FASHION TRANSPARENCY INDEX

2020 EDITION A review of 250 of the biggest global fashion brands and retailers ranked according to how much they disclose about their social and environmental policies, practices and impacts. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 01 CONTENTS

02 KEY FINDINGS 21 THE FINAL SCORES ACROSS THE 5 SECTIONS 04 EXECUTIVE SUMMARY 22 Average scores across the sections 23 1. Policy & Commitments 07 ABOUT THIS REPORT 30 2. Governance 08 Why transparency matters 34 3. Traceability 09 What do we mean by transparency? 39 Case Studies 10 Purpose of the research 41 4. Know, Show, Fix 11 About the methodology 47 Viewpoint: Ben Vanpeperstraete, Human Rights Expert 12 Annual updates to the methodology 48 5. Spotlight Issues 13 Weighting of the scores 60 Viewpoint: Garment Worker Centre 14 How the research is conducted 15 How brands and retailers are selected 61 FINAL THOUGHTS AND RECOMMENDATIONS 16 A-Z of brands 62 Take Action on Transparency 62 Brands and Retailers 17 THE FINAL SCORES 62 Governments and Policymakers 18 A guide to the scoring 63 Citizens 19 The final scores 64 Thank You 20 Quick findings 65 ANNEX 1 References 66 ANNEX 2 Definitions & Abbreviations 67 Disclaimer 68 About Fashion Revolution

The content of this publication can in no way be taken to reflect the views of any of the funders of Fashion Revolution. © Fashion Revolution CIC 2020. All rights reserved. This document is not to be copied or adapted without permission from Fashion Revolution CIC. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 02

KEY FINDINGS

AVERAGE SCORE IN EACH SECTION

overall average POLICY & GOVERNANCE TRACEABILITY KNOW, SHOW SPOTLIGHT score across the 250 COMMITMENTS & FIX ISSUES 23% brands reviewed Up 2 percentage points since 2019 (200 brands) 52% 29% 16% 17% 15% Up 3 percentage points since 2017 (100 brands)

TOP 10 SCORES LOWEST SCORING TOP 10 MOVERS IN 2020 (%) BRANDS IN 2020 (%) SINCE 2019

H&M (H&M Group) 73% Bally 0 Monsoon +23 C&A 70% Belle 0 Ermenegildo Zegna +22 Adidas/Reebok 69% Elie Tahari 0 Sainsbury’s-TU Clothing +19 Esprit 64% Heilan Home 0 Dressmann +17 Marks & Spencer 60% Patagonia 60% Jessica Simpson 0 ASICS +15 Urban Outfitters / Max Mara 0 +15 The North Face / Anthropologie Timberland / Vans / 59% Mexx 0 Wrangler (VF Corp) Clarks +14 Puma 57% Pepe Jeans 0 Pimkie +13 ASOS 55% Tom Ford 0 River Island +13 Converse / Jordan / Nike (Nike Inc.) 55% Youngor 0 Russell Athletic +13 FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 03

HIGHEST SCORING BRANDS SINCE 2017 Percentage of brands publishing suppliers lists 2020 2019

2017 2018 2019 2020 H&M (H&M Group) 73% Adidas/Reebok 64% (100 brands) (150 brands) (200 brands) (250 brands) C&A 70% Patagonia 64% First-tier manufacturers Adidas/Reebok 69% Esprit 62% 40% Esprit 64% H&M (H&M Group) 61% 35% Patagonia / Marks & Spencer 60% C&A 60% 37%

32% 2018 2017

Adidas/Reebok 58% Adidas/Reebok 49% Processing facilities

24% Puma 56% Marks & Spencer 48%

19% H&M (H&M Group) 55% H&M (H&M Group) 48%

18% Esprit 54% Puma 46%

14% Gap 54% Gap 46%

Suppliers of raw materials 7% 25% 28% 32% 5% overall average score overall average score overall average score across the 198 brands across the 148 brands across the 98 brands 1% reviewed in 2019 and 2020 reviewed since 2018 reviewed since 2017 0% Up 3 percentage points Up 7 percentage points Up 12 percentage points since 2019 since 2018 since 2017 FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 04

EXECUTIVE SUMMARY

About the Fashion Transparency High street brands lead on The majority of brands and Participation in the Fashion Index 2020 transparency but luxury brands retailers lack transparency on Transparency Index is influencing are making progress social and environmental issues brands to disclose more social We are pleased to deliver our fifth annual and environmental information Fashion Transparency Index 2020, which H&M (H&M Group) is the highest scoring More than half (54%) of brands score brand this year at 73% of the 250 possible reviews and ranks 250 of the world’s 20% or less. However, there are fewer Brands that participated in the Fashion points, followed by C&A at 70%, Adidas largest fashion brands and retailers low-scoring brands this year compared Transparency Index 2020 (by completing and Reebok at 69% and Esprit at 64%. according to how much they disclose to 2019. 28% of brands score 10% or less, our questionnaire) have achieved an about their social and environmental compared to 36% of brands last year. overall average score of 35% (compared The overall average score among the 250 policies, practices and impacts. to 23% overall average among all 250 brands is 23% (up from 21% among the Of the new brands added to the Index brands.) Non-participating brands 200 brands in 2019). This year we reviewed an additional in 2020, 15 brands score 5% or less, achieved an overall average score of 11%. 50 brands and retailers, including including Canada Goose, Fashion Nova, Gucci is the highest scoring luxury brand major brands from Australia, India, New Pepe Jeans and DKNY. at 48%, up from 40% in 2019, and is the Every brand in the top 20% of scores in Zealand, Norway, Poland, South Africa only brand to score 100% on Policy and 2020 and all brands scoring above 40% and Switzerland for the first time. We Brands that disclose nothing at all Commitments. The other Kering Group participated in the Fashion Transparency also added in several e-retailers this include Swiss luxury brand Bally, brands we reviewed come in just behind Index this year. year, including Fashion Nova (USA), Koovs ready-to-wear brand Elie Tahari, Jessica Gucci, including Balenciaga (47%), Saint (India) and Pretty Little Thing (UK). Simpson’s eponymous brand, Dutch high However, the scores of approximately Laurent (47%) and Bottega Veneta (46%) street brand Mexx and Chinese retailers 30 brands have barely changed from Belle, Heilan Home and Youngor. 2017 to 2020, including Gap, Uniqlo and The Fashion Transparency Index Ermenegildo Zegna has become the Walmart, among others. This means they comprises 220 indicators covering a wide first luxury brand to publish a detailed have not taken significant steps towards range of social and environmental topics supplier list. However, Hermès has increasing transparency within the past such as animal welfare, biodiversity, disclosed many of its owned and three years, compared to other brands. chemicals, climate, due diligence, operated manufacturers and suppliers forced labour, freedom of association, for many years. Meanwhile, Balenciaga, gender equality, living wages, purchasing Bottega Veneta, Gucci and Saint Laurent practices, supplier disclosure, waste and have also published a handful of raw recycling, working conditions and more. material suppliers this year. We hope to see more luxury brands follow their lead. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 05

Brands continue to publish more Information dumping is an Encouraging progress made on Continued lack of transparency about their policies than how they ongoing problem disclosing supplier lists on living wages for workers in implement them the supply chain Information and data dumping almost 40% of brands (101 out of 250) are As in previous editions of the Index, brands seems like a deliberate strategy by publishing their manufacturers (up As in previous editions of the Index, the disclose more about their policies than some of the brands. For quite a few from 35% in 2019). 24% of brands (60 majority of brands and retailers publish they do about how they put those policies brands, we have found information out of 250) are publishing some of their little information about their efforts, if into action. Brands disclose comparatively repeated over and over again across processing facilities and/or mills (up from any, to improve pay and achieve living less about the outcomes, results and different web pages and documents, 19% in 2019). 7% of brands (18 out of 250) wages in the supply chain. Less than progress they have made to address social often with slightly different terminology are publishing some of their raw material a quarter (23%) of brands disclose the and environmental issues in the business but no substantive difference. suppliers (up from 5% in 2019). company's approach to achieving the and across the supply chain. Sometimes brands use a large amount payment of living wages to workers in of filler words and fluffy explanations We have seen the overall average score the supply chain. This is illustrated by the fact that the and details that obscure what on traceability increase to 16%, up from overall average score among brands in information or data is actually relevant 12% in 2019 and 8% in 2017. Only 5 brands (2%) publish a time-bound, the Policy and Commitments section and useful to external stakeholders. measurable roadmap or strategy for is 52% while all other sections’ average We have even found instances of Next year, we hope to see 50% (or more) how they will achieve a living wage for scores are less than 30%. conflicting facts and statistics. of brands publishing a supplier list and all workers across their supply chains. more brands disclosing their processing Meanwhile, only 5 brands (2%) publish The good news is that brands are For whatever reason this happens, facilities, mills, tanneries and raw data on the percentage above the publishing more policies than they were it makes it extremely difficult for material suppliers further down the tiers minimum wage rate workers are paid in in previous years (52% section average people to make sense of what relevant of the supply chain. their supply chains. score in 2020, compared to 48% in 2019), information is actually disclosed by but brands continue to lack transparency brands. It can be counterproductive to Also, look later in the report for four case This is an urgent issue for so many when it comes to the types of information transparency and accountability. Not studies we have highlighted showing how workers in the textile supply chain who that enables external stakeholders everyone has the hours and days it can journalists and workers rights organisations struggle to afford life’s basic necessities. to hold them to account, e.g. detailed sometimes take to decipher what brands are using supplier lists to address and While it is a complex issue to solve, supplier lists, audit results, wage data, are actually disclosing and how to use remedy poor working conditions in the without more collective action and greater climate impact data and so on. this information in an effective way. supply chains of major brands. transparency from major brands and retailers, it will be a very long time before The brands that communicate best are workers are paid decent and fair wages. those that set out what they are doing in a succinct, logical yet still detailed way. They also avoid using difficult industry jargon or fluffy storytelling devices that don’t actually tell you much. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 06

Most brands do not disclose any Coronavirus is casting a spotlight The climate crisis is an Taking action on these findings information about their on overconsumption increasingly important issue for purchasing practices brands but more transparency is The Fashion Transparency Index has As people are forced to stay at home and needed on what brands are doing enabled us to have constructive Responsible purchasing practices retail stores are closed around the world, to reduce impacts conversations with some of the world’s go hand-in-hand with the ability of the demand for clothing has plummeted largest fashion brands and retailers about suppliers to pay workers adequate since the start of the year. It is causing 78% of major brands publish a company what they can do to be more transparent. and reliable wages. Yet, on the whole, people to reassess and reprioritise what policy on energy use and carbon brands disclose alarmingly little about they spend money on. emissions (up from 72% last year), while We believe transparency is the first step what they’re doing to be good business 52% publish a supplier policy on this topic in holding these big brands to account partners to their suppliers. Francesca Muston, fashion director for (up from 49% last year). for the human rights and environmental global trend forecaster WGSN, told journalist impacts of their business practices. Only 11% of brands explain how they Marc Bain that fashion’s frantic turnover of However, only 16% of brands publish ensure that labour costs are ring-fenced trends could slow down, while companies Science Based Targets, which means We will continue to use the Index to and non-negotiable in price negotiations, start to focus on delivering fewer, better their environmental goals are aligned measure brands’ annual progress and only 6% of brands publish a policy quality products to remain profitable. with the Paris Agreement’s aim to limit on transparency and to push them to pay suppliers within 60 days. global heating to below 2°C above pre- harder and faster towards taking greater This is why it is interesting to see that so few industrial levels. responsibility for their policies and actions The coronavirus pandemic brands currently publish data about their on social and environmental issues. is proving why transparency annual production volume and the brands And, only 16% of brands publish annual is so vital that do report staggering numbers. For carbon emissions produced within We invite you to read the rest of example, Inditex (the parent company that their supply chains — where the highest the report for a deeper dive into If major brands and retailers are owns Bershka, Massimo Dutti, Pull&Bear, proportion of carbon is emitted across the 2020 results. publishing information about their Stradivarius and Zara) produced more than the lifecycle of a garment. business values, who their suppliers are, 1.6 billion items last year. what supply chain policies are in place, how they do business with suppliers Furthermore, several media outlets and their purchasing practices, then report that dozens of brands have stakeholders can hold them to account stopped taking deliveries while clothing for exactly the type of situation unfolding is piling up in warehouses during the now where major brands are stopping lockdown. We wonder what will happen “The hidden and and delaying payments and cancelling to all of these clothes considering that orders from their suppliers with little our research shows only 27% of brands forgotten dwell in the regard for how this will affect the publish information about the steps they livelihoods of workers across the are taking to reduce the amount of waste supply chain. created before clothes hit the shelves, and shadows of our clothes.” only 18% of brands explain what they are doing to develop circular solutions that enable textile-to-textile recycling. Carry Somers - co-founder, Fashion Revolution FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 07

1 ABOUT THIS REPORT FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 08

WHY TRANSPARENCY MATTERS

Lack of transparency costs lives Brands and retailers may work with Consumers want to know hundreds or even thousands of factories #WhoMadeMyClothes When Rana Plaza collapsed at any given time – and that is just the seven years ago in Bangladesh, suppliers that cut, sew and assemble Business of Fashion recently wrote, “Fashion companies must come killing and injuring thousands our garments in the final stage of production. There are many suppliers to terms with the fact that a more of garment workers, people and facilities further down the chain that distrusting consumer expects full had to dig through the rubble weave, dye, print and finish fabrics, spin transparency across the value chain… looking for clothing labels in yarn, and farms that grow fibres used in consumers have become more active order to figure out which brands our clothing. in scrutinising the brands they do were producing clothes in one business with.” of the five garment factories Since Rana Plaza, tragic and fatal factory fires and accidents, poor operating in the building. When consumers are equipped with and exploitative working conditions, more — and better quality, credible pollution and environmental — information about the social and In some cases, it took weeks for brands degradation remain rife throughout the environmental impacts of the clothes to determine why their labels were found global fashion supply chain. they buy, they are able to make better in the ruins and what sort of purchasing informed decisions. As a result, agreements they had with those suppliers. Simply put, if we don’t know where transparency builds trust in the brands This is because the vast majority of and by whom our clothes are being they buy and a lack of transparency today’s fashion brands and retailers do made, then it is difficult to for relevant can damage brands’ reputation. not own their manufacturing and supplier stakeholders to work together to fix facilities, making it challenging to control problems before they end in tragedy. and monitor building and fire safety, working conditions and environmental [TOP] 2014, Relatives of those killed in management across a highly globalised the collapse of Rana Plaza rally for changes in working conditions, and fragmented supply chain. Andrew Biraj for Reuters. [BOTTOM] 2019, A mourner of a victim of the New Delhi Factory Fire, Saumya Khandelwal for The New York Times FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 09

WHAT DO WE MEAN BY TRANSPARENCY?

Transparency means public If done well, transparency should Transparency is a tool for disclosure enable accountability change, not the end goal TRANSPARENCY [noun] Transparency is more than just sharing Transparency enables others to scrutinise Transparency is not a silver bullet the good work that brands are doing. Too what companies say they are doing that will solve the many complex The public disclosure of credible, often we see brands boasting about their to address human rights and protect and deeply systemic problems in comprehensive and comparable business values and positive progress the environment. It means that there is the global fashion industry. However, data and information about without sharing much about the things information available for which others transparency provides a window into fashion’s supply chains, business that go wrong, the systemic challenges (consumers, investors, lawmakers, the conditions in which our clothes are they face and the actual honest results of journalists, NGOs, trade unions, workers being made and allows us to address practices and the impacts of these their efforts to protect human rights and themselves) can hold brands and retailers them more quickly and collaboratively. practices on workers, communities the environment. This can come across to account for their policies and practices, and the environment. as greenwashing. especially when things go wrong like it did Transparency isn’t just for that day at Rana Plaza. transparency’s sake. The information It is also not enough to disclose crucial disclosed by companies needs to supply chain information internally or Being transparent doesn’t mean that be accessible and detailed enough selectively to certain stakeholders only. companies are behaving in a responsible to take action upon. What each of us This is how brands have operated for a and sustainable manner. A brand may does with this public disclosure, how very long time, yet widespread abuses publish a considerable amount of we use it to drive positive change, is remain endemic across the industry. True information about its policies, practices what will count most. In this sense, we transparency requires public disclosure. and impacts and still be contributing see transparency as the first crucial to poor working conditions and step towards systemic and structural environmental degradation. On the other change in the global fashion industry. hand, brands may be doing excellent work behind the scenes to make improvements, but if they don’t share this information publicly then no one may know about it and this learning cannot be shared more widely with others who may find it useful. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 10

PURPOSE OF THE RESEARCH

Fashion Revolution has been Although it hasn’t necessarily been campaigning for greater We designed the Index to: our intention, participating brands and transparency throughout the retailers have told us that the Index transparency • Compare the level of is a useful exercise for them to take fashion industry since 2013 transparency among the stock of what they are disclosing and and our #WhoMadeMyClothes world’s largest fashion brands where they have room to improve. social media campaign and retailers; accountability has inspired millions of This is not a shopping guide. • Incentivise major brands and The Fashion Transparency Index is not people to take action. retailers to disclose a greater an indication of whether particular level of credible, comparable brands are ‘good’ or ‘bad’. We are not To build upon this question, our and detailed information recommending or endorsing any of change community asked us to help them make year-on-year by leveraging the brands and retailers reviewed, sense of the social and environmental their competitive tendencies; regardless of their scores. The purpose information being shared by major is to understand how much social and brands and retailers. • Analyse trends in environmental information is shared transparency across the by the world’s largest brands, to drive Our community wants to know what global fashion industry; greater disclosure from them and to information they should expect to use this information to hold them to find disclosed by major brands, what • Inform our own understanding account when needed. it means, how to put the information of what good transparency they find into a wider context and how looks like and use that to make use of this information to learning to help shape our drive change. We created the Fashion ongoing campaigning efforts. Transparency Index for this purpose. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 11

ABOUT THE METHODOLOGY

The Fashion Transparency Index uses a The methodology was designed in 2017 through a four-month consultative process. ratings methodology to benchmark the We relied upon the pro-bono input of a diverse group of industry experts and public disclosure made by brands and stakeholders from academia, the trade union movement, civil society organisations, retailers across five key areas: socially responsible investment, business consulting and journalism. Among others, To explore this includes: • Social and environmental policy the detailed and commitments • Dr. Mark Anner, Director of Centre for • Aruna Kashyap, Human Rights Watch methodology • Governance Global Workers’ Rights at Penn State • Kate Larsen, SupplyESChange University • Supply chain traceability Initiative click here. • Know, show and fix (supply chain • Neil Brown, Liontrust Asset • Dr. Alessandra Mezzadri, SOAS, due diligence and remediation) Management PLC University of London • Spotlight issues (working • Professor Ian Cook, University of • Katie Shaw, Open Apparel Registry conditions, consumption, product/ Exeter material composition and climate) • Francois Souchet, Ellen MacArthur • Subindu Garkhel, Fairtrade Foundation We recognise that the methodology Foundation is not perfect and can always Brands receive points for information • Joe Sutcliffe, Advisor - Dignified be improved. We welcome any that has been publicly disclosed on • Christina Hajagos-Clausen, Work, CARE International the brand or parent company website, IndustriALL Global Union feedback on how to make it better: through self-published annual reports • Ben Vanpeperstraete, human rights [email protected] • Kristian Hardiman, Good On You and via third parties where there is a expert link between the company’s website and the third party disclosure. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 12

ANNUAL UPDATES TO THE METHODOLOGY

In consultation with these experts, each Changes to the methodology may affect Finally, we would like to stress that the Index year we update the methodology in order year-on-year comparability of the does not offer an in-depth analysis of the quality, to clarify language, select new annual results. Where brands may have scored authenticity or accuracy of brands' policies, Spotlight Issues and ensure that it stays one or two percentage points up or procedures, performance and progress in any given current and acts as a driver of industry down compared to last year this could area. Verification of claims made by brands and best practice on transparency. be due to changes in the methodology. retailers is beyond the scope of this research. We There are other notable limits to this hope you use this information to query their claims. The methodology is also based upon type of desk-based research. Human alignment with existing international error is entirely possible. Some brands standards and benchmarks such as publish annual reports that span +400 the UN Guiding Principles and SDGs, pages, with footnotes and appendices. How we calculate the findings: OECD Due Diligence Guidelines, ILO It is quite possible our research team • All scores have been calculated to two conventions, ACT, Know The Chain, IHRB (or even brands themselves) may have • All averages in this report represent the decimal places (in the complete data set) Responsible Recruitment Toolkit and the missed relevant disclosure. Also, the data mean. and then rounded to the nearest whole Transparency Pledge. captures a moment in time and is only as percentage point (what you will read in • Where a score may have been rounded to current as of 31st March 2020. Brands may this report). the nearest percentage point in previous In the 2020 methodology, there are 220 disclose or retract information at a later editions, we are calculating the year-on- indicators. Across 250 brands, this means date. However, we try our best to be as • For the most part, year-on-year year difference according to the rounded differences in scores are described as we have researched and analysed 55,000 thorough, meticulous, objective and fair figures rather than to the exact decimal the change in percentage points, which points. For example, where the average individual data points. The weighting of as possible. means the actual amount of change, score in a particular section is 17.74% the scores is intended to emphasise rather than the percent, which means we have rounded this up to 18%. If a increasing levels of detailed and This is why we urge you to focus on the the rate of change (unless explicitly previous year’s report the average score granular disclosure. In other words, we ranges in which brands score rather than stated otherwise). For instance, if a in that section was 12.41% we rounded it reward disclosure that enables external their individual scores. The ranges reveal brand scored 30% in one year and 45% down to 12% in the report. Therefore, the stakeholders to meaningfully use that patterns of industry disclosure rather than in the next, we are usually reporting that year-on-year difference is technically the brand increased by 15 percentage information to hold brands to account; precise measurements. 5.33 percentage points, but if we go points (45-30=15) rather than saying the by the nearest rounded figures it is 6 for example, supplier lists, audit findings, brand increased by a 50% rate of change percentage points. wage data, etc. (45/30=1.5). FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 13

WEIGHTING OF THE SCORES

1. 2. 3. 4. 5.

POLICY & GOVERNANCE TRACEABILITY KNOW, SHOW & FIX SPOTLIGHT ISSUES COMMITMENTS

This section explores brands’ Here we look at who on In this section we look for Here we review what brands In this final section we explore social and environmental the executive board has brands to publish supplier lists disclose about their due what brands are doing policies for both their own responsibility for social and at three levels: manufacturing, diligence processes, how to address forced labour, employees and workers in environmental performance, processing facilities and mills, they assess suppliers gender equality, living wages, the supply chain, how these how this is implemented, how and raw materials. We also against their policies, what freedom of association, waste, policies are implemented, social and environmental look for extra details such as are the results of these circularity, overproduction, use how the company prioritises improvements are linked to supplier address, number of assessments, what do they of more sustainable materials, issues, what goals it has in employee, CEO and supplier workers, gender breakdown, do when problems are microplastics, deforestation, place and if they’re reporting performance, and whether number of migrant workers, found, how workers can file climate change and water use. annual progress. the relevant department and union representation and complaints and how these person in charge can be easily when the list was last updated. are addressed. contacted by the public.

WEIGHTING 18.8% 4.8% 31.6% 25.2% 19.6% (%) FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 14

HOW THE RESEARCH RESEARCH IS PROCESS CONDUCTED

The research is led by Fashion August – November 2019 December 2019 – January 2020 Revolution’s Global Policy Director Methodology updates: Industry research and Research the selected brands and Sarah Ditty; Project Manager, Ilishio consultation process informs how we select new retailers: Our researchers review each brand Lovejoy; and Project Coordinator, Sienna Spotlight Issues, devise new indicators and tweak and pre-populate their questionnaire with Somers – with support from Fashion any others. The brand questionnaire is prepared. evidence of the relevant public disclosure Revolution’s co-founder and Global During this time, we also research and select the and award them preliminary points. At this Operations Director, Carry Somers. additional 50 brands and retailers to be reviewed. time, brands are notified of their inclusion in this year’s Index and invited to participate. Additional research was carried out by:

• Nicky Allan Mid-March Mid-February Early February • Clara Buckens Brands return completed Brands receive questionnaires Data quality assurance • Altaire Cambata questionnaires: Brands that to complete: Brands are given check: Each indicator is • Ysabl Dobles choose to participate return approximately one month to checked by at least two • Rachel Hartley their completed questionnaires. fill in the gaps on their brand different lead researchers • Michelle Lai Our research team reviews questionnaires, alerting us to for accuracy and • Lisa Schneider responses and awards additional information our researchers consistency across all • Lian Sing points where sufficient may not have found. 250 brand questionnaires. • Manon Thomas disclosure has been made.

Late March Early to mid-April Questionnaire responses reviewed and Data is compiled, analysis completed and report quality assurance check: The research prepared: Data from each brand questionnaire is team conducts several rounds of data collated into one large complete dataset, which is used quality assurance checks before finalising to analyse final results, determine year-on-year progress each questionnaire and the scoring. and pull out interesting findings. Brands are notified of their final scores and progress shortly before publication. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 15

HOW BRANDS AND HOW MANY BRANDS RETAILERS ARE PARTICIPATED THIS YEAR? SELECTED 45% 53% did not respond of brands completed and returned a The 250 brands and retailers have We have chosen to list brand questionnaire been chosen on the basis of their names in this report rather than by annual turnover, over $400 million parent company or group because USD, and representing a spread consumers will be most familiar of market segments including with brand names. However, please high street, luxury, sportswear, note that for some of the brands accessories, footwear and denim that are part of a group, such as from across Europe, North America, H&M (H&M Group) Group, Inditex, PVH South America, Asia and Africa. and others, their scores reflect all brands in the group regardless of We relied upon publicly available whether they appear in our report. financial information to research brands and retailers. Some This year 53% of brands participated companies are privately held and by returning a completed do not publish financial records. questionnaire. We include brands in This means that some very large the Index regardless of whether they brands are not on our radar. When participate or not. However, brands several brands are owned by a that participate typically receive 2% large parent company and they higher scores than they would do not disclose turnover by brand, otherwise because they are able to declined the opportunity we make an educated guess as to identify relevant disclosure that our to complete the questionnaire the biggest selling brand(s) in the researchers may have missed. group to include in our research.

Just a quick note: we often use the term 'brands' as shorthand for both brands and retailers. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 16

A-Z OF BRANDS  = participated in brand questionarire

Abercrombie & Fitch (Abercrombie & Fitch)  Chloé (Richemont) Hanes (Hanesbrands Inc.) Max Mara Sandro (SMCP) Adidas (Adidas Group)  Claire's Heilan Home (Helian Group Co.) Merrell (Wolverine World Wide, Inc.) Skechers Aeropostale Clarks  Helly Hansen (Canadian Tire Corporation)  Meters/bonwe Speedo (Pentland Group)  ALDI Nord (ALDI Einkauf GmbH & Co. oHG) COACH (Tapestry, Inc.)  HEMA  Mexx Sports Direct ALDI SOUTH (ALDI Einkauf GmbH & Co. oHG)  Cole Haan Hermès Michael Kors (Capri Holdings Limited) Steve Madden ALDO (The Aldo Group Inc.)  Columbia Sportswear  Hollister Co. (Abercrombie and Fitch)  Miu Miu (Prada Group)  Stradivarius (Inditex)  Amazon (Amazon.com, Inc.)  Converse (Nike, Inc.)  Hudson's Bay (HBC)  Mizuno  Superdry  American Eagle  Cortefiel (Tendam)  Hugo Boss  Moncler Takko ANTA Costco Intimissimi (Calzedonia Group) Monoprix (Groupe Casino) Target  Anthropologie (URBN)  Cotton On (Cotton On Group) Ito-Yokado (Seven & I Holdings Co) Monsoon  Target Australia (Wesfarmers)  Aritzia  Debenhams  J.Crew  Morrisons  Tchibo  Armani (Giorgio Armani S.p.A)  Decathlon (Association Familiale Mulliez)  Jack & Jones (BESTSELLER)  MRP  Ted Baker  ASDA (Walmart Inc.)  Desigual  JCPenney Muji (Ryohin Keikaku Co.)  Tesco  ASICS  Diane Von Furstenberg JD Sports (Pentland Group)  Neiman Marcus Tezenis (Calzedonia Group) ASOS  Dick's Sporting Goods  Jessica Simpson (Sequentional Brands Group) New Balance  The Children's Place Balenciaga (Kering)  Diesel (OTB Group) Jil Sander (Onward Holdings) New Look  The North Face (VF Corporation)  Bally (Shandong Ruyi Group) Dillards Jockey New York & Company The Warehouse Banana Republic (Gap Inc.)  Dior (LVMH)  Joe Fresh (Loblaw Company Ltd.) New Yorker Timberland (VF Corporation)  BCBGMAXAZRIA (Centric Brands)  Disney (The Walt Disney Group) John Lewis  Next  TJ Maxx (TJX) Beanpole (Samsung C&T) DKNY (G-III Apparel Group) Jordan (Nike, Inc.)  Nike (Nike, Inc.)  Tod's BeLLE Dolce & Gabbana JustFab (TechStyle Fashion Group) Nine West Tom Ford Bershka (Inditex)  Dr. Martens (Permira)  Kate Spade (Tapestry, Inc.)  Nordstrom  Tom Tailor  Big Bazaar - ffb (Future Group) Dressmann (VARNER)  Kathmandu  Old Navy (Gap Inc.)  Tommy Bahama (Oxford Industries, Inc.) Big W (Woolworths Group)  DSW (Designer Brands) Kaufland OTTO (Otto Group) Tommy Hilfiger (PVH)  Billabong (Boardriders) Eddie Bauer (Golden Gate Capital) KiK  OVS  Topman (Arcadia Group)  Bloomingdale's (Macy's Inc.) El Corte Inglés  Kmart (Sears Holdings) Patagonia  Topshop (Arcadia Group)  Bonprix (Otto Group)  Elie Tahari Kmart Australia (Wesfarmers)  Pepe Jeans TOPVALU COLLECTION (AEON) boohoo (boohoo group plc) Ermenegildo Zegna  Kohl's Pimkie Tory Burch Bosideng Esprit  Koovs Prada (Prada Group)  Triumph Bottega Veneta (Kering)  Express K-Way (BasicNet) PrettyLittleThing (boohoo group plc) Truworths Brooks Brothers Falabella  La Redoute (Galeries Lafayette Group) Primark (Associated British Foods plc)  UGG (Deckers Brands) Brooks Sports (Berkshire Hathaway)  Famous Footwear (Caleres) Lacoste (Maus Frères)  Prisma (S Group)  Under Armour Brunello Cucinelli Fanatics (Kynetic) Lands' End Pull&Bear (Inditex)  Uniqlo (Fast Retailing)  Buckle Fashion Nova Levi Strauss & Co  Puma  United Arrows  Burberry  Fendi (LVMH)  Lidl  Quiksilver (Boardriders) United Colors of Benetton  Burlington Fila Lindex (Stockmann Group)  Ralph Lauren  Urban Oufitters (URBN)  C&A  Fjällräven (Fenix Outdoor)  Li-Ning Reebok (Adidas AG)  Valentino Calvin Klein (PVH)  Foot Locker L.L. Bean REI Co-op  Van Heusen (PVH)  Calzedonia (Calzedonia Group) Forever 21 LOFT (Ascena Retail Group Inc.)  Reliance Trends (Reliance Retail) Vans (VF Corporation)  Canada Goose Foschini (TFG)  Longchamp Reserved (LPP)  Vero Moda (BESTSELLER)  Carhartt Fossil (Fossil Group, Inc.)  Louis Vuitton (LVMH)  REVOLVE Versace (Capri Holdings) Carolina Herrera (Puig) Free people (URBN)  Lululemon  River Island  Very (The Very Group)  CAROLL (Vivarte) Furla  Macy's (Macy's Inc.) Ross Dress for Less Victoria's Secret (L Brands) Carrefour Gap (Gap Inc.)  Mammut (Conzzeta AG)  Roxy (Boardriders) Walmart (Walmart Inc.)  Cato Fashions Gerry Weber Mango  Russell Athletic (Fruit of the Loom)  Woolworths (Woolworths Holdings Limited)  CELINE (LVMH)  Gildan  Marc Jacobs (LVMH)  s.Oliver  Wrangler (VF Corporation)  celio G-Star RAW  Marks & Spencer  Sainsbury’s-TU Clothing  Youngor Champion (Hanesbrands Inc.) Gucci (Kering)  Marni (OTB Group) SAINT LAURENT (Kering)  Zalando  Chanel GUESS Massimo Dutti (Inditex)  Saks Fifth Avenue (Hudson's Bay Company) Zara (Inditex)  Chico's H&M (H&M Group)  Matalan  Salvatore Ferragamo  Zeeman  FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 17

2 THE FINAL SCORES

To review full data To access the complete findings for individual data set click here. brands, visit wikirate.org FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 18

There are 250 total possible points. Final scores have been converted into A GUIDE percentages and rounded to the nearest whole number. Please focus on the range in which brands score rather than their individual scores as this gives TO THE SCORING you a more accurate picture of trends in transparency across the industry.

0—5% 0—10% 11—20% 21—30% 31—40% 41—50% 51—60% 61—70% 71—80% 81—90% 91—100%

TRANSPARENCY

Brands scoring between Brands scoring between Brands scoring between Brands scoring between Brands scoring between Brands scoring 41-50% Brands scoring 51-60% Brands scoring 61-70% Brands scoring 71-80% No brands score above 80% but if they did these 0-5% are disclosing 5-10% are likely to be 11-20% are likely to be 21-30% are likely to be 31-40% are the brands are those who are most are disclosing all of the are disclosing all of the are disclosing all of the brands would be disclosing all of the information nothing at all or a very publishing some policies publishing many policies publishing much more who are disclosing their likely to be publishing information already information already information already already described as well as publishing detailed limited number of for both its employees for both employees and detailed information first tier manufacturers as more detailed supplier described in the other described in the other described in the other information about supplier assessment and policies, which tend to be and suppliers. suppliers, some about their policies, well as detailed lists, many will be ranges and will be ranges and will be ranges and will be remediation findings for specific facilities. They related to the brand's procedures and some procedures, governance, information about their publishing processing publishing detailed publishing detailed publishing detailed would also be sharing detailed supplier lists for at Those closer to 10% are hiring practices or local information about their social and environmental policies, procedures, facilities as well as supplier lists. These supplier lists, which supplier lists for least 95% of all suppliers from manufacturing right more likely to be community engagement supplier assessment and goals and supplier social and environmental manufacturers — in brands will be disclosing include manufacturers, manufacturers, down to raw materials . These brands would be publishing a basic activities. remediation processes. assessment and goals, governance, addition to detailed most human rights and processing facilities and processing facilities and mapping social and environmental impacts into supplier code of conduct, These brands will most remediation processes. supplier assessment and information about their environmental policies, some suppliers of raw suppliers of raw materials their financial business model and disclosing some information about likely not be publishing These brands may be remediation processes. policies, procedures, procedures, social and materials such as cotton, such as cotton, wool or ample data on their use of sustainable materials their procedures and supplier lists and won’t be publishing a basic list of These brands are also social and environmental environmental goals and wool or viscose. These viscose. These brands will and would provide sex-disaggregated data on job some limited information sharing much manufacturers only more likely to be goals, governance, information about their brands will also be be publishing detailed roles within their own operations and in the supply about their supplier information, if anything, containing the factory disclosing information on supplier assessments governance and due addressing most of the information about their chain. We would be able to find detailed information assessment process. about our Spotlight Issues: name and address. These a few of the Spotlight and remediation diligence processes. They Spotlight Issues explained due diligence processes about the company’s purchasing practices, the forced labour, gender brands will not be sharing Issues such as gender processes and some will be publishing some in previous ranges as well and outcomes, supplier company’s approach and progress towards tackling equality, living wages, information about the pay gap, use of more supplier assessment detailed information as production and waste assessments and modern slavery and living wages for workers in freedom of association, outcomes of their supplier sustainable materials, findings. These brands are about the findings of their volumes, progress on remediation findings. their supply chain. These brands would be waste, circularity, assessments or grievance textile waste and their also more likely to be supplier assessments. strategies to reduce waste These brands will be disclosing their carbon emissions, use of renewable overproduction, use of channels. These brands carbon emissions at addressing the Spotlight These brands will be and use of virgin plastics, sharing comparatively energy and water footprint from their own more sustainable will not widely be company level. Issues such as gender addressing many of the progress on sustainable more comprehensive and operations right down to raw material level. materials, microplastics, disclosing information on equality, collective Spotlight Issues such as material use and more detailed information and deforestation, climate the Spotlight Issues but bargaining, use of more forced labour, living detailed carbon and water data than any other change and water use. may touch upon a few. sustainable materials, wages, collective use data. brands in the Index on the textile waste, circularity, bargaining, gender Spotlight Issues. and their carbon and equality, use of more water footprint at sustainable materials, company level. textile waste, circularity, hazardous chemicals, and their carbon and water footprint at company level and in the supply chain. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 19 THE FINAL SCORES

0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

Brooks Brothers 5 Buckle 10 Anthropologie 20 ALDI SOUTH 30 Clarks 40 Banana Republic 50 Marks & Spencer 60 C&A 70 H&M (H&M Group) 73 Cato Fashions 5 Dillards 10 Urban Outfitters 20 Big W 30 Monsoon 40 Gap 50 Patagonia 60 Adidas 69 Claire's 5 Dr. Martens 10 Carrefour 20 John Lewis 30 Uniqlo 40 Old Navy 50 The North Face 59 Reebok 69 Eddie Bauer 5 DSW 10 Chloé 20 Kathmandu 30 Champion 39 Lindex 50 Timberland 59 Esprit 64 Aeropostale 4 Furla 10 Otto 20 Vero Moda 30 Hanes 39 Gildan 49 Vans 59 Canada Goose 4 Gerry Weber 10 Superdry 20 Jack & Jones 30 Zalando 39 G-Star RAW 49 Wrangler 59 Jockey 4 Muji 10 Tod's 20 Under Armour 29 Primark 38 Dressmann 48 Puma 57 Justfab 4 Steve Madden 10 COACH 19 Columbia Sportswear 28 Topman 38 Gucci 48 ASOS 55 Tory Burch 4 Triumph 10 Kate Spade 19 El Corte Inglés 28 Topshop 38 Levi Strauss & Co 48 Converse 55 BCBGMAXAZRIA 3 Valentino 10 GUESS 19 Very 28 Target 37 New Balance 48 Jordan 55 Billabong 3 Armani 9 Hudson's Bay 19 Walmart 28 Burberry 36 Tchibo 48 Nike 55 Quicksilver 3 boohoo 9 Saks Fifth Avenue 19 Ermenegildo Zegna 27 Next 36 Sainsbury’s- 47 United Colors 55 TU Clothing of Benetton Roxy 3 PrettyLittleThing 9 Lands' End 19 Lidl 27 Russell Athletic 36 47 Balenciaga Calvin Klein 54 Dolce & Gabbana 3 Famous Footwear 9 Moncler 19 Mizuno 27 Helly Hansen 35 47 SAINT LAURENT Tommy Hilfiger 54 Longchamp 3 The Children's Place 9 Reserved 19 Ralph Lauren 27 OVS 35 46 Bottega Veneta Van Heusen 54 Nine West 3 ANTA 8 TOPVALU COLLECTION 19 LOFT 26 Asda 34 46 ASICS Diane Von Furstenberg 2 Beanpole 8 Woolworths 19 CELINE 26 HEMA 34 46 South Africa Lululemon DKNY 2 Cole Haan 8 Dior 26 Speedo 34 44 KiK 18 Bershka Fashion Nova 2 Express 8 Louis Vuitton 26 The Warehouse 34 44 Kaufland 18 Massimo Dutti KOOVS 2 Fila 8 Fendi 25 Hermès 33 44 Kmart 18 Pull&Bear REVOLVE 2 Michael Kors 8 Marc Jacobs 25 Kmart Australia 33 44 Matalan 18 Stradivarius Big Bazaar - ffb 1 Ross Dress for Less 8 Abercrombie & Fitch 25 Target Australia 33 44 Miu Miu 18 Zara celio 1 Skechers 8 Hollister Co. 25 Fjällräven 31 43 Prada 18 Bonprix Metersbonwe 1 Tommy Bahama 8 ALDI Nord 25 Mammut 31 43 Pimkie 18 New Look New Yorker 1 Bosideng 7 Amazon 25 Morrisons 31 43 Tom Tailor 18 Tesco Bally 0 Foot Locker 7 Brooks Sport 25 41 ALDO 17 Debenhams Belle 0 Forever 21 7 Cotton On 25 41 American Eagle 17 Hugo Boss Elie Tahari 0 New York & Company 7 Lacoste 25 Desigual 17 Heilan Home 0 United Arrows 7 Prisma 25 Falabella 17 Jessica Simpson 0 Carhartt 6 Zeeman 25 UGG 17 Max Mara 0 Jil Sander 6 Decathlon 23 Aritzia 16 Mexx 0 K-Way 6 Disney 23 Bloomingdale's 16 Pepe Jeans 0 LL Bean 6 REI 23 Macy's 16 Tom Ford 0 Neiman Marcus 6 Ted Baker 23 Cortefiel 16 Youngor 0 Sports Direct 6 Mango 22 Dick's Sporting Goods 16 Versace 6 Monoprix 22 JD Sports 16 Nordstrom 22 Kohl's 16 River Island 22 MRP 16 Free people 21 s.Oliver 16 Ito-Yokado 21 Costco 15 Salvatore Ferragamo 21 Fanatics 15 Victoria's Secret 21 JCPenney 15 Li-Ning 15 TJ Maxx 15 Truworths 15 Burlington 14 CAROLL 14 Foschini 14 J.Crew 14 Calzedonia 13 Intimissimi 13 Tezenis 13 Fossil 13 Joe Fresh 13 Carolina Herrera 12 Chico's 12 Reliance Trends 12 Takko 12 Brunello Cucinelli 11 Chanel 11 Diesel 11 Marni 11 La Redoute 11 Merrell 11 Sandro 11

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 20 QUICK FINDINGS

Average score is 58 out of 10 brands 250 (23%). (4%) score 0% Not a single this year brand scores above 80% 70

60

 Only 1 brand 50 scores higher than 70%

40

30

20

NO. OF BRANDS OF NO. 10

0-5 6-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100

FINAL SCORE (%)

TRANSPARENCY FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 21

3 THE FINAL SCORES ACROSS THE 5 SECTIONS FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 22

AVERAGE SCORES ACROSS THE SECTIONS

52% 29% 16% 17% 15% 1. 2. 3. 4. 5.

POLICY & GOVERNANCE TRACEABILITY KNOW, SHOW & FIX SPOTLIGHT ISSUES COMMITMENTS

Gucci is the highest scoring 9 brands score 100% in this The good news is that 40% of No brand scores above 59%. For the second year in a row, brand in this section again for section, meaning they disclose brands are now publishing a list Adidas/Reebok and C&A all H&M (H&M Group) is the highest another year, scoring 100%. contact details for the relevant of their first tier manufacturers. score highest at 59%. 100 brands scoring brand in this section Adidas and Reebok come in department and individual However, no brands score in the (40%) score in the lowest range at 63%. 9 brands score in the second at 99%. This means they responsible for sustainability 91-100% range. Esprit and The 0-10% disclosing nothing or very next highest range 51-60% are publishing all the relevant issues in the company, as North Face, Timberland, Vans, little about supply chain due while 133 brands (53%) score social and environmental well as information about how Wrangler (VF Corp brands) score diligence, supplier assessments in the lowest range 0-10%. policies and procedures we accountability is cascaded highest in this section in the and their efforts to fix issues 74% of brands score 20% or look at, as well as materiality throughout the business from 81-90% range. This means that when found. More than two- less in this section. On issues assessments and goals for board level to executives and they are likely to be publishing thirds of brands (68%) score less related to working conditions, improving impacts. 25 brands employees to supplier level. detailed supplier lists at the than 20%. Most brands share including living wages and (10%) score in the lowest range, More than half the brands (52%) first tier and beyond, as well little information about the purchasing practices, brands 0-10%. This means they are score 20% or less in this section. as mapping at least one full results of supplier assessments disclose shockingly little disclosing zero or very few raw material supply chain. 145 and remediation. When they information about their efforts. relevant policies. We continue brands (58%) score in the 0-10% do it is typically shared through On environmental issues such to see brands disclose the range and are not disclosing third party disclosure via the as use of sustainable materials most about their policies and any suppliers at all. Ermenegildo ILO Better Work initiative or the and carbon footprint, more commitments on social and Zegna has become the first Bangladesh Accord. brands are publishing relevant environmental issues compared luxury brand to publish a information and data. to any other section. supplier list. Balenciaga, Bottega Veneta, Gucci and Saint Laurent are now disclosing a handful of raw material suppliers. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 23

1. POLICY & COMMITMENTS APPROACH

What human rights and environmental policies and procedures We typically found this information in Social & environmental priorities and do major brands and retailers publicly disclose? the following places: measurable, long-term goals

In this section we reviewed what policies and procedures brands disclose • Brand website We looked to see whether brands and both at company level (as related to the company’s own operations in retailers are disclosing their key human • Parent company or group website head offices, stores, warehouses, and owned production facilities) and at rights and environmental priorities (typically supplier level (Code of Conduct or supplier guidance document). • Sustainability or corporate in the form of a materiality assessment). responsibility microsite; Some issues will be more relevant and • Investor relations website (so long as timely for each brand, and we wanted to weblink made available via their understand how they decide upon these We looked at the following issues: main website) priorities and what these priorities are. • Another external third party website (e.g. • Animal Welfare • Harassment & Violence online data platform, NGO partner, data We also looked to see whether brands • Annual leave & Public Holidays • Health & Safety sharing initiative, another benchmarking are publishing their goals or a strategic • Anti-bribery, Corruption & • Living Conditions/ Dormitories disclosure - so long as the weblink roadmap for improving social and is made available via the brand’s Presentation of False Information • Maternity Rights / Parental Leave environmental impacts across the value own website) chain. We only counted these goals if they • Biodiversity & Conservation • Notice Period, Dismissal & were time-bound, measurable and set for • Child Labour Disciplinary Action 2020 or later. We also awarded points if • Community Engagement • Overtime Pay We do not count the following brands are reporting on annual progress • Contracts & Terms of Employment • Restricted Substances List information sources: towards achieving these goals. • Discrimination • Sub-contracting, Outsourcing & Homeworkers • Clothing labels and hang tags on products • Diversity & Inclusion Verified information • Energy & Carbon Emissions • Wages & Financial Benefits (e.g. • In-store or at other physical locations • Equal Pay bonuses, insurance, social security, Finally, we looked to see if the human pensions) • Smartphone apps • Forced or Bonded Labour rights and environmental data reported • Waste & Recycling (Packaging/Paper) • Social media channels • Foreign & Migrant Labour by brands is audited by an independent • Water Effluents & Treatment • Freedom of Association, Right to • A third party website or document where third party organisation, typically this is Organise & Collective Bargaining • Water Usage & Footprint there is no weblink from the brand’s own conducted by a large global • Working Hours & Rest Breaks website, including press articles accounting firm. • Downloadable documents where the weblink cannot be found on the brand’s website FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 24 1. POLICY & COMMITMENTS RESULTS 0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

REVOLVE 5 Billabong 10 Eddie Bauer 20 Foot Locker 29 Matalan 40 Columbia Sportswear 50 ALDI Nord 60 Kathmandu 69 Target 80 Hugo Boss 90 Gucci 100 Big Bazaar - ffb 4 Quicksilver 10 Versace 20 Forever 21 29 Steve Madden 40 MRP 50 Bloomingdale's 60 ALDI SOUTH 68 ASOS 79 Patagonia 89 Adidas 99 New Yorker 3 Roxy 10 Dolce & Gabbana 18 Dillards 28 Chico's 39 Tod's 50 Macy's 60 Clarks 68 CELINE 79 Tchibo 89 Reebok 99 Max Mara 2 Canada Goose 10 Justfab 18 Fanatics 27 Diesel 39 Burlington 49 Calzedonia 60 Jack & Jones 68 Dior 79 Timberland 89 Balenciaga 98 Pepe Jeans 2 Longchamp 10 Jockey 17 Fila 26 Marni 39 Zeeman 49 Intimissimi 60 Vero Moda 68 Fendi 79 The North Face 88 Bottega Veneta 98 Tom Ford 1 DKNY 9 Tory Burch 17 ANTA 26 Merrell 39 Cortefiel 48 Tezenis 60 Under Armour 68 Louis Vuitton 79 Vans 88 SAINT LAURENT 98 Bally 0 KOOVS 9 Jil Sander 16 boohoo 26 Sandro 39 Helly Hansen 48 COACH 60 Amazon 67 Marc Jacobs 79 Wrangler 88 C&A 97 Belle 0 celio 7 Aeropostale 15 PrettyLittleThing 26 DSW 38 Truworths 48 Kate Spade 60 El Corte Inglés 67 G-Star RAW 79 Calvin Klein 88 Puma 95 Elie Tahari 0 Diane Von Furstenberg 6 Cato Fashions 15 Express 26 Tom Tailor 38 Furla 46 LOFT 60 Kmart 67 Uniqlo 79 Tommy Hilfiger 88 Marks & Spencer 94 Heilan Home 0 Fashion Nova 6 BCBGMAXAZRIA 13 Neiman Marcus 26 Cotton On 37 Carolina Herrera 45 Brooks Sport 59 Lands' End 67 Walmart 79 Van Heusen 88 Banana Republic 91 Jessica Simpson 0 Nine West 6 Brunello Cucinelli 24 Armani 36 Fossil 45 Miu Miu 59 New Look 67 Asda 78 Hermès 88 Gap 91 Metersbonwe 0 Cole Haan 24 Buckle 36 JCPenney 45 Prada 59 Nordstrom 67 Next 78 Levi Strauss & Co 88 Old Navy 91 Mexx 0 New York & Company 24 Ermenegildo Zegna 36 Chanel 44 Russell Athletic 59 Topman 67 Ralph Lauren 78 ASICS 86 Converse 91 Youngor 0 Brooks Brothers 23 Reliance Trends 36 JD Sports 43 s.Oliver 59 Topshop 67 Monoprix 77 Bershka 86 Jordan 91 Carhartt 23 Anthropologie 35 Falabella 41 GUESS 57 Chloé 66 New Balance 77 Massimo Dutti 86 Nike 91 K-Way 23 Free people 35 La Redoute 41 John Lewis 57 Moncler 66 Tesco 76 Pull&Bear 86 Gildan 91 LL Bean 23 Urban Outfitters 35 River Island 41 KiK 57 Lacoste 65 The Warehouse 76 Stradivarius 86 H&M (H&M Group) 91 Michael Kors 23 Bosideng 35 Lidl 57 Speedo 65 Dressmann 74 Zara 86 Sports Direct 23 Joe Fresh 35 UGG 56 Abercrombie & Fitch 64 Lindex 74 Esprit 86 Beanpole 21 Pimkie 35 Very 56 Hollister Co. 64 Lululemon 74 Burberry 85 Claire's 21 The Children's Place 35 Woolworths 56 Carrefour 64 Big W 73 United Colors 84 South Africa of Benetton Valentino 35 Mango 64 OVS 73 Costco 55 Zalando 84 Dr. Martens 34 Mizuno 64 Primark 72 Debenhams 55 Kmart Australia 83 Famous Footwear 34 Otto 64 Bonprix 71 Desigual 55 Target Australia 83 Foschini 34 Sainsbury’s- 63 Ito-Yokado 71 Dick's Sporting Goods 55 TU Clothing Monsoon 83 Gerry Weber 34 61 Salvatore Ferragamo 71 Prisma 55 Decathlon Fjällräven 81 Muji 34 61 TOPVALU COLLECTION 71 ALDO 55 Superdry Tommy Bahama 34 HEMA 54 Skechers 33 Hudson's Bay 54 Ross Dress for Less 32 Saks Fifth Avenue 54 Takko 32 Li-Ning 54 Triumph 32 REI 54 Kaufland 31 Reserved 54 United Arrows 31 American Eagle 53 Champion 53 Hanes 53 Aritzia 52 Mammut 52 Morrisons 52 Ted Baker 52 CAROLL 51 Disney 51 J.Crew 51 Kohl's 51 TJ Maxx 51 Victoria's Secret 51

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 25 1. POLICY & COMMITMENTS FINDINGS

HOW MANY BRANDS PUBLISH RELEVANT POLICIES?

Company policies Forced & Bonded Labour 166 229 Health & Safety 102 173 186 228 Supplier policies Child Labour 116 228

87 172 213 Procedures Harassment & Abuse Discrimination 106 199 219 Working Hours & Rest Breaks 98 100 204 Freedom of Association, Right to Organise & Collective Bargaining 93 99 212

Wages & Financial Benefits (e.g. bonuses, insurance, social security, pensions) 138 174 210 Anti-bribery, Corruption, & Presentation of False Information 121 188 195 Equal Pay 84 123 153 Overtime Pay 45 185 Sub-contracting, Outsourcing & Homeworkers 61 174 Living Conditions/Dormitories 40 158 Energy & Carbon Emissions 130 194 198 Notice Period, Dismissal & Disciplinary Action 39 67 143 Contracts & Terms of Employment 39 53 137 Water Effluents & Treatment 119 121

Waste & Recycling (Packaging/Office/Retail) 29 111 110 136 187 188 Water Usage & Footprint 104 130 152

Foreign & Migrant Labour 106 107

Annual Leave & Public Holidays 49 86 106

Biodiversity 41 46 53 81 124 143

Maternity Rights & Parental Leave 72 88 107

Community Engagement 42 206 220

Waste & Recycling (Product/Textiles) 29 111 136

Animal Welfare 131 134

Diversity & Inclusion 147 182

Restricted Substance List 100 141

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240 255 270 FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 26

1. POLICY & COMMITMENTS FINDINGS

IMPLEMENTATION OF POLICIES

ANIMAL WELFARE BIODIVERSITY & CONSERVATION COMMUNITY ENGAGEMENT

54% 52% 32% 57% 82% 17%

publish a disclose how publish supplier disclose procedures publish a company publish supplier company policy their policies are policies that address this topic policy on this topic policies implemented

DIVERSITY & INCLUSION FREEDOM OF ASSOCIATION FORCED & BONDED LABOUR

73% 59% 85% 37% 92% 66%

publish a company disclose how policies publish supplier disclose how policies publish supplier disclose how policies policy on this topic are implemented policies are implemented policies are implemented FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 27 1. POLICY & COMMITMENTS FINDINGS

ANNUAL PROGRESS

CHILD LABOUR EMPLOYEE WAGES WORKER HEALTH CODES OF CONDUCT RSL & BENEFITS & SAFETY

91 91

86 85

70

57

40 33 30

23

2019 2020 2019 2020 2019 2020 2019 2020 2019 2020

% that publish policy % publish employee % that publish % that publish supplier % that publish a on child labour policies on supplier policies on codes of conduct in Restricted wages and benefits health and safety multiple languages Substances List FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 28

1. POLICY & COMMITMENTS ANALYSIS

For the first time, the overall Majority of brands publish Where brands have made the most year- Since publishing the Index, several brands average score among brands policies on egregious issues on-year progress taking steps to publicly have taken steps to publicly disclose on policy and commitments disclose company policies for the first some of their internal company policies is over 50%. Every year this More than three-quarters of brands time, this includes: for the first time. This is not something that has had as much external scrutiny is the area in which brands publish company policies - those that apply to its own directors and • Annual leave and public holidays: as supply chain disclosure. Relevant disclose the most information. employees - on topics including: anti- 42% in 2020, up from 26% in 2019 information is often found in an Employee bribery and corruption (78%), community and 23% in 2017 Handbook, Company Code of Conduct, engagement (82%), discrimination (80%), separate environmental management • Anti-bribery and corruption: 78% in policies or sometimes in the careers Policy & Commitments: and energy and carbon emissions (78%). 2020, up from 71% in 2019 and 35% section of a brand’s website, depending Overall average score year- in 2017 The topics in which the fewest number on the topic. on-year progress of brands publish company policies • Maternity rights and parental leave: include: contracts and terms of More than three-quarters of brands 43% in 2020, up from 31% in 2019 and 2017 2018 2019 2020 employment (16%), dismissal and publish supplier policies - those that apply 30% in 2017 disciplinary action (27%), and working to its supplier partners and workers in 49% the supply chain - on topics including: of 100 brands hours and rest breaks (39%) • Dismissal and disciplinary action: child labour (91%), discrimination (88%), 27% in 2020, up from 17% in 2019 and forced and bonded labour (92%), freedom 46% 13% in 2017 of 150 brands of association and unionisation (85%), 48% • Waste and recycling (office and harassment and violence (85%), health and of 200 brands packaging): 75% in 2020, up from 72% safety (91%), wages and benefits (84%), and working hours and rest breaks (82%). 52% in 2019 and 37% in 2017 of 250 brands Less than one-third of brands publish supplier policies on the following topics: biodiversity and conservation (32%), community engagement (17%), maternity rights and parental leave (29%), and textile waste and recycling (12%). FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 29

The issues that receive the most public Less than a third of brands At least three-quarters of brands explain Far more brands continue to scrutiny and pressure are those most disclose Supplier Codes of how company and/or supplier policies are disclose goals towards improving likely to be reflected in the policies Conduct in local languages implemented through specific focused environmental impacts than that major brands have taken steps to activities or procedures on the following human rights disclose. Such topics include forced and Most supplier policies are set out in what topics: community engagement (88%), bonded labour (92%), child labour (91%) is referred to as the brands’ Supplier energy and carbon emissions (79%), 57% of brands publish time-bound, and factory health and safety (91%). Code of Conduct (CoC). For the most part, and office and packaging waste and measurable goals or targets focused on brands publish their CoCs in English. recycling (75%). improving their environmental impacts, However, most suppliers and workers Where brands have made the most and 52% report annual progress towards are based in non-English speaking On the other hand, less than one-fifth achieving these goals. On the other hand, year-on-year progress taking steps to countries, so we also look for brands to be of brands explain how company and/or only 38% of brands publish time-bound, publicly disclose supplier policies for publishing their Codes of Conduct in the supplier policies are implemented through measurable goals or targets focused on the first time, this includes: local languages of their most prominent specific focused activities or procedures improving their human rights impacts, sourcing countries so that workers can on the following topics: annual leave and 36% report annual progress towards • Anti-bribery and corruption: 75% in access and understand the standards that and public holidays (20%), supplier living achieving these goals. We would also like 2020, up from 68% in 2019 and 61% apply to them. We found that only 30% of conditions and dormitories (16%), and to highlight the fact that many of the time- in 2017 brands publish translations of their CoC. dismissal and disciplinary action (16%). bound goals that brands are disclosing However, on a more positive note, this is end in 2020, and we will be interested to • Dismissal and disciplinary action: Brands are taking some steps to publicly an increase from 23% of brands in 2019. see how brands will update and make disclose information about how they’re 57% in 2020, up from 48% in 2019 more ambitious and comprehensive implementing company and supplier and 26% in 2017 Brands continue to publish more goals going forward. about their policies than how they policies, but we hope to see more progress next year covering a broader • Equal pay: 61% in 2020, down from implement them For another year in a row, less than half range of issues. This year, the topics 68% in 2019 but up from 49% in 2017 of brands (42%) publish a materiality which saw the most year-on-year As in all previous editions of the Index, assessment, which is a process a • Foreign and migrant labour: 42% in progress were: major brands tend to disclose more about company undertakes to speak to 2020; up from 36% in 2019 and 32% their policies than they do about how they different stakeholders to determine • Animal welfare: 52% in 2020, up from in 2017 put those policies into action and the its most significant human rights and 47% in 2019 and 34% in 2017 results of their efforts to address social environmental impacts. This information • Living conditions and dormitories: and environmental issues. is useful because it helps us understand • Forced and bonded labour: 66% in 2020, 63% in 2020, up from 52% in 2019 how brands decide what the biggest up from 62% in 2019 and 52% in 2017 and 51% in 2017 For example, 91% of brands publish a priorities are in their business. supplier policy on child labour, but only • Foreign and migrant labour: 43% in 29% of brands are now having the 46% disclose information about how this 2020, up from 32% in 2019 and 30% sustainability information published in policy is implemented through a specific annual reports verified by third party focused procedure or activity. in 2017 firms, an increase from 26% of brands in 2019. This assurance is typically Meanwhile, 73% of brands publish a carried out by large accounting firms company policy on diversity and inclusion, such as Deloitte, Ernst & Young or PwC. but only 59% disclose how this policy is implemented. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 30

2. GOVERNANCE APPROACH

Who in the company is Employee, executive and responsible for social and supplier incentives for "Fashion is at a crossroads environmental impacts? improving performance where one direction leads In this section, we wanted to understand We looked to see if brands are who in the company is accountable for disclosing how their employees beyond to a rapid scale-up of social and environmental performance the sustainability/CSR team (designers, and impacts. buyers, sourcing managers, etc.) are implementation that'll turn incentivised (via performance reviews First, we looked to see if brands publish or bonuses) to achieve improvements it into a real climate leader. direct contact details for a relevant in social and environmental impacts. department, such as the sustainability or The other direction leads corporate responsibility team. Then, we We looked for the same information to looked to see if they share the direct contact be shared linking CEO and executive details for the individual(s) with lead level pay and incentives to human to more commitments, responsibility for social and environmental right impacts and environmental impacts. This enables the public to get in management. but without real touch with questions and queries. Finally, we also looked to see if implementation." We also looked for the name of a board suppliers’ incentives are linked to member who is responsible for social improvements in human rights impacts and environmental issues and how this and environmental management. The oversight is implemented. types of incentives we were looking for included brands committing to long- Liz McDowell, term contracts, increased order size, Director, Standearth price premiums and fewer audits. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 31 2. GOVERNANCE RESULTS

0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

Aeropostale 0 Big Bazaar - ffb 8 ALDI SOUTH 17 American Eagle 25 Abercrombie & Fitch 33 Banana Republic 50 G-Star RAW 58 Asda 67 Fjällräven 75 Dressmann 83 Adidas 100 Anthropologie 0 Bloomingdale's 8 ALDO 17 Aritzia 25 Hollister Co. 33 Gap 50 Prisma 58 Walmart 67 Hugo Boss 83 Reebok 100 Free people 0 Macy's 8 Amazon 17 Big W 25 ALDI Nord 33 Old Navy 50 Zalando 58 Bershka 67 Marks & Spencer 83 Balenciaga 100 Urban Outfitters 0 boohoo 8 ANTA 17 HEMA 25 ASICS 33 Burberry 50 Massimo Dutti 67 Puma 83 Bottega Veneta 100 Bally 0 PrettyLittleThing 8 Armani 17 REI 25 ASOS 33 Calvin Klein 50 Pull&Bear 67 Sainsbury’s- 83 Gucci 100 TU Clothing BCBGMAXAZRIA 0 CAROLL 8 Bosideng 17 Ted Baker 25 Beanpole 33 Tommy Hilfiger 50 Stradivarius 67 SAINT LAURENT 100 Belle 0 Cotton On 8 Brooks Sport 17 The Warehouse 25 Brunello Cucinelli 33 Van Heusen 50 Zara 67 C&A 100 Billabong 0 Fila 8 Buckle 17 Tom Tailor 25 Chico's 33 Champion 50 Bonprix 67 H&M (H&M Group) 100 Quicksilver 0 Merrell 8 Burlington 17 Chloé 33 Hanes 50 Otto 67 Tchibo 100 Roxy 0 Muji 8 Calzedonia 17 Clarks 33 Converse 50 CELINE 67 Brooks Brothers 0 Sandro 8 Intimissimi 17 Columbia Sportswear 33 Jordan 50 Dior 67 Canada Goose 0 Versace 8 Tezenis 17 Dick's Sporting Goods 33 Nike 50 Fendi 67 Cato Fashions 0 Carhartt 17 Dillards 33 Foschini 50 Louis Vuitton 67 celio 0 Carolina Herrera 17 El Corte Inglés 33 Gildan 50 Marc Jacobs 67 Chanel 0 Carrefour 17 Gerry Weber 33 JCPenney 50 Esprit 67 Claire's 0 COACH 17 GUESS 33 KiK 50 New Balance 67 Costco 0 Kate Spade 17 Helly Hansen 33 Lands' End 50 New Look 67 Debenhams 0 Cole Haan 17 Jack & Jones 33 Levi Strauss & Co 50 Desigual 0 Cortefiel 17 Vero Moda 33 Lindex 50 DKNY 0 Decathlon 17 JD Sports 33 Lululemon 50 Dolce & Gabbana 0 Diane Von Furstenberg 17 Kathmandu 33 Patagonia 50 Eddie Bauer 0 Diesel 17 Kmart 33 Ralph Lauren 50 Elie Tahari 0 Marni 17 Miu Miu 33 Speedo 50 Ermenegildo Zegna 0 Disney 17 Prada 33 Tesco 50 Fanatics 0 Dr. Martens 17 Mizuno 33 The North Face 50 Fashion Nova 0 DSW 17 Moncler 33 Timberland 50 Forever 21 0 Express 17 Monoprix 33 Vans 50 Fossil 0 Famous Footwear 17 Morrisons 33 Wrangler 50 Furla 0 Foot Locker 17 OVS 33 United Colors 50 of Benetton Heilan Home 0 Hermès 17 Reliance Trends 33 Falabella 42 Jessica Simpson 0 Hudson's Bay 17 Russell Athletic 33 Kohl's 42 Jil Sander 0 Saks Fifth Avenue 17 s.Oliver 33 LOFT 42 Jockey 0 Ito-Yokado 17 Salvatore Ferragamo 33 Monsoon 42 Justfab 0 J.Crew 17 Target 33 Next 42 KOOVS 0 Joe Fresh 17 TJ Maxx 33 Reserved 42 Lacoste 0 John Lewis 17 Tod's 33 LL Bean 0 Kaufland 17 Topman 33 Matalan 0 Kmart Australia 17 Topshop 33 Max Mara 0 Target Australia 17 UGG 33 Mexx 0 K-Way 17 Very 33 New York & Company 0 La Redoute 17 Woolworths South Africa 33 New Yorker 0 Lidl 17 Pepe Jeans 0 Li-Ning 17 REVOLVE 0 Longchamp 17 Ross Dress for Less 0 Mammut 17 Skechers 0 Mango 17 Sports Direct 0 Metersbonwe 17 The Children's Place 0 Michael Kors 17 Tom Ford 0 MRP 17 Tommy Bahama 0 Neiman Marcus 17 Tory Burch 0 Nine West 17 Triumph 0 Nordstrom 17 United Arrows 0 Pimkie 17 Youngor 0 Primark 17 River Island 17 Steve Madden 17 Superdry 17 Takko 17 TOPVALU COLLECTION 17 Truworths 17 Under Armour 17 Uniqlo 17 Valentino 17 Victoria's Secret 17 Zeeman 17

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 32 2. GOVERNANCE FINDINGS

HOW EASILY CAN YOU CONTACT A BRAND? BOARD LEVEL ACCOUNTABILITY

64% 14% 43% 40%

publish direct contact details of disclose the direct contact details of disclose who on the board publish a description of how the sustainability or corporate the person with lead responsibility holds responsibility for the board level accountability responsibility team for human rights and environmental company’s human rights and is implemented impacts in the business environmental impacts

ARE INCENTIVES TIED TO SOCIAL AND ENVIRONMENTAL PROGRESS?

9% 14% 29%

explain how employee incentives explain how executive level explain how suppliers are rewarded for (pay and bonuses) are tied to incentives (pay and bonuses) are improvements in working conditions and improvements in social and tied to improvements in social environmental management (increased environmental impacts and environmental impacts orders, longer contracts, fewer audits) FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 33

2. GOVERNANCE ANALYSIS

Enabling customers and Board level accountability for Executive, employee and supplier However, more brands (29%) disclose stakeholders to get in touch human rights and environmental incentives connected to making supplier incentives for improvements on impacts progress human rights impacts and environmental One simple act of transparency brands performance. This can include long- can take is to provide a way to directly Many CEOs are coming to view We looked to see how major brands term commitments to purchase from contact the corporate responsibility sustainability issues as critical to the are incentivising their own employees, suppliers, increased order sizes, price or sustainability team. This allows an future of their business. A recent study company executives and suppliers premiums on orders or fewer audits. open line of communication between of 1,000 global executives conducted by to improve human rights impacts the brand and its customers and Accenture and UN Global Compact (2019) and environmental performance. By It is quite telling that brands disclose all stakeholders who would like to ask shows that the business community incentives for employees and executives, sorts of policies and expectations of good questions or raise concerns. This is why can and should be making a far we mean whether their job performance business practice for their suppliers, but we look for brands to share a direct greater contribution to achieving the reviews, pay and bonuses are tied when it comes to tying that to executive email address or phone number for a 2030 Sustainable Development Goals. to improvements in these areas. We and employee performance, then little relevant department. Interestingly, 88% of CEOs “believe our found that only 9% of brands publish information is published. It begs the global economic systems need to refocus information about how employees (e.g. question: why do brands seem more We found that 64% of brands are now on equitable growth.” those working in designing, sourcing, willing to put performance-related publishing an email address for their buying, merchandising, production) incentives and accountability in place for CSR/sustainability department, up from On this topic, we found that fewer than incentives are tied to improvements in their suppliers than their own employees 60% of brands last year. However, only half of brands (43%) disclose the name human rights impacts and environmental and executives? 14% of brands disclose the direct contact of the board member, if there is one, performance. Meanwhile, only 14% of details for the specific person in the who is responsible for human rights and brands disclose that executives' (e.g. CEO, company in charge of human rights and environmental issues in the company, CFO, president) pay or bonuses are tied environmental issues in the company. and 40% disclose how this board level to these improvements, an increase from In next year’s report, we hope to see accountability is implemented in practice. 10% in 2019. these numbers increase significantly, especially for CSR/sustainability department contact details. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 34

3. TRACEABILITY APPROACH

Are major brands and retailers Disclosing factories, processing publishing lists of their suppliers and facilities and raw material "Transparency how detailed is this information? suppliers

This section focused on whether brands are We looked for supplier lists at three levels: and traceability publishing lists of their suppliers and what level of detail brands are disclosing about these suppliers. First, are brands disclosing the factories are enablers where their clothes are made — e.g. the Are brands sharing information such as: facilities with which brands have a direct relationship and typically do the cutting, of change" sewing and final trims of products? • The address of the facility • The types of products/services made in each Second, are brands disclosing processing supplier facility facilities further down the supply chain — Leslie Johnston, Chief Executive Officer at Laudes Foundation e.g. from ginning and spinning, through • Approximate number of workers to subcontractors, wet processing, • Sex-disaggregated breakdown of workers embroidering, printing, finishing, dye- at each site houses, laundries, and so on? • If the facility has a trade union And finally, are brands disclosing their • If the facility has an independent worker committee suppliers of raw materials — e.g. primary • % of migrant or contract workers materials such as fibres, hides, rubber, dyes, metals and so on? • Name of parent company • The business relationship between facilities at We also checked if brands disclose different levels of their supply chain information about tracing at least one raw material supply chain such as leather, • If the list is available as a csv or Excel spreadsheet cotton, down or wool. • If the list was updated within the past 6 months FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 35 3. TRACEABILITY RESULTS 0% 1-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

Aeropostale 0 ALDO 1 Tod's 10 ALDI SOUTH 17 Morrisons 30 Topman 39 Bonprix 49 Clarks 59 C&A 70 H&M (H&M Group) 77 Esprit 82

ANTA 0 American Eagle 1 Fjällräven 8 ALDO 17 Speedo 30 Topshop 39 Russell Athletic 49 Converse 59 ASOS 66 United Colors The North Face 81 of Benetton 73 Armani 0 Aritzia 1 Prisma 8 Amazon 17 Target 29 Levi Strauss & Co 38 ASICS 48 Jordan 59 Adidas 62 Timberland 81 Bally 0 Bloomingdale's 1 Abercrombie & Fitch 6 ANTA 17 Zalando 29 The Warehouse 35 Monsoon 48 Nike 59 Reebok 62 Vans 81 BCBGMAXAZRIA 0 Macy's 1 Hollister Co. 6 Armani 17 Ted Baker 28 Anthropologie 33 Helly Hansen 47 G-Star RAW 59 Patagonia 61 Wrangler 81 Beanpole 0 Burberry 1 Joe Fresh 6 Bosideng 17 Cotton On 27 Free people 33 HEMA 47 Lindex 59 Belle 0 Canada Goose 1 Brooks Sport 17 Fanatics 27 Urban Outfitters 33 Puma 47 Debenhams 57 Big Bazaar - ffb 0 Carrefour 1 Buckle 17 Hermès 27 John Lewis 32 Banana Republic 46 Ermenegildo Zegna 57 Billabong 0 CELINE 1 Burlington 17 Mammut 27 Gap 46 Lululemon 57 Quicksilver 0 Dior 1 Calzedonia 17 River Island 27 Old Navy 46 Sainsbury’s- 54 TU Clothing Roxy 0 Fendi 1 Intimissimi 17 Under Armour 27 New Balance 46 53 Dressmann boohoo 0 Louis Vuitton 1 Tezenis 17 ALDI SOUTH 25 New Look 43 53 Marks & Spencer PrettyLittleThing 0 Marc Jacobs 1 Carhartt 17 Columbia Sportswear 25 Tchibo 42 52 Calvin Klein Bosideng 0 Chloé 1 Carolina Herrera 17 Jack & Jones 25 Tesco 42 52 Tommy Hilfiger Brooks Brothers 0 COACH 1 Carrefour 17 Vero Moda 25 52 Van Heusen Brunello Cucinelli 0 Kate Spade 1 COACH 17 Kathmandu 25 52 Gildan Buckle 0 Cole Haan 1 Kate Spade 17 Next 25 51 Champion Burlington 0 Cortefiel 1 Cole Haan 17 Very 25 51 Hanes Calzedonia 0 Costco 1 Cortefiel 17 Hugo Boss 24 Intimissimi 0 Dr. Martens 1 Decathlon 17 Pimkie 24 Tezenis 0 Famous Footwear 1 Diane Von Furstenberg 17 Zeeman 24 Carhartt 0 Fossil 1 Diesel 17 Lacoste 23 Carolina Herrera 0 Gerry Weber 1 Marni 17 Mizuno 23 CAROLL 0 Ito-Yokado 1 Disney 17 OVS 23 Cato Fashions 0 J.Crew 1 Dr. Martens 17 Primark 23 celio 0 KiK 1 DSW 17 Kaufland 22 Chanel 0 Lands' End 1 Express 17 Uniqlo 22 Chico's 0 LL Bean 1 Famous Footwear 17 Claire's 0 Merrell 1 Foot Locker 17 Decathlon 0 Miu Miu 1 Hermès 17 Desigual 0 Prada 1 Hudson's Bay 17 Diane Von Furstenberg 0 Moncler 1 Saks Fifth Avenue 17 Dick's Sporting Goods 0 MRP 1 Ito-Yokado 17 Diesel 0 Nordstrom 1 J.Crew 17 Marni 0 Otto 1 Joe Fresh 17 Dillards 0 Ralph Lauren 1 John Lewis 17 DKNY 0 Reserved 1 Kaufland 17 Dolce & Gabbana 0 s.Oliver 1 Kmart Australia 17 DSW 0 Salvatore Ferragamo 1 Target Australia 17 Eddie Bauer 0 Superdry 1 K-Way 17 Elie Tahari 0 Takko 1 La Redoute 17 Express 0 UGG 1 Lidl 17 Falabella 0 Walmart 1 Li-Ning 17 Fashion Nova 0 Woolworths 1 Longchamp 17 South Africa Fila 0 Mammut 17 Foot Locker 0 Mango 17 Forever 21 0 Metersbonwe 17 Foschini 0 Michael Kors 17 Furla 0 MRP 17 GUESS 0 Neiman Marcus 17 Heilan Home 0 Nine West 17 JCPenney 0 Nordstrom 17 JD Sports 0 Pimkie 17 Jessica Simpson 0 Primark 17 Jil Sander 0 River Island 17 Jockey 0 Steve Madden 17 Justfab 0 Superdry 17 Kmart 0 Takko 17 Kohl's 0 TOPVALU COLLECTION 17 KOOVS 0 Truworths 17 K-Way 0 Under Armour 17 La Redoute 0 Uniqlo 17 Li-Ning 0 Valentino 17 Longchamp 0 Victoria's Secret 17 Mango 0 Zeeman 17 Max Mara 0 Metersbonwe 0 Mexx 0 Michael Kors 0 Monoprix 0 Muji 0 Neiman Marcus 0 New York & Company 0 New Yorker 0 Nine West 0 Pepe Jeans 0 Reliance Trends 0 REVOLVE 0 Ross Dress for Less 0 Sandro 0 Skechers 0 Sports Direct 0 Steve Madden 0 The Children's Place 0 TJ Maxx 0 Tom Ford 0 Tommy Bahama 0 TOPVALU COLLECTION 0 Tory Burch 0 Triumph 0 Truworths 0 United Arrows 0 Valentino 0 Versace 0 Youngor 0

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 36 3. TRACEABILITY FINDINGS

DISCLOSING FIRST TIER MANUFACTURER DETAILS

40% 36% 30% 14% 4% 25%

publish a list of their include the address include approximate include the gender include whether publish at least 95% of first tier manufacturers number of workers breakdown of workers the factory has a their manufacturers trade union

PROCESSING FACILITIES RAW MATERIAL SUPPLIERS

24% 22% 8% 7% 6% 50%

publish processing include the address include the gender publish some of their have updated mapping at least facilities beyond breakdown of workers raw material suppliers this list within the one raw material the first tier past 12 months supply chain FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 37

3. TRACEABILITY ANALYSIS

As Jenny Holdcroft, the Assistant General Traceability: Overall average Disclosing first tier for trade unions and NGOs. Only 28% of Secretary of IndustriALL Global Union, score year-on-year progress manufacturers brands disclose what percentage of their explained in previous editions of this report: manufacturers are published in this list, 2017 2018 2019 2020 First tier manufacturers are the suppliers and 25% report that 95% or more of their “Knowing the names of major that do the cutting, sewing and finishing of manufacturers are disclosed. Finally, 8% garments in the final stage of production. 32% of brands disclose that this list of buyers from factories gives of 100 brands manufacturers has been published or workers and their unions a This year, we found that 40% of brands (101 11% out of 250) are publishing their first tier updated within the past six months. of 150 brands stronger leverage, crucial manufacturers (up from 35% in 2019.) 36% In other exciting news, Ermenegildo for a timely solution when 12% include the factory address. 29% include Zegna has become the first luxury resolving conflicts, whether of 200 brands the types of products or services provided, brand to publish a detailed supplier list. 30% include approximate number of it be refusal to recognise the 16% However, Hermès has disclosed some of 250 brands workers in the facility. 14% include the union, or unlawful sackings of its manufacturers and suppliers for ratio of women to men workers, up from many years. Also, Balenciaga, Bottega for demanding their rights. It 9% last year. 4% include both whether the Veneta, Gucci and Saint Laurent have also provides the possibility Publishing supplier lists can also benefit factory has an independent union and/or started disclosing a handful of raw brands themselves. With this information independent worker committee in place. to create a link from the material suppliers for the first time this publicly available, unions and civil 4% also include the number of migrant or worker back to the customer year. We welcome and encourage this society groups can help clarify when contract workers. and possibly media to bring unauthorised subcontracting occurs in a development and hope that other luxury brands will follow their lead soon. attention to their issues.” brand’s supply chain. It can also enhance To align with the Transparency Pledge and investor and consumer trust in the brand, Open Apparel Registry requirements, we Furthermore, 14 brands that were Publicly disclosed supplier lists are showing stakeholders that brands are looked at what additional details brands reviewed in last year’s report have since helping trade unions and workers rights willing to be open and honest about include for each facility in their supplier disclosed their first tier manufacturers organisations to address and fix problems where their products are being made. lists. We found that 18% include the name for the first time, including: Amazon, which workers are facing in the factories of the parent company for each factory Anthropologie/Urban Outfitters, El Corte that supply major brands and retailers if there is one, and 15% publish this list Inglés, Fanatics, Lacoste, Monsoon, OVS, (see the case studies on page 39 and 40 as a CSV or Excel spreadsheet in order River Island, Ted Baker, Tod's, Tom Tailor, for examples.) to make this information easy to use Victoria's Secret and Zalando. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 38

Disclosing processing facilities 12% of brands include the name of Publishing raw material suppliers Organic Cotton Standard, GOTS, the parent company for each facility if FAIRTRADE Certified Cotton Mark and These are the sorts of facilities that there is one, and 10% publish this list These suppliers are those that provide Cotton Programme, Cotton Made in may do ginning and spinning yarn, as a CSV or Excel spreadsheet in order brands and their manufacturers further Africa HIP, Oeko-Tex SteP/Made in Green, knitting and weaving fabrics, dyeing to make this information easy to use down the chain with raw materials such Leather Working Group) or blockchain, and wet processing, leather tanneries, for trade unions and NGOs. Only 10% of as fibres, hides, rubber, dyes, metals and transaction certifications, DNA schemes embroidering and embellishing, fabric brands disclose what percentage of their so on. We found that 7% of brands (18 and other similar technologies. finishing, dyeing and printing and processing facilities are published in this out of 250) are publishing some of their In other good news, 7 brands that were laundering. We found that 24% of brands list, and 8% report that 95% or more of raw material suppliers (up from 5% in reviewed in last year’s report have since (60 out of 250) are publishing some of their their processing facilities are disclosed. 2019). This is usually only a handful of disclosed some of their raw materials processing facilities (up from 19% in 2019). 20% of brands disclose that this list of their viscose, recycled polyester, wool or suppliers for the first time, including: processing facilities has been published cotton suppliers. Bottega Veneta/Gucci/Saint Laurent, 22% include the facility address. 20% or updated within the past six months. Ermenegildo Zegna, H&M (H&M Group), include the types of products or services 6% of brands have published or updated Tesco and United Colors of Benetton. provided, 16% include the approximate And finally, a new indicator this year, we this list of raw material suppliers in number of workers in the facility. 8% looked to see if brands disclose which the past 12 months. 4% include the Next year, we hope to see 50% (or include the ratio of women to men manufacturer(s) each processing facility supplier address. 6% include the types more) of brands publishing a supplier workers, up from 4% last year. 1% of works with, and only 3% of brands of raw materials provided. 3% include list and more brands disclosing their brands include both whether the facility currently disclose this data. This piece of the approximate number of workers. processing facilities, mills, tanneries has an independent union and/or data is important because it establishes 2% include the ratio of women to and raw material suppliers further independent worker committee in place. the relationship between different men workers. Less than 1% of brands down the tiers of the supply chain. We 2% also include the number of migrant or tiers of the supply chain and enables include the number of migrant or know that exploitation tends to thrive in contract workers. suppliers, unions and workers' rights contract workers. And, less than 1% organisations to better leverage the right of brands publish this list as a CSV or hidden places, which is why focusing decision makers to get issues solved. Excel spreadsheet in order to make this on transparency beyond the first tier information easy to use for trade unions will become increasingly important. The good news is that 15 brands and NGOs. that were reviewed in last year’s report have since disclosed some In slightly more positive news, half of the of their processing facilities for the brands reviewed disclose evidence of first time, including: Anthropologie/ tracing the supply chain for at least one Urban Outfitters, Asics, Calvin Klein/ specific raw material. This is typically Tommy Hilfiger/Van Heusen, Clarks, cotton, viscose, wool, recycled polyester, Debenhams, Dressman, Ermenegildo leather or rubber. The tools they might be Zegna, Lululemon, Monsoon, New Look, using to do this traceability work include Sainsbury’s-TU Clothing and Topshop. certification systems (e.g. Responsible Down/Wool Standard, Global Recycling

[LEFT] PHOTOGRAPHY ©NÄZ Standard, Content Claim Standard, naz.pt/ FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 39

CASE STUDIES: Transparency in action

[LEFT] Garment Worker in Lesotho ©ALAFA

[RIGHT] 2019, Bangladeshi garment workers shout slogans during a protest in Savar, on the outskirts of Dhaka, Bangladesh, © 2019 AP

Worker Rights Consortium

LESOTHO International Labor Rights Forum In 2019, at three factories in Lesotho, all lists on their websites. WRC facilitated owned by the same supplier, Worker discussions between local unions, BANGLADESH Rights Consortium (WRC) found that NGOs and the two companies, which female garment workers were regularly resulted in a ground-breaking In December 2018, the Government of Around 11,600 workers were unlawfully being coerced into sexual activity with legally-binding agreement to solve Bangladesh increased the minimum dismissed, most of who were unable supervisors as a condition of gaining or this serious problem. monthly wage for garment workers to to find other jobs due to systematic retaining employment or promotions. 8,000 Tk ($95 USD). The new minimum blacklisting. Through publicly disclosed As part of the agreement, an wage was half the amount that the supplier lists, the International Labor Nearly two-thirds of the garment independent investigative workers’ rights organisations and trade Rights Forum identified which major workers WRC interviewed reported organisation has been established unions had demanded. Workers said the apparel brands were linked to factories having experienced sexual harassment to receive complaints from workers, minimum wage was not enough to cover that filed unsubstantiated cases against and abuse or having knowledge of carry out investigations and increased living costs, so they took to the workers. As a result of their campaign harassment or abuse suffered by streets for largely peaceful strikes. Over efforts, the charges filed by 14 factories assessments, identify violations of co-workers. WRC discovered that VF the following two months, 65 workers were dropped. a jointly developed code of conduct, Corporation and Levi Strauss & Co. were were arrested while hundreds more and direct and enforce remedies in both sourcing from these factories due faced unsubstantiated charges at the accordance with local law. to the fact that they publish supplier behest of factory owners. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 40

CASE STUDIES: Transparency in action

[LEFT ]2019, Bangladeshi garment workers fill out their worker diaries as part of the Garment Worker Diary project, ©Microfinance Opportunities

[RIGHT] Garment Workers in Malaysian factory, ©giz.de

Garment Worker Diaries, Transparentem Transparentem’s investigation and Microfinance Opportunities collaborative brand engagement MALAYSIA model led to the return of 1,600 BANGLADESH worker passports and commitments In Malaysia, Transparentem’s multi-year to pay back USD $1.75 million in According to cutting-edge research from investigation identified endemic labour worker-borne recruitment fees. In our partner project the Garment Worker rights abuses of migrant workers in five October 2018, a new industry protocol Diaries (2019), Bangladeshi workers in factories. In those factories, migrant called the American Apparel and factories that are part of brands’ public workers were deceptively recruited, supplier lists earn more money per Footwear Association (AAFA)/Fair Labor paid exorbitant recruitment fees, month than workers in factories that are Association (FLA) Apparel & Footwear and had their passports confiscated, not disclosed publicly by brands. These Industry Commitment to Responsible thereby restricting their freedom of workers earn Tk. 5 per hour more and this Recruitment was established. To date, movement. Transparentem connected translates into Tk. 1,040 in extra pay per this protocol has been signed by 139 these factories to 23 global brands month for 208 hours of work compared brands, potentially helping to shield to workers in undisclosed factories – this and retailers using publicly available 1.5-2 million workers from slavery. is equivalent to about one third of their supply chain data and other sources typical cost of monthly rent. of evidence. Within two years, FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 41

4. KNOW, SHOW & FIX APPROACH

What do major brands and retailers communicate about their human KNOW FIX rights and environmental due diligence processes? How are they assessing suppliers’ adherence to their standards? This year we introduced new indicators Finally, we looked at what brands are on human rights and environmental publishing about how they remediate due diligence to understand what steps human rights and environmental brands are taking to identify human rights violations occurring within their supply We awarded points if brands disclose information such as: and environmental risks, impacts and chain. We also checked to see if brands violations in their supply chains. publish a confidential grievance • How the brand works to identify • The process for taking on new mechanism for both employees and and address human rights and suppliers We also looked for information on how workers in the supply chain. And finally, environmental risks, impacts brands assess suppliers to ensure they we looked to see if brands disclose and violations in its supply chain • How frequently assessments are meet their ethical standards and policies the results of their efforts to remediate (its approach to conducting due conducted (e.g every 12 months) (typically factory audits) and which third violations and address grievances. diligence) party auditing standards used. • If brands conduct supplier assessments beyond the first tier • How workers, unions and other SHOW affected stakeholders are involved • If supplier assessments include in the due diligence process off site worker interviews, and We looked at whether brands are if so how many workers are disclosing the results of their supplier • How suppliers are assessed interviewed assessments, either as a summary of against the brand’s policies issues found in factories or at a more granular level (e.g. disclosing findings by individual factory). FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2019 42 4. KNOW, SHOW & FIX RESULTS 0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

Aeropostale 5 boohoo 10 Cortefiel 19 Gildan 30 Bershka 40 Puma 46 Adidas 59 Carolina Herrera 5 PrettyLittleThing 10 Disney 19 Hugo Boss 30 Massimo Dutti 40 Esprit 44 Reebok 59 Chanel 5 Brunello Cucinelli 10 LOFT 19 Kmart Australia 30 Pull&Bear 40 Balenciaga 43 C&A 59 Dr. Martens 5 Cato Fashions 10 Mizuno 19 Target Australia 30 Stradivarius 40 Bottega Veneta 43 H&M (H&M Group) 56 Jockey 5 Dillards 10 Prisma 19 Topman 30 Zara 40 Gucci 43 LL Bean 5 Express 10 REI 19 Topshop 30 New Balance 40 SAINT LAURENT 43 Nine West 5 Fossil 10 Speedo 19 Cotton On 29 Banana Republic 38 Levi Strauss & Co 43 REVOLVE 5 John Lewis 10 Columbia Sportswear 17 OVS 29 Gap 38 Marks & Spencer 43 Ted Baker 5 Kaufland 10 El Corte Inglés 17 Russell Athletic 29 Old Navy 38 Patagonia 43 Tommy Bahama 5 Li-Ning 10 Fjällräven 17 ASICS 27 ASOS 37 Dressmann 41 Armani 3 Michael Kors 10 Ito-Yokado 17 Converse 27 Calvin Klein 37 Primark 41 BCBGMAXAZRIA 3 Muji 10 Kathmandu 17 Jordan 27 Tommy Hilfiger 37 Uniqlo 41 Beanpole 3 Reliance Trends 10 Mango 17 Nike 27 Van Heusen 37 Brooks Brothers 3 Ross Dress for Less 10 Matalan 17 Lidl 27 Debenhams 37 Carhartt 3 Sandro 10 Ralph Lauren 17 Tesco 27 Lindex 37 Claire's 3 The Children's Place 10 River Island 17 The North Face 27 United Colors 37 of Benetton DKNY 3 TJ Maxx 10 Victoria's Secret 17 Timberland 27 Big W 35 Eddie Bauer 3 Truworths 10 ALDO 16 Vans 27 Lululemon 35 Foot Locker 3 Anthropologie 8 Chloé 16 Wrangler 27 Burberry 33 Forever 21 3 Free people 8 Desigual 16 Asda 25 G-Star RAW 33 Justfab 3 Urban Outfitters 8 Hudson's Bay 16 Walmart 25 New Look 33 K-Way 3 Buckle 8 Saks Fifth Avenue 16 Champion 25 Sainsbury’s- 33 La Redoute 3 CAROLL 8 Jack & Jones 16 Hanes 25 TU Clothing 32 Neiman Marcus 3 Cole Haan 8 Vero Moda 16 Helly Hansen 25 Bonprix 32 Steve Madden 3 DSW 8 Monoprix 16 Morrisons 25 Tchibo Calzedonia 2 Ermenegildo Zegna 8 The Warehouse 16 Target 25 Intimissimi 2 Jil Sander 8 Tom Tailor 16 Very 25 Tezenis 2 Miu Miu 8 Amazon 14 Abercrombie & Fitch 24 Diane Von Furstenberg 2 Prada 8 Clarks 14 Hollister Co. 24 Fashion Nova 2 Otto 8 COACH 14 HEMA 24 Sports Direct 2 Tod's 8 Kate Spade 14 Next 24 Tory Burch 2 ANTA 6 Dick's Sporting Goods 14 ALDI Nord 22 United Arrows 2 Aritzia 6 GUESS 14 Brooks Sport 22 Bally 0 Billabong 6 JD Sports 14 Decathlon 22 Belle 0 Quicksilver 6 Moncler 14 Falabella 22 Big Bazaar - ffb 0 Roxy 6 Monsoon 14 Zalando 22 Bosideng 0 Canada Goose 6 MRP 14 ALDI SOUTH 21 celio 0 Diesel 6 Salvatore Ferragamo 14 Carrefour 21 Dolce & Gabbana 0 Marni 6 Triumph 14 Mammut 21 Elie Tahari 0 Famous Footwear 6 Zeeman 14 Nordstrom 21 Heilan Home 0 Fanatics 6 Foschini 13 Under Armour 21 Jessica Simpson 0 Fila 6 JCPenney 13 KOOVS 0 Furla 6 Kohl's 13 Longchamp 0 Gerry Weber 6 Lands' End 13 Max Mara 0 s.Oliver 6 Reserved 13 Metersbonwe 0 Skechers 6 Superdry 13 Mexx 0 TOPVALU COLLECTION 6 Takko 13 New Yorker 0 Valentino 6 American Eagle 11 Pepe Jeans 0 Versace 6 Bloomingdale's 11 Tom Ford 0 Macy's 11 Youngor 0 Burlington 11 CELINE 11 Dior 11 Fendi 11 Louis Vuitton 11 Marc Jacobs 11 Chico's 11 Costco 11 Hermès 11 J.Crew 11 Joe Fresh 11 KiK 11 Kmart 11 Lacoste 11 Merrell 11 New York & Company 11 Pimkie 11 UGG 11 Woolworths South Africa 11

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 43 4. KNOW, SHOW & FIX FINDINGS

KNOW: DUE DILIGENCE PROCESSES KNOW: SUPPLIER ASSESSMENTS

34% 12% 11% 92% 58% 40%

disclose the approach explain how affected report what risks are disclose process for disclose the third-party report conducting to human rights stakeholders are identified and prioritised assessing conditions audit standard(s) used supplier assessments and environmental involved in due in supplier facilities beyond the first tier due diligence diligence

SHOW: PUBLISHING AUDIT RESULTS FIX: REMEDIATING ISSUES

45% 25% 0% 75% 40% 16%

disclose aggregated publish selected audit publish full audit disclose the process for publish a confidential publish data about the first tier supplier findings by named first findings by named first supplier remediation grievance mechanism number of grievances audit findings tier supplier facility tier supplier facility for supply chain workers filed, addressed and resolved in the supply chain FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 44

4. KNOW, SHOW & FIX ANALYSIS

KNOW 11% of brands publish what human Nearly half (48%) of brands explain 65% disclose what criteria they have in rights and environmental risks, impacts how regularly they do supplier audits, place for taking on new suppliers before Human rights and environmental and violations are identified through which is typically on an annual basis production is started to ensure the facility the supply chain due diligence process but sometimes more or less frequently meet its policies and standards. This is due diligence and how they are prioritised (e.g. (low, depending on the level of risk. most commonly some sort of supplier medium, high). Meanwhile, just 8% of self-assessment or pre-production audit Only 34% of brands are disclosing how brands disclose the outcomes or results Only 13% of brands disclose data requirement. This is an increase from 55% they proactively identify human rights of the steps the company has taken to indicating how many of these audits of brands in 2017. and environmental risks, impacts and cease, prevent, mitigate and remedy are conducted on an announced, violations in its supply chain — in other these human rights and environmental unannounced or semi-announced 40% of brands explain that their words, the company's approach to risks, impacts and violations. basis (where suppliers are given a two supplier assessments go beyond direct conducting due diligence. Good human week window in which the audit will take manufacturers to also include processing rights due diligence practices are set out Supplier assessments place). There is always risk that suppliers facilities, textile mills, laundries, dye clearly and comprehensively in sector may make special preparations for the houses, suppliers of raw materials and/ specific guidance published by the 92% of brands publish information about audit. Sedex suggests best practice or farms. This suggests that brands are OECD, so we are surprised to see so few what sort of supplier assessments they is to use a mix of announced, semi- working to ensure that their social and brands disclose that they conduct such do, up from 88% in 2019 and 84% in announced and unannounced audits to environmental standards are upheld processes. Most brands seem to rely on 2017. These are typically social audits of mitigate this risk (Sedex, 2017). throughout the supply chain and not just auditing their manufacturing facilities factories. 58% of brands disclose which in the facilities with which they have a rather than explaining their broader due external audit standards or assessment Only 10% of brands report that their direct relationship. diligence efforts, of which supplier audits methodologies they use, such as the audit process includes interviews with might be a part. Higg Index, SMETA, BSCI, WRAP and so on. workers away from the factory premises. This is a new indicator for 2020, and it is Speaking directly to workers is crucial Furthermore, only 12% of brands explain useful because it gives us more insight for understanding what conditions are how workers, producers, farmers, trade into exactly what criteria is used to really like in their workplace. Interviewing unions and other affected stakeholders are measure suppliers’ compliance against workers offsite means they have more involved in their due diligence process. social and environmental standards. of an opportunity to speak freely without fearing their boss might be listening and punish them as a result. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 45

SHOW Then, if someone really wanted to TRANSPARENCY take the time to investigate, for brands Disclosing the results of supplier that are publishing suppliers lists, you could cross-reference their list and assessments the inspection reports on the Accord website to see how their specific 45% of brands publish some generalised factories are performing. findings from their factory audits. However, considerably fewer brands The same logic also applies to brands share such findings beyond the first tier of who are members of the ILO Better manufacturing for suppliers further down Work programme, whose website the chain such as processing facilities FAIR TRADE also discloses compliance reports for (18%) and suppliers of raw materials (5%). specific factories. Last year, brands WELL-BEING that were members of the Alliance Many brands and retailers operate a for Bangladesh Worker Safety and grading system (e.g. Green, Orange, Red LIVING WAGES also publishing supplier lists received or A, B, C) for their suppliers on social and these points. However, the Alliance has EMPOWERMENT environmental compliance. However, since ceased operating. 12% of brands only 2 brands (1%) actually disclose publish some selected audit results for GENDER EQUALITY these ratings for specific named supplier specific named facilities beyond the facilities. For example, H&M (H&M Group) first tier of manufacturing too. BUSINESS ACCOUNTABILITY publishes a list of all its manufacturers and many of its processing facilities and We are looking for disclosure on audits SUSTAINABLE LIVELIHOODS fabric mills. For many of these suppliers, results because there is evidence that they include the supplier’s compliance it can drive positive change for workers GOOD WORKING CONDITIONS grading (Gold, Silver, Other). in the supply chain. For example, Better Factories Cambodia (BFC) launched its ENVIRONMENTAL SUSTAINABILITY A quarter of brands (25%) publish some online transparency database showing selected audit results for specific named how individual garment factories factories. This is usually as the result measure up on key working conditions. of being a member of the Bangladesh One third of the 51 factories included Accord on Building and Fire Safety, which in the ‘Critical Issues’ database made has inspected and upgraded thousands improvements on 21 basic legal of factories since the Rana Plaza collapse requirements in anticipation of this A FAIR, SAFE, CLEAN in 2013. On the Bangladesh Accord data being publicly disclosed. The total website, anyone can find inspection FASHION INDUSTRY number of Critical Issues violations in reports on building integrity and fire this group of factories fell from 59 to 34 safety for specific factories. between December 2013 and February 2014 — a 42% improvement. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 46

FIX Dealing with employee and worker grievances Supplier remediation plans 59% of brands publish a confidential whistleblowing channel (e.g. hotline, 75% of brands disclose what happens website or email address) where their when non-compliant issues (e.g. employees can file complaints or report people working excessively long hours, violations of policies related to working people working without written terms of conditions, environmental issues, employment, locked fire exits or missing corruption and other issues. 52% of brands fire extinguishers, etc.) are found as a "Besides believing explain how the company responds to result of the supplier assessment process, complaints or reported violations. And, up from 69% of brands in 2019 and 62% only 15% disclose data about the number transparency is the in 2018. Typically brands will have put of complaints and reported violations filed, in place a remediation process, often addressed and resolved. referred to as a Corrective Action Plan, right thing to do, it where the factory is given a reasonable Meanwhile, just 40% of brands publish a amount of time to rectify the issue. similar sort of confidential whistleblowing However, only 10% of brands explain also makes good channel (e.g. hotline, website or email how workers, trade unions and any other address) for the workers in their supply affected stakeholders are involved in chain to file complaints or report violations the development and implementation of business sense." of the brand’s policies related to working these remediation plans. Remediation conditions, environmental issues, plans tend to be most effective when the corruption and other issues. 36% of brands affected stakeholders are involved as it explain how the company responds to ensures the remediation efforts have the complaints or reported violations filed Stefan Seidel, intended outcome for workers. by workers in their supply chain. 22% Head of Corporate Responsibility, Puma Group of brands also explain how garment Only 15% of brands explain what happens workers are informed that this grievance when they decide to stop working with channel exists and how to make use of it, a supplier. This is important because if up from 15% of brands in 2019. And, only brands decide to abruptly drop a supplier 16% of brands disclose data about the it can have negative impacts on workers, number of garment workers’ complaints such as suddenly losing their jobs, without and reported violations that are filed, any severance pay or being owed unpaid addressed and resolved. This ensures that wages. 20% of brands disclose how many workers are able to speak up about poor of their manufacturers have corrective working conditions without the fear of action plans in place on an annual basis. being fired or punished. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 47

VIEWPOINT: THE FASHION INDUSTRY This means identifying the links that HAS A TRUST ISSUE “Transparency in the post brands and retailers have with suppliers where workers are particularly at risk, COVID-19 pandemic for example, in sub-contracted facilities. Taking steps to identify human rights might very well become abuses in order to prevent and mitigate them leads brands and retailers further a strategy forward to down the chain to the mills where young girls often work very long hours with rebuild the eroded trust limited freedom of movement or to the BEN VANPEPERSTRAETE cotton fields where forced labour may HUMAN RIGHTS EXPERT in brands and retailers.” be prevalent.

Coming back to trust, brands and Clothes have been at the centre This increased scrutiny has made ‘radical factories production is happening, where retailers must be able to demonstrate of shocking global events such as transparency’ not only a ‘nice-to-have’ fabric is coming from and where cotton that they understand how their supply the Rana Plaza factory collapse or a ‘trend’ as documented in this edition is grown. chains have been built and they invite and now the widespread breach of of the Fashion Transparency Index (see everybody who has knowledge of Only after identifying where their the growing number of brands disclosing particular risks or abuses to get in touch. contracts and dumping of orders clothes and materials come from, production locations, the increase in More and more companies are beginning as a result of the COVID-19 crisis. can brands and retailers really start available data on those locations as well to acknowledge the strategic value of Over the years, brands and retailers to examine what might, and often as brands disclosing what is happening transparency and the support it can have been the target of numerous probably is, going wrong in these further down the chain). Transparency in give to their due diligence processes facilities. It requires a shift in thinking campaigns unveiling how a highly the post COVID-19 pandemic might very as well as in rebuilding trust. This is from minimising risks and violations profitable industry manages to pay well become a strategy forward to rebuild why we are seeing brands and retailers to actively welcoming the identification their workers so little. The sector the eroded trust in brands and retailers. disclosing their suppliers, not only at of them in order to be better able to has repeatedly been the topic of the first tier of manufacturing but also Current consensus expects that fix them. It would mean that glossy the facilities where their cloth is woven exposés documenting eggregious companies are actively going out sustainability reports and damage and the sources of their raw materials. labour rights abuses. This has and looking at how they are causing, control after painful media exposés Given this trend, we will soon see a shift left many consumers, citizens contributing or directly linked to human become less of a priority, and instead where it is no longer a debate about why rights violations and environmental attention shifts towards more radical and policymakers wondering brands need to become transparent. The degradation in their supply chains – and transparency, acknowledgement of whether the fashion industry focus will turn onto brands who are not then fixing these problems. But in order to problems and an attitude (backed with can be left to its own devices. disclosing their suppliers and we will all do so, it is important that companies get the necessary resources) focussed on ask: what do they have to hide? to know “who made their clothes” in which making things right again. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 48

5. SPOTLIGHT ISSUES: APPROACH

Each year, we explore a few key issues in deeper detail. For 2020, our focus covers four strategic areas we call the 4 C’s: conditions, consumption, composition and climate. These topics are selected and indicators formulated in consultation with industry experts. We have also designed the indicators to align with and support the United Nations’ Sustainable Development Goals (SDGs), which aims to bring nations together to build a better world for people and our planet by 2030.

CONDITIONS CONSUMPTION COMPOSITION CLIMATE

What are major brands and retailers What are major brands and retailers What are major brands and retailers Are major brands and retailers taking doing to improve conditions for workers doing to address overproduction, doing to increase the use of sustainable urgent action to combat climate within the company and their supply minimise waste and move towards materials and reduce the use of virgin breakdown and move towards sustainable chains? Specifically, we looked at: circularity? Here we looked plastics and hazardous chemicals? management of natural resources? specifically at: We looked at: Here we looked at whether brands: • Modern slavery and supply chain recruitment practices • How many items were produced • Strategies and progress on the • Publish Science Based Targets in the reporting period switch to more sustainable materials • Living wages and wage data in the • Publish a commitment to supply chain • How much textile waste is • Strategies and progress on the deforestation generated and how much of this reduction of the use of virgin plastics • Purchasing practices and what • Publish carbon footprint in owned was destroyed or recycled brands are doing to be good • What the brand is doing to minimise facilities and in the supply chain business partners to their suppliers the impact of microfibres • Strategies and progress on • Disclose the amount of renewable reducing pre-consumer • Unionisation and collective • Investments in textile-to-textile energy used in owned facilities and waste and recycling post- bargaining circular recycling in the supply chain consumer waste • Gender equality and equal pay in • Strategies and progress on • Publish water footprint in owned the company and supply chain the reduction of the use of facilities and in the supply chain hazardous chemicals • Link environmental impacts to the business bottom line FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2019 49 5. SPOTLIGHT ISSUES: RESULTS 0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%

Bloomingdale's 4 ALDO 10 Champion 20 Decathlon 29 Esprit 39 Calvin Klein 47 Adidas 59 H&M (H&M Group) 63 Macy's 4 Big W 10 Hanes 20 Fjällräven 29 Mammut 37 Tommy Hilfiger 47 Reebok 59 Calzedonia 4 Brunello Cucinelli 10 El Corte Inglés 20 Gildan 29 The North Face 37 Van Heusen 47 Patagonia 57 Intimissimi 4 CAROLL 10 Fendi 20 John Lewis 29 Timberland 37 Balenciaga 45 Marks & Spencer 53 Tezenis 4 Carrefour 10 Marc Jacobs 20 Next 29 Vans 37 SAINT LAURENT 45 C&A 51 Dick's Sporting Goods 4 Cotton On 10 G-Star RAW 20 Sainsbury’s- 29 Wrangler 37 Bershka 45 Converse 51 TU Clothing Diesel 4 La Redoute 10 Kmart Australia 20 29 Tesco 35 Massimo Dutti 45 Jordan 51 Tchibo Marni 4 Li-Ning 10 Target Australia 20 29 Uniqlo 35 Pull&Bear 45 Nike 51 Zalando Dr. Martens 4 Monoprix 10 Morrisons 20 27 Banana Republic 33 Stradivarius 45 Gucci 51 Asda Fila 4 Otto 10 Tod's 20 27 Gap 33 Zara 45 Lindex J.Crew 4 UGG 10 Topman 20 27 Old Navy 33 Burberry 45 Ralph Lauren JCPenney 4 Under Armour 10 Topshop 20 27 New Balance 33 ASOS 43 Target Kmart 4 boohoo 8 United Colors 20 24 Primark 33 Bottega Veneta 43 of Benetton Columbia Sportswear Moncler 4 PrettyLittleThing 8 24 ASICS 31 Puma 43 Woolworths 20 Dior River Island 4 Burlington 8 24 Levi Strauss & Co 31 South Africa Louis Vuitton Russell Athletic 4 Carolina Herrera 8 24 Brooks Sport 18 Hugo Boss Tommy Bahama 4 Chloé 8 24 Clarks 18 New Look United Arrows 4 Costco 8 24 Monsoon 18 OVS Valentino 4 Falabella 8 24 Reserved 18 Speedo Armani 2 Fossil 8 22 The Warehouse 18 CELINE Canada Goose 2 Free people 8 22 TOPVALU COLLECTION 18 Hermès Cole Haan 2 HEMA 8 22 Zeeman 18 Lidl Dillards 2 Ito-Yokado 8 22 Abercrombie & Fitch 16 Mango DSW 2 KiK 8 22 Hollister Co. 16 Prisma Foot Locker 2 Kohl's 8 22 ALDI Nord 16 Superdry Forever 21 2 MRP 8 ALDI SOUTH 16 Gerry Weber 2 Reliance Trends 8 Debenhams 16 Hudson's Bay 2 s.Oliver 8 GUESS 16 Saks Fifth Avenue 2 Salvatore Ferragamo 8 Helly Hansen 16 Longchamp 2 TJ Maxx 8 Kathmandu 16 Matalan 2 Very 8 LOFT 16 Pimkie 2 ANTA 6 Miu Miu 16 Skechers 2 Anthropologie 6 Prada 16 Steve Madden 2 Urban Outfitters 6 Nordstrom 16 Triumph 2 Beanpole 6 Vero Moda 16 Aeropostale 0 Chanel 6 Walmart 16 Bally 0 Cortefiel 6 American Eagle 14 BCBGMAXAZRIA 0 Disney 6 Aritzia 14 Belle 0 Jil Sander 6 Bonprix 14 Big Bazaar - ffb 0 Joe Fresh 6 COACH 14 Billabong 0 Mizuno 6 Kate Spade 14 Quicksilver 0 Muji 6 Dressmann 14 Roxy 0 Sandro 6 Jack & Jones 14 Bosideng 0 Sports Direct 6 JD Sports 14 Brooks Brothers 0 Takko 6 REI 14 Buckle 0 Tom Tailor 6 Amazon 12 Carhartt 0 Desigual 12 Cato Fashions 0 Foschini 12 celio 0 Kaufland 12 Chico's 0 Lacoste 12 Claire's 0 Lululemon 12 Diane Von Furstenberg 0 Ted Baker 12 DKNY 0 Truworths 12 Dolce & Gabbana 0 Victoria's Secret 12 Eddie Bauer 0 Elie Tahari 0 Ermenegildo Zegna 0 Express 0 Famous Footwear 0 Fanatics 0 Fashion Nova 0 Furla 0 Heilan Home 0 Jessica Simpson 0 Jockey 0 Justfab 0 KOOVS 0 K-Way 0 Lands' End 0 LL Bean 0 Max Mara 0 Merrell 0 Metersbonwe 0 Mexx 0 Michael Kors 0 Neiman Marcus 0 New York & Company 0 New Yorker 0 Nine West 0 Pepe Jeans 0 REVOLVE 0 Ross Dress for Less 0 The Children's Place 0 Tom Ford 0 Tory Burch 0 Versace 0 Youngor 0

* Brands ranked in numerical order by score out of 250, but shown as rounded-up percentage. Where brands have the same percentage score, they are listed in alphabetical order and grouped with others from same parent company FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 50 5. SPOTLIGHT ISSUES FINDINGS

LIVING WAGES GENDER EQUALITY

23% 5% <1% 34% 3% 1%

disclose approach to disclose annual publish the number publish the company’s disclose how publish data on gender- achieving living wages progress towards of workers being gender pay gap women workers are based violations in for supply chain workers paying living wages paid a living wage involved in the due supplier facilities diligence process

PURCHASING PRACTICES UNIONISATION MODERN SLAVERY

11% 6% 4% 9% 42% 13%

disclose method for publish policy to pay disclose number of disclose number of disclose approach to publish data on modern isolating labour costs suppliers within 60 days supplier facilities that workers covered by recruitment fees in slavery related violations from price negotiations have trade unions collective bargaining the supply chain in supplier facilities agreements FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 51 5. SPOTLIGHT ISSUES FINDINGS

WASTE & RECYCLING PLASTICS SUSTAINABLE MATERIALS

4% 18% 20% 29% 42% 36%

publish the amount report investing in explain what the publish measurable publish time-bound, disclose progress on of textile waste textile-to-textile brand is doing to progress towards measurable sustainable achieving sustainable generated in the annual recycling solutions minimise microfibres reducing the use materials strategy material targets reporting period of virgin plastics

HAZARDOUS CHEMICALS CARBON EMISSIONS WATER USE

24% 19% 58% 16% 31% 4%

publish time-bound disclose progress publish annual publish carbon publish annual water publish annual commitment to towards this achieving carbon footprint footprint in footprint in company’s water footprint at eliminate hazardous commitment in company’s company’s own facilities raw material level chemicals own facilities supply chain FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 52

5. SPOTLIGHT ISSUES ANALYSIS

companies were required to start of trafficking are frequently trapped in CONDITIONS reporting about forced labour in their forms of modern slavery. Much of IHRB’s supply chains in 2017. Following this, the work is focused on how workers are Modern Slavery Australian Modern Slavery Act was passed recruited and in particular the payment of in 2018 and came into force during 2019. recruitment fees to secure employment. This Spotlight Issue is new for 92% We have based the methodology in this 2020, and we are looking at the 13% of brands publish data about subsection on IHRB’s work. of brands are steps brands are taking to address the prevalence of modern slavery risks of forced and bonded related violations in their supplier We found that 42% of brands disclose publishing supplier labour, particularly recruitment facilities. Potential indicators of modern their approach to the use of recruitment policies on forced fees in the supply chain. A company’s practices in the supply chain. slavery could include restricted and bonded labour freedom of movement, factories or typical approach is to set a policy that no fees or related costs should be paid In the last several editions, we have looked recruiters retaining workers' passports by workers in the supply chain as part to see if brands disclose policies and or other identity/personal documents, of their recruitment process. The brand procedures related to forced and bonded forced and excessive overtime, might also take steps to ensure that any labour. This year we found that 92% of withholding wages, debt bondage, and fees or related costs that are paid by brands are publishing supplier policies on as explained above, grievances related workers are reimbursed. forced and bonded labour, compared to to recruitment practices. 86% last year. As the Institute for Human Rights and However, in order to truly understand Business (IHRB) explains, “migrant if workers are paying recruitment fees Only 42% of brands disclose a specific workers are an ever-present feature or related costs then they would need policy on the use of foreign and migrant of global supply chains, found in all to be interviewed about what their labour. Notably, 43% of brands publish sectors and all geographies. Low-income recruitment journey has entailed, and only information about programmes they migrant workers are amongst the most 5% of brands disclose that workers are have in place to address foreign and vulnerable to exploitation and abuse, and interviewed about this issue specifically. migrant labour, up from 32% last year. are often the least able to assert their This increase in disclosure around rights. For many, a lack of viable options forced labour could be a result of the to sustain a livelihood at home increases recent adoption of mandatory reporting their willingness to accept poor working legislation. For example, the UK Modern conditions abroad.” In other words, victims Slavery Act was passed in 2015 and FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 53

commitment to “reach living wages benchmarks its supply chain wage data which is why first results show a positive by 2025 with our apparel assembly against both the Anker methodology development since 2018.” PUMA explains LIVING WAGE factories” and links to Fair Labor and Asia Floor Wage calculations that, "on average, our core suppliers pay [noun] Association’s Fair Compensation Work in Bangladesh and China. Outdoor 21% above legally mandated minimum Plan to illustrate how they are working brand Patagonia also uses the Anker wages in their respective countries. The remuneration received by a towards this goal. In fact, Patagonia Methodology, while Mammut uses the Fair Adding overtime and bonuses, this increases to 84%”. worker in a standard working week in is the only brand to disclose relevant Wear Foundation Wage Ladder, which is information for every indicator we looked based on a range of industry calculations a particular place sufficient to afford And finally, only one brand discloses the at in the living wages sub-section. including the Asia Floor Wage. Mammut a decent standard of living for the percentage or number of workers in its Swedish fast fashion brand Lindex explains, we have “been analyzing the worker and her or his family. Elements supply chain that are being paid a living explains, “Our goal is that by 2025, Lindex wage levels of the sewing workers in wage. Granted this data is not very easy to of a decent standard of living include suppliers who stand for 80% of our [our] factories. As they mostly use FWF find and buried many pages within a self- food, water, housing, education, health production work actively with a living audits they have used the wage ladder published magazine found via their blog, care, transport, clothing, and other wage program.” In the luxury sector, information for this analysis”. Patagonia explains, “Based on our initial essential needs including provision Gucci says, "both Kering and Gucci have analysis, our apparel suppliers pay at for unexpected events. developed a 2025 strategy to achieve a Furthermore, only 12 (5%) of brands report least 81% of the living wage, 18% of them living wage for all workers across our annual, measurable progress towards paying above the living wage.” However, supplier network”. Even though it is an paying living wages to workers in their it is not just Patagonia. This is true for ambitious task, an open-ended goal supply chains. many brands, where relevant disclosure Living wages gives no indication on the timescale in is buried within 100+ page reports and in which workers might expect to be paid Only 5 brands (2%) publish data on footnotes and appendices. Less than a quarter (23%) of brands higher wages. the percentage above the minimum disclose the company's approach to wage rate workers are paid in their achieving the payment of living wages to According to Labour behind the supply chains. For example, in its 2018 This is an urgent issue for so many workers in the supply chain, an increase Label (2019) there is a gap of 2 to 5 sustainability report (page 74) H&M (H&M workers in the textile supply chain who from 19% of brands in 2019. Brands that times, between minimum or industry Group) reports that, "When analysing struggle to afford life’s basic necessities. disclose this information will typically do standard wages and most living wage the data from supplier factories in our While it is a complex issue to solve, so by explaining their participation in living benchmarks based on a cost of living key market suppliers, we can see that without more collective action and greater wage focused initiatives such as ACT, Fair methodology. In India, for example, the the factories which are implementing transparency from major brands and Wear Foundation’s Wage Ladder, Fairtrade minimum wage is half of the value that improved Wage Management Systems retailers, it will be a very long time before Textile Standard and the Fair Labor unions have been asked for and only a pay higher take-home wages than those workers are paid decent and fair wages. Association’s Fair Compensation Strategy. third of the Asia Floor Wage. which don’t. In 2017, the difference ranged from 8% higher take-home wages in Only 5 brands (2%) publish a time-bound, Just 6 (2%) brands explain what living Bangladesh to 29% in Indonesia. In 2018, measurable roadmap or strategy for wage estimates they use to track the difference ranged from 2% in Turkey how they will achieve a living wage for and benchmark wages for workers in to 11% in Indonesia. In Myanmar first all workers across their supply chains. their supply chains. For example, New factories started implementing improved For example, Patagonia publishes a Zealand based retailer The Warehouse Wage Management Systems in late 2017 FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 54

Purchasing practices about the percentage of payments made to suppliers on time and according to Responsible purchasing practices go hand- agreed terms. in-hand with the ability of suppliers to pay workers adequate and reliable wages. Yet, In the past few weeks millions of workers on the whole, brands disclose shockingly making clothes for some of the world’s little about what they’re doing to be good most profitable companies have been business partners to their suppliers. laid off or temporarily suspended without receiving the pay they are entitled to by For example, only 11% of brands disclose law and the vast majority have no savings the method they use for calculating to fall back on and no social protection. "Secrecy is the and ring-fencing labour costs when Poverty and hunger could potentially negotiating the price they pay suppliers for prove more of a threat to their lives than linchpin of abuse products, up from 3% of brands in 2019. the virus. Ideally, these labour costs should cover Finally, only 13 brands (5%) publish the wage rate as well as overtime, social of power...its information about their supplier’s security, sick leave, vacation and other feedback on the brand’s buying forms of leave, the cost of indirect labour behaviour. Supplier feedback is typically and planned or potential wage increases. enabling force. gathered through participation in the This ensures that labour costs are non- Better Buying initiative, through internal negotiable and enables suppliers to pay supplier surveys or during annual Transparency is the their workers adequate and fair wages. Supplier Summit events organised by Since the outbreak of coronavirus we have brands in their sourcing regions. This only real antidote." heard about the devastating impacts of is useful information because it gives cancelling orders, including orders already an indication as to whether brands are in production, and delaying payments, with willing to listen and makes changes to be many brands invoking the force majeure better business partners to suppliers. clause to free them of their contractual Right now brands’ purchasing practices Glen Greenwald, responsibility to pay suppliers at all. are being called into question as they Attorney and journalist seek to deal with the economic crisis When supplier payments are delayed caused by the coronavirus pandemic. This this can have a knock-on effect on their is why it’s vital that brands share more cash flow and impacts their ability to pay information about how they do business workers on time. We found that only 15 with their suppliers, so that they can brands (6%) publish a policy stating that be held accountable, and stick to their they pay suppliers within 60 days (e.g. via commitments in order to provent workers UK Prompt Payment Code commitments) and their families from going hungry. and only 4 brands (2%) publish data FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 55

Unionisation and collective Gender equality Despite ample research that shows On the other hand, brands seem to be doing bargaining how commonly women workers are more to be transparent about gender The global fashion industry employs subjected to gender-based harassment equality (or lack thereof) when it comes to Freedom of association, including the millions of women, from farm to factory to and violence in the garment and textile- jobs roles in their own companies. Over right to form and join trade unions and retail. Each year we explore what gender- manufacturing sector, only 2 brands half of the brands (52%) publish data on collectively bargain all are fundamental focused policies are disclosed by major (1%) publish data on the prevalence the annual sex disaggregated distribution labour rights enshrined in a number of fashion brands. This year, we found that of gender-based violations in their of job roles (e.g. executives, managers, international agreements and national less than half the brands (49%) publish suppliers’ facilities. These violations supervisors, employees). laws. These are considered enabling rights employee policies on equal pay while could relate to issues such as sexual because when workers can join together 61% of brands publish supplier policies harassment, gender-based violence, 34% of brands publish the annual to speak out and negotiate with their on equal pay. Meanwhile 34% of brands discrimination against pregnant workers, gender pay gap within their companies. employers for better working conditions, disclose information about how they put lack of maternity pay, lack of bathroom This is often as a result of government it means they can address other issues their equal pay policies into practice. breaks, not allowed during periods regulation. For example, in the UK that concern them most such as pay, and so on. Considering that data from companies have been required by law to maternity rights, health and safety and Conversely, 43% of brands now publish CARE International (2019) suggests that publicly report this since April 2018. other associated rights. employee policies on maternity rights 50% of women garment workers in and parental leave, compared to 31% in southeast Asia have experienced sexual This is why it’s shocking that only 9 brands 2019, while 29% of brands publish supplier harassment in the workplace, we hope (4%) publish the percentage or number of policies on maternal rights and parental that in the near future brands begin to factories in their supply chain that have leave, compared to 22% last year. publish more data on this important topic. independent, democratically elected trade unions that workers can join, and Earlier we described what sort of Women who work in garment 22 brands (9%) publish the percentage or disclosure we have seen from brands manufacturing also tend to be employed 34% number of workers in their supply chain when it comes to human rights and in the lowest paid job roles, whereas men that are covered by collective bargaining environmental due diligence. Considering are commonly supervisors and factory of brands publish agreements (CBAs). such a huge proportion - estimates say managers. Despite this inequality, only the annual gender 70-80% - of the garment sector workforce 2% of brands publish data on the sex are women, very few brands (only 3%) disaggregated distribution of job roles in pay gap within explain how women workers, women’s their supply chain (e.g. lower paid roles their companies organisations and/or gender experts are such as helpers and machinists verses involved in the company’s due diligence higher paid roles such as supervisors processes. and managers). FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 56

5. SPOTLIGHT ISSUES ANALYSIS

Annual production volume Brand Annual product volume CONSUMPTION in the reporting period We thought it particularly interesting to Global clothing consumption has more Inditex (Zara, Bershka, Massimo Dutti, Pull&Bear, Stradivarius) 1.6 billion than doubled from 74.3 billion items of see if brands disclose data on production clothing and footwear in 2005 to 130.6 and waste volumes. We found that 23 Gildan 1.4 billion billion items in 2019 (Euromonitor, 2020). brands (9%) publish the number of This equates to every person on the planet products (e.g. garments, shoes, socks) Adidas (incl. Reebok) 866 million* they made over the annual reporting buying 15 garments and 2 pairs of shoes OVS 755 million annually (although buying patterns vary period, and some of the numbers are staggering (see table for examples). considerably across countries). At this rate Mango 146 million** of growing consumption, coupled with population growth and increasing wealth We also found that 11 brands (4%) Benetton 101 million in emerging economies, we could expect disclose the percentage or volume of production and consumption of clothing product/textile waste generated during * 457 million unit of apparel and 409 million pairs of shoes the annual reporting period, and 7 and footwear to triple by 2050 (Ellen ** 8 million of which are reportedly garments made in a MacArthur Foundation, 2017). brands (3%) disclose the percentage, more sustainable manner volume or number of products destroyed As the world faces accelerating climate (typically incinerated) during the breakdown, we cannot continue making, annual reporting period. buying and discarding clothing at the current and expected rates. This is why we focused on overproduction, overconsumption and waste as part of this year’s Spotlight Issues. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 57

BELOW: Cast-off woolen clothing is sorted again in large warehouses in Panipat, Tim Mitchell

Waste, repair and recycling Meanwhile, the aim of textile-to-textile recycling is that eventually the fibres and textiles used in clothing will be able Estimates suggest that around one to be used repeatedly and for much quarter of the industry’s resources longer, dramatically reducing the need to are wasted as leftovers of textile and create new clothes from virgin resources. garment production every year, which is We found that 18% of brands explain why we wanted to see how brands are what they are doing to develop circular publicly addressing this issue (Global solutions that enable textile-to-textile Fashion Agenda, 2018). We found that recycling (innovations beyond textile 27% of brands publish information reuse and downcycling), but only 4 brands about the steps they’re taking to reduce (2%) publish data on what percentage the amount of clothing and textile waste or number of products are designed to created during production. This waste enable closed loop or textile-to-textile might include textile or product off- recycling at end of the product's life. cuts, unsold and defective stock and production samples, and 11% of brands Since the outbreak of coronavirus, retail are reporting on their progress to reduce stores across the world have been this pre-consumer production waste. forced to shut their doors and lay off or furlough staff, meaning clothes are going When it comes to post-consumer unsold. By the time stores reopen these waste, we found that 30% of brands products may well be considered ‘out offer their customers a permanent, of season’. This begs this question: what year-round clothing take-back and will happen to all of these perfectly good in-store recycling scheme, and only materials? Will they be sold, reused, given 16% of brands offer and advertise repair to charities, go to landfill, be incinerated, services to their customers in order to recycled? The fashion industry already help extend the life of their products. has a huge overproduction and waste Considering that British households problem. And, technology is simply not threw away 300,000 tonnes of clothing in yet available to recycle textiles in a truly 2016 (WRAP 2017), it is surprising that so circular way and at scale. It is concerning few brands seem to be working to keep that the consequences of the pandemic these products out of landfill through may make this problem even worse. clothing repair and take-back schemes. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 58

5. SPOTLIGHT ISSUES ANALYSIS

COMPOSITION Plastics Hazardous chemicals

Using more sustainable materials Every time someone washes a garment Some of the toxic chemicals used in made of synthetic materials, especially clothing, including lead (dyes), NPE polyester, tiny particles of plastic – too (industrial washing), phthalates (printing), Several major brands are taking steps small to be caught by conventional water PFC compounds (water-repellent coating) to use more sustainable materials such treatment – enter our water systems, and formaldehyde (wrinkle-resistance as ‘better' and organic cotton, recycled ending up in rivers, lakes and oceans. treatment), can potentially cause serious polyester and wool, traceable down and Up to 700,000 microfibres can shed from health problems. Considering that the chrome-free leather. The use of these our clothes in a typical wash (Napper and textile industry is a significant contributor materials are often what makes up Thompson, 2016). As a result, textiles are to water pollution globally through the brands’ seasonal collections marketed as now the largest source of global primary lack of proper disposal of chemicals, ‘sustainable’ or ‘conscious.’ However, we microplastic pollution and have even we were surprised to see that less than found that less than half of brands (42%) been detected in the deepest parts of a quarter of brands (24%) publish a publish a time-bound and measurable the ocean (Boucher and Friot, 2017). We time-bound commitment or roadmap strategy or roadmap (including targets) expected brands to be addressing this towards eliminating the use of hazardous on the use of more sustainable materials. alarming issue, but we found that only a chemicals in products, and 19% of brands Meanwhile, 36% of brands report annually fifth of brands (20%) publish information are reporting progress towards achieving on progress toward achieving these about what the brand is doing to minimise these goals. When brands are taking sustainable material use targets, up from the impact of microfibres. When it comes steps to mitigate the use of hazardous 29% in 2019. to reducing the use of plastic more chemicals in their products, it’s usually generally, we found that 27% of brands as part of regulatory obligations such publish measurable, time-bound targets as REACH in the EU or through multi- for the reduction of the use of virgin stakeholder initiatives like the ZDHC plastics (including plastic-based textiles, Roadmap to Zero. accessories, hangers, packaging). FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 59

5. SPOTLIGHT ISSUES ANALYSIS

Science Based Targets, which means Just 7 brands (3%) are mapping Water use CLIMATE their environmental goals are aligned environmental impacts directly to their with the Paris Agreement’s aim to limit financial performance. For example, 52% of brands publish a company policy Carbon emissions global heating to below 2°C above pre- Kering Group (Balenciaga, Bottega Veneta, on water use, and 42% publish a supplier industrial levels. Gucci, Saint Laurent) publish a highly policy on water use, up from 36% of Considering that climate breakdown is detailed Environmental Profit and Loss brands in 2019. However, considering that accelerating and the world’s foremost 58% of brands publish annual carbon report, which utilises a sophisticated a global water crisis has been ranked scientists say we have about a decade to emissions in their owned and operated natural capital accounting methodology. in the top 5 global risks (WEF, 2020), it is mitigate the most catastrophic impacts of facilities (e.g. head office, retail stores, On top of this, Kering Group freely shares surprising to see little progress when it global heating, we would have expected distribution centres, warehouses, transport their methodology, welcoming and comes to brands disclosing water usage fashion brands and retailers to be moving and mail orders, etc.), but only 16% of encouraging other companies to use it. data, especially at a raw material level. much more swiftly towards net-zero brands publish annual carbon emissions However, other brands do not seem to be There has been no increase in water carbon emissions. produced within their supply chains — taking advantage of this innovative open- footprint disclosure at any level. 31% of where the highest proportion of carbon is source methodology, which has been brands publish the annual water footprint Dozens of brands have recently joined the emitted across the lifecycle of a garment. freely available since 2015. in their owned and operated facilities UN Fashion Industry Charter on Climate (e.g. head office, retail stores, distribution Action and the G7 Fashion Pact to achieve We anticipate seeing more disclosure Limiting deforestation is also a crucial part centres, warehouses, etc.). 14% of brands this goal by 2050. Meanwhile, a 2018 on brands' efforts to reduce carbon of mitigating global carbon emissions. publish the annual water footprint at report from the World Health Organisation emissions next year as more brands join Considering recent public outcry about manufacturing and/or processing facility predicted that an additional 250,000 deaths the G7 Fashion Pact and the UN Fashion the destruction of the Amazon and the level within the supply chain, and only a year will occur between 2030 and 2050 Industry Charter. wildfires that ravaged Australia, it is 4% publish this information at fibre due to global heating, and too many shocking that only 4 brands out of 250 production and/or raw material level. fashion brands continue to say little about 36% of brands publish the percentage of (2%) publish a time-bound, measurable the steps they are taking to drastically renewable energy used in the company’s commitment to zero deforestation — reduce their environmental impacts. owned and operated facilities (e.g. head meaning that no forest areas are cleared or office, retail stores, distribution centres, converted. Whereas, zero net deforestation 78% of brands publish a company policy warehouses, etc.), but only 6% of brands allows for the clearance or conversion of on energy use and carbon emissions, publish this information within the forests in one area as long as an equal while 52% publish a supplier policy on this supply chain. area is replanted elsewhere. topic. However, only 16% of brands publish FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 60

VIEWPOINT: HOW TO SURVIVE A PANDEMIC: GARMENT WORKERS IN COVID-19

GARMENT WORKER CENTER

"Last week, I made "Me and my mom are told 4,500 masks and the company is closed but made $230 total, that’s not true. Me and mom that is 5 cents a are not working. We are not mask." [able to] pay rent right now. "

Santiago, Paulina Father of six children Produced for Fashion Nova

For too long, the fashion industry has In the time of COVID-19, garment workers Many brands are restructuring their Transparency is a crucial first step for profited by making garment workers are finally recognized as essential labor local supply chains to win government industry accountability. For the fashion invisible. Popular brands and retailers because we alone have the necessary contracts that require some transparency industry to survive this crisis, brands earn PR points for selling “Made in skills to produce personal protection into working conditions and safety must #PayUp. They must ensure to pay USA” goods, but lack of transparency equipment (PPE). At the same time, 45,000 practices. But more can be done. their contracts with manufacturers and in production supply chains and garment workers in Los Angeles are ensure that manufacturers pay garment purposefully opaque purchasing largely out of work with no safety net to Alongside the International Labor workers because our labor has always practices enable them to deny rely on, while others cannot afford the Rights Forum and supported by 31 been essential. accountability for horrendous working loss of income and have to work despite other organizations including Fashion conditions and massive wage theft the risks, with little to no health protection Revolution USA, we are urging companies This is why we launched the GWC commonly experienced by members of or assurance of fair wages. to implement and report back on their Emergency Relief Fund because many the Garment Worker Center. workers’ rights and health protection. brands still fail to take accountability even in an unprecedented pandemic. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 61

4 FINAL THOUGHTS & RECOMMENDATIONS FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 62

TAKE ACTION ON TRANSPARENCY

Brands and Retailers In the next 12 months, we urge major Governments & In the next 12 months, we urge major brands and retailers to: Policymakers brands and retailers to: We call on major brands and retailers to be more transparent Publicly disclose your suppliers Better policies and Invest in better implementing and about your social and environmental starting with the first tier, but don’t regulations, with more enforcing existing laws and policies, practices and impacts. stop there. Map and publicly effective implementation and policies that are meant to protect disclose your full supply chain, enforcement, are needed fashion’s supply chain workers We call on brands and retailers to right down to raw material level. to transform environmental and the environment. publish this information in a way that sustainability and respect for In response to the coronavirus Ratify ILO Convention 190: is easily accessible, understandable, human rights in the global pandemic, honour your contracts Eliminating violence and honest and comprehensive. fashion industry. and commit to supporting your harassment in the world of work. suppliers and supply chain workers You have the power, resources and A few fashion brands and in this time of crisis. Publish more Put mandatory human rights and moral imperative to ensure that retailers are leading on information about your purchasing environmental due diligence on every single person working in your transparency and making value chain is paid fairly, treated practices. the legislative agenda and move moves towards being more towards proposing, passing and with dignity and working in safe sustainable and responsible, Publish more information about adopting this legislation. Make conditions. To address the urgent but the vast majority of brands your environmental impacts, sure it includes liability for a climate crisis, you must move faster are doing and disclosing very including the amount of carbon company’s contribution to harms to reduce the consumption of earth’s little. These laggards won’t move emissions, water consumption, caused in the global supply chain. finite resources and shift to business without being forced to do so pollution and waste created across models that are regenerative instead through legislation. of destructive and linear. your value chain, and explain what you’re doing to conserve and By being more transparent about regenerate resources. your policies, practices and impacts, your customers and stakeholders Answer your customers’ can come along with you on that #WhoMadeMyClothes requests on journey, support you in making social media or via email with that change and ensure you are practical information and data, not accountable for your impacts. just your policies and principles. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 63

TAKE ACTION ON TRANSPARENCY "Transparency is the first step towards a different culture, one where brands become open

Citizens and accountable, and

We encourage you to demand that You have the right to know that your customers are ready to major brands and retailers are more hard-earned money is not supporting transparent. Always ask the brands you exploitation, human rights abuses and become vigilant and ask, buy #WhoMadeMyClothes You can do environmental destruction. But there is this by tagging your favourite brands on no way to hold brands and governments social media and using this hashtag, or to account if information about what we ‘who made my clothes?" you can use our automated email tool buy is kept secret. to get in touch with them directly. Write to your elected officials and urge Why ask this question? Because it them to require brands and retailers to sends brands a strong message -- you be more transparent about how their Orsola de Castro, care about the way your clothes have clothes are made. Tell your government Co-founder, Fashion Revolution been made and want the assurance that they should make companies legally that the people making them have been responsible for the impacts they have on paid fairly, treated with dignity and the environment and the lives of people that the environment wasn’t destroyed working in their supply chains, at home in the process. We promise you that and abroad. You can do this using our brands are listening, so use your voice write a postcard to a policymaker tool. and tell them to be more transparent. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 64

THANK YOU!

We extend the utmost gratitude A very heartfelt thanks to our brilliant As always, the biggest thanks to the We would like to thank you for reading this to our pro bono consultation freelance research team without Fashion Revolution team – especially report and to take this opportunity to remind committee, who have been whom this report would not have Carry Somers and Emily Sear, you that Fashion Revolution is a charitable instrumental in guiding our team been possible – Nicky Allan, Clara Bronwyn Seier and Maria Maleh for organisation. This means that everything we do through this project each year – Buckens, Altaire Cambata, Ysabl their beautiful and clever design is made possible by support from grants and Dr. Mark Anner, Neil Brown, Ian Cook, Dobles, Rachel Hartley, Michelle Lai, and branding talent. Thanks to all donations from people like you. Subindu Garkhel, Kristian Hardiman, Lisa Schneider, Lian Sing and of Fashion Revolution’s Country Christina Hajagos-Clausen, Jenny Manon Thomas. Coordinators, who brilliantly and By making a small donation, you will be making Holdcroft, Aruna Kashyap, Kate effectively power the movement. a big difference to Fashion Revolution's important Larsen, Dr. Alessandra Mezzadri, We would also like to thank the work demanding a cleaner, safer, fairer, and more Katie Shaw, Francois Souchet, Joe representatives from the brands Big thanks also to our PR company transparent fashion industry. Sutcliffe and Ben Vanpeperstraete. and retailers who participated in Alfred and Maria Nishio at Central An absolutely enormous thank you to the Fashion Transparency Index this Saint Martin’s. And finally, thank It’s easy to do. Please visit the donate page on all the others who provided informal year. We know that brands receive you to Laudes Foundation and the our website where you can choose to donate feedback on the methodology and frequent requests for information European Commission for your any amount, or even opt to make a regular report — you know who you are! from civil society and NGOs, and it’s generous support. monthly donation: difficult to respond to them all and We would like to give a special still get work done. Your participation www.fashionrevolution.org/donate thanks to our allies, advisors and is both vital and appreciated. collaborators at Better Buying, With your help, we can continue to create resources CARE International, Ellen MacArthur such as the Fashion Transparency Index, spark an Foundation, Fairtrade Foundation, even wider global conversation about the impacts of Fair Trade Advocacy Office, Good On our clothes and create positive change. Thank you! You, Greenpeace, IndustriALL, Open Apparel Registry, Traidcraft Exchange, Transparency Pledge, Transparentem, University of Plymouth, Wikirate, among others.

Fashion Revolution Foundation: Registered Charity in England & Wales No. 1173421; This publication was produced with the financial support of the European Union. Registered Company in England & Wales No. 10494997. Its contents are the sole responsibility Fashion Revolution CIC: Registered Company No. 08988812. of Fashion Revolution and do not necessarily reflect the views of Registered Address: 70 Derby Street, Leek, Staffordshire ST13 5AJ, UK the European Union. FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 65

ANNEX 1: REFERENCES

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ANNEX 2: DEFINITIONS & ABBREVIATIONS

Auditing is the process of reviewing a company's Freedom of Association is the right of individuals Microfibres are fibres that are shed from clothing Restricted Substance List sets out the specific finances, working conditions, and environmental and workers to form and join groups of their own during production, consumer use, or end of life, chemicals substances that are not allowed to be practices. It uncovers risks to workers' safety choosing in order to take collective action to and end up as pollution in the environment. used in products or manufacturing processes. and opportunities to improve working conditions. pursue the interest of the members of the group. Microfibres from synthetic clothing (such as Typical hazardous substances that are restricted (Source: Walk Free Foundation) (Source: ILO) polyester) are the largest source of primary include lead, AZO dyes, DMF, PAHs, Phthalates, microplastics polluting our oceans. Microplastics PFOS, the nickel release and so on. Circularity (or Circular Economy) is an alternative Forced labour is any work or service which people are any plastic particles smaller than 5mm. (Source: CIRS-REACH) to a traditional linear economy (make, use, dispose) are forced to do against their will, through the (Source: IUCN) in which we keep resources in use for as long as use of violence or intimidation, or by more subtle Sex-disaggregated data is information which possible, extract the maximum value from them means such as accumulated debt, retention Pre-consumer waste is generated by textile and is measured and separated according to whilst in use, then recover and regenerate products of identity papers or threats of denunciation to clothing manufacturers during any stage of the gender. It allows comparisons on outcomes and materials at the end of each service life. immigration authorities. Forced labour is the most production clothing. Pre-consumer wastes include between women and men on specific topics (Source: WRAP) common element of modern slavery. textile scraps after the cutting of garment pieces, and brands measuring and providing it will (Source: ILO and Anti-Slavery International) leftover textile samples, selvedges, end-of-roll increase the visibility of women and the issues Collective bargaining is a process where employers wastes, damaged materials, part-finished or they face across supply chains. (Source: BSR) and unions negotiate to determine fair wages and Gender pay gap is defined as the difference in finished clothing samples from the design and Supply chain / value chain refers to all the steps working conditions. (Source: ILO) median pay between men and women. production department. (Source: Dobilaite et al., 2017) it takes to produce and sell a product, from farm to (Source: Office for National Statistics) Due diligence is a process through which closet. (Source: OECD) Purchasing practices refers to a company’s companies assesses their impacts on human Grievance mechanism is a complaint process process of buying goods and services. Wet processing facilities are involved rights and the environment and then take actions that can be used by workers, allowing them to This might include activities such as planning in the production of clothing whose activities to reduce any negative impacts. (Source: United voice concerns about working conditions without and forecasting, design and development, cost typically involve rinsing, bleaching, dyeing, Nations Global Compact) fear of punishment or retribution. (Source: Verité) negotiation, sourcing and placing orders, production printing, treating or coating fabric and management and payment and terms. laundering. (Source: Garment Merchandising blog) Downcycling is to recycle something in such a Living wage is a wage a worker earns in a (Source: Better Buying) way that the resulting product is of a lower value standard working week that is enough to provide than the original item. Examples include recycling for them and their family's basic needs - including Remediation is the action of fixing something, textiles into building insulation, rags, or carpet food, housing, clothing, education and healthcare. particularly reversing or stopping environmental underlay. (Source: Merriam Webster) (Source: Clean Clothes Campaign) damage or human rights abuses. A Corrective Action Plan is an agreement with a supplier on what needs Equal pay means that men and women in the to be remedied, when it is to be done, and who is Materiality Assessment is an exercise designed same employment performing equal work responsible for which tasks. (Source: ETI Norway) to gather insights on the relative importance of must receive equal remuneration. This applies specific environmental, social and governance not only to salary, but to all contractual terms (ESG) issues. The insight is most commonly used and conditions of employment, such as holiday to inform sustainability reporting and strategic entitlement, bonuses, pay and reward schemes, planning. (Source: Greenbiz) pension payments and other benefits. (Source: Equality and Human Rights Commission) FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2020 67

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