
While this report is a reflection You can read more about
on 2019, we acknowledge that the Pentland Brands’ response
impact of COVID-19 on our corporate to COVID-19 here.
responsibility activities has been
You can read more about JDs’
extensive and far-reaching and will
response to COVID-19 here.
continue through 2020 and beyond.
Our priority remains the wellbeing
of our people, partners, customers
and consumers, alongside building
a sustainable business.
4
Who we are
5
About Pentland Group
We are a family-owned business Brands, Pentland Retail and
Pentland
that owns and invests in companies Pentland Investments.
to create value for stakeholders. Investments
We take a long-term view on
Pentland Brands Through our Pentland Investments
developing and positioning our Our Pentland Brands division is division, we are a shareholder in
brands, we are passionate about the name behind some of the world’s companies such as Hunter Boot
our people and committed to best sports, outdoor and lifestyle Ltd and Tracksmith. We also invest
being good corporate citizens. brands. These include Speedo, in businesses across a number of
Berghaus, Canterbury of New different industries.
Pentland Group employs over
Zealand, ellesse, Endura, SeaVees, Included in this Corporate
50,000 people and has annual
KangaROOS and Mitre. Responsibility review are businesses
sales of $6.4 billion.
with an annual revenue of over £500
How we work Pentland Retail million, in which Pentland Group
Our retail division comprises the owns a majority share. The scope is
Our businesses are changing therefore Pentland Brands Limited
activities of JD Sports Fashion plc,
rapidly, but our people and our and JD Sports Fashion plc.
the UK’s leading retailer of branded
values remain at the heart of
sportswear, fashion and outdoor
what we do. We have three
clothing and equipment, in which
business divisions: Pentland
Pentland Group holds a 55% share.
6
Our story
Pentland Group took its first steps Honesty, respect, and hard work
as the Liverpool Shoe Company run through all that we do.
in 1932. Founded by Minnie and
Our focus is building long-
Berko Rubin, what began as a small
term, sustainable businesses
shoe business expanded until we
that adapt to the changing
were both a manufacturer and
environment. We aim to make
a wholesaler of footwear.
a positive impact through our
As a family-owned company, doing businesses, our products, our
business responsibly has been services and our communities.
important to us from the beginning.
Our Business Standards set out
our expectations for ourselves,
our partners and our suppliers
to ensure that we continue to
do business in the right way.
7
Our approach
We believe in doing the right thing, We partner with NGOs, academics
not the easy thing – as individuals and others in our industry to
and as an organisation. That create change for the better and
means doing business ethically, give back to our communities.
supporting our people, minimising
our impact on the environment and
partnering with others to drive our
sustainability agenda.
All Group companies, in which
we hold 50% or more equity,
are required to comply with our
policies and we use our influence
to help others increase their impact
where we can.
8
UN Global Compact Topic UN Global Compact Principle Location in our report
Human rights 1. Businesses should support and 32, 61
respect the protection of internationally
proclaimed human rights; and
2. make sure that they are not complicit 32, 61
in human rights abuses
Labour 3. Businesses should uphold the freedom 32, 61
We are a signatory of the UN Global
of association and the effective recognition
Compact and fully support its ten
of the right to collective bargaining;
principles on human rights, labour,
4. the elimination of all forms of forced 32, 62
environment and anti-corruption.
and compulsory labour;
This report details the contribution 5. the effective abolition of child 32, 62
our business divisions have made to labour; and
each of the ten principles in 2019. 6. the elimination of discrimination in 39, 50
respect of employment and occupation
Environment 7. Businesses should support a 42, 55
precautionary approach to
environmental challenges;
8. undertake initiatives to promote 42, 55
greater environmental responsibility; and
9. encourage the development and diffusion 42, 55
of environmentally friendly technologies
Anti-corruption 10. Businesses should work against 32, 50
corruption in all its forms, including
extortion and bribery
9
UN Global Compact
We are committed to supporting the
UN Sustainable Development Goals,
which address the global challenges
faced by our planet. We have selected
the eight goals where we believe we
can make the biggest difference.
102019: a year in review
2019 saw progress across our
business divisions in areas
covering sustainability, social
impact and supply chain.
Here are some highlights.
11Pentland Brands Limited
Nurturing brands Leaving a positive
with purpose footprint
• Speedo championed diversity and • Pentland Brands progressed to level • It also pushed ahead with its
inclusion through its sponsorship ‘achiever’ with the Ethical Trading sustainability agenda, building a
programme, pledging to support Initiative (ETI), for strengthening sustainable materials library for
Paralympic teams in Tokyo 2021 and its approach to ethical trade its tier two footwear suppliers
renewing its sponsorship of Team through NGO collaboration, multi- and rolling out 100% recyclable
GB at the next Invictus Games. stakeholder initiative representation packaging across six of its
and monitoring for improvement. brands’ e-commerce websites.
• Endura established its 1 Million
Trees initiative – a pledge to • The business hosted a Global
plant one million trees each year Inclusion Week, celebrating what
in a bid to make a difference to it means to be a diverse business
global warming. and starting the conversation about
how we can do more in this area.
12Pentland Brands Limited
Collaborating and
connecting
• Pentland Brands set up a Sustainability
Steering committee and working group
to drive sustainability initiatives across
the business.
• It continued to collaborate with its
charity partners, working towards its
goals of inspiring 5,000 young people
across the UK to get involved in sport
and empowering 10,000 women in
disadvantaged communities by 2021.
13JD Sports Fashion plc
People Energy and
• JD takes a holistic approach to environment
promote health and wellbeing
• JD has advanced its reputation as
through its different business
a sustainable organisation through
areas. 2019 saw the introduction
participation with RE100 (the
of Wellbeing Champions; 161
world’s most influential companies,
individuals selected and trained
committed to 100% renewable
on how to spot signs of modern
power) to demonstrate its public
slavery and how to support
commitment to renewable energy.
employees experiencing mental
health difficulties.
• JDs’ training strategy has been
developed to allow First Aid and
Mental Health First Aid training
to be available to all employees.
14JD Sports Fashion plc
Ethical sourcing The JD Foundation
• 2019 saw the introduction of JD’s • The JD Foundation supports
Code of Practice, encompassing charities working with
its policies in a concise document disadvantaged young people
for its suppliers and brands in the UK. In 2019 it supported
to ensure all products are 18 charities with a focus on
manufactured in conditions physical health, mental health
that are fair and safe. and homelessness.
• From October 2019 to March
2020, 2.1 million products were
made from sustainable materials.
15Reducing
our footprint
Year on Year
2017 - 18 tCO 2 2018 - 19 tCO 2
We aim to minimise our impact on total 38, 330 total 32, 464
the environment. We report our
greenhouse gas emissions at Group Elec 33, 713 Elec 27, 706
level in line with the requirements of Gas 4, 617 Gas 4, 758
the Carbon Reduction Commitment
Energy Efficiency scheme. This
includes emissions from the energy
we use in Pentland Brands’ offices
and distribution centres and in the
operations and retail stores run by
JD Sports Fashion plc in the UK.
In 2019, Pentland Group’s carbon
footprint decreased by around 15%
compared to 2018, from 38,330
tonnes to 32,464 tonnes. This is the
result of a drive to reduce emissions
across the Group.
Change vs Last Year
total -15%
16The Pentland Centre for
Sustainability in Business
The Pentland Centre for Sustainability This science communications event,
in Business at Lancaster University focussed on the global impact of
was founded in 2015. The Group Arctic Change, involves scientists
continues to sponsor the centre which and climate activists camping at
supports innovative sustainability a prominent location in Davos,
research to find practical solutions to and interacting with delegates
social and environmental challenges. at the WEF annual meeting.
2019 saw the Centre continue its The Centre has also continued to
focus on bringing robust research enhance business understanding
insights to bear informing board-level of the financial impacts from
development of business sustainability climate risks and participate in
strategies. A highlight was informing research into sustainable supply
sustainability dialogues at the World chain management.
Economic Forum (WEF), during
which it continued its established
Arctic Basecamp at Davos event.
17Corporate responsibility
at Pentland Brands Limited
A positive business,
taking action for
people and our planet.
18Corporate responsibility
at Pentland Brands Limited
In 2019, Pentland Brands decided In essence, it means…
Owning its footprint
to take an accelerated approach
• Operating sustainably, taking
to building a positive business. • Focusing on wellbeing, creating
positive action to reduce its
diverse, inclusive and green
It spoke to people across its impact on the world we live in.
workplaces in which its
organisation, analysed the efforts
• Having a positive impact on its people can be at their best.
of similar businesses and looked
employees, partners, communities Having a transparent supply
closely at its operations to work
and consumers. chain where workers are
out what it could change. The result
empowered. Delivering on
is its Positive Business strategy; Which in practice, equates to… its environmental targets.
three targeted pillars setting out its
ambitions in the areas they believe Building purpose- Circularity and
they can make the biggest difference.
led brands collaboration
Positive Business means that
• Building brands that sell products Partnering with industry bodies,
working ethically, transparently and
to support health, wellbeing and academic institutions and charities
sustainably is the responsibility of
confidence with products that are to develop its industry expertise.
the entire organisation. By focusing
made sustainably and enhance, Innovating for success and not
on impact, it has created a plan
not diminish, the communities being afraid of change if it
that will allow Pentland Brands
in which they operate. means improvement.
to achieve results faster, together.
19Brands with purpose
Pentland Brands’ purpose is
‘building brands for the world to
love, generation after generation’.
Here’s a snapshot of how its
brands have brought its Positive
Business ambitions to life.
20Speedo
Supporting people
Speedo is proud to take an inclusive In support of its inclusive strategy,
approach to sponsorship, supporting Speedo will champion swimmers
athletes from a variety of backgrounds competing in the Tokyo Paralympic
and championing their passion for the Games in 2021. The brand will
pool. The brand recently announced support several teams as part of
its plans to renew its role as official Team Speedo, as well as providing
swimwear provider for Team UK as access to elite swimwear to
part of the next Invictus Games; the allow unsponsored Olympic and
international sporting competition Paralympic nations to compete.
undertaken by wounded, injured or Since signing five-time Paralympic
sick military service personnel. The gold medal winner Ellie Simmonds
partnership will not only see Team as a brand ambassador in 2019,
UK competitors kitted out with Speedo Speedo has continued to demonstrate
Fastskin performance swimwear its belief that swimming should be
for the main event in 2021, it will accessible to everyone – whatever
also support hopefuls with gear for unique challenges they may face
qualification and training events in along the way.
the lead up to the Games.
21Speedo
Protecting our planet
Our oceans are at risk of being manufacturing by-products and
contaminated by debris created from even carpet into first grade nylon
single-use plastics. This poses a very fabric – creating a functional fabric
real threat to marine life, as well as that’s also kind to the planet.
human safety, water consumption
The brand ensure that environmentally
and climate change.
friendly fabrics featured in its
Speedo loves the water and believes collaboration with House Of Holland.
it should be protected. This is a
belief that is reflected in its products
– H20 Active, its environmentally
friendly fitness range, is created
from 78% ECONYL® yarn. ECONYL
is an innovative regenerated fibre
which turns waste from fishing nets,
22Berghaus
Supporting people
Berghaus continues to encourage during winter callouts by donating
people of all genders and backgrounds thousands of pounds worth of
to improve their wellbeing by escaping waterproof and insulated jackets
outdoors. Most recently, the brand from its specialist range.
hosted the ‘Women In Adventure’
Berghaus is also working with
speaker series at Kendal Mountain
ex-professional rugby player Ed
Festival, the UK’s main event for
Jackson, supporting his most recent
outdoor enthusiasts. Speakers
expedition in which he became the
included inspirational paraclimber,
first person affected by quadriplegia
Anoushé Hussain, and the Ice
to summit the highest trekking peak
Maidens, the first all-female team
in Nepal. The brand will continue
to cross Antarctica unsupported.
working in partnership with Ed to
In December 2019, Berghaus was adapt and create kit to support his
proud to keep ambulance crews in future expeditions.
the North East of England warm
23Berghaus
Protecting our planet
Berghaus creates products that are Berghaus is continuing to work to
built to last and loved by people all reduce the environmental impact of
over the world. To encourage people its products. Following a thorough
to love their Berghaus products review of its range, and how it could
throughout their lifetime, the brand be made more sustainably, the
offers a product lifetime guarantee brand has committed that its t-shirt
– committing to fix or replace any collection will be 100% organic
item with a fault or defect within cotton by Spring/Summer 2021.
its expected product lifetime. This You can find out more about how
provides an alternative solution to Berghaus has been working to make
clothing being sent to landfill and its products more sustainable on
polluting the environment. It also page 37.
gives consumers the option to fix their
items rather than purchase new ones,
saving materials and being kinder to
the environment.
24Canterbury
In celebration of the Rugby World As part of the campaign, the brand
Cup 2019, Canterbury launched the introduced its #BePartOfGood
‘Be Part Of It’ campaign. Centered charity initiative, with Canterbury
around togetherness in the rugby donating over £10,000 worth of
community, the campaign brought rugby kit to schools to support
together professional players, referees inclusivity in the game and encourage
and fans of all ages and genders – more children to get active.
demonstrating Canterbury’s belief that
In partnership with the Rugby
no individual is greater than the team.
Football Union (RFU), Canterbury
Celebrating inclusion in all its forms,
continued its support of the All
the campaign inspired community
School programme. The programme
spirit by depicting a wide array of
invites schools to participate in
rugby lovers standing shoulder to
workshops to design a new school
shoulder with players and officials to
rugby kit. Canterbury turns the
highlight that everyone can play their
students’ drawings into kits worn
part in the sport.
by the school’s rugby team.
25Endura
Supporting people Protecting our planet
Endura stands for cycling, helping In a move to take action for the planet,
aficionados and amateurs alike Endura has committed to planting one
push physical boundaries every million trees annually. For its first project,
day. The brand collaborated with Endura will work to restore mangroves in
London-based bicycle manufacturer the Maputo Bay region of Mozambique.
Brompton, to encourage Londoners Endura will help local communities to
to cycle to work. With roughly 4 restore, replant and protect these vital
million people commuting in London forest systems. It’s Endura’s ambition
every year, Endura supported the to go above and beyond to create kit
80,000 Londoners beating the rush that has a minimal impact on the planet.
on their bikes - helping them become The brand removed the water repellant
fitter, smarter and healthier by compound PFC from its production
taking part in the cycling revolution processes in Autumn 2018, so its latest
sweeping cities across the world. generation of fabrics are PFC-free. As part
of this commitment, Endura has put in
place long-term measures to ensure its
cycling ranges are made sustainably while
maintaining the same high quality.
26ellesse
Supporting people
ellesse believes in bringing the Each style was branded with the
best out of everybody effortlessly. statement ‘Me By Me’ in three
Working with its global partners languages and encouraged women
to be inclusive in style, pricing to express their uniqueness
and gender, ellesse believes that through their style.
celebrating diversity is crucial
The brand also supports British
to its success.
wheelchair tennis player Alfie
This year ellesse collaborated Hewett and will continue to work
with Foot Locker to create the closely with him on his journey to
‘Me By Me’ collection for women. the Tokyo Paralympics in 2021.
Embracing female identity in all
its forms, the collection celebrated
female empowerment.
27ellesse
Protecting our planet
Alongside supporting people to be at ellesse also collaborated with ASOS
their best, ellesse has made inroads to produce a sustainable product
into developing sustainable products. range specifically for the high
In collaboration with its apparel street retailer. Created in both
partner, the brand has developed men’s and women’s styles, the
‘Sustainable Tech’ - a selection of products were made from recycled
apparel made from recycled fabrics, polyester. Plastic bottles and
which will be part of its main range textile waste were used to create
in Autumn/Winter 2020. new fibres, which saves water and
reduces greenhouse gas emissions.
28Kickers*
Supporting people Protecting our planet
Kickers continues to prioritise Kickers is continuing to look at how it
diversity and inclusion by making can reduce its environmental impact.
its classic styles gender neutral, The brand undertook a review of its
expanding its unisex range and ‘Back To School’ range to work out
using models that inspire body how it could improve its materials. As
positivity in its flagship campaigns. a result, it has switched all its cotton
laces to BCI Cotton, approved by the
Kickers will also partner to support
Better Cotton Initiative. Its leather
The Magic Breakfast Club which
comes from tanneries accredited
provides school breakfasts to
by the Leather Working Group and
disadvantaged children in the UK,
the brand has also swapped its
and the Young Women’s Trust
polyester footwear linings to recycled
which supports women aged 18-30
PET. Kickers is in the process of
to get into work.
transitioning to using 98% recycled
material in all its sock linings for
footwear, which will be implemented
from Spring/Summer 2021.
*UK footwear license 29Mitre
Two centuries
of team spirit
In 2019, Mitre was proud to Mitre continues to support the
support the Homeless World Cup Walking Football Association, a
Foundation – a pioneering charity unique sport for men and women
which uses football to help change over 50 looking to play football in
the lives of those living on the a safe and social environment. It’s
streets. The brand donated 640 also supporting local charities in
sets of training kit and 64 training Nottingham where the brand’s HQ is
balls for all the teams taking part, based, donating footballs to causes
plus 100 balls for the tournament. supporting disadvantaged children.
30SeaVees
Supporting people Protecting our planet
SeaVees is a timeless sneaker brand SeaVees believes nothing is more important
for all people, and it is proud to than community and is committed to bettering
celebrate its core values of equality, its shoes, people and the environment by
inclusivity and diversity. A highlight ensuring that sustainability is integral to its
was its collaboration with fashion business plans. Under the ‘1% For The Planet’
designer Trina Turk for its Pride initiative, it donates 1% of its gross sales
collection, which was launched value to environmental causes.
during Pride month in the USA.
SeaVees is also bringing its sustainability
Proceeds from the shoes sold via
ambitions to life through its products.
the SeaVees website and flagship
Launched for Spring/Summer 2020, SeaVees
store were donated to the Pride
has created its first and almost completely
Pacific Foundation - an organisation
recycled men’s and women’s capsule collection,
local to the brand’s office in Santa
SeaChange. The brand is partnering with
Barbara - that provides services for
SeaTrees, a charity that helps fight climate
the LGBTQ+ community.
change by regenerating ocean ecosystems, to
restore one foot of Californian kelp forest for
every pair of SeaChange shoes sold.
31Footprint
Distribution and retail
Branded products / products to support
Licensee
our business / licensed products
With suppliers in 22 countries around
the world, Pentland Brands recognises
that the impact of its supply chain is
significant and far-reaching. It closely
Product manufacturing
monitors each stage of its production
process, analysing how it can use its
influence to protect people and the
environment throughout the entirety
of the product life cycle. Materials and components
Chemicals and dyes
Raw materials, farming and agriculture
32An empowered, transparent
and ethical supply chain
Pentland Brands is committed to • Child labour and
doing business ethically, with a focus youngworker policy
on supporting the environment and
• Migrant worker policy
communities in which it operates. It
is working hard to tackle the risks • Homeworking policy
of modern slavery and it strives to
The Pentland Brands corporate
protect rights and improve conditions
responsibility team reports directly
for everyone in its supply chain.
to a member of its executive team
All Pentland Brands tier 1 and works closely with the wider
suppliers are required to sign its executive team to provide advice,
Supplier Agreement and Corporate guidance and expertise in all supply
Responsibility Charter to commit to chain-related issues.
Our Standards in protecting people
More information about how
and the planet. Pentland Brands has
Pentland Brands is working to create
detailed policies in place to protect
an empowered, transparent and
vulnerable workers in its supply
ethical supply chain can be found in
chain, which are available on the
its 2019 Modern Slavery report.
Pentland Brands website:
33Working with suppliers
Pentland Brands owns one
factory in Scotland, through the
Endura brand, and it co-owns
four factories: three in Sri Lanka
and one in Vietnam. It engages
with its suppliers and partners
to ensure working conditions are
safe and that workers are paid
fairly and treated with respect.
It is transparent about who it
sources from because it means
the factories are accountable for
their standards and it can work
in a way that’s both open and
constructive. Pentland Brands
publishes a list of the tier 1
suppliers that manufacture
its products on its website.
Sourcing country 34Working with suppliers
For its owned brands, Pentland Pentland Brands conducts regular Facilitating
Brands sources directly from audits for all its tier 1 suppliers, to improvement
182 factories. For its licensed ensure compliance with its Our
brands, it works with the licensee Standards. These audits are performed
to influence conditions in their by a combination of certified third-
sourcing factories. For both owned party audit providers, its corporate Supplier
Training
and licensee suppliers, Pentland responsibility team and other questionnaire
Brands aims to provide maximum organisations, such as Better Work.
support by stationing corporate
responsibility officers in and
around its sourcing locations.
Initial Regular
It has an established factory review
audit audits
process, which means that it is able
to carry out monitoring from when
it first considers working with a
new supplier and regularly for the
duration of the partnership.
35Taking action Audits in 2019
If an issue is identified, the Pentland In 2019, Pentland Brands conducted You can find out more about the
Brands corporate responsibility team 134 audits, compared with 104 in types and locations of the Pentland
works with the factory to analyse 2018. Nine of these were part of Brands assessments, including
the root cause, remedy the issue the Better Work programme. It details of issues remediated and
and make lasting improvements to also carried out 17 Initiative for how they are supporting their
working conditions in line with Our Compliance and Sustainability (ICS) suppliers, in the auditing section
Standards. It recognises the impact audits as part of its joint venture of the Pentland Brands Positive
that terminating a relationship with the Lacoste Group. Business report.
with a supplier could have on
The increase in audits is a result of
their workforce so, where possible,
changes in its internal corporate
they avoid doing so. If a factory
responsibility processes and
consistently fails to comply with its
procedures to increase audit
Our Standards, Pentland Brands
frequency, more information on
will exit relationships responsibly,
which can be found in the Pentland
following the ACT Responsible Exit
Brands Audit policy. It has also
policy to minimise any negative
onboarded new factories as a result
impact on the factory employees.
of bringing the production of ellesse
apparel back in-house.
36Ethical Trading Initiative (ETI)
Founded in 1998, the ETI is the Pentland Brands has aligned its “Responsible businesses have huge leverage in
leading membership organisation work with the ETI principles by the countries they source from, enabling them to
promoting respect for workers’ rights focusing on its purchasing practices, collaborate with national and local stakeholders,
across the globe. Pentland Group has raising employee awareness of including governments, trade unions, NGOs
been a member of the ETI since 1998 the signs of modern slavery and and other businesses, to drive change, ensure
and since then, we’ve worked with developing its dedicated corporate labour laws are observed and workers’ rights are
them to promote respect for workers’ responsibility resource. protected. ETI members are expected to work
rights across the globe. with their suppliers to ensure the ETI Base Code
is understood, applied, and observed, to drive
In 2019, Pentland Brands was rated
continuous improvement in working conditions,
as ‘achiever’ level by the ETI, from
to push for greater transparency within their
a previous ‘improver’ level. It was
supply chains to enable them to better identify,
able to demonstrate an uplift in
and mitigate the risk of modern slavery, and to
factory activities beyond auditing,
act quickly to remedy modern slavery wherever
supporting its suppliers in delivering
it is discovered.”
its ethical principles, and a strong
level of senior support. Ethical Trading Initiative
37Materials
Pentland Brands maps its
supply chain so it can better
understand and manage
Tier 1 – product assembly
social and environmental
risks. Its supply chain is
made up of four tiers:
Tier 2 – materials and components
Tier 3 – chemicals
Tier 4 - raw materials
38Sourcing responsibly
Pentland Brands is committed to (LWG) and encourages its suppliers
purchasing all its materials from to source leather from tanneries
credible sources and it has clear awarded a LWG gold, silver or bronze
policies for putting this into practice. certification. It also ensures that all
down used in Berghaus jackets is
The Pentland Brands Ethical
certified to the Responsible Down
Materials policy outlines its
Standard (RDS); sourced from a
standards for sourcing raw materials
selection of nominated farms with
responsibly, including materials
high animal welfare requirements.
derived from animals such as skins,
down and feathers. It encourages You can find out more about how
all its suppliers to source their Pentland Brands is using accredited
materials in line with industry suppliers on page 44 of the Pentland
best practice on animal welfare. Brands Positive Business report.
Consequently, Pentland Brands
favours suppliers with sourcing
accreditations. It is a member
of the Leather Working Group
39Creating a
positive workplace
The Pentland Brands ambition is to
create workplaces where people feel
welcomed, supported and encouraged to
grow and contribute. Since launching its
new manifesto and business principles
in 2018, Pentland Brands has focused
on helping its people understand the
specific behaviours that can bring its
principles to life. It’s not just ‘what’ is
achieved, it’s ‘how’ it is achieved.
Over 750 of its people across the UK,
Asia and US participated in a ‘Living
our Principles’ workshop and, to
bring the Pentland story to life, it also
embedded the session into other areas
of its employee life cycle, including
induction sessions for new starters.
40Championing diversity
and inclusion
The Pentland Brands D&I steering Through the feedback and guidance
committee and network continues of the people in the diversity
to play a vital part in shaping its and inclusion network, Pentland
diversity and inclusion agenda. It Brands reshaped its support for
now has three D&I networks in the people returning to work after
UK, as well as a volunteer working a period of long-term leave,
group in Asia. Its four focus areas including updated guidelines
are gender, ethnicity, unconscious and resources for managers.
bias and inclusion, which formed
You can find out more about how
the framework of the Pentland
Pentland Brands is supporting
Brands D&I strategy.
diversity and inclusion across its
Pentland Brands believes in raising employee experience on page 50
awareness of the importance of of its Positive Business report.
inclusion by involving its people
in shaping its initiatives.
41Talking about
mental health
Pentland Brands partners with
Unmind, to support mental
health and wellbeing at work,
20.5% of people registered on Unmind
and in 2019 rolled out its
Unmind support tool globally.
15,582 minutes of programmes listened to
174% increase in usage between July and December
42Reducing environmental impact
Pentland Brands is committed order to reduce its carbon footprint 80% post-consumer waste as
to delivering on its targets for in its offices and distribution packaging for products purchased
reducing waste, water and carbon centres. It is also developing a via its brands’ ecommerce websites,
emissions. It believes that every CO2 baseline for its global replacing plastic shipping bags. This
individual can make an impact – workplaces as well as shipping, change will reduce the amount of
which is why Pentland Brands is operations and business travel, plastic it ships by 27 tonnes every year
looking at how it can reduce its so it can more effectively measure (or nearly a million plastic bottles).
footprint across all its operations. and manage its emissions.
The packaging, which is 100%
Workplaces Packaging recyclable and retains a premium
quality, is now used by its brands
Its UK offices are working Pentland Brands is taking its first
including Canterbury of New Zealand,
towards using 100% renewable steps towards using sustainable
ellesse, Berghaus, Kickers and
energy. It has also removed packaging, with the ultimate aim
Boxfresh. Pentland Brands will roll
single-use plastics from many of making its packaging recycled,
this out to Speedo and Mitre in 2020.
of its offices and uses LED recyclable or compostable across
lighting to save energy. its entire portfolio of brands.
You can find out more about how
Pentland Brands is looking to make
Pentland Brands tracks its In 2019, Pentland Brands
all its packaging sustainable in its
greenhouse gas emissions in introduced boxes made from
Positive Business report.
43Our future
Pentland Brands believes that
success is a team game, and in order
to support people and our planet,
it must work together so it can
improve its future for generations to
come. To do this, Pentland Brands,
more than ever, is collaborating with
other businesses, charities, NGOs,
academic institutions and partners
to learn, grow and take action.
44A force for good
As a business, Pentland Brands The Pentland Brands Charitable
gives at least 1% of its net profit, Giving policy, which was
after tax, to charitable causes established in 2018, helps it
every year. This includes financial co-ordinate its approach to
donations, pro bono support and giving back and provides its
donated products. people with guidelines for how
to get the most out of their
At the heart of its business is the
personal fundraising activities.
belief that it has a responsibility
to play its part in being a force You can find out more about how
for good. Its brands are designed Pentland Brands people have
to build health, wellbeing and given back to their communities
confidence, through which it in its Positive Business report.
aims to make a positive impact.
45Supporting our
charity partners
Pentland Brands works with four slums in Mumbai, India. This year,
global charity partners, with the aim Pentland Brands collaborated on
of supporting causes that resonate the ‘Fit For The Future’ project,
with its business. Its targets for improving the wellbeing and
making a difference are: employability skills of young people
in Bhiwandi, Mumbai. It has
• Helping 10,000 women from
supported around 40 young people
disadvantaged backgrounds in
to develop their skills to access jobs.
our sourcing markets to reach
their potential
The British Council
• Inspiring 5,000 young people
Pentland Brands supports the
in the UK to be more active
development of online learning
Its charity partners are: resources that enable more young
people, especially women, in
United Purpose Thailand to access the craft sector.
In 2019, its ‘Crafting Futures’
Pentland Brands works with United
programme supported over 100
Purpose to support a project which
artisans in Thailand to develop
uses sport to teach employability
business knowledge and expertise
skills to young people living in
in the design and textiles industry.
46Supporting our
charity partners
Panathlon
Pentland Brands is helping Pentland Brands will be
Panathlon expand its swim supporting sports festivals and
programme to support over 5,000 outreach programmes in four UK
disabled swimmers. This year, it locations: Blackburn, London,
collaborated with Panathlon to Nottingham and Sunderland.
host 39 swimming competitions
In 2019, over 90 Pentland Brands
across the UK, with 1,757
volunteers helped SportInspired
children and 379 young leaders
to host inclusive sports
participating – a 17% increase on
programmes for local schools in
the original target.
London and Sunderland, giving
SportInspired over 400 primary school children
the opportunity to discover a
Working to tackle childhood sport they love.
obesity in disadvantaged
You can find out more about
communities, SportInspired
Pentland Brands charity partners
creates fun and inclusive sports
in its Positive Business report.
programmes or schools.
47Collaborating for better
Pentland Group and Pentland
Pentland Group
Brands work with a number of
not-for-profit organisations that Ethical Trading Initiative (ETI) –
share our goal of being a socially forging an alliance to improve the
and environmentally responsible lives of workers around the world.
businesses. We are active members
AFIRM – a collaborative effort
and supporters of the following:
to reduce the use and impact of
harmful substances in the apparel
and footwear supply chain.
In Kind Direct – for many years,
Pentland Group has partnered with
In Kind Direct to help channel
surplus stock to good causes. In
2019, products worth an estimated
retail value of over £100,000 were
donated to 522 charities via In
Kind Direct.
48Collaborating for better
Pentland Group and Pentland
Pentland Brands
Brands work with a number of
not-for-profit organisations that Action, Collaboration,
share our goal of being a socially Transformation (ACT) – bringing
and environmentally responsible together brands, retailers,
businesses. We are active members manufacturers and trade unions to
and supporters of the following: address the issue of living wages in
the textile and garment supply chain.
Sustainable Apparel Coalition
(SAC) - developing tools to improve
and standardise the reporting of
environmental impact across
supply chains.
The Microfibre Consortium –
developing practical solutions
for the textile industry to
minimise microfibre release to
the environment from textile
manufacturing and product life cycle.
49Corporate responsibility
at JD Sports Fashion plc
50Corporate responsibility
at JD Sports Fashion
Approach People
JD Sports Fashion plc takes The talented individuals working
environmental and social within JD are integral to its
responsibility very seriously. It continued success. As the Group
is always seeking ways in which expands globally, so does the
it can reduce its impact on the network of people who operate in
environment and protect and accordance with its company values
increase the wellbeing of the and standards. Most recently, it has
people with whom it engages focused on the recruitment, wellbeing
with at all levels of the business, and development of its people.
internally and externally.
JD is committed to promoting
In working towards its business policies which are designed to
objectives, it aims to act in a ensure that employees and those
responsible and ethical manner who seek to work for the Group are
with all stakeholders, including treated equally regardless of gender,
suppliers, employees and of marital status, sexual orientation,
course, its customers. age, race, religion, ethnic or social
origin or disability.
51Corporate responsibility
at JD Sports Fashion
Wellbeing
Employee wellbeing is very JD is looking expand this
important to JD and it has taken initiative further throughout all
a holistic approach to promote areas of our business in 2020.
it across the business.
JD also works to promote
2019 saw the introduction of physical and mental wellbeing.
Wellbeing Champions within the First Aid and Mental Health
Group. 161 individuals were selected First Aid training is available to
and trained on how to spot signs all employees. Its partnerships
of modern slavery and how to with external bodies provide
support employees who are having access to additional support
mental health difficulties. Wellbeing to employees regarding their
Champions are fully trained in emotional, physical, vocational
modern slavery awareness and are and financial wellbeing.
at the forefront of supporting the
You can find out more about
business’ communication on this.
how JD is supporting wellbeing
in its latest annual report.
52Corporate responsibility
at JD Sports Fashion
Learning and
development
A vital component of the JD strategy Alongside this, JD has delivered
is its commitment to employee capability and behavioural skills
development, with a focus on both training to a further 1,500 employees.
internal progression and providing Overall, almost 4.5 million minutes
talent with the best resources and of e-learning were completed.
knowledge to excel in their careers.
JD is also focusing on developing
Its learning strategies provide leaders. A further 58 people
colleagues with access to a blend completed the 16-week Management
of e-learning, face-to-face tuition Development Programme and eight
and experiential learning. Its people completed the Leadership
international network of training Development Programme aimed at
facilities has hosted a broad range leaders wishing to further develop
of courses, providing tuition their skills.
and accreditation for 433 newly
appointed store managers and
almost 1,000 supervisors.
53Corporate responsibility
at JD Sports Fashion
Health and safety
JD is fully committed to continuous • A free, confidential support service
health and safety improvement run by The Retail Trust that aids
across all areas of its business to emotional and financial wellbeing.
protect colleagues, customers and
• A web based, online induction
other stakeholders. It recently
and training programme ensuring
reviewed and revised its Group
every colleague has the competence,
Health and Safety Policy to reflect
understanding and awareness to
organisational and business changes.
work safely and at minimum risk.
JD demonstrates its commitment
• Quarterly Group, and monthly
to health and safety through
distribution centre health and
active leadership, promoting best
safety committee meetings,
practice and by setting specific and
facilitating colleague engagement
measurable targets each year.
in health and safety, with everyone
Its approach includes: having the opportunity to raise
safety concerns through their
• Providing health checks and
committee representatives.
support for employees via
Occupational Health.
54Corporate responsibility
at JD Sports Fashion
Stores Distribution centres
JD has received health and safety In 2019, JD was proud to maintain
input into all its new and refitted the British Safety Council ‘Five
stores, from the initial design Star’ accreditation, for the
through to opening. Its health and third successive year, for safety
safety team conducts its own audit management at its Kingsway
programmes to ensure the highest Distribution Centre, demonstrating
safety standards are maintained an ongoing commitment to both
during the construction phase of excellent health and safety standards
all its shop-fit projects. and continuous improvement.
You can find out more about JD’s
approach to health and safety in
its latest annual report.
55Energy and
the environment
JD recognises the importance of JD retained its high ‘B’ score,
protecting the environment and is outperforming the wider
committed to carrying out activities European sector average score
with due consideration of its by two grades. Participation in
environmental impact. the CDP enables the Group to
benchmark performance against
Independent verification of JD’s
industry peers, ensuring its
continued progress on managing
strategy on carbon reduction is
and reducing its environmental
independently reviewed against
footprint was provided by the Carbon
comparable businesses.
Disclosure Project (CDP) report.
56Environmental, social
governance (ESG)
After the JD Group’s FTSE100 entry • Continuing its progress on moving
in 2019, it made a further commitment JD European stores to 100% ‘Green
to improve its sustainability and Energy’ usage, consistent with its
environmental performance by current policy in the UK and Republic
establishing an ESG committee. The of Ireland. JD aims to reach 100%
committee will determine its future renewable electricity use for its
ESG strategy, monitor adherence to its European operations by 2022, with
existing standards and oversee plans the ambition for all existing global
for the introduction of a new ‘ESG operations to be renewable by 2025.
and Sustainability Policy Framework’
• Relaunching its corporate website,
during 2020.
which is a reference point for ESG
JD achievements include: statements, achievements and strategy,
to enable greater transparency on its
• Advancing its reputation as a
practices and progress.
sustainable organisation through
participating in environmental
performance benchmarks, such as
RE100; the world’s most influential
companies committed to 100%
renewable power.
57Customer packaging
JD continues to believe that Where local authorities permit the
encouraging the re-use of bags donation of bag-levy income, JD
is the most effective way to donates all proceeds from carrier
reduce overall plastic usage. Its bags charges (both voluntarily,
JD fascia is known for its high and bags covered by the levy) to
quality, durable drawstring the JD Foundation. You can find
duffle bags, the re-use of which out more about the work of the JD
is visually evident from the high Foundation on page 64.
street to high school.
To encourage customer
consideration of the necessity
of bag use, JD voluntarily
charges for the use/sale of
drawstring-bags.
58Recycling Tonnes of Recycled
Cardboard at Kingsway DC
Wherever possible, plastic or cardboard
5491
(its major packaging constituent) is
removed at the earliest source within the
core supply chain. In 2019, the amount
4756
of cardboard recycled increased to 5,491
4174
tonnes (4,756 tonnes in 2018).
3993
JD has outsourced its waste management
on-site to a third-party supplier, which
has enabled new initiatives such as re-
processing used hangers and reducing
waste streams through finding different
solutions for these materials.
1638
In 2019, 98.6% of waste was diverted
1322
from landfill, compared to 98% in 2018.
2015 2016 2017 2018 2019 2020
59Sustainability in private
label manufacturing
JD recognises the need for From October 2019 to March
responsible sourcing, and this 2020, the implementation of
includes making sustainability an the research and subsequent
integral part of its private label strategy resulted in 2.1 million
production, from conception to products being available for sale,
end product and beyond. surpassing this original target.
The initial target, set in June The target for 2020 is 4 million
2019, was for upwards of two products to be made from
million products to be made sustainable materials.
from sustainable materials,
You can find out more about
sustainably grown cotton and/
how JD is promoting sustainable
or recycled polyester.
manufacturing in its latest
annual report.
60Ethical sourcing
2019 saw the introduction of the The Group continues to
new JD Group Code of Practice, review its policies on ethical
encompassing its policies into sourcing on a regular basis.
a concise document to ensure It continuously assesses
consistency for manufacturing factory ethical and quality
suppliers and brands. The policy management and works
states that the people working with suppliers to improve
for JD suppliers are to be treated conditions in its factories.
with respect and their health,
safety and basic human rights
must be protected and promoted.
61Modern slavery Supply chain
Following the formation of a new UK JD has continued to map its • 243 Agents
Modern Slavery committee, 2019-2020 supply chain to the 4th tier. (2019: 158 Agents)
has been a milestone within JD’s UK This strategy requires continual
• 494 Factories
operations. With the collaboration of engagement with its partners as
(2019: 355 factories)
third-party contractors, it has been the manufacturing chains beyond
able to standardise its policies across first tier will often change due to • 25 Sourcing Countries
external partners, leading to better demand and capacity. (2019: 20 Sourcing Countries)
understanding of the UK supply chain
• 1st Tier = CMT Site (Factory) The transparency map is available
and work towards integration to the
on the JD plc website. This map
JD Group Modern Slavery programme. • 2nd Tier = Mill
details the city locations of all
JD has joined the apparel protocol • 3rd Tier = Dye House four tiers of the private label
and is working closely with the manufacturing supply chain.
• 4th Tier = Print House
GLAA (Gangmasters Labour Abuse
Authority). JD is committed to working
with the GLAA over the coming
months to improve its understanding
and processes and work to eradicate
modern slavery in its UK operations.
62Audit status 2020 vs. 2019
The protection of workers in the JD No Audit required
supply chain is paramount and it will
continue to have zero tolerance to
critical issues identified by JD personnel 3rd party Audit in date
or third-party auditors relating to a safe
working environment. Critical issues are
defined as an issue that impacts workers Audit required
causing hardship or harm.
86% of the factories used by JD are
audited by third-party accredited audit
2019
companies, as shown in the graph
below. The 86% represents 100% of the 2020 0 20 40 60 80 100
factories where an audit is required.
You can find out more about how JD
is supporting ethical sourcing in its
latest annual report.
63Changing lives, saving
lives: the JD Foundation
The mission of the JD Foundation Duffle Bag and all carrier bags across
is to support charities working with the JD Group are transferred to the
disadvantaged young people in the UK. JD Foundation.
The Foundation supported 18 charities
From October 2015 to January 2020,
in 2019 with a focus on physical health,
the JD Foundation raised £3 million,
mental health and homelessness.
with 93% of funds donated to charities.
The JD Foundation is a registered All monies raised (excluding fees) are
charity, founded by JD Sports Fashion distributed amongst the chosen charity
plc in October 2015. 100% of the net partners, with a small reserve left for
proceeds from the sale of the iconic JD emergency funding.
64YOUNG PEOPLE
Chosen charities for 2019
823 able to hold ten screening days during 2019,
with 823 young people screened and 22
being referred for full cardiac evaluation.
SCREENED IN
2019
OUTDOOR WEEKEND 2019
The JD Foundation recognises the
The Wellspring
The Foundation held their
importance of being a sustainable
second outdoor charity event
The Wellspring charity is a
charity, and wants to develop long-
in June 2019 in partnership with
term relationships with charities resource centre for homeless
Mountain Rescue England &
who are making a difference. and disadvantaged people,
Wales, at the Holcombe Moor
opening 365 days a year, offering
Here are just some of the charities Training Camp near Bury. Nine of
different
the services available
Foundation’s such
chosen charities
that the Foundation supported
as housing
were invitedreferrals,
to attendhealth
with the
in 2019.
services
young or educational
people courses.
they support.
The weekend was attended
byThe Foundation actively
over 40 Mountain Rescue
Volunteers,a their
promotes circular economy
search and
with product
rescue donations
dogs, and including
was also
outdoor jackets,
supported by the thermals,
Group
underwearChairman
Executive and toiletries.
and a
number of the Foundation
Trustees.
65Chosen charities for 2019
Cardiac Risk in Salford Foundation Buddies of
the Young (CRY) The Inspired to Aspire mentoring the Birches
programme enables students to
Buddies of the Birches is a registered
With donations from the discover the skills and attitudes
charity bringing together parents,
Foundation, Cardiac Risk in the needed to successfully transition
carers, children and staff connected
Young (CRY) has been able to from education into the world of
with The Birches School; a specialist
hold ten screening days during work. The Foundation attended
support school. 2019 saw an additional
2019, with 823 young people the Inspired to Aspire event with
donation from the Foundation to fund
screened and 22 being referred local businesses to support the
the new outside area for one of the
for full cardiac evaluation. mentoring process.
schools most complex classes.
In 2019 JD undertook a social impact
assessment to evaluate the impact of
the work being carried out by its charity
partners. You can read the report here.
66You can also read
