Reebok 2012 Annual Report Download - page 140

adidas Group
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2012 Annual Report
Group Management Report – Our Group
118
2012
Sustainability
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02.8
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01
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Number of trainings
2012 172
2011 170
2010 193
2009 216
2008 251
02
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Number of factory visits
2012 1,564
2011 1,591
2010 1,451
2009 1,592
2008 1,323
Training to achieve sustainable compliance
As part of the adidas Group’s continuous efforts to achieve more
effective and sustainable practices within its supply chain, the Group has
initiated a system of multi-level and cross-functional training sessions
together with its global supplier network. Our SEA team offers specific
training courses and workshops for factory supervisors and managers
to help them apply our Standards and implement best practices. These
workshops include, for example, introductory training on our Workplace
Standards and SEA operating guidelines as well as detailed training
on effective health, safety and environmental practices. Furthermore,
we promote the establishment of structures that actively involve
workers and management of our suppliers, as well as local employee
associations and non-governmental organisations (NGOs). In order
to strengthen personnel capacities throughout our company, our SEA
team also organises workshops for licensees, agents and adidas Group
business entities. In this way, the consideration of acceptable working
conditions becomes a routine part of our business activities. In 2012,
the SEA team conducted 172 training sessions and workshops (2011:
170)
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DIAGRAM 01.
Monitoring through factory inspection
The SEA team assesses compliance with the Workplace Standards by
means of factory inspections. Our auditors check performance against a
customised risk list for each factory that is monitored. The methodology
is linked to a factory rating which measures the effectiveness of
compliance systems and the work of their administrators. This enables
us to precisely determine training needs at our suppliers’ factories.
During 2012, we conducted 1,564 factory visits (2011: 1,591 visits)
involving management and worker interviews, document reviews,
facility inspections and training sessions at different levels in our supply
chain
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DIAGRAM 02.
In addition to our own monitoring activities, we value independent
and unannounced assessment by third parties to demonstrate the
credibility of and provide verified information about our programme
to stakeholders. As a member of the Fair Labor Association (FLA),
the adidas Group is subject to external assessment by independent
monitors, participation in the FLA third-party complaint system and
public reporting. In 2005, the monitoring programme of the adidas Group
was accredited by the FLA for the first time; re-accreditation took place
in 2008. This decision was based on independent factory monitoring
and verification reports of supplier facilities and a thorough audit of
monitoring protocols, training programmes and auditing systems. The
next review and accreditation cycle by the FLA was rescheduled to 2013.
Since joining the FLA, more than 300 independent assessments have
been conducted at adidas Group suppliers.
Warning-letter system to enforce compliance
Where a manufacturing supplier is performing poorly in terms of
Workplace Standards compliance, we work closely with them to find
solutions. However, when we find ongoing and serious instances
of non-compliance as well as a lack of commitment from factory
management to address the issues, we send out a formal warning
letter including a notification to factory management that their business
relationship with the adidas Group is in jeopardy. Overall, three
warning letters result in a termination. In 2012, we terminated our
business relationship with ten suppliers for compliance reasons (2011:
13 terminations).
Strategic approach to driving environmental progress
and tackling climate change
Tackling climate change poses a number of challenges for the adidas
Group and its manufacturing partners. As a result of an analysis of
our environmental impacts, we have put the Environmental Strategy
2015 in place. The Strategy is targeted to substantially improve our
environmental footprint. It follows a clear vision and sets specific targets
to be reached by 2015. These targets cover corporate and management
processes – reaching from product design and creation to sourcing and
manufacturing through to our stores and all other points of sale. The
focus is on energy resources, water conservation and discharge, waste
and chemicals, and on becoming more thoughtful and efficient in using
resources as well as helping reduce operational costs. Our approach
is to manage environmental issues as an integral part of our daily
operations, positively contributing to the adidas Group’s overall business
performance. More details on our Environmental Strategy can be found
on our website at :
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WWW.ADIDAS-GROUP.COM/SUSTAINABILITY.