FASHION INDEX - 2018 EDITION
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FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 A FASHION INDEX 2018 EDITION A review of 150 of the biggest global fashion brands and retailers ranked according to how much they disclose about their social and environmental policies, practices and impact.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 01 CONTENTS 03 FOREWORD 30 THE SCORES ACROSS THE 5 KEY AREAS 04 EXECUTIVE SUMMARY 31 Average scores across the sections 06 WHY TRANSPARENCY? 32 1. Policy & Commitments 06 Why greater transparency is important 37 2. Governance in the fashion industry 41 3. Traceability 10 Viewpoint: Nazma Akter, trade unionist 46 4. Know, Show, Fix 11 Viewpoint: Christina Hajagos-Clausen, Industriall 50 5. Spotlight Issues 12 Viewpoint: Debbie Coulter, Ethical Trading Initiative 55 Viewpoint: Joe Sutcliffe, CARE 13 What do we mean by transparency? 56 Viewpoint: Guy Stuart, Microfinance Opportunities 57 Viewpoint: Mark Anner, Penn State University 16 ABOUT THE FASHION TRANSPARENCY INDEX 17 Why have we conducted this research? 58 WHAT SHOULD YOU DO WITH THIS INFORMATION? 18 The methodology 59 Citizens 19 The weighting of the scores 60 Brands and Retailers 20 About the new methodology 61 Governments and Policymakers 21 How were the 150 brands selected? 62 NGOs, Unions and Workers 22 How does the scoring work? 63 ACKNOWLEDGEMENTS 24 THE RESULTS 65 ANNEX 1 Definitions and Abbreviations 25 A rough guide to the scoring 66 ANNEX 2 References 26 The final scores 67 An important final note 27 Overall analysis 68 About Fashion Revolution 29 Quick findings The content of this publication can in no way be taken to reflect the views of any of the funders of Fashion Revolution. © Fashion Revolution CIC 2018. All rights reserved. This document is not to be copied or adapted without permission from Fashion Revolution CIC.
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FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 03 FOREWORD CARRY SOMERS FOUNDER AND GLOBAL OPERATIONS DIRECTOR FASHION REVOLUTION Transparency is like water. ‘Light is like water. You turn on the tap "Transparency is and crevice, reshaping everything in its After the Rana Plaza factory and out it comes.’ Months later, they win a visibility. We want to path, but the light bulbs of transparency school prize and are both rewarded with are permanently set to the on position. collapsed in Bangladesh five diving outfits. The following Wednesday, see the fashion industry, years ago, transparency started they invite all their classmates over for a respect its producers Make no mistake about it, there is no party while their parents are out and and and understand its going back; this river of transparency as a slow trickle. It began turn on so many lights that the apartment processes. We want a will become a flood. When this time bubbling up through the cracks. floods, drowning all the classmates apart clear, uninterrupted comes, those brands who know how from the two brothers. When the firemen to use the tools of transparency to Now it is seeping into some of finally force open the door, the brothers vision from origin navigate a new course, will be the the darkest corners, permeating are navigating towards the lighthouse to disposal to foster ones who will survive. These are the the fabric of the industry. amidst the ‘household objects, in the dignity, empowerment companies who are able to spot any fullness of their poetry, flying through and justice for the unauthorised suppliers being used My favourite short story is La Luz Es the kitchen sky on their own wings.’ people who make our to make their products; the ones who are managing and mitigating risks Como el Agua, Light Is Like Water, by Transparency is like water. After the Rana clothes and to protect that might lead to human rights and Gabriel Garcia Marquéz. Two brothers ask Plaza factory collapsed in Bangladesh the environment environmental abuses; the ones who for a rowing boat one Christmas. Every Wednesday, whilst their parents are at five years ago, transparency started we all share." are protecting their brand's reputation. the cinema, they let the light flow out as a slow trickle. It began bubbling up through the cracks. Now it is seeping Transparency is power. The brands to a depth of four hand spans and then into some of the darkest corners, that are still sitting in the armchairs learn to use a sextant and compass permeating the fabric of the industry. ORSOLA DE CASTRO in their fifth floor apartments, who as they navigate around their fifth floor This year’s Fashion Transparency Index FOUNDER AND CREATIVE DIRECTOR, haven’t yet learnt how to sail on the apartment in Madrid. This adventure results show that it’s not yet a raging FASHION REVOLUTION tide of transparency, will be drowned was the result of a frivolous remark in torrent, flowing into every deep nook by it. The wave is coming; now is the response to one of the boys asking why time to get ahead of the curve. light comes out at the flick of a switch.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 04 EXECUTIVE SUMMARY Ten brands and retailers lead each section of the methodology — Dior, Heilan Home and s.Oliver continue Only one brand, which is ASOS, discloses the path towards greater suggesting that inclusion in the Fashion to disclose nothing, and this year we are where they source raw materials. No transparency amongst the Transparency Index has influenced seeing next to nothing from Barney’s brands were disclosing this information major corporate players brands and retailers to disclose more. New York, Desigual, Jessica Simpson, last year. Longchamp, Liverpool, Max Mara, Mexx, Adidas and Reebok top the Index again Major luxury brands move Nine West and Sandro. 48 brands Publicly available supplier lists this year scoring 58% or 144.5 out of towards transparency and retailers (32%) are scoring in the can help fix problems faster 250 possible points followed by Puma, bottom 0-10% range overall, compared H&M, Esprit, Banana Republic, Gap, Hugo Boss, Calvin Klein, Tommy Hilfiger, Having quick, immediate access to to 32 brands and retailers (32%) last Old Navy, C&A and Marks & Spencer Gucci, Bottega Veneta, YSL and Burberry these supplier lists can be crucial to year — showing that many brands and in the 51-60% range. ASOS is shortly score in the 31-40% range, with Hugo solving problems swiftly. Transparent retailers are still lagging far behind, behind at 50%, having increased Boss increasing its score by 11%, Calvin disclosure makes it easier for brands, disclosing very little about their social their level of disclosure by 18% since Klein and Tommy Hilfiger increasing suppliers and workers, trade unions and and environmental practices. last year. The mean average score their score by 9%, Gucci, Bottega Veneta NGOs to alert brands and retailers when amongst all 150 brands and retailers and YSL increasing their score by 8% Many more brands and retailers human rights and environmental abuses is 52 (21%) out of 250 possible points. and Burberry increasing their score by are disclosing their suppliers occur in the places where their products 7% this year. are made. It means that garment The brands and retailers 37% of the brands and retailers are workers, unions, and NGOs can call upon we reviewed last year have Too many big brands and publishing a list of their manufacturers brands to ensure that abuses stop and increased their level of retailers continue to lack (tier 1), up from 32% of the brands in 2017 workers get remedies. It is essentially transparency by 5% transparency and 12.5% in 2016. These supplier lists about greater corporate accountability.* have become a lot more detailed too, When we compare the 98 brands and 12 brands and retailers (8%) have scored including information such as factory retailers that were included in both the 0% in 2018, compared to three (3%) street address, types of products they 2017 and 2018 Fashion Transparency in the 2017 report. These brands and make and the number of workers. 18% Index, we have seen these brands retailers' lack of disclosure brings down of the brands and retailers are disclosing and retailers increase their level the overall average score, despite many their processing facilities (tier 2), up from of transparency by an average of brands disclosing considerably more 14% of the brands in the previous year. approximately 5% overall and across information this year compared to 2017. *Read more about this topic via Clean Clothes Campaign.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 05 FINDINGS AT-A-GLANCE More talk about policies and When it comes to workers in the supply commitments than practices chain, of which an estimated 80% are and impacts women, only 13% of the brands publish detailed guidance on issues facing Brands and retailers give a lot more female workers in the supply chain and time and space to explain their values only 5% of the brands disclose any data and beliefs rather than their practices on the prevalence of gender-based labour and impacts. On average, the brands 5% 15% 7% violations in their supplier facilities. and retailers scored 46% in section one, which looks at what information Information shared by they publish about their policies and major brands and retailers commitments. 31 brands (21%) brands remains difficult to navigate, and retailers scored more than 80% jargon-heavy and shallow 5% average increase of 98 22 brands have increased 7% average increase in on policy and commitments and The disclosure of meaningful brands’ scores since last year their traceability score by transparency on governance all but 10 brands were publishing at more than 10% across 98 brands since last year least one policy. However, on average information and data by brands and the brands just scored 11% when it retailers is often buried in company comes to traceability and 17% when it websites, housed on external micro- comes to publishing procedures and sites, in 300+ page annual reports 64% 84% 12% outcomes of supplier assessments. or simply not available at all. Brands present information in many different Focus on discrimination but formats, using all sorts of unclear little disclosed about language and industry jargon and addressing gender equality presented in an array of different visuals. Over three-quarters of the brands and Still a long way to go towards 64% of brands have 84% of brands have 12 brands disclose next to retailers publish a policy on discrimination transparency for all brands disclosed more policies and commitments than increased their score since last year nothing, and 12% of brands score less than 3% both within the company (76%) and in the and retailers they did last year supply chain (79%). But only about 40% of the brands and retailers publish a policy No brand or retailer is scoring above on equal pay both for their own employees 60% of the total possible points. and in their supply chain. Meanwhile, less Whilst we are seeing brands and TO P 5 B I G G E S T M OV E R S than half (47%) of brands and retailers retailers begin to publish more disclose the percentage of women in executive and management positions within the company, and only 14% of the about their social and environmental efforts, there is still much crucial information that remains concealed. +22% +22% The North Face Timberland 28% brands and retailers publish the annual +22% Wrangler gender pay gap within the company. +19% C&A 28% of brands have scored +18% ASOS 31% or higher this year, compared to 20% amongst brands last year
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 07 WHY GREATER TRANSPARENCY IS IMPORTANT IN THE FASHION INDUSTRY [TOP] 'Dhaka Savar Building Collapse' Fragmented supply chains by rijans When the Rana Plaza building via Flickr CC collapsed five years ago in obscure accountability [Bottom] 'Site of the Rana Bangladesh, killing and injuring The vast majority of today’s fashion Plaza factory collapse' thousands of garment workers, brands and retailers do not own their by Dorothee Baumann-Pauly people had to dig through the manufacturing facilities, making rubble looking for clothing labels it difficult to monitor or control working conditions across the highly in order to figure out which globalised supply chain. This can brands were linked to the five sometimes be used as an excuse for garment factories in the building. brands to evade responsibility for how their products are made. In some cases, it took weeks for brands and retailers to determine Brands and retailers may work with why their labels were found amongst hundreds or even thousands of the ruins and what sort of purchasing factories at any given time – and that agreements they had with those is just the suppliers that cut, sew and suppliers. Many clothing brands assemble our garments. There are sourcing from the factories inside many facilities further down the chain Rana Plaza didn’t know their products that weave, dye and finish materials were being made there. and farms that grow fibres used in our clothing.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 During the manufacturing process our Progress is happening but clothes are touched by many pairs of but it’s still difficult to know hands before they ever reach the shop #whomademyclothes floor or, increasingly, the screens of our phones and computers. Of course, much has changed since Rana Plaza, especially in Bangladesh. Many A brand might place an order with factories have been upgraded, and with one supplier, who carves up the order all the great attention put on Bangladesh and subcontracts the work to other since then, some very real and positive factories. This happens regularly across progress has been made towards the industry and makes it extremely improving working conditions. difficult to monitor human rights and environmental impacts. Unauthorised However, not enough has changed subcontracting causes workers to in global fashion supply chains and become effectively invisible in the business practices on the whole across supply chain, and this is where the the industry are still very secretive. It highest risk of human rights violations is extremely challenging, if not almost and environmental degradation tends to impossible, for a consumer to find out occur. But these subcontracted facilities where their clothes have been made, are not the only places where poor by whom and under what conditions — conditions persist, sometimes it’s right which means it is hugely difficult to know under our noses in manufacturers and what real-world impacts, both positive communities close to home too. and negative, our clothing purchases are having on people’s lives and on the environment. Lack of transparency costs lives This is why we are still calling for a revolution of the fashion industry. Right after Rana Plaza happened, it Never again should a tragedy like Rana became very clear to us that the fashion Plaza happen, yet factory fires, safety industry needed urgent, transformative accidents and faulty buildings continue change, and that the first vital step to harm people in the places where towards this change entailed far greater our clothes are made. Pollution and visibility and transparency of the people waste created as a result of the way our working in supply chains, the business clothes are produced and consumed relationships at play across supply continues to damage the environment. chains and information about working conditions and environmental impact.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 09 "In a survey of over People want to know #whomademyclothes Over 113,000 posts using our hashtags, including #whomademyclothes, 10,000 consumers Consumers don’t want to buy clothes reached 533 million impressions during April 2018 alone – an increase from around the made by people working in danger, of almost 250% on the previous year. exploited, paid poverty-level wages, in polluted environments but there Transparency helps world, 78% said is simply not enough information available about the clothes we wear. mitigate human rights and environmental violations it is somewhat or Fashion Revolution wants to change that. This is why we are pushing As Jenny Holdcroft, the Assistant very important for for more transparency from the General Secretary of IndustriALL fashion industry. The annual Fashion Global Union, explained in last year’s report, “knowing the names of major a company to be Transparency Index is one of the tools that helps us do this. buyers from factories gives workers and their unions a stronger leverage, transparent.” When we are equipped with more — and better quality, credible — crucial for a timely solution when resolving conflicts, whether it be information about the human and refusal to recognise the union, or environmental impacts of the clothes unlawful sackings for demanding we buy, we are able to make more their rights. It also provides the HAVAS informed shopping choices. As a possibility to create a link from the FEBRUARY 2016 result, transparency builds trust in worker back to the customer and the brands we buy. possibly media to bring attention to the issues.” People are increasingly asking for greater transparency from Increased transparency and the fashion industry. In 2018, accountability means issues more than 2.5 million people along the supply chain can be across the world participated addressed and solutions found in Fashion Revolution through faster. But it also means positive events, posting on social media, examples and positive stories viewing our videos or downloading can be highlighted, shared and resources from our website. potentially replicated elsewhere.1 1. As explained by Human Rights Watch: www.hrw.org/news/2016/09/08/gap-inc-joins-global-brands-publish-factory-list
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 10 "If unions and workers in Bangladesh have a list of where brands are manufacturing, it is so much easier for us to resolve problems quickly. We don’t need to do big public campaigns, we can address issues directly with brands. Having access to supplier lists also helps unions know where best to focus our organising efforts. The disclosure of other types of data is useful too. For example, disclosing information about working conditions helps us better understand and solve issues facing women workers in Bangladesh, such as www.livesbehindthelabel.newint.org health, childcare, maternity rights, female leadership and living conditions and wages. Ultimately, everybody should be more transparent. Fashion brands and retailers, governments, trade unions and suppliers need to respect and trust each other and PHOTOGRAPHY © ON OUR R ADAR work together with openness and honesty." NA ZMA AKTER BANGLAHDESI TRADE UNIONIST AND FOUNDER OF THE AWAJ FOUNDATION
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 11 VIEWPOINT: A CONTINUED NEED FOR TRANSPARENCY IN THE FASHION SUPPLY CHAIN CHRISTINA HAJAGOS-CLAUSEN DIRECTOR, TEXTILE AND GARMENT INDUSTRY AT INDUSTRIALL GLOBAL UNION Yes garment factory in Yangon, in March 2018 © IndustriALL Global Union 2017 saw an increase of global brands and retailers publicly releasing some Transparency of a company’s manufacturing supply chain better “Transparency not For workers and their unions, transparency in the supply chain information about their supply chain: enables a company to identify and only provides a link is a vital tool to ensure that the factory location, the name of the parent company, types of products made, assess actual or potential adverse human rights impacts. This is a critical between workers burden of proof rests with the global brands to ensure that their number of workers, and if the company step that strengthens a company’s due and customers, but clothes are manufactured in an has authorized any subcontracts from the facility. This a step in the right diligence. It is also a needed step for workers who make the world’s clothes it provides workers environment that is free of human and labour rights violation. With direction that contributes to a new norm and a needed step for customers. and their unions the the knowledge of which brands are for global supply chain transparency. sourcing from their factory, workers Being transparent with information on needed information and their unions can be active in the With over 100 plus companies disclosing, it is now time to turn to the production is important for workers and their unions as it allows for human to advocate on monitoring of their own workplace. thousands of other brands who are rights conflicts to be settled in an their behalf when shirking their responsibilities to the workers who make their clothes and to efficient manner by opening up a channel back to the sourcing brand. resolving conflicts.” their customers and demand that they This allows workers and their unions too go transparent. to use multiple brands’ leverage to remedy human rights violations.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 12 VIEWPOINT: THE BUSINESS CASE FOR MORE TRANSPARENCY DEBBIE COULTER ACTING HEAD OF KNOWLEDGE & LEARNING ETHICAL TRADING INITIATIVE These last 18 months have Crucially, greater transparency can help brands engage and collaborate with trade “Transparency can help companies seen strong momentum unions and other civil society organisations; the disclosure of supplier lists can facilitate behind the disclosure of the escalation of a labour rights issue by supply chain information in the apparel sector. local trade unions directly to brands, an issue that a standard factory audit may embed better working practices internally, have failed to identify. This is a very positive development, and as Yet we must not forget that we are still as being more of February 2018, about a quarter of Ethical at an early stage. In order to scale up Trading Initiative’s apparel members had transparency and speed up this movement already made the move to publishing at transparent means beyond the “early adopters,” we need to least their Tier 1 supplier lists. continue to work on capturing the evidence of positive outcomes for workers as well holding up a mirror to But, this momentum has also resulted in transparency being sometimes held up as a as brands and retailers. universal remedy, without proper agreement Additionally, we need to clarify what their own practices.” over what it means, or with evidence of robust and meaningful transparency positive outcomes for workers employed means beyond publishing supplier lists. in supply chains. We also need to further demystify the That’s why Ethical Trading Initiative, and issue of greater transparency and look at other organisations such as Human Rights the implications for apparel companies Watch, have recently been doing more of different sizes and different business work to clarify the benefits brands can get models. These are some of the topics that from becoming more transparent. These Ethical Trading Initiative is exploring with its benefits include building trust with customers company, trade union and NGO members and investors, supporting commercial as part of its 2020 strategy. performance and facilitating access to capital.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 WHAT DO T R A N S PA R E N CY WE MEAN BY TRANSPARENCY? FA I R T R A D E W E L L- B E I N G L I V I N G WAG E S For Fashion Revolution, Transparency should enable EMPOWERMENT transparency means credible, greater accountability GENDER EQUALITY comprehensive and comparable Transparency is not just sharing the public disclosure of data and good stories nor disclosing only BUSINESS ACCOUNTABILITY information about brands and compliant, well-performing suppliers retailers’ supply chains, business — it’s about presenting the full picture, S U S TA I N A B L E L I V E L I H O O D S both good and not-so-good, in an practices and the impacts of these effort to allow for greater scrutiny by practices on workers, communities GOOD WORKING CONDITIONS those affected and interested, and to and the environment. help drive faster improvements. E N V I R O N M E N TA L S U S TA I N A B I L I T Y This sort of transparency requires When we talk about greater brands and retailers to know exactly transparency, we mean public who makes the products they sell – disclosure of sourcing relationships from who stitched them right through and of companies’ social and to who dyed the fabric and who environmental policies and farmed the cotton. And crucially, this procedures, goals and targets, requires brands to trace the journey A FAIRER, SAFER, CLEANER performance and progress. of their products right down to the raw FASHION INDUSTRY material level. We are asking them to share this information publicly as an important move towards greater transparency and accountability.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 14 Transparency is not selective Transparency is a means disclosure to third parties as to change, not an end opposed to public disclosure Transparency alone is not enough to Some brands opt to disclose supply fix the industry’s problems, but it is chain information to selected NGOs a necessary first step towards wider transparency or unions rather than publicly, and systemic change. We each need to have done so for many years in act upon the wealth of information order to manage their supply chain that is being disclosed in order to hold risks. However, we feel this is not brands and retailers, governments enough. Health and safety incidents, and suppliers to account. widespread abuses and even deaths are still happening, despite this Ultimately, Fashion Revolution industry-facing disclosure. believes that the fashion industry as a whole needs a radical paradigm shift and the way that most clothing accountability is produced and consumed will need transformation. This means business models will need to change in a big “The knowledge way and a multiplicity of solutions will that important likely be needed. Transparency helps to reveal the industry’s problems and information identify potential solutions so that is being kept we can all better understand how to change it. from people undermines trust and creates greater uncertainty." change EMILY O’REILLY EUROPEAN OMBUDSMAN, 2017
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 15 TO ACHIEVE CHANGE WE RECOGNISE 4 IMPORTANT THINGS: i It’s a process Inclusivity is key More information is needed Turn data into action It is going to be a long journey towards Millions of workers are employed Many people continue to shop from Transparency isn’t just for a different industry model, requiring through the supply chains of these big corporate brands, but want more transparency’s sake. The data and many incremental but necessary big brands, and we must be careful tools to understand how products information disclosed by companies steps, to turn the tide of fast fashion to ensure that future of the fashion are made, where they are made, by needs to be accessible, usable or other unsustainable business industry is able to provide decent whom and under what conditions. and detailed enough to take action models. We believe the first step is work, sustainable livelihoods, upon. What we do with publicly greater transparency. This will take hope and integrity for everyone available supply chain information, consumers, brands and retailers, employed in it, from farm to retail. how we use it to drive positive governments and citizens in supply change, is what will count most. chains each taking action. Fashion Revolution is engaging with all of these groups to catalyse positive change.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 16 ABOUT THE FASHION TRANSPARENCY INDEX
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 17 WHY HAVE WE CONDUCTED THIS RESEARCH? Fashion Revolution is calling Through the Fashion Transparency Furthermore, we wanted to create: “Our aim is to better Index, we want to help people know for greater transparency a bit more about the brands and • A comparable tool that helps understand the social throughout the fashion industry retailers they buy products from. stakeholders better understand how much information big brands and environmental Many of the brands included in the and our #whomademyclothes Fashion Transparency Index are selling and retailers are disclosing information shared social media campaign special ‘sustainable’ collections but about their suppliers and social by big brands and and environmental impacts has inspired hundreds of what about the rest of their products? across the value chain; retailers. We will use Where are their clothes made, by thousands of people to whom and under what conditions? this information to • A tool to incentivise big brands take action since 2013. and retailers to disclose more drive positive change." What information should we expect to credible, comparable and detailed find about these big brands’ policies and To build on this question, we wanted information year-on-year by procedures when it comes to social and to create a tool that would help people utilising the competitive nature environmental issues? What can we find better understand what transparency of business performance; SAR AH DITTY out about the effects of brands' practices looks like in practice, particularly HEAD OF POLICY, FASHION REVOLUTION on the people who work in their supply • A n ongoing exercise that helps when it comes to big fashion and chains? These are some of questions the the Fashion Revolution movement apparel brands and retailers. Fashion Transparency Index considers. shape its own understanding of what transparency entails and what transparency demands we may ask in future from big brands and retailers.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 18 THE The Fashion Transparency Index uses a ratings methodology to benchmark brands' and retailers’ public disclosure across five key METHODOLOGY areas, including: policy and commitments, governance, supply chain traceability, supplier assessment and remediation, and new 'spotlight issues' covering living wages, unionisation and collective bargaining, waste and recycling, and women, gender equality and female empowerment. We are only looking at information and data that is publicly disclosed by brands and retailers themselves. 1. 2. 3. 4. 5. POLICY & COMMITMENTS GOVERNANCE TRACEABILITY KNOW, SHOW & FIX SPOTLIGHT ISSUES —What are the brand’s social —Who in the brand —Does the brand publish a —How does the brand assess —What is the brand doing to and environmental policies? is responsible for the list of its suppliers, from the implementation of its address gender equality and brand’s social and manufacturing to raw supplier policies? female empowerment? —How is the brand putting its environmental impacts? material level? policies into practice? —How does the brand fix —What is the brand doing —How can they be contacted? —If so, how much detail problems when found in support Freedom of —How does the brand decide do they share? its supplier facilities? Association and the payment which issues to prioritise? —How does the brand of living wages? incorporate human rights —Does the brand report —What are the brand’s future and environmental issues assessment findings? —What is the brand doing goals for improving its into its buying and sourcing to tackle overproduction, impacts? —How can workers report practices? overconsumption, waste grievances? and recycling?
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 19 WEIGHTING OF The methodology focuses exclusively on public disclosure of supply Please be aware that when brands score zero on an individual indicator, THE SCORES chain information. Therefore, the it doesn’t necessarily mean anything weighting of the scores is intended bad. It just means they’re not to emphasise increasing levels of disclosing their efforts publicly. detailed disclosure, especially when it comes to publishing supplier lists and the results of supplier assessments. We are rewarding granularity. 1. 2. 3. 4. 5. POLICY & COMMITMENTS GOVERNANCE TRACEABILITY KNOW, SHOW & FIX SPOTLIGHT ISSUES TOTAL POSSIBLE POINTS (250) 48 13 85 74 30 WEIGHTING (%) 19% 5% 34% 30% 12%
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 20 ABOUT THE METHODOLOGY The first methodology was created by The methodology has been designed The methodology is based on How does the 2018 methodology Ethical Consumer in 2016 with input by the Fashion Revolution team, led existing international standards differ from last year? from Fashion Revolution. For 2017, by Sarah Ditty and Carry Somers, and benchmarks including: UN Fashion Revolution took the lead on the with consultative input and feedback Sustainable Development Goals, Small tweaks and changes have project’s development and considerably from a committee of pro bono UN Guiding Principles, OECD Due been made to the 2018 methodology, revised the methodology. We spent four industry experts, including: Diligence Guidelines, Ethical Trading building on the 2017 methodology months consulting a diverse group of Initiative Base Code, and Fair Labor revision process. In the first four more than 20 industry experts on this • Dr Mark Anner, Director of Centre Association’s Freedom of Association sections, the methodology has seen revision process. The new methodology for Global Workers’ Rights at guidelines. It has also been developed minor tweaks in order to clarify the focuses exclusively on public disclosure Penn State University to align as much as possible with other wording. Section five “Spotlight Issues” of supply chain information, and we industry benchmarks and relevant change focus each year, and this is • Neil Brown, Alliance Trust Investments changed the weighting of the scores to initiatives including the Transparency where readers might notice changes. emphasise increasing levels of detailed • Professor Ian Cook, Pledge, Corporate Human Rights disclosure, especially in regards to University of Exeter Benchmark and Know The Chain. This year, the “Spotlight Issues” are disclosing supplier information. We “Women. Workers. Waste." Fashion • Orsola de Castro, co-founder of Revolution’s team has chosen these have updated the methodology again in We recognise that the methodology Fashion Revolution and waste expert three areas of focus to align with our 2018, making small changes for clarity is not perfect and can always and selecting new 'Spotlight Issues.' • Subindhu Garkhel, be improved. We welcome any forthcoming work on the UN Sustainable Fairtrade Foundation feedback on how to make it better. Development Goals. The scoring in each of the five sections has been adjusted • Jenny Holdcroft, IndustriALL For further detail of the exact only very slightly to accommodate the • Dr Alessandra Mezzadri, methodology, download the 2018 tweaks and new Spotlight Issues. We SOAS, University of London brand questionnaire template. don’t expect these changes to have a large overall impact on the ability to • Joe Sutcliffe, Advisor - Dignified compare trends and progress year- Work, CARE International on-year, but the changes do affect • Heather Webb, Ethical Consumer direct comparability of data year- on-year at a more granular level. • And several others experts who wished to remain anonymous at this time.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 21 HOW WERE A-Z OF BRANDS THE 150 BRANDS SELECTED? Abercrombie & Fitch Adidas Aéropostale George at ASDA (Walmart) Gildan Activewear Giorgio Armani Nike Nine West Nordstrom Amazon Gucci (Kering Group) Old Navy (Gap Inc.) American Eagle GUESS? OVS ANTA Sports (ANTA International) H&M Pernambucanas Anthropologie (URBN) Hanes Prada Armani Heilan Home Primark (Associated British Foods) Asics Corporation Hermès Pull&Bear (Inditex) ASOS Hudson's Bay (HBC) Puma (Kering Group) Brands have been chosen on the We have deliberately listed brands Banana Republic (Gap Inc.) Hugo Boss Ralph Lauren basis of annual turnover of over in our report rather than the parent Barney's Jack & Jones (Bestseller) Reebok (Adidas) Benetton JCPenney Ross Stores US$500 million and represent company because consumers will Bershka (Inditex) J.Crew Renner a spread of market segments be most familiar with brand names. Bloomingdale's (Macy's) JD Sports Ross Stores bonprix (Otto Group) Jordan (Nike, Inc.) Russell Athletic (Fruit of the Loom) including high street, luxury, Bottega Veneta (Kering Group) Jessica Simpson (Sequentional s.Oliver sportswear, accessories, footwear 98 of the brands in the 2018 report Brooks Brothers Brands Group) Sainsburys - Tu Clothing and denim from across Europe, North were included in last year’s report, Burberry Joe Fresh (Loblaw) Sak's Fifth Avenue (HBC) meaning there are 52 new brands Burlington John Lewis Salvatore Ferragamo America, South America and Asia. C&A Jordan Sandro (SMCP) this year. We intend to expand the Calvin Klein (PVH) Kate Spade (Tapestry, Inc) Sports Direct We relied on publicly available number of brands and retailers Calzedonia Kik (Tengelmann) Stradivarius (Inditex) Carolina Herrera (Puig Group) Kohl's Superdry (Supergroup) financial information to select included in next year’s edition. Celine Lacoste Takko (Hettlage group) brands and retailers. Some Champion (HanesBrands) Lands’ End Target Chanel Levi Strauss & Co Tchibo companies are privately held and Chico's Lidl UK (Lidl Stiftung & Co. KG) Tesco F&F do not publish financial records, Claire's Accessories Lindex (Stockmann) The Buckle including turnover, which means COACH (Tapestry, Inc) Liverpool (El Puerto de Liverpool) The North Face (VF Corp) Columbia Sportswear LL Bean Timberland (VF Corp) we may have been unable to Converse (Nike, Inc.) LOFT TJ Maxx (TJX) include them in this edition. Cortefiel (Grupo Cortefiel) Longchamp Tommy Hilfiger (PVH) Costco Louis Vuitton (LVMH) Topshop (Arcadia Group) Where brands are part of a parent Debenhams Lululemon Tory Burch company with annual turnover Decathlon Macy's Triumph Desigual Mango Under Armour over US$500 million, we have Dick’s Sporting Goods (Conetic) Marc Jacobs (LVMH Uniqlo (Fast Retailing) selected the brand or brands Diesel (OTB Group) Marks & Spencer Urban Outfitters that appear to make up the most Dillard's Massimo Dutti (Inditex) Valentino Dior Matalan Van Heusen (PVH) significant part of their business. Dolce & Gabbana Max Mara (MMFG) Vans (VF Corp) Dressman (Varner Group) Mexx (Eroglu) Vero Moda (BESTSELLER) El Corte Inglés Michael Kors Versace Ermenegildo Zegna Miu Miu (Prada Group) Victoria's Secret Esprit Monoprix (Group Casino) Walmart Express Monsoon Accessorize Wrangler (VF Corp) Falabella Inversiones (Falabella Ltda.) Neiman Marcus Youngor Fendi (LVMH) New Balance YSL (Kering Group) Foot Locker New Look Zalando Forever 21 New York & Co. Zara (Inditex) *In general, the scores for brands that are part of a parent company apply to all of the subsidiaries in the parent company, not just the brands included in this report. There are some exceptions: for example, G-Star New Yorker George at ASDA and Walmart; Puma and the other Kering Group brands, Lidl UK. Gap Next
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 22 HOW DOES THE SCORING WORK? How do brands and retailers What else to note about Many companies produce annual How is the research conducted? receive points? the scoring? reports that span 200-400 pages; as such, there is a notable margin The Fashion Transparency Index uses Points are awarded only Brands' and retailers' individual for human error. It is not always only publicly disclosed information based on public disclosure via scores are not as important as the possible to catch everything. However, about each brand’s policies, procedures, published communications ranges in which they have scored. our research team endeavoured performance and progress on human from the following places: to be as thorough, accurate and rights and environmental issues across • On the company’s website(s); In this sort of benchmarking exercise, fair as possible. All averages in its supply chains. We rely solely on • In annual reports or annual it is not always easy to fit complex this report represent the mean. information available on the brands’ sustainability/CSR reports (only and nuanced issues into one neat and websites, in their annual reports counted if dated January 2016 or later) uniform methodology. Therefore, we (published January 2016 or later), or want to stress that you use the Fashion QUESTIONNAIRE RESPONSE published on the company website(s); via third party websites when linked Transparency Index findings to reflect to directly from the brands’ website. • In any other documents which are publicly available and can on general trends in transparency rather 57% 43% than focus on whether brands scored We also sent each brand a be downloaded freely from did not respond or of brands a point higher or lower than another declined the opportunity completed questionnaire in order to help us identify the company's website(s); to complete the and returned a brand overall or in any particular area. questionnaire questionnaire where information is publicly disclosed • Via third party websites but only and to clarify information we found when linked to directly from the Although we have designed the through our team’s own research. company's own website (i.e. there methodology to be as objective and Brands were given approximately one is a direct link from the company's comparable as possible, there is a month to complete the questionnaire. website to the third party website.) degree of human interpretation required The completed questionnaires were for each question. Furthermore, there analysed by our research team and is no common template that brands scores were awarded where appropriate. The weighting of the scores is intended to and retailers use for reporting on emphasise increasing levels of detailed social and environmental issues. disclosure; we are rewarding granularity.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 23 The research was conducted by Sarah What is beyond the scope? Ditty, Carry Somers, Aidan Shaw, Ilishio Lovejoy, Fionnuala Walravens, Aphra Fashion Transparency Index Kennedy-Fletcher, Eduardo Iracheta does not offer an in-depth and Michelle Lai with further support analysis of the content, quality or from Lowell Chow and Sienna Somers accuracy of a company’s policies, between January and April 2018. procedures, performance and progress in any given area. The pro-bono consultation committee members were called upon in Verification of claims made by brands special circumstances to provide and retailers is beyond the scope guidance on their areas of expertise of this study. We have designed the but were not involved in the final methodology to provide insights scoring of the brands and retailers. that reveal patterns of disclosure, are comparable over time and allow Should you know of any remaining brands to see where they stand on inaccuracies, please contact us transparency compared to their peers. at firstname.lastname@example.org and we will take this into Limitations of the research account for the next edition. Our team researched and scored What is the scope of brands regardless of whether they the research? completed the questionnaire or not. However, brands that completed The Fashion Transparency Index has the questionnaire were more likely been designed to give an illustrative to receive a higher score simply look at how much brands know and because our researchers will have share about their supply chains. We been alerted to further information have deliberately chosen to focus we hadn’t already found ourselves. specifically on transparency by means of public disclosure and not everything However, there are limits to desk- that brands and retailers are doing based research, and only on-the- internally or otherwise behind-the- ground research by NGOs, unions scenes across their companies and and academics can reveal the true supply chains. Brands and retailers impacts of brands' policies and may very well have excellent policies practices in real-world situations. and programmes in place internally, By encouraging brands and retailers but if they’re not shared publicly to become more transparent, the then they’re not counted here. Fashion Transparency Index hopes to facilitate the excellent work of NGOs, unions and academics doing this type of on-the-ground, in-country work. [RIGHT] PHOTOGRAPHY © PURECOTZ for Fairtrade Foundation www.fairtrade.org.uk
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 24 THE FINAL SCORES To download the full spreadsheet of results, click here.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 25 A ROUGH GUIDE Total scores were out of 250 possible points, which we have TO THE SCORING converted into percentages. We chose to group brands into score ranges because we want readers to focus on emerging patterns and trends rather than individual scores. 0—10% 11—20% 21—30% 31—40% 41—50% 51—60% 61—70% 71—80% 81—90% 91—100% TRANSPARENCY Brands scoring between Brands scoring between Brands scoring between Brands scoring between Brands scoring over 40% Brands scoring 51-60% No brands score above 60% but if they 0-5% are disclosing nothing 11-20% are likely to be 21-30% are likely to be 31-40% are the brands who are those who are most are disclosing all of the did these brands would be disclosing all at all or a very limited publishing many policies, publishing much more are publishing suppliers likely to be publishing more information already of the information already described as number of policies, which some procedures and detailed information lists as well as detailed detailed supplier lists, some described in the other ranges well as publishing detailed information tend to be related to the some information about about their policies, information about their will be publishing processing and will be publishing about assessment and remediation brand's job hiring practices their supplier assessment procedures, social and policies, procedures, social facilities as well as detailed supplier lists which findings for specific facilities and detailed or local community and remediation environmental goals and and environmental goals, manufacturers — in addition include manufacturers as supplier lists from manufacturing right engagement activities. processes. These brands supplier assessment and supplier assessment and to detailed information about well as processing facilities. down to raw materials. These brands will most likely not be remediation processes. remediation processes. their policies, procedures, These brands will be would be disclosing the number of Brands scoring between publishing supplier lists. These may be publishing These brands are also more social and environmental publishing the vast majority workers in their supply chain covered 5-10% are likely to be a supplier list but not with likely to be addressing a few goals, supplier assessment of policies, procedures and by collective bargaining agreements or publishing some policies many details other than of the Spotlight Issues such and remediation processes future goals. part of independent democratically- for both its own employees factory name and address. capacity building for female and general assessment elected trade unions. These brands and suppliers. Those closer These brands will not widely supply chain workers, findings. These brands would be their mapping social and to 10% are likely to be be disclosing information collective bargaining and/or are also more likely to be environmental impacts into their financial publishing a basic supplier on the “Spotlight Issues.” textile and clothing waste. addressing the Spotlight business model. We would be able code of conduct and Issues such as the gender to find details about the company’s some detailed information pay gap, capacity building for gender pay gap, number of women about their procedures female supply chain workers, in executive and management roles and possibly supplier collective bargaining and how women’s issues are being assessment process. and/or textile waste and addressed in the supply chain. circular resources.
FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2018 26 THE FINAL SCORES 0-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100% Amazon 10 George at ASDA 30 Calvin Klein 38 ASOS 50 Adidas 58 Superdry 20 Ross Stores 10 New Look 29 Tommy Hilfiger 38 Levi Strauss & Co 47 Reebook 58 Jack & Jones 20 Monsoon Accessorize 9 bonprix 29 Van Heusen 38 The North Face 46 Puma 56 Vero Moda 20 Triumph 9 New Balance 29 Hugo Boss 38 Timberland 46 H&M 55 Salvatore Ferragamo 20 Valentino 9 LOFT 29 Lindex 37 Vans 46 Esprit 54 Victoria's Secret 19 Takko 9 Uniqlo 29 Gucci 37 Wrangler 46 Banana Republic 54 GUESS? 19 Armani 8 Zalando 27 Bottega Veneta 36 G-Star 45 Gap 54 Mango 18 Kohl's 8 Asics Corporation 26 YSL 36 Tchibo 42 Old Navy 54 Bloomingdale's 18 Michael Kors 7 Topshop 26 Converse 36 Bershka 42 C&A 53 Macy's 18 Express 7 Hermès 26 Jordan 36 Massimo Dutti 42 Marks & Spencer 51 TJ Maxx 18 Sainsburys – Tu Clothing 7 Walmart 25 Nike 36 Pull & Bear 42 Nordstrom 17 Calzedonia 6 Dressman 24 Primark 36 Stradivarius 42 Russell Athletic 17 Forever 21 6 Champion 24 Lululemon 35 Zara 42 Decathlon 17 Lacoste 6 Hanes 24 Benetton 35 Falabella 16 Anthropologie 6 John Lewis 24 Target 35 JCPenney 16 Urban Outfitters 6 OVS 23 Gildan Activewear 33 Kik 16 Neiman Marcus 6 Debenhams 23 Burberry 33 Fendi 15 Aéropostale 5 Columbia Sportswear Co 22 Next 33 Cortefiel 15 Sports Direct 5 Hudson's Bay 22 Tesco – F&F 31 Costco – Kirkland Carolina Herrera 5 Signature 15 Sak's Fifth Avenue 22 Ermenegildo Zegna 5 Lidl UK 15 Under Armour 22 Foot Locker 5 Miu Miu 15 COACH 21 Matalan 5 Prada 15 Lands' End 21 Versace 4 American Eagle 15 Diesel 4 Louis Vuitton 15 Marc Jacobs 3 Abercrombie & Fitch 14 Tory Burch 3 Ralph Lauren 14 Chanel 3 J.Crew 13 LL Bean 3 Monoprix 13 Youngor 3 El Corte Inglés 13 ANTA Sports 2 JD Sports 13 New York & Co. 2 Kate Spade 12 Claire's Accessories 2 Burlington 12 Dolce & Gabbana 1 Dick's Sporting Goods 12 Brooks Brothers 1 Joe Fresh 12 New Yorker 1 Chico's 11 Longchamp 0 Dillards 11 Max Mara 0 The Buckle 11 Barney's New York 0 Desigual 0 Dior 0 Heilan Home 0 Jessica Simpson 0 Liverpool 0 Mexx 0 s. Oliver 0 Nine West 0 Sandro 0 * Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company
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