MATERIAL TRUTH REPORT 2019 - Barkers

 
MATERIAL TRUTH REPORT 2019 - Barkers
MATERIAL TRUTH REPORT 2019

MATERIAL TRUTH REPORT 2019                      PAGE 1
MATERIAL TRUTH REPORT 2019 - Barkers
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MATERIAL TRUTH REPORT 2019 - Barkers
What gets us up in the morning? What                 sustainability, and to lead by example as we shift
                                                       guides our choices as a business and as              and improve our business model with urgency.
                                                       people? Central to the Barkers ethos is
                                                       the importance of identifying the thing
                                                                                                            Planet
                                                       that drives you - without that, there’s
                                                       no direction.                                        This is a big one, and at the essence of this
                                                                                                            report. We’re championing transparency,
                                                                                                            sustainability and responsibility in all corners
                                                       Our guiding principle?
                                                                                                            of our business - from our sourcing and
                                                       Barkers is “Made for Life”.                          manufacturing, to logistics and operations, even
                                                                                                            the little things like our light-bulbs. We think
                                                       Our range of apparel and accessories are
                                                                                                            the status quo is no longer acceptable, so we’re
                                                       designed for living, harnessing everyday style
                                                                                                            making changes (big changes) to minimise our
                                                       and enduring quality. This principle shapes
                                                                                                            impact on this planet, its people and our future.
                                                       everything we do, whether it’s choosing a new
                                                       denim supplier for our jeans, giving our stores
                                                       a fresh fit-out, or making our head office more
                                                       environmentally friendly. Most of all, everything
                                                       we create comes back to you: what you do,
                                                       what you like and where you go. We design for               For us, “Made for life” isn’t a
                                                       the life you live.                                         snapshot: it’s a moving picture.
                                                                                                                 We’ve always been committed to
                                                       Our “Made for Life” ethos is supported                    providing our customers with the
                                                       by three brand pillars: Product, Purpose                   best options, but we know that
                                                       and Planet.                                                    “best” is always in flux.
                                                                                                                        Best can get better.

                                                       Product
                                                       This is everything - after all, as a retailer, we
                                                                                                            It’s a goalpost that shifts as our values evolve,
                                                       wouldn’t be here without it. We’re committed
                                                                                                            technology improves and we become more
                                                       to creating high quality product that’s built to
                                                                                                            aware and accountable of our impact on our
                                                       last. And because it’s got to last, enduring style
                                                                                                            environment.
                                                       and timeless design are our priority.

                                                                                                            So with that in mind, this report seeks
                                                       Purpose                                              to outline and detail our commitment to
                                                                                                            transparency, sustainability and the bettering of
                                                       We think that a purpose should get you up
                                                                                                            our business model. Barkers is “Made for Life”
                                                       in the morning. Ours is a drive to do better
                                                                                                            but we’re committed to also making things
                                                       by our customer, and our planet too. We aim
                                                                                                            better for both the future and the now.
                                                       to make great product with an awareness of

QUEENSTOWN,
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MATERIAL TRUTH REPORT 2019 - Barkers
CONTENTS

                    CEO Letter                                                                                       9

                    The What and Why of Material Truth                                                               14

                    The History of Barkers                                                                           17
                           Barkers Through The Years                                                                 20

                    Environment
                           Our Approach                                                                              26
                           Main Fabric Mix                                                                           32
                           Mix of Responsibly Sourced Product                                                        33
                           Cotton Mix                                                                                34
                           Wool Mix                                                                                  35

                    Operations
                          Reduce, Reuse, Recycle                                                                     38

                    Our Suppliers
                          Supplier Code of Conduct                                                                   44
                          Our Suppliers                                                                              45
                          Our Suppliers by Category                                                                  46
                          Audits                                                                                     49

                    Our Factories
                          Our Denim Factory                                                                          52
                          Our Footwear Factory                                                                       54
                          Our Knitwear Factory                                                                       56
                          Our Suit Factory 1                                                                         58
                          Our Suit Factory 2                                                                         60
                          Our Shirt Factory                                                                          62
                          Supplier Overview                                                                          64

                    Our People
                          Who We Are                                                                                 70
                          Our Stores                                                                                 72
                          Our HO / Distribution Centre                                                               73

                    Community
                         Our Charity Partners                                                                        76
                         All Black’s Partnership                                                                     78

Thanks to - Editor: Jade Harris, Designer: Melissa Knight, Words: Emma Gleason, Imagery: Reagen Butler (excluding factory images)
Contributors: Jamie Whiting, Matt Oliver, Andy Smith, Ming and the rest of the Barkers Team.

PAGE 6                                                                                                   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   MURIWAI, NEW ZEALAND
                                                                                                                                                                                  PAGE 7
MATERIAL TRUTH REPORT 2019 - Barkers
CEO LETTER
                                                     Barkers Group CEO Jamie Whiting explains the      a disappointing environmental record, and
                                                     substance behind Made For Life, why it’s more     its workers can operate under pretty poor
                                                     than just a slogan – and the major push to        conditions at times. We have always set higher
                                                     become one of the most responsible clothing       standards for ourselves, and achieved them –
                                                     companies in New Zealand.                         but now we’re pushing on to something bigger
                                                                                                       and bolder. We’ve set ourselves the challenge
                                                     In the Summer 2018 issue of 1972 Magazine, I      of building a responsible fashion business. Easy
                                                     wrote about where Barkers has come from –         to say – but here’s how we’ll do it. Call it a five-
                                                     the struggles and triumphs of the decade since    point programme for making Barkers / Max
                                                     our team took over. Now, I want to talk about     Group a world leader in ethical and responsible
                                                     where we’re going. It’s effectively a mission     fashion.
                                                     statement – a vision of what our company can
                                                     be to our people and our customers, and the       We’re going to rapidly scale up our use of
                                                     impact we’d like to see it have on the world.     environmentally responsible and certified
                                                                                                       sustainable fabrics, with the goal of having them
                                                     It starts with the slogan                         make up 100% of our supply chain as quickly
                                                                                                       as possible but no later than 2023. This means
                                                     ‘Made for Life’. We see
                                                                                                       more use of lower impact fabrics like linen,
                                                     the meaning as two-fold:                          organic cotton and hemp, while minimising
                                                     firstly, that we emphasise a                      synthetics, and using recycled materials
                                                     level of quality and design                       wherever possible.
                                                     which means that instead
                                                     of buying seasonally, you’re                      We’ll go deeper and deeper into our supply
                                                     buying for the long haul.                         chain to ensure that, for example, the yarn and
                                                                                                       trim merchants who supply our manufacturers
                                                     Our materials will last,                          achieve the same standards of excellence we
                                                     and we design for timeless                        already demand of our garment makers.
                                                     style, rather than fast trend-
                                                     driven fashion.                                   Barkers will be strong advocates for timeless
                                                                                                       style, as opposed to chasing short trends or
                                                     Secondly, and perhaps more aspirationally,        selling gimmicky seasonal garments designed
                                                     Made for Life means that our garments will        to only be worn a few times before being
                                                     help towards a more sustainable planet, rather    discarded. So: no polyester Christmas jumpers
                                                     than be a drain on it. The fashion industry has   sold into the New Zealand summer, sorry.

CHOP
PAGE 8SHOP, NEWMARKET   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                                                     PAGE 9
MATERIAL TRUTH REPORT 2019 - Barkers
SAITEX                                                                                                  2019 DENIM COLLECTION

We’ll continue to foster a strong culture within    But it’s something that our entire business,        consciousness.
Barkers, one which looks after our people and       from the board through the shop floor, is fully     It treats its waste water until it’s entirely
engages with social initiatives which speak to      behind. We’re already making major strides.         purified. It houses and feeds its associates,
a broader purpose beyond pure profit. For                                                               and is rightly beloved as a fair trade employer
example, I have joined the steering committee       One of our biggest initiatives of 2019, is          as a result.
of The Formary – a group which is dedicated         the launch of Saitex denim. It’s no secret
to finding new purposes for recycled textiles,      that denim – a rugged, hard-wearing fabric          We’re the first New Zealand company to
and developing circular fibre reuse models,         that many men and women adore – is a real           partner with them, and are launching a full
thus minimising waste.                              environmental problem. Getting that vivid           collection of their jeans as a result of their
                                                    blue colour looking exactly as distressed as        matchless processes and commitment to
Finally, we’ll take the same sense of mission and   you want it requires a phenomenal volume of         sustainable manufacturing.
values into Max, the women’s clothing chain         indigo dye. This is often disposed of in pretty
we acquired towards the end of last year. As        careless ways, leaving waterways and adjacent       This doesn’t come cheap. We’ve had to pay a
we start to evolve and grow the brand, we’ll        land much worse off.                                significantly higher cost to move across. But it
ensure the same philosophies guide us across                                                            feels right, and in sync with our purpose. The
the whole group.                                    This is why Saitex is so impressive. A fair trade   new denim is in stores now – I hope you like
                                                    leed and Bluesign certified manufacturer,           it, and feel great about wearing it. And that
                                                                                                                                                           JAMIE WHITING | Group Managing
I’m under no illusions – this will be the           it is a world first, a melding of incredible        you’ll come with us on this journey to build a     Director Barkers / Max

signature challenge of my professional career.      technology and deep environmental and social        company truly made for life.

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MATERIAL TRUTH REPORT 2019 - Barkers
OUR MISSION
                                                                    We think that if you can’t be a responsible
                                                                 business, you shouldn’t be in business. Barkers
                                                                 has a purpose that goes beyond profit: we want
                                                                  to be a brand that makes a positive impact on
                                                                   the world. Everything we do centres around
                                                                   how we can improve the impact we have on
                                                                    both the environment and the people our
                                                                  business touches. We don’t want to sit on the
                                                                   sidelines, or be asked by future generations
                                                                              why we didn’t do more.

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MATERIAL TRUTH REPORT 2019 - Barkers
THE WHAT AND WHY OF
MATERIAL TRUTH
Firstly, what is this report?                      We put a lot of effort into choosing responsible    more sustainable and transparent. We know
                                                   suppliers, as well as working openly and            improvement doesn’t happen overnight,
‘Material Truth’ is a new report about Barkers’    collaboratively with all of them - we’re proud of   especially when reshaping the supply chain and
sustainability and transparency, covering all      this and want to share it with you.                 operating processes of a legacy business like
aspects of our business - suppliers, fabrics and                                                       Barkers, but it can happen - and it will. Step by
materials, logistics operations, ideology and      Why be a responsible business?                      step we’re making changes in all aspects
everything in-between. Basically, we’ve taken                                                          of our company and, thanks to this annual
a long hard look at where we are now, what         We think that if you can’t be a responsible         report, every year we will aim to improve
we’re improving, what we can do better and         business, you shouldn’t be in business. Barkers     on the year before.
(most importantly) where we want to be... and      has a purpose that goes beyond profit: we want
we’re sharing it with you.                         to be a brand that makes a positive impact on       The sustainability metrics and targets outlined
                                                   the world. Everything we do centres around          in this report will allow us to do just that -
So why are we doing this?                          how we can improve the impact we have on            these goals push us to seek out alternative
                                                   both the environment and the people our             materials, better ways of doing things, and
We’re making this report public so you can join    business touches. We don’t want to sit on the       suppliers that are leading the pack when it
us on this journey - following our progress as     sidelines, or be asked by future generations why    comes to sustainable and ethical manufacturing.
we discover better alternatives and practices,     we didn’t do more.                                  We’re committed to pushing the boundaries
and creating a dialogue of what a business                                                             of what’s possible.
needs to be now.                                   How is this report going to inform our
                                                   decisions going forward?                            We know this is a massive undertaking, and
                                                                                                       that we are by no means perfect or anywhere
Our company strategy is to be                      This report is a first for us, but it’s certainly   near where we want to be yet – but we are
                                                   not the last. We will be producing this report      committed to the journey and every step we
a responsible business - we
                                                   every year going forward. It’s our yardstick,       need to take to get there.
want to be clear and honest
                                                   allowing us to measure our progress and stay
about where our products                           accountable. We’re not perfect yet, but we’re
come from, how they’re made,                       embracing improvement and are committed
and where they end up.                             to bettering all aspects of our business to be

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MATERIAL TRUTH REPORT 2019 - Barkers
THE HISTORY OF BARKERS
                                       We’re pretty proud to be one of this country’s     Victoria Street in central Auckland.
                                       most well known and trusted men’s retailers.
                                       We’ve been going for over forty five years, and    From the very start he was committed to
                                       we’re still New Zealand owned and run. In a        creating quality menswear that channelled
                                       big busy world, our commitment to being a          international trends with a distinctive Kiwi
                                       local brand sets us apart from the pack; it laid   approach - something we still do today. His
                                       the foundations for our legacy and shapes our      store was so popular (especially on Friday
                                       future thinking.                                   nights) that queues would often be out the
                                                                                          door, and five months after opening his High
                                       Since this report is all about moving forward,     Street store Barker opened another on
                                       let’s take a short look back at the journey of     Queen Street.
                                       innovation and dedication that got us where we
                                       are today.                                         Barker’s business was loved by customers and
                                                                                          employees alike; treating our staff like family has
                                       It all began in 1972, when                         always been our thing, and during the seventies
                                                                                          and eighties the team at the flagship store
                                       founder Raymond Barker
                                       opened “Raymond’s” and
                                       began outfitting Kiwi men
                                       for daily life and special
                                       occasions.
                                       Rewind a little further, and in 1967 nineteen-
                                       year-old Ray from Orakei travelled to the
                                       United Kingdom on his OE. His first job in
                                       London was with Burton Tailoring, a made-
                                       to-measure clothing company, and he honed
                                       his eye for men’s apparel and tailoring while
                                       soaking up the sights and culture of London.

                                       A few years later he returned home to New
                                       Zealand, and at the age of 25 he opened his
                                       first store on the corner of High Street and

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MATERIAL TRUTH REPORT 2019 - Barkers
would be taken out for steak and drinks every          of local manufacturing and a shift in the national
Friday - a gathering so popular that they were         and international apparel model. To stay in
even once joined by the Doobie Brothers.               business, Ray reluctantly joined the many other
                                                       brands that were moving manufacturing off-
One of the best sellers in those days was the          shore during the nineties, and in 2002 he finally
Barkers signature body shirt - a familiar icon         sold the business.
of stylish seventies menswear. With shirts like
these and a classic yet on-trend range, Ray            From there, Barkers has been evolving with the
Barker dressed many local celebrities from             rapidly shifting fashion market over recent years,
television, music and radio.                           while also cementing our position and identity as
                                                       a New Zealand brand.
Barkers Stores continued
to dominate local men’s                                We’ve opened lots of groundbreaking new
                                                       stores, honed our range, and joined forces with
fashion in the eighties,
                                                       other Kiwi icons like the All Blacks.
championing bright colours
and embracing the growing
trend of looser fits.

The nineties saw the birth of one of our most
famous items - Barkers trackpants. Demand
was so high that our local manufacturers in
West Auckland would often work through
the night, and 50,000 pairs were sold in only a
couple of years. To this day it remains one of
our most famous items - and one we relaunch
occasionally to much fanfare.

However the nineties also saw the arrival of
international competition and a shift in the
                                                            We’ve asked ourselves some big
fashion landscape, as many popular surf brands
                                                           questions too. Who are we? What
hit New Zealand and dress codes relaxed.
                                                            do we stand for? What life does
Meanwhile other brands were producing in
                                                           our customer live? These have led
China, offering more competitive pricing and
                                                           us to where we are today, and our
steep discounts.
                                                            ethos Made for Life. Through his
                                                            decades of business, Ray Barker
In the early days, the Barkers clothing range
                                                           never stopped embracing change -
was manufactured locally in Auckland, Tauranga,
                                                                  and neither will we.
Manawatu and elsewhere around the country -
but the lifting of import tariffs led to the decline

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BARKERS THROUGH
THE YEARS                                                                                                        2013                                                              “Made for Life” launches,
                                                                                                                  Barkers largest                                                  and we open new stores
                                                                                                               store (although not                                                in Christchurch, Auckland,
                                                                                                              for long) ‘Chambers’                                                 Tauranga and Whangarei.
   1972                                                                                                       opens in Wellington,             2015                               Barkers Group purchases
     Founded by                                    2008                                                           as well as new              We open a new                       womenswear brand Max.
  Raymond Barker,                                  Barkers opens
   father of Team                                   new stores in          2012                                stores in Riccarton
                                                                                                                  and Hamilton.
                                                                                                                                              store in Tauranga.                Jamie Whiting is now Group
                                                                                                                                                                                  CEO of Barkers and Max.
   New Zealand            2002                     Napier and on          First new concept                     We also refit our             The first ‘Groom                    Glenn Cracknell takes the
    skipper Dean           Ray sells the           Auckland’s High        store open’s in Te                      Sylvia Park and             Room’ launches                        role as CEO of Barkers.
        Barker.             business.                  Street.              Awa, Hamilton                        Takapuna stores.              on High Street.

                                                                                                                                                                                       2018
             1990                      2006                     2010                                  2012                       2014                       2017
           The 90’s mark the         Barkers purchased          Jamie Whiting                      Brand relaunch, new             Superseding            Experiential retail
          launch of the iconic       by current owners.        joins Barkers as                      suppliers and the         ‘Chambers’ as the             space ‘Good
           Barkers trackpant.                                 Managing Director.                   launch of our ‘1972’         largest store, ‘No         Company’ opens
                                                                                                    magazine. Our first        1 High St’ opens in           on Ponsonby
                                                                                                    concept store ‘The              Auckland.               Road. We also
                                                                                                   Garage’ in Hamilton                                    launch our made-
                                                                                                      opens. We also                                          to-measure
                                                                                                   open new stores in                                        suiting range.
                                                                                                     Christchurch and
                                                                                                        Wellington.

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GOALS AND PROGRESS
                                                     Supply Chain
                                                     Goal: 100% of supply chain visible by 2023.
                                                     Current Progress: All of our suppliers must sign our robust code of conduct
                                                     before we do business with them. 100% of our CMT (Cut-Make-Trim) factories have
                                                     current Social Audit Compliance. In 2019 we will work with a new audit partner, who
                                                     currently work for our sister company Max, to create a new group-wide audit plan, with
                                                     particular focus on worker welfare and ethical sourcing.

                                                     Product
                                                     Goal: 75% of product environmentally responsible fabrics by 2020, 100% by 2023.
                                                     Current Progress: Is at 28%, with this increasing to 58% for 2019.

                                                     Carbon Reductions
                                                     Goal: CEMARS (carbon reduction) Certification by FY 2019. Carbon neutral
                                                     certification by 2023.
                                                     Current Progress: We are in the initial stages but as our sister company Max
                                                     is already undergoing a lot of work in this area, we will be aligning with them.
                                                     Once we are certified we will then be able to set our annual carbon reduction targets
                                                     and will report on this in our 2020 report.

                                                     Packaging
                                                     Goal: Environmentally Responsible Packaging
                                                     Current Progress: In 2018 we changed all our retail bags to fully compostable FSC
                                                     responsibly sourced paper, the inks are vegetable based and glue is water based.
                                                     In 2019 we will replace our courier bags to also be responsible and introduce
                                                     re-useable stock bags.

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ENVIRONMENT
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OUR APPROACH
Our Design Approach                                and for life. Our philosophy means we’re          Cotton                                              a dark side to denim though; in addition to the
                                                   committed to reshaping our supply chain                                                               traditional problems associated with growing
Here at Barkers we’re not all about trends,        and manufacturing processes to make our           This soft, breathable fabric comes from the         and harvesting cotton, when disposed of
we’re about style. Rather than the flash-in-the-   operation more environmentally and socially       cotton plant and we use it for everything           irresponsibly the runoff from indigo dye can be
pan garments found at fast-fashion retailers,      sustainable for our world. You can read more      from our collared dress shirts to more casual       detrimental to waterways and land.
we design appealing and considered products        about ‘Made for Life’ on page 4.                  items like T-shirts and shorts. It doesn’t retain
that help you look your best (whatever the                                                           odour as much as fabrics like synthetics, so you    Our new denim supplier is one of our
occasion) and are built to last.                   Our Fabrics                                       can usually go a bit longer between washes          most important new initiatives. Saitex
                                                                                                     - something we recommend to minimise the            treats its waste water until it’s entirely purified,
                                                   Using fabric made from natural fibres is our      environmental footprint of your garment.            as well as providing exceptional working
                                                   priority, and the vast majority of our range                                                          conditions and support for its employers as
                                                   (96% in fact) is made from cotton, wool and       Because we use a lot of cotton, it’s important      a fair trade company. They take environmental
          Our design principle centres             linen.                                            that we use the right stuff. Cotton crops           and ethical sourcing very seriously and are
           around two key priorities:                                                                require a great deal of water, and many cotton      Bluesign, OEKO-TEK, LEED and Fair Trade
                                                   Why natural fibres? Well in addition to their     growers rely on pesticides that are harmful for     certified.
               1. Timeless style
                                                   superior look and feel, natural fibres are a      the environment and community. We don’t like
              2. Enduring quality
                                                   sustainable resource - they are renewable and     that, so we’re integrating more eco-friendly
                                                   biodegradable.                                    options into our range.

Both of these are underpinned by our               Natural textiles are far better for the           Where possible we choose to use Certified
commitment to integrate more sustainable           environment than synthetics which are derived     Organic Cotton as we believe it is the most
materials and practices in our manufacturing -     from petrochemicals.                              responsible option with the least environmental
this means creating high quality garments that                                                       impact. We also support the use of Better
last longer and are better for the planet. It’s                                                      Cotton Initiative (BCI) cotton. As of January
simple really, and it’s important.                                                                   2019, 34% of our cotton is responsibly sourced,
                                                                                                     and of this 55% is Certified Organic Cotton
Our Philosophy                                          Polyester accounts for less than             and 45% is BCI cotton.
                                                        3% of our range, and almost half
Barkers ethos ‘Made for Life’ applies to all              of this is made from recycled              Denim
aspects of our business model and is supported          material as we pursue solutions
by three brand pillars - product, purpose                that foster a circular economy.             A staple when it comes to menswear and
and planet - and our range of apparel and                                                            a famously hardy textile, denim is a woven
accessories are designed and crafted for living                                                      fabric made from cotton, with a distinctive twill
                                                                                                     weave that gives it enormous strength. There’s

PAGE 26                                                                 MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                                                        PAGE 27
Wool                                               Fabric Goals

One of our favourite natural textiles, high        Our short term goal is to have 75% of our
quality wool is warm, breathable and soft          products environmentally and responsibly
to the touch. 71% of our wool is currently         sourced by 2020, and ultimately 100% of our
responsibly sourced, certified by Responsible      products environmentally responsibly sourced
Wool Standard (RWS) and the Pure Woolmark          materials by 2023.
standard. Wool is predominantly used for
knitwear and suiting. 100% of our wool             By 2023 we aim to use either 100% organic
suiting is merino, made under the Woolmark         cotton or responsibly sourced cotton for
standard. Our knitwear is made from merino         all of our cotton knit garments, and all our
or lambswool certified under the RWS and           woven shirts and pants.
Woolmark standards.
                                                   In 2019 we will be introducing the world’s most
Linen                                              ethical and sustainably sourced ZQ Merino.

Derived from the flax plant, this fabric is
renowned for its light, breathable and elegant
nature. 70% of our linen products are GOTS
certified Organic Linen, with the fabric
produced in an OEKO-TEX certified “green”
rated factory. Generally woven (although
knitted linen is sometimes used for t-shirts)
we use linen for our collared shirts, shorts and
occasionally even suiting.

Other Fabrics and Materials

Polyester or nylon accounts for less than 3%
of our total fibre use - and of this more than
half is currently post consumer waste recycled
fabrics. The few feather down products we
stock are all 100% certified Responsible Down
Standard (RDS).

PAGE 28                                                                  MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 29
PRODUCT
                                                                   The sourcing of products and textiles is the
                                                                   core of our business, and it’s our mission to
                                                                   do that in the most responsible, ethical and
                                                                    environmentally conscious way possible.
                                                                  Supply chain transparency is vital so that we
                                                                  know the impact our production is having on
                                                                        the environment and community.

WANAKA,
PAGE 30 NEW ZEALAND   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                      PAGE 31
MAIN FABRIC MIX                                                                                         MIX OF RESPONSIBLY
The sourcing of products and textiles is the
core of our business, and it’s important to
us that we do so responsibly.
                                                    is having on the environment and community.
                                                    We love natural fabrics and 96% of the materials
                                                    we use are made from natural fibres like cotton,
                                                                                                        SOURCED PRODUCT
                                                    wool, and linen. As these are renewable and         We are constantly aiming to improve our                environmentally responsibly sourced materials
We acknowledge the impact the apparel               biodegradable, they are a far more sustainable      sources of these materials, with suppliers and         by 2023. We understand the complexity of
industry has on the planet and its resources, and   resource than synthetics derived from               manufacturers adhering to eco-conscious and            achieving these goals, however every step we
are committed to being part of a solution rather    petrochemicals - polyester accounts for less than   socially responsible practices and accreditations.     take is a positive action and it is a journey that
than the problem. Supply chain transparency is      3% of our range, and almost half of this is made    A key part of this strategy is working further         we are committed to.
vital so that we know the impact our production     from recycled material.                             down the supply chain with 2nd and 3rd tier
                                                                                                        fabric, fibre and trims suppliers to ensure            To achieve this we work closely with our
                                                                                                        authenticity and traceability of these materials, as   manufacturers and prioritise accountability,
                                                                                                        well as ensuring the downstream suppliers are          visibility and accreditation. In 2018, 28% of the
                                                                                                        aligned and adhere to the same principles and          fibres we purchased were environmentally
             Main Fabric Mix -                                                                          Code of Conduct as our garment suppliers.              responsibly sourced. We are working on this
          Barkers Branded Product                                                                                                                              area constantly and have increased the mix of
                                                                                                        Our short term goal is to have 75% of our              environmentally responsibly sourced fibres to
                      3% 1%
                 5%                                                                                     products environmentally responsibly sourced           58% for the Winter 2019 season, and are well
          7.2%                                                                                          by 2020, and ultimately 100% of our products           on our way to achieve our goal of 75% by 2020.

                                                                                                        Mix of Environmental Responsibly Sourced
                                        53.1%           We love natural fabrics and 96% of
                                                                                                            Fabrics - Barkers Branded Product
                                                        the materials we use are made from
                                                        natural fibres like cotton, wool, and
    30.7%
                                                        linen.

                                                                                                              28%
                                                                                                                                                                   Our short term goal is to have 75%
                                                                                                                                                                   of our products environmentally
                                                                                                                                                                   responsibly sourced by 2020, and
     Cotton       Wool        Leather   Linen
                                                                                                                                                                   ultimately 100% of our products
                  Polyester     Other
                                                                                                                                                                   environmentally responsibly sourced
                                                                                                                                                72%
                                                                                                                                                                   materials by 2023.

                                                                                                               Responsibly Sourced    Conventional Fibres

PAGE 32                                                                   MATERIAL TRUTH REPORT 2019    MATERIAL TRUTH REPORT 2019                                                                          PAGE 33
COTTON MIX                                                                                              WOOL MIX
Cotton                                             stands for Better Cotton Initiative, a name          Wool                                               Linen
Where possible we choose to use Certified          that says it all really - it’s just better cotton.   We love wool, especially super fine merino,        70% of our Linen products is GOTS certified
Organic cotton as we believe it is the most        Clothes labelled with the BCI standard are           it is one of nature’s super fibres with the        Organic Linen, with the fabric produced in an
responsible option with the least environmental    grown using more sustainable, environmentally        ultimate performance benefits which is why we      OEKO-TEX certified “green” rated factory.
impact, but also support the use of Better         friendly practices, while also prioritising worker   choose it as the fibre of choice for our suiting
Cotton Initiative (BCI) cotton where we are        wellbeing).                                          and knitwear. 17% of our wool currently is         Down
unable to source Certified Organic cotton.                                                              responsibly sourced, certified by Responsible      We stock very few down products, but where
                                                   By 2023 we aim to use either 100% organic            Wool Standard (RWS). In 2019 we will be            we do they are 100% certified Responsible
As at January 2019, 34% of our cotton is           cotton or responsibly sourced cotton for all of      introducing the world’s most ethical and           Down Standard (RDS).
responsibly sourced, of this 55% is Certified      our cotton knit garments, and all our woven          sustainably sourced ZQ Merino. All wool used
Organic Cotton and 45% is BCI cotton (BCI          shirts and pants.                                    for Barkers products must come from certified      Other Fibres
                                                                                                        non-mulesed wool growers. 100% of our              Other fibres such as polyester or nylon accounts
                                                                                                        wool suiting is made from merino under the         for less than 3% of our total fibre use. Of this
                                                                                                        Woolmark standard. Our knitwear is made from       more than half is currently post consumer waste
               Cotton Mix -
                                                                                                        merino or lambswool certified under the RWS        recycled fabrics. Whilst we don’t aim to increase
          Barkers Branded Product
                                                                                                        and Woolmark standards.                            the use of synthetic fibres, it is our aim in future
                                14%                                                                                                                        to only use recycled synthetic fabrics.

          20%
                                                                                                                      Wool Mix -
                                                                                                                Barkers Branded Product
                                                     As at January 2019 34% of our cotton
                                                     is responsibly sourced, of this 55% is
                                                     Certified Organic Cotton and 45% is                                                                       In 2019 we will be introducing the
                                                                                                                  17%
                                                     BCI cotton.                                                                                               world’s most ethical and sustainable
                                                                                                                                                               sourced ZQ Merino. All wool used
                                                                                                                                                               for Barkers products must come from
                                   66%                                                                                                                         certified non-mulesed wool growers.
                                                                                                                                                               Textile Reuse Programme: We recently partnered
      Conventional Cotton      Certified Organic                                                                                                               with the Textile Reuse Programme and sit on the
                  Responsibly Sourced                                                                                                                          Steering Committee to help develop future circular
                                                                                                                                            83%                models for textile re-use, because our responsibility
                                                                                                                                                               doesn’t end when a garment leaves our store.

                                                                                                              Responsibly Sourced    Conventional Wool

PAGE 34                                                                    MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                                                           PAGE 35
OPERATIONS
PAGE 36   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 37
REDUCE, REUSE, RECYCLE
At Our Head Office                                  Our Distribution Centre                            In Our Stores

Did you know our Head Office is a green             We try to recycle everything we can, making        All our stores use 100% LED lighting to reduce
space? Our solar powered building uses LED          this process simple by using colour coded          heat and power usage. We have removed as
lighting to reduce heat and power usage. We         recycling bins (paper, recycling, organics and     much packaging as possible coming from our
also only use environmentally friendly cleaning     rubbish) for all smaller day-to-day stuff.         suppliers. We’re proud to say we now use
products.                                                                                              responsibly sourced paper for all our carry bags,
                                                    For the big things, we have large reclaim /        they are FSC certified and fully compostable.
                                                    recycling cages for all non-reusable cardboard,
                                                    and separate cages for soft plastics like pallet   All our stores use ecostore cleaning products
                                                    wrap and garment bags.                             and we also have several other initiatives that
     We’ve eliminated 100% of single                                                                   minimise waste in our stores and for our
     use plastics in our office, and to             Our Distribution Centre is also 100% paperless     customers. We are exploring more ideas all
     further ensure a limited rubbish               when it comes to picking stock and receipting.     the time.
       output we use colour coded                   100% of our machinery are electric vehicles.
    recycling bins for paper, recycling,                                                               Freight
    organics and rubbish - recycling is             Operational Packaging
           second nature for us.                                                                       In an effort to reduce our carbon footprint,
                                                    We’re in the process of designing reusable         we consolidate stock from different suppliers
                                                    cartons from recycled post-consumer waste so       and manufacturers before it’s shipped to New
                                                    they can be used again for store replenishment,    Zealand. And when we say shipped, we mean it;
We even have a worm farm for organic waste!         rather than being single use cardboard boxes.      we avoid air-freighting stock as much as possible.
We’re also trying to use less paper, by utilising                                                      We also consolidate stock at our Distribution
digital technology instead of the printer.          This eliminates the need to purchase new           Centre, sending stores both new stock and
We’re committed to minimising our                   cartons every year, and cuts down on our           replenishment in one (well-filled) box.
environmental impact and moving towards             cardboard waste at our Distribution Centre.
becoming a carbon neutral business by 2023.         Our aim is to use reusable cartons for 90%
We believe every little step counts, and we         of what we send out by 2019.
follow the mantra of reduce, reuse, recycle
across our business. This ethos applies to our      We are also shifting towards our courier
Distribution Centre and Head Office,                bags being made from 100% biodegradable
as well as our logistics chain.                     packaging.

PAGE 38                                                                   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                           PAGE 39
Stock Allocation                                         We also encourage our customers to invest in
                                                                                                                                   the life-cycle of the garments they buy from us,
                                                                          We’ve put a lot of work into the depth, spread           prioritising mending and charity donations.
                                                                          and placement of our stock in stores - we need
                                                                          to have the right stuff in the right place.              Garment Care

                                                                          If it’s not, that stock either isn’t sold, or is moved
                                                                          to other stores - both of which we don’t want!
                                                                          Instead of shifting stock from store to store, we
                                                                          keep as much as possible at our Distribution
                                                                                                                                       Caring for your clothing correctly
                                                                          Centre, and send consolidated assortments to
                                                                                                                                       can prolong its lifetime and greatly
                                                                          stores only when they need it. By improving our
             When it comes to improving our                                                                                            reduce the amount of product you
                                                                          stock allocation, we help reduce our carbon
          local operations and minimising their                           footprint.
                                                                                                                                       purchase, which means less stress
              impact, we follow the mantra of                                                                                                 on the environment.

             reduce, reuse, recycle - it’s pretty                         We are currently developing an AI stock
                       simple really.                                     management system with our IT partner to add
                                                                          further efficiencies to stock management in the
                                                                          future.                                                  We believe that with proper care our garments
                                                                                                                                   should last you many seasons. We have put
                                                                          Dead Stock                                               together guides to help you look after your
                                                                                                                                   garments, from the washing process through to
                                                                          We know that faulty or damaged stock is a                mending those small tears and lost buttons.
                                                                          reality in retail (ours is less than 1% of our total
                                                                                                                                   https://www.barkersonline.co.nz/help/Care_Instructions/
                                                                          product - which is pretty good) but we never
                                                                          dump any garments to landfill.

                                                                                Everything we make is sold; if it
                                                                               can’t be sold, rather than destroy
                                                                                 it like other businesses do, we
                                                                              donate it to local charities such as
                                                                              the Salvation Army - surplus fabric
                                                                                     is donated to craft users.

PAGE 40                                      MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                                                                PAGE 41
OUR SUPPLIERS
PAGE 42   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 43
SUPPLIER CODE OF CONDUCT                                                                                                                           Our Suppliers

                                                                                                                 To ensure we have absolute visibility across our supply chain, rather than using third
                                                                                                                  party agents to source our product, we have 100% traceability and work directly
                                                                                                                   with our factories. This way we can control the quality of the product, as well as
                                                                                                                 select suppliers based on their attitudes and practises toward workers welfare and
The sourcing of our products and textiles           This Code of Conduct binds our suppliers
                                                                                                                                              environmental responsibility.
is along with our people, the core of our           to both the United Nations Declaration of
business. So looking after the people who           Human Rights, and the Conventions of the                        For Barkers branded product we have a total of 18 Direct Suppliers.
make our products is a top priority for             International Labour Organisation. It ensures                    Our Top 10 suppliers make up 83% of our total annual purchases.
us. Social Responsibility is a key focus in         our suppliers have strict standards for human
Barkers’ strategic plan so we continually           rights, fair wages and good working conditions.
look to improve the way we operate                  No forced, prison or child labour and no use of
across all areas of our business. We are            harmful chemicals and methods like AZO dyes.
                                                                                                                                                                             16 based in
committed to improving our workers’ rights          In addition to all of our suppliers going through
                                                                                                                                                                           Mainland China
and believe supply chain transparency is vital.     a rigorous selection process, our Buying Policies
                                                                                                                                                                          contributing 94%
To ensure that the suppliers we work with are       have been developed to ensure our own
                                                                                                                                                                           of product mix
aligned with our values, we have established        team work with our suppliers in the most
a rigorous Code of Conduct that all suppliers       collaborative way possible. Our policies ensure
must sign and adhere to these practices.            our buying schedule does not put unrealistic
                                                    pressure on our suppliers and workers. Our
Click here to view our Supplier Code of             supplier selection is based on those that                                                                                                      1 based in
Conduct                                             have strong employee welfare and labour                                                                                                      New Zealand
                                                    rights records. All of our supplier’s workers’                                                                                              contributing 2%
PRINCIPLES                                          wages exceed the minimum government                                                                                                         of product mix
Our suppliers are our partners, and we              requirements and all workers are working on a
hand select who we work with based on               voluntary basis.                                                                                                            1 based in
their alignments to our values and principles                                                                                                                                    Vietnam
on ethical welfare on their people and              Click here to view our full Buying Policy                                                                                contributing 4%
commitment to environmental responsibility.                                                                                                                                  of product mix
We have personally visited all of our factories,    All our factories hold current certified audits.
we visit China several times a year, to visit our   Environmental responsibility is extremely
suppliers. 100% of our factories have signed our    important us and we work with suppliers
                                                                                                                                                  Supplier Tenure
Code of Conduct and we continue to work             who follow the best practice to minimise their
with a small number of suppliers to build strong    environmental impacts. 70% of our factories
relationships. We do not use single-use suppliers   are OEKO-TEX 100 or BLUESIGN certified
as we believe it’s important to develop long-       for the use of non hazardous chemicals / green
term relationships, ensuring good visibility and    chemistry, and 100% of suppliers strictly adhere
understanding of the workers’ conditions and        to waste water treatment standards as set by
supplier compliance with our Code of Conduct.       the local government.

PAGE 44                                                                   MATERIAL TRUTH REPORT 2019    MATERIAL TRUTH REPORT 2019                                                                        PAGE 45
Suppliers By Category

              In most instances, we prefer to work with a single supplier who is a specialist in their
               area, or in cases of large categories, we may use 2 suppliers. This limited supply base
                means we can better control the quality of production of our garments, as well as
                           build strong, meaningful partnerships with fewer key suppliers.

                                                                                       Casual Pants /
          2       Shirts                     2     Suits / Blazers               2     Shorts

          2       Jeans                      1     Tees / Sweats                 1     Knitwear

                                                                                       Leather
          1       Board Shorts               1     Shoes                         1     Accessories
                  Luggage &
          1       Accessories                1     Socks                         1     Hats

                  NZ Made
          1       Accessorites               1     Casual Jackets

Our aim is to be as transparent with our                   provide in confidence, to NGOs and other
supply chain as possible, whilst at the                    audit organisations if requested. Our supplier
same time, manage any commercial risks                     information can be viewed on page 64-67.
around sensitive information which may be
detrimental to our business.                               Barkers doesn’t accept any subcontracting.
                                                           All Barkers suppliers have agreed that the
Where we have exclusive supply arrangements                manufacturing is all undertaken at the factory
with suppliers we are comfortable sharing this             inspected by Barkers and our Audit partner.
information publicly. For suppliers who are                The checks are performed personally by Barkers
non-exclusive, we have disclosed all the same              Supply Chain Manager who is in China 4 times
information but withheld their names. However,             per year to inspect Barkers production as it
all supplier information is disclosed to our               goes through the production line to ensure
independent audit partner.We will also happily             no sub-contracting.

PAGE 46                                                                              MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 47
AUDITS
                                                                                                                                      Incidents
                                                After initial Audit each factory is then re-
                                                audited every 2yrs, or at the expiration of                              27%

                                                current audit certificate.

                                                In addition, our suppliers often have several
                                                other audit certification standards from
                                                other international brands they work with.                                                                 73%

                                                To avoid “audit fatigue” as well as additional                                 Minor        Major   0% Critical

                                                audit costs for our suppliers, we will accept
                                                                                                                                       4%
                                                current valid results from other third-party                                     5%

                                                audits, which we indepently verify through
                                                our own audit partner.
                                                                                                                                                                  50%

                                                This is on the basis that the audit                                41%

                                                certifications are verified by us with the
                                                auditing party, and a full copy of the audit
                                                along with corrective action plans are
                                                provided for our records.                                                H&S, Hygiene          Waste Management
                                                                                                                    Hours, Wages and Benefits         Labour Practices

                                                                                                 Incidents
                                                                                  100 incidents were reported in 2018.
                                                                               All incidents were resolved within 60 days.
                                                                       Of the incidents, 73% of these were minor with 0% critical.

SAITEX
PAGE 48- VIETNAM   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                                                                               PAGE 49
OUR
                                                                    FACTORIES
                                                                   Our factories are a key part of Barkers’
                                                                success. We partner with the best suppliers
                                                                and work together in true partnership. We
                                                               source responsibly and minimise our impact
                                                                 on the environment, so we personally visit
                                                                all suppliers before we work with them and
                                                              continue to visit them several times every year.

                                                               We work with suppliers who share the same
                                                                   values for worker welfare and the
                                                                        environment as we do.

PAGE 50 VIETNAM
SAITEX,           MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019                                        PAGE 51
OUR DENIM FACTORY
O U R D E N I M FA C T O R Y :      They may be one of the more casual, overlooked staples
SAITEX                              in your wardrobe, but a lot of technology and know-how
                                    goes into creating a great pair of jeans - and greener denim!
FACTS AND DETAILS
                                    Who are they?
       Vietnam: Lot 226/8 Road
       2, Amata Industrial Zone,    A new supplier of ours, and one we’re so excited to work
       Bien Hoa, DongNai
                                    with! We’ve teamed up with one of the best in the business,
                                    making for the best brands in the world. Based in Vietnam,
       4000
                                    they not only make great denim, they’re committed to
                                    minimising their environmental impact and supporting their
SOCIAL & ENVIRONMENTAL              community - in fact, they’re certified one of the cleanest
CERTIFICATES                        denim factories on the planet.

       OEKO-TEX Textile             What do they make?
       Cer tification

                                    These guys make all denim - hard wearing wardrobe
       Bluesign Environmental
                                    classics built for everyday life - that are better for the
       Health and Safety Standard
                                    environment than traditionally manufactured denim.
       LEED - Green Star
       Cer tified Factory           Why them?

       Cer tified Organic Cotton    Their great denim makes them a no-brainer, most
                                    importantly though, we respect their ethos and values -
       ISA TanTec Leather
                                    one that spans their approach to both product and people.
       Fair Trade Certified
                                    Rejecting the speed and profit-focused cycle of fast fashion
                                    (and its environmental and human cost), they’ve embraced
                                    innovation in their manufacturing systems to minimise
                                    their impact. We share this ethos and these goals and think
                                    they’re one of the most responsible factories in the world,
                                    which is why we reached out to them to help us make the
                                    best, cleanest denim in the world. We’re proud to call them
                                    a partner!
                                    www.barkersonline.co.nz/blog/saitex-denim/

PAGE 52                                                                 MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 53
OUR FOOTWEAR FACTORY
O U R F O O T W E A R FA C T O R Y :    Footwear manufacturing is a complicated process, requiring
FIRST STEP GROUP                        a specific kind of expertise. The leather footwear reserved
                                        for special occasions or fancier offices calls for a double
FACTS AND DETAILS                       whammy of quality and style - something we found at this
                                        supplier.
       China: Shanghai Middle
       Road, Laixi District, Qingdao,   Who are they?
       Shandong province

                                        Based in Qingdao, China, these shoemakers craft high-end
       625
                                        leather footwear across their several specialised factories.
                                        They work with some of the world’s best footwear brands
SOCIAL & ENVIRONMENTAL                  - and they have partnered exclusively with us to bring you
CERTIFICATES                            the Barkers shoes you love.

      Child Labour Free                 What do they make?

      Inter tek Global Security         This factory crafts the majority of our leather dress shoes
      Verification                      - those derbies and oxfords you wear with your favourite
      UL Social Responsibility          suit when you’re dressed to impress.
      & Accountability
                                        Why them?
      ISA TanTec Leather

                                        With serious expertise in leather footwear, the quality of
                                        the manufacturing made them a no-brainer for us - and
                                        fantastic service sealed the deal.

                                        We’ve worked with them for over four years now,
                                        and appreciate their knowledge of fashion trends and
                                        international retail markets.

PAGE 54                                                                   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 55
OUR KNITWEAR FACTORY
O U R K N I T W E A R FA C T O R Y :   Knitwear is a staple for us, so it’s got to be good. For high-
HONGDA GARMENT CO                      quality knitwear, we work closely with this factory and value
                                       their expertise and know-how.
FACTS AND DETAILS
                                       Who are they?
       China: Dibei Road, Shengzhou
       City, Shaoxing prefecture,      Based in the Shengzhou region southwest of Shanghai, their
       Zhejiang province
                                       team are knitwear experts who manufacture high-end
                                       garments for some of the best brands in Europe and the
       485
                                       United States. We’ve been working with them on our knits
                                       for over six years, and they exclusively partner with Barkers
SOCIAL & ENVIRONMENTAL                 in the New Zealand market.
CERTIFICATES

                                       What do they make?
       Child Labour Free
                                       Our knitwear comes from these guys, including our
                                       renowned merino and lambswool ranges, and our new
       Business Social Compliance
       Initiative
                                       luxury fabric developments such as cashmere, alpaca
                                       and linen. Their merino knitwear is made from certified
                                       Responsible Wool Standard Biella yarn (Bluesign certified)
       OEKO-TEX Textile                supplied by Sudwolle.
       Cer tification
                                       Why them?
       Use Bluesign Cer tified
       Wool
                                       Aside from being great people who we really enjoy doing
       Use Responsible Wool            business with (we think that’s so important) we wanted
       Standard (Biella Yarn)          to select the very best knitwear supplier we could find to
                                       make product to our high standards. Their factory is highly
       Woolmark
                                       specialised, making fully-fashioned knitwear using state of
       ISO Certification 9001,         the art automatic and computerised knitting machines from
       14001, 18001                    Italy, with all hand linking performed by expertly skilled staff.

PAGE 56                                                                    MATERIAL TRUTH REPORT 2019      MATERIAL TRUTH REPORT 2019   PAGE 57
OUR SUIT FACTORY 1
O U R S U I T FA C T O R Y : J I TA I   We all know suits are such an important purchase,
GARMENT CO                              requiring careful consideration and savvy investment. To
                                        make sure you’re getting the best, we’ve been working with
FACTS AND DETAILS                       the same high quality suit-maker for the past twelve years.

        China: No.39 Taian Road,        Who are they?
        Hailing Industrial Park,
        Taizhou City, Jiangsu
                                        One of our key tailoring partners, this manufacturer is
                                        located in China’s Jiangsu Province. They first opened their
        323
                                        doors in 1958 and they’ve been perfecting tailored suits
                                        ever since. We began working with them back in 2012 -
SOCIAL & ENVIRONMENTAL                  and we couldn’t be happier! Our relationship is so strong
CERTIFICATES                            that we have an exclusive supply agreement for the New
                                        Zealand market.
        Business Social Compliance
        Initiative                      What do they make?

        International Organisation
        for Standardization: 9001,
                                        Jitai have adopted the best of Italian garment production
        14001, 18001                    technology. We work closely with their team to design and
                                        craft our tailored suits, blazers and overcoats.
        OEKO-TEX Textile
        Cer tification                  Why them?

        Woolmark
                                        Our working relationship with this manufacturer goes two
        Child Labour Free
                                        ways - we collaborate on every design we come up with.
                                        And the suits, well they couldn’t be better. The team there
                                        have been crafting high quality suits for decades and use
                                        the latest technology to do so - their advanced equipment
                                        and test instruments are imported from Italy, Germany,
                                        Japan and Switzerland. They are a member of China Wool
                                        Textile Association and have the license for both pure
                                        new wool and wool-blend Woolmark from International
                                        Woolmark Company.

PAGE 58                                                                   MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 59
OUR SUIT FACTORY 2
OUR PREMIUM SUITING &                       When it comes to creating the perfect made to measure
M A D E -T O - M E A S U R E FA C T O R Y   suit, we turn to expert manufacturers. This highly skilled
                                            team is one of the best in the business, and harness cutting
FACTS AND DETAILS                           edge technology for every step of the suit-making process.

                                            Who are they?
       Shandong,
       China
                                            An innovative company driven by excellence, their business
                                            is vertically integrated: this means they’ve been able to
       1808
                                            establish their own wool and cotton farms, as well as
                                            weaving, dying, printing and manufacturing - all supported
SOCIAL & ENVIRONMENTAL                      by exceptional investments in technology. One of the
CERTIFICATES                                largest textile manufacturers in China, they’re so successful
                                            that they’re listed on the Shanghai stock exchange.
       Business Social
       Compliance Initiative                What do they make?
       International Organisation
       for Standardization                  These guys use their knowledge and skills of tailoring to
                                            craft our tailored suits, blazers and overcoats. We also rely
       OEKO-TEX Textile
                                            on their expertise and craftsmanship for our Made To
       Cer tification
                                            Measure suiting service; they know their stuff (so do we,
       Woolmark                             and we only work with the best).

       Child Labour Free                    Why them?

                                            To achieve their signature of premium quality suiting, their
                                            respect for skill, experience and tradition is matched by
                                            that for technology, innovation and streamlining. They have
                                            invested heavily in state of the art equipment, technological
                                            research and product innovation. Their factory has the most
                                            advanced textile dyeing equipment in the world, as well as
                                            seamless knitting technology fully executed by data.

PAGE 60                                                                        MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 61
OUR SHIRT FACTORY
O U R S H I R T FA C T O R Y : L U T H A I   Shirts are the cornerstone of a good wardrobe and a key
TEXTILE CO                                   part of our apparel range. That’s why it’s so important that
                                             the guys we make our shirts with tick all the boxes.
FACTS AND DETAILS
                                             Who are they?
       China: No.81 East Songling
       Road, Zichuan, Zibo City,             Our tailored shirt range is made by a super high-quality
       Shandong province
                                             shirt factory located in the Shandong province of China.
                                             They are in fact, one of the best in the business. We’ve
       25,000
                                             been working closely with this supplier for over five years
                                             now, and our partnership is so strong, we have an exclusive
SOCIAL & ENVIRONMENTAL                       supply arrangement with them.
CERTIFICATES

                                             What do they make?
       Worldwide Responsible
       Accredited Production:                As our primary shirting manufacturer, they create some of
       Gold Cer tification
                                             our best known shirts, like our Tribeca slim fit in polished
       International Organisation            cotton, our Thatcher Oxford, and the world famous (in
       for Standardization: 9001,            New Zealand) AB’s shirt - worn by the world champion All
       14001, 18001                          Blacks, OEKO-TEK Certified french linen and many more.

       Social Accountability
                                             Why them?
       International

       Child Labour Free                     We consider them to be a gold standard and they tick
                                             all the right boxes for us. A world-class leader in their
       Better Cotton Initiative:             field, they operate a fully vertical production model
       Grower and Manufacturer               encompassing BCI cotton breeding, cotton planting,
                                             spinning, dyeing, weaving, finishing and shirt sewing - they
       OEKO-TEK 100
                                             control every step of the process, and we think that’s
                                             pretty special!

PAGE 62                                                                         MATERIAL TRUTH REPORT 2019   MATERIAL TRUTH REPORT 2019   PAGE 63
Local                                                                                                  1st Tier - Final    2nd Tier Inputs /
Rank by %                                                                              Volume                      Factory Average         Factory         Other Worker Benefits                                                                          3rd Tier Raw
                                                                           Product                  Government                                                                                 Audit /       Stage Production    Textile Production                          Certifed Materials
 of Total        Supplier           Location         # Workers   Tenure                of Total                        Monthly            Overtime          e.g. Accomodation /                                                                         Materials (Cotton,
                                                                           Category                   Monthly                                                                               Accreditations      (Cut-Make-       (Spinning, Knitting,                         used in Barkers
Purchases                                                                              Business                     Worker Wage             Rate                  meals etc                                                                                Wool etc)
                                                                                                   Minimum Wage                                                                                                 Trim CMT)        Dying, Tanning etc)

                                                                                                                                                                                            SA8000:2008      100% - No Sub
                                                                                                                                                                                                                                  Fully Ver ticle                              BCI Cotton,
                                                                                                                                                                                                 CQC           Contracting
                                  No.81 East                                                                                                                                                                                       Production                                 Organic Linen,
                                                                                                                                                           Holiday welfare payment,          OEKO-TEX         SA8000:2008
                                 Songling Road,                                                                                                                                                                                  Own Fabric Mills                             Formeldehyde
             Luthai Textile                                                                                                                                   Quar terly welfare             BCI Cotton           CQC                                      BCI Ver tical
   1                                                  25000      7 years    Shir ts     15%          RMB 1910        RMB 3628               15%                                                                                    Own Dying                                    Free - Eco
               Co., Ltd        Zichuan Zibo City,                                                                                                           payments, End of year               WRAP             WRAP                                     cotton supply
                                                                                                                                                                                                                                     House                                      Non Iron,
                                Shandong, China                                                                                                            bonus, Social Insurances         OHSAS18000        OHSAS18000
                                                                                                                                                                                                                                  Own Laundry                                 OEKO-TEX 100
                                                                                                                                                                                              ISO14000         ISO14000
                                                                                                                                                                                                                                   OEKO-TEX                                      Cer tified
                                                                                                                                                                                               ISO9001          ISO9001

                                                                                                                                                                                                              100% - No Sub
                                                                                                                                                                                                BSCI                              Fully Ver ticle
                                    39# Taian                                                                                                                                                                  Contracting                              Tianyu Wool Top
                                                                                                                                                                                              ISO9001                              Production
                                   Road,Hailing                                                                                                                                                                    BSCI                                       supply            Woolmark
                                                                                                                                                             Free Accomodation,               ISO4001                            Own Fabric Mills
             Jitai Garment                                                                                                                  Piece                                                                ISO9001                                OEKO-TEX100              Merino,
   2                              Industrial Park,     323       7 years     Suits      13%          RMB 1890        RMB 4500                                    Free Meals,                 ISO18001                              Own Dying
                 Co., Ltd                                                                                                                   Rate                                                                 ISO4001                                    ISO9001             OEKO-TEX
                              Taizhou City 225300,                                                                                                             Social Insurances           OEKO-TEX 100                              House
                                                                                                                                                                                                                ISO18001                                   ISO14001                100
                                                                                                                                                                                           CHILD LABOUR                           Own Laundry
                               JIANGSU, CHINA                                                                                                                                                                CHILD LABOUR                                  ZQ Merino
                                                                                                                                                                                                FREE                             OEKO-TEX100
                                                                                                                                                                                                                   FREE

                                                                                                                                                                                                                                                         Ver tical Wool
                                                                                                                                                                                                BSCI          Fully Ver ticle     Fully Ver ticle
                                                                                                                                                            Free Accomodation,                                                                             Top Making
                                                                                                                                                                                              ISO9001          Production          Production
                                                                                                                                     Weekday x 1.5 p/day        Free Meals,                                                                             Tianyu Wool Top
              # 2 Suit &                                                                                                                                                                      ISO4001        Own Fabric Mills    Own Fabric Mills                               Woolmark
                                                                                                                                     Weekend x 2 p/day       Social Insurances,                                                                                supply
   3        Made to Measure     Shandong, China        1808      3 years     Suits      12%          RMB 1640        RMB 3500                                                                ISO18001          Own Dying           Own Dying                                  Merino, OEKO -
                                                                                                                                      Holiday x 3 p/day    Worker Bonus Scheme,                                                                         OEKO-TEX100
                Factory                                                                                                                                                                      OEKO-TEX            House               House                                       TEX 100
                                                                                                                                                              Housing Grants,                                                                                ISO9001
                                                                                                                                                                                           CHILD LABOUR       Own Laundry         Own Laundry
                                                                                                                                                           Education Scholarships                                                                           ISO14001
                                                                                                                                                                                                FREE         OEKO-TEX100         OEKO-TEX100
                                                                                                                                                                                                                                                           ZQ Merino

                                                                                                                                                            5 type social insurances
                                                                                                                                                         (retirement, illness,maternity,                                            Bros Yarn
                                                                                                                                                                                                                                                                              GOTS Cer tified
              Tees, Sweats                                                  Knits /                                                                    unemployment and workrelated          Audit to be     100% - No Sub        GOTS Cer tified        GOTS Cer tified
   4                             Ningbo, China         250       1 year                 10%          RMB 2010        RMB 3500               20%                                                                                                                                 Organic
             & Kint Factory                                                T-Shir ts                                                                     injury) as well as commercial       completed        Contracting            Organic             Organic Cotton
                                                                                                                                                                                                                                                                                Cotton
                                                                                                                                                        accident injury insurance. Free                                              Cotton
                                                                                                                                                           Accomodation and meals.

                                                                                                                                                                                                                                   Own Knitting
                                                                                                                                                                                                              100% - No Sub                                                  RWS - Responsible
                                                                                                                                                                                                                                     Mill, Own          Tianyu Wool Top
                              Dibei Road,Shengzhou                                                                                                                   Free                  AMFORI - BSCI       Contracting                                                     Wool Standard
                                                                                                                                     Weekday x 1.5 p/day                                                                             Laundry,                 supply
            Hongda Garment                                                                                                                                     Accomodation,               OEKO - TEX 100         BSCI                                                            Beilla Yarn
   5                              City, Zhejiang       485       7 years   Knitwear      7%          RMB 1800        RMB 3500        Weekend x 2 p/day                                                                            Sudwolle Beilla       OEKO-TEX100
               Co., Ltd                                                                                                                                         Free Meals,                CHILD LABOUR      OEKO - TEX 100                                                   Bluesign Cer tified
                                 Province, China                                                                                      Holiday x 3 p/day                                                                           Yarn, UPW Yarn            ISO9001
                                                                                                                                                              Social Insurances                FREE          CHILD LABOUR                                                     OEKO - TEX 100
                                                                                                                                                                                                                                  OEKO-TEX100              ISO14001
                                                                                                                                                                                                                  FREE                                                           Woolmark
                                                                                                                                                                                                                                    BLUESIAN

                                                                                                                                                                     Free                                                          Own Dying
                                                                                                                                                                                                             100% - No Sub
             Casual Pants &                                      10+                                                                                           Accomodation,               WRAP - GOLD                             House, Own
   6                            Zhongshan, China       300       years      Jeans        7%          RMB 1810        RMB 3500               30%                                                               Contracting                                   Unknown           OEKO-TEX 100
             Shorts Factory                                                                                                                                     Free Meals,                OEKO-TEX 100                             Laundry
                                                                                                                                                                                                                WRAP
                                                                                                                                                              Social Insurances                                                   OEKO-TEX100

                                                                                                                                                                                                              100% - No Sub
                                                                                                                                                                                           WRAP - GOLD
                                                                                                                                                                                                               Contracting                                                   RDS - Responsible
                                                                                                                                                                                                BSCI                                Unknown
             Casual Jacket                                       10+        Casual                                                                              Free Meals,                                       BSCI                                                            Down
   7                             Nanjing, China       224                                5%          USD 310          USD 923          2.2USD P/hour                                       OEKO-TEX 100                               RDS                   Unknown
               Factory                                           years      Jackets                                                                           Social Insurances                                  WRAP                                                        Standard Recycled
                                                                                                                                                                                           CHILD LABOUR                           OEKO-TEX100
                                                                                                                                                                                                             CHILD LABOUR                                                          Nylon
                                                                                                                                                                                               FREE
                                                                                                                                                                                                                  FREE

       PAGE 64                                                                                MATERIAL TRUTH REPORT 2019                          MATERIAL TRUTH REPORT 2019                                                                                                  PAGE 65
Local                                                                                              1st Tier - Final    2nd Tier Inputs /
Rank by %                                                                                              Volume                       Factory Average       Factory            Other Worker Benefits                                                                     3rd Tier Raw
                                                                                      Product                        Government                                                                             Audit /       Stage Production    Textile Production                          Certifed Materials
 of Total          Supplier              Location             # Workers   Tenure                       of Total                         Monthly          Overtime             e.g. Accomodation /                                                                    Materials (Cotton,
                                                                                      Category                         Monthly                                                                           Accreditations      (Cut-Make-       (Spinning, Knitting,                         used in Barkers
Purchases                                                                                              Business                      Worker Wage           Rate                     meals etc                                                                           Wool etc)
                                                                                                                    Minimum Wage                                                                                             Trim CMT)        Dying, Tanning etc)

                                                                                                                                                                                                                           100% - No Sub       Own Fabric Mill
                                                                                                                                                                                                           ISO9001
                                                                                                                                                                                                                            Contracting        Ties Own Dying
                                                                                       Shir ts,                                                       Weekday x 1.5 p/day                                  ISO4001
                   #2 Shir t                                              10+                                                                                                 Free Accomodation,                              ISO9001               House                                 OEKO-TEX 100
    8                               Shengzhou, China            268                    Ties &           6%           RMB 1800       RMB 3700          Weekend x 2 p/day                                 OEKO-TEX 100                                                    Unknown
                   Factory                                                years                                                                                                 Social Insurances                             ISO4001           Own Weaving                                   SILK
                                                                                      Scarves                                                          Holiday x 3 p/day                                CHILD LABOUR
                                                                                                                                                                                                                          CHILD LABOUR               Mill
                                                                                                                                                                                                             FREE
                                                                                                                                                                                                                                FREE           OEKO-TEX100

                                                                                                                                                                                                                            100% - No Sub
                                                                                                                                                                                                        INTERTEK - GSV
                                     Shanghai Middle                                                                                                                                                                         Contracting
                                                                                                                                                                              Free Accomodation,          UL SOCIAL                                                                        ISA Tantec LITE -
                First Step                                                                                                                            Weekday x 1.5 p/day                                                  INTERTEK - GSV          ISA - Tantec
     9                              Road, Laixi District,       625       4 years       Shoes            5%          RMB 1730        RMB 2600                                     Free Meals,               AUDIT                                                        Unknown              Low Impact
              Group Co., Ltd                                                                                                                          Weekend x 2 p/day                                                      UL SOCIAL               Leather
                                     Qingdao, China                                                                                                                             Social Insurances       CHILD LABOUR                                                                        To Environment
                                                                                                                                                                                                                            AUDIT CHILD
                                                                                                                                                                                                             FREE
                                                                                                                                                                                                                            LABOUR FREE

                                                                                                                                                                                                                           100% - No Sub
                                  Lot 226/8 Road 2, Amata                                                                                                                                                                                                                                     Bluesign
                                                                                                                                                                              Free Accomodation,          Fair Trade        Contracting         Kiahara Denim
                    Saitex                                                              Jeans                                        Fair Trade                                                                                                                                               Cer tified
    10                           Industrial Zone, Bien Hoa,     4000      1 year                        4%                                                                        Free Meals,           Leed Cer tified      Fair Trade           Mill - Japan,         Unknown
                    Denim                                                           Denim Jackets                                     Wages                                                                                                                                                   Oeko-Tex
                                     DongNai, Vietnam                                                                                                                           Social Insurances          Bluesign        Leed Cer tified      Own Laundry
                                                                                                                                                                                                                                                                                              cer tified
                                                                                                                                                                                                                              Bluesign

                                                                                                                                                                                                                           100% - No Sub
             #2 Casual Pants                                                          Casual pants
     11                               Zhejiang, China                48   6 years                       3%           RMB 1800       RMB 4000                 15%                Social Insurances        BSCI SEDEX         Contracting            Unknown              Unknown
             & Shor ts Factory                                                         & shor ts
                                                                                                                                                                                                                            BSCI SEDEX

                                                                                                                                                                                                                                                 Fully Ver ticle
                                                                                                                                                                                                                                                  Production
                                                                                                                                                                                                                           100% - No Sub
                                                                                                                                                                                  Free Meals,             ISO9001                              Own Fabric Mills
    12      #2 Denim Factory           Foshan, China            310       3 years      Jeans            2%           RMB 1720       RMB 6000              1.0 x p/day                                                       Contracting                                 Unknown           OEKO-TEX 100
                                                                                                                                                                                Social Insurances       OEKO-TEX 100                           Own Dying House
                                                                                                                                                                                                                              ISO9001
                                                                                                                                                                                                                                                Own Laundry
                                                                                                                                                                                                                                                OEKO-TEX100

                                                                                                                                                                                                                            100% - No Sub
                                                                                                                                                                              Free Accomodation,           ISO9001
             Leather Goods                                                            Leather                                                                                                                                Contracting
    13                               Dongguan, China            120       6 years                       2%           RMB 1910       RMB 2500                 15%                  Free Meals,            INTERTEK -                                Unknown              Unknown
                Factory                                                                bags                                                                                                                                    ISO9001
                                                                                                                                                                                Social Insurances            WCA
                                                                                                                                                                                                                          INTERTEK - WCA

                                         Zhushan
                                                                                                                                                                              Free Accomodation,                           100% - No Sub
                Zhuji Toho         Village,Datang Town,                   10+                                                                                                                               BSCI                               Own Knitting Mill
    14                                                          30                     Socks            1%           RMB 1800       RMB 5300                 15%                  Free Meals,                               Contracting                                 Unknown           OEKO-TEX 100
                Socks Ltd          Zhuji City, Zhejiang,                  years                                                                                                                         OEKO-TEX 100                           OEKO-TEX100
                                                                                                                                                                                Social Insurances                              BSCI
                                       China, 311800

                                                                                                                                                                                                                                               Own Dying house.
                                                                                                                                                                             Accomodation Subsidy,
                                                                                                                                                                                                        WRAP - GOLD        100% - No Sub        Own Fabric Mill
                 Bags &                                                                 Bags &                                                                                     Free Meals,
    15                                Foshan, China             150       6 years                       1%           RMB 1720       RMB 2600                 30%                                          ISO9001           Contracting         Own Laundry             Unknown
            Accessory Factory                                                         Accessories                                                                            Transpor tation Subsidy,
                                                                                                                                                                                                          ISO4001             WARP                ISO4001
                                                                                                                                                                                Social Insurances
                                                                                                                                                                                                                                                  ISO9001

                                                                                                                                                                              Free Accomodation,                           100% - No Sub
             Shorts & Board                                                         Casual pants                                                                                                        OEKO-TEX 100                                                                      OEKO-TEX 100
    16                               Dongguan, China                      6 years                       1%           RMB 1720       RMB 4000                 20%                  Free Meals,                                Contracting           Unknown              Unknown
              Short Factory                                                          & Shor ts                                                                                                             SA8000                                                                         Recycled Nylon
                                                                                                                                                                                Social Insurances                           SA8000:2008

                                                                                                                                                                               Free Accomodation,
                                                                                                                                                                                                                          100% - No Sub
                                                                                                                                                                                   Free meals,
                     Hat                                                  10+                                                                                                                           WRAP - GOLD        Contracting
    17                               Dongguan, China            60                      Hats           0.2%          RMB 1720       RMB 3000                 15%                 Seniority award,                                                  Unknown              Unknown
                   Factory                                                years                                                                                                                           ISO4001         WRAP - GOLD
                                                                                                                                                                            Performance award, Social
                                                                                                                                                                                                                             ISO4001
                                                                                                                                                                            insurance and house fund

                                     4 Poynton Terrace                                 Local NZ
                                                                            8+       supplier : Neck
     18             Parisian             Newton                 Unknown                                 2.0%        NZD$16.50/hr     Unknown               Unknown                 Unknown                    N/A
                                                                           years       Ties, Belts,
                                       Auckland, NZ                                  Leather Goods

         PAGE 66                                                                                               MATERIAL TRUTH REPORT 2019                       MATERIAL TRUTH REPORT 2019                                                                                                PAGE 67
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