Reebok 2013 Annual Report Download - page 117

adidas Group
/
2013 Annual Report
Group Management Report – Our Group
113
2013
Sustainability
/
02.10
/
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. 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 2013, we terminated our
business relationship with 9 suppliers for compliance reasons (2012:
10 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 in different areas of operation, we have put
our Environmental Strategy in place, which 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
brand-related 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 :
//
WWW.ADIDAS-GROUP.COM/EN/SUSTAINABILITY/
PLANET/ENVIRONMENTAL-APPROACH.
Improving our environmental footprint at own sites
An important part of our Group’s Environmental Strategy is the Green
Company initiative, which targets reducing the environmental footprint
of our own sites. The initiative provides a supporting framework,
guidance and communication platform for all Group entities.
We have set Group-wide and site-specific 2015 targets related to carbon
emissions, savings in energy, water and paper consumption as well as
sourcing green energy. One of the key goals within the Green Company
initiative is to operate certified environmental management systems
at major sites of the adidas Group. Overall, by 2015, we aim to reduce
the relative carbon emissions at our own sites by 30%. By the end of
2013, 12 major sites of the adidas Group had certified environmental
management systems in place. Around 20% of the adidas Group’s
workforce is located at these sites. Read more about the Green Company
programme and our performance achievements on our website
at :
//
WWW.ADIDAS-GROUP.COM/EN/SUSTAINABILITY/PLANET/GREEN-COMPANY.
03
/
Compliance ratings
Grade KPI score band Performance description
1C 0 – 29% There are numerous severe non-compliance issues and no compliance management and compliance practices in place. The
factory has been given notice that business will be terminated unless there is immediate improvement.
2C 30 – 59% There are some non-compliance issues and no compliance management systems. However, there are some effective
compliance practices being delivered.
3C 60 – 79% There are minor non-compliance issues. The factory has compliance management systems and some effective compliance
practices in place.
4C 80 – 89% Generally, there are no non-compliance issues. The factory has compliance management systems in place, and most of the
components are effective.
5C 90 – 100% There are no non-compliance issues and all of the factory's management systems and practices are well delivered and
effective.