Sustainable Supply Chain
Finding solutions for a more sustainable supply chain, in both upstream and downstream activities, is the most important part of our journey toward a sustainable future. This includes both environmental and social aspects, so we can continue to grow while respecting the planet and the people involved in our business. The key focus areas in our supply chain are our producers and production, transportation, and supply chain transparency.
We work closely with carefully selected producers around the world. Together we constantly improve materials, products, production processes and work conditions in the factories. Our Supplier Code of Conduct, specifically tailored to our demands, helps us structure this improvement. It ensures our suppliers respect human rights, labour rights, workplace conditions, and environmental protection according to the UN Global Compact’s Tens Principles.
Suppliers are also restricted from using hazardous chemicals and substances listed by the European Union Directive, REACH, and must reach the minimum requirements in the Sweden Textile Water Initiative (STWi) guidelines.
The demands are controlled by third party audits and we work together with our suppliers to make sure they have the knowledge and capacity to comply with our Code of Conduct. Our goal is to visit the factories ourselves at least once a year to build on the relationship with our suppliers.
Transportation of goods from the factories to our warehouse and from our warehouse to end-consumers is an other important area when it comes to sustainability.
During 2020, we actively shifted shipping method from flight to other transportation means and successfully reduced the share of flight transportation by 70%. We have ambitious plans to reduce this by another 60% during 2021 and will ultimately reduce flight transportation to only 2% by 2025.
We have also worked together with our delivery partners to find the most sustainable delivery alternatives for our customers. Read more about this below.
To measure the effect of our efforts to make our supply chain more sustainable, we also need to make sure we get accurate and complete information from our suppliers. In other words, we need increased supply chain traceability. We have therefore set up goals to obtain 80% full traceability in our supply chain by 2025.
This means that by 2025, we will be able to trace back all relevant data down to material and textile production from our tier 1, 2 and 3 suppliers, representing 80% of manufactured products during the year.