Sustainable Supply Chain
Work, environment, health and safety in the supply chain
Benetton Group is committed to the promotion and respect of human rights and the environment.
The Benetton Group Code of Conduct is applied to all suppliers and subcontractors, and to anyone who wishes to work with the Group. This Code of Conduct is based on respect for human rights and protection of the environment.
It is through this Code of Conduct that Benetton Group applies the relevant international laws and regulations, with particular reference to the UN’s Guidelines on Businesses and Human Rights, dated June 2011, and the EU’s Communication for an Updated Strategy on the Social Responsibilities of Businesses, dated October 2011.
The Responsible Management of the Supply Chain
Management of the supply chain is a key aspect for the business activities of Benetton Group.
Starting from selection and qualification, the relationship with suppliers is based on principles and criteria of product quality and competitiveness, of transparency and respect for social, ethical and environmental principles. Further, to ensure compliance with the principles set out in the Group Code of Conduct, Benetton has developed a check list and it has implemented a CSR audit program that extends periodically to all manufacturers of finished garments. The timespan between the assessments may vary from a minimum of six months to a maximum of two years, depending on the results achieved and the necessity to adopt corrective actions. The audits – which are all unannounced – are performed by internationally recognized external audit firms and are then checked for coherence also internally.
The supplier list includes 1st tier and 2nd tier suppliers and manufacturer subcontractors. 1st tier suppliers refer to manufacturers and 2nd tier suppliers refer to processing factories (e.g. printing, embroidery). The list considers only active suppliers that are located in several countries all over the world and it does not consider the occasional ones (with annual volume less than 20.000 pcs for the apparel suppliers, and with annual volume less than 10.000 pcs. for accessories and shoes suppliers). Due to the complexity of the supply chain management Benetton will update the supplier list once per year. During the year, in fact, new collaborations may start with others, as well as some phased out may occur. The suppliers have been classified depending on the products they produce, that are apparel, accessories and shoes.
Sustainable Apparel Coalition
Benetton Group joined the Sustainable Apparel Coalition (SAC) in November 2017. Through its membership of the SAC, Benetton Group joins more than 200 global brands, retailers, manufacturers, governments, environmental non-profit organizations and academic institutions that are collectively committed to improving supply chain sustainability in the apparel, footwear, and textile industry.
In the context of its SAC commitment, Benetton Group will contribute both data and resources to support the development of the Higg Index, which measures sustainability performance, promotes supply chain transparency and supports decision-making processes in order to improve efficiency and enhance the impact of sustainability initiatives. The Higg Index is an indicator-based suite of open source tools that enables suppliers, manufacturers, brands and retailers to evaluate materials, products, manufacturing facilities and processes based on environmental performance, labor practices, and product design choices.
Benetton Group believes in the strength of a collaborative approach to sustainability and for this reason it is confident that the SAC will – over time – have a positive impact on product sustainability and become a model for how industries can collaborate in making a positive impact on supply chain performance.