North Face 2015 Annual Report Download - page 24

concession retail arrangements, which are separate sales areas dedicated to a specific VF brand within our
customers’ stores, to help differentiate and enhance the presentation of our products.
We contribute to incentive programs with our wholesale customers, including cooperative advertising funds,
discounts and allowances. We also offer sales incentive programs directly to consumers in the form of rebate and
coupon offers.
In addition to sponsorships and activities that directly benefit our products and brands, VF and its associates
actively support our communities and various charities. For example, The North Face®brand has committed to
programs that encourage and enable outdoor participation, such as The North Face Endurance Challenge®and
The North Face Explore Fund™programs. The Timberland®brand has a strong heritage of volunteerism,
including the Path of Service™program that offers full-time employees up to 40 hours of paid time off a year to
serve their local communities through global service events such as Earth Day in the spring and Serv-a-palooza
in the fall. The Wrangler®brand launched the Tough Enough to Wear Pink™program, which honors and raises
money for breast cancer survivors, and the National Patriot Program™, which funds agencies that serve wounded
and fallen American military veterans and their families. The Vans®brand has hosted annual Vans®Earth Day
and Vans®Gives Back Day events in which all employees at brand headquarters spend the day volunteering in
the community. The Nautica®brand supports Oceana, a not-for-profit organization focused on ocean
conservatism, and charity: water, a not-for-profit organization focused on providing clean, safe water to people in
need. In addition, 2015 marked the twentieth year of support for the Lee National Denim Day®event, one of the
country’s largest single-day fundraisers for breast cancer that has raised over $93 million since its inception to
fight breast cancer. VF sponsors the “VF 100” program to honor the 100 VF associates worldwide having the
highest number of volunteer service hours during the year.
Sustainability
VF’s approach to Sustainability and Responsibility (“S&R”) is to responsibly manage its business, from the
way it makes, distributes and markets products to the ways it preserves the environment and supports local
communities. In 2014, VF launched its inaugural S&R Report, a compilation of the many actions and
investments taking place across VF for our businesses to operate in a sustainable manner. During 2015, VF
continued to expand its global sustainability infrastructure and governance practices by requiring our top brands
to report on their S&R practices and strategies on at least an annual basis. In addition, we are on track to meet our
first carbon reduction goal to reduce our carbon footprint by 5% (with a 2009 baseline year). VF also recognized
seven U.S.-based distribution centers as being “zero-waste,” meaning at least 95 percent of the waste from these
factories will be diverted from landfills through recycling, composting and reuse. Other current initiatives include
i) an ongoing partnership with the Better Cotton Initiative to promote sustainable farming methods, ii) retrofitting
owned facilities with LED lighting and pursuing LEED (Leadership in Energy and Environmental Design) or
BREEAM (Building Research Establishment Environmental Assessment Methodology) certification for new
offices and distribution centers, and iii) continuing our innovative approach to responsible chemical management
in our supply chain via the CHEM-IQSM chemical management program, an industry-leading method that allows
us to identify and eliminate harmful chemicals before they enter our manufacturing process. In addition, VF
announced its goal to be 100% powered by renewable energy by 2025 at all owned and operated facilities.
Other Matters
Competitive Factors
Our business depends on our ability to stimulate consumer demand for VF’s brands and products. VF is
well-positioned to compete in the apparel, footwear and accessories sector by developing high quality, innovative
products at competitive prices that meet consumer needs, providing high service levels, ensuring the right
products are on the retail sales floor to meet consumer demand, investing significant amounts behind existing
brands and continuing to evaluate potential acquisitions. We continually strive to improve in each of these areas.
Many of VF’s brands have long histories and enjoy strong recognition within their respective consumer
segments.
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