RESPONSIBLE SUPPLY CHAIN

Objective

G-Star does not own or directly operate any production facilities. Instead our sourcing strategy is to work with long-term suppliers with whom we have built strong relationships over time. The first step in creating and managing a Responsible Supply Chain is to only work with partners who share our values and ongoing commitment to social and environmental responsibility. These partnerships have resulted in mutual growth and in value creation for factories and their stakeholders.

G-Star Supplier Code of Conduct

G-Star’s social compliance program for manufacturers is built around the G-Star Supplier Code of Conduct. This Code, based on internationally recognised standards such as the ILO and OECD standards, outlines the minimum requirements and conditions under which G-Star products should be manufactured. It is subject to regular improvements and we actively encourage all suppliers to continuously improve their fair and safe labour practices. At all times, suppliers are required to ensure that no abusive, exploitative or unsafe working conditions or employment practices exist at any facility where G-Star products are manufactured.

This Code applies to all suppliers and/or contractors providing products to G-Star or its affiliated companies. G-Star will not tolerate any supplier that, either directly or indirectly through its sub-contractors, breaks the laws of the country where the products are manufactured or knowingly contravenes G-Star’s own standards.

In addition to the social aspects in the factories, we aim for sound environmental standards at all stages in the production process. This includes for example the safe handling and disposal of chemicals, a sustainable water management system and waste disposal.

Monitoring Standards

A combination of measures including self-assessment reporting, third-party audits and follow-up activities are continuously used by G-Star to verify that suppliers comply with our standards.

In the first instance, we require suppliers to complete a social compliance self-assessment. The information within this assessment document serves a dual purpose. Firstly, G-Star obtains detailed information about the facility and working conditions. Secondly and equally importantly, the supplier is made aware of our standards.

Subsequently, independent audits conducted by approved and recognised third-party organisations verify G-Star standards are being enforced. Audits are completed according to a methodology which includes in-depth interviews with both management and workers, physical inspection of production units and reviews of documentation and record keeping. In general suppliers would be given notification of an impending audit, although where necessary, auditors will be instructed to conduct an semi-announced inspection. G-Star has chosen to operate in this transparent manner because we believe in fostering cooperation and ongoing dialogue with our suppliers.

According to the outcomes of the audit and its associated corrective action plan, the results are discussed with each supplier. In instances where suppliers are found to be non-compliant, G-Star works closely with them to both document and implement an improvement programme in order to reach full compliance in the agreed time frame. Their progress is measured through follow-up audits. In cases of full-compliance, suppliers are audited annually thereafter.

Further suppliers are encouraged to take ownership of the change process and introduce management systems to achieve sustainable solutions over time and avoid quick fixes. We help suppliers achieve this by providing training and consulting services.

Performance so far

Up to mid-2008, we developed and implemented the management systems in order to support the above mentioned monitoring programme with suppliers. After having gained more experience in this field, we are now working on further optimizing these systems.

By April 2010 we monitored 93% of our ready-made garment production. We aim to increase this figure steadily, along with performing follow-up audits across our factories and continuously improving our way of monitoring and working with our suppliers.

Click here to download the G-Star Supplier Code of Conduct.