Fashion Revolution+Image
Does the company describe how suppliers incentives are tied to improvement in good labour practices and environmental management?
Designed by
Fashion Revolution+Image
United Kingdom
Metric Type
Researched
Value Type
Options
Research Policy
Designer Assessed
Incentivising staff beyond the CSR/Sustainability team such as sourcing, production, buying and design to contribute towards improving social and environmental impacts ensures there is accountability for those within the company whose decision making has an influence. While incentivising suppliers to improve social and environmental performance can be accomplished through guaranteeing longer contracts, increased order size, price premiums and fewer audits can motivate suppliers to improve and drive changes in their own operations and throughout their supply chain.
Methodology

In this question you are being asked to identify whether the company publishes how it incorporates human rights and environmental performance into purchasing practices. Start by looking for a disclosure of how suppliers are incentivised to improve human rights impacts and environmental management.

Where to look for this information:
- Corporate Social Responsibility report
- Company documents
- Company policies
- Company websites
- Company code of conduct
- Parent company documents (only if the parent company is linked to from the brands website)
- Parent company policies (only if the parent company is linked to from the brands website)
- Parent company websites (only if the parent company is linked to from the brands website)
- Parent company code of conduct (only if the parent company is linked to from the brands website)

Good keywords for your searches include:
- Long-term supplier relation
- Purchasing practices
- Price premium

Things to watch out for:
- We are looking for disclosure of how these incentives are implemented, it is not enough to say that they are in place
- With supplier "incentives" we mean e.g. long-term commitments to purchase, longer contracts, increased orders, price premiums, fewer audits
- Training is not sufficient