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Pentland Group Corporate Responsibility Review 2011

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Pentland Group Corporate Responsibility Review 2011 Pentland Group Corporate Responsibility Review 2011 _03 About Pentland Group Pentland Group is a family-owned, Through our subsidiary Pentland Nearly 2,000 people work directly for UK-based company that focuses Brands we manage our wholly-owned Pentland Group and Pentland Brands _04 - 05 About this Review primarily on the apparel and footwear sports, outdoor and fashion brands: at our offices in the UK, Asia and the industries. In 2010 the business Berghaus, Boxfresh, brasher, ellesse, US (see map at www.pentland.com). _07 A message from the Chairman reported global revenues of £1.3 KangaROOS, Mitre, ONETrueSaxon, A further 14,000 people are employed billion, with sales across Europe, the Prostar, Red or Dead, and Speedo. by JD Sports Fashion. _08 - 09 About CR at Pentland Americas, Asia, Africa and Australia1. Pentland also holds licences to make Pentland Group is a signatory to the footwear for Lacoste and Ted Baker Founded in 1932 in Liverpool, UN Global Compact and a Council _10 - 11 Business ethics globally, as well as Kickers in the Pentland was originally called the Supporter of the International Business UK and Ireland. _12 - 17 Products Liverpool Shoe Company and traded Leaders Forum. Pentland Brands is a purely in shoes, first as a wholesaler The Group has a 57% shareholding long-standing member of the Ethical _18 - 23 Environment before expanding into manufacturing. in JD Sports Fashion plc2 and Trading Initiative, a signatory to Better Pentland was one of the pioneers shareholdings in other brands, Work’s Buyer Principles, and a Board _24 - 29 People in sourcing footwear from Asia, and including Hunter. member of the World Federation of formed a division in Hong Kong in the Sporting Goods Industry. _30 - 34 Community the early 1960s. 1 2010 financial figures are the latest available. 2 This Review relates to the 2011 calendar year and therefore its scope does not include Blacks Leisure, acquired by JD Sports Fashion in January 2012. _2 _3 This Review presents Pentland Pentland Group holds a significant Group’s approach to being a stake but does not exercise direct responsible business, and our management control. corporate responsibility activities The Review comprises our 2011 during the 2011 calendar year. It Communication on Progress covers the companies and brands UN Global Compact Principles Relevant section (COP) to the United Nations Global wholly-owned by Pentland Group. Compact (see table). Our previous Where appropriate it includes Businesses should support and respect the protection of COPs are available in the Corporate 1 information and data relating to JD internationally proclaimed human rights. People, pages Responsibility section of Sports Fashion and Hunter, in which 24-29 www.pentland.com. Human rights Businesses should make sure that they are not complicit in 2 human rights abuses. Businesses should uphold the freedom of association and the 3 effective recognition of the right to collective bargaining. Businesses should uphold the elimination of all forms of 4 forced and compulsory labour. People, pages Labour rights 24-29 Businesses should uphold the effective abolition of 5 child labour. Businesses should uphold the elimination of discrimination 6 in respect of employment and occupation. Businesses should support a precautionary approach to 7 environmental challenges. Products, pages Businesses should undertake initiatives to promote greater 12-17 Environment 8 environmental responsibility. Environment, pages 18-23 Businesses should encourage the development and diffusion 9 of environmentally friendly technologies. Businesses should work against corruption in all its forms, Business ethics, Anti-corruption 10 including extortion and bribery. pages 10-11 _4 _5 At Pentland Group, we believe that While we are pleased with the being responsible is the only way progress we are making, we to conduct business. For a global recognise that there will always be Group of companies like ours, this challenges. We firmly believe that means keeping track of diverse collaboration – with others in our environmental and social trends, industry, with non-governmental and tackling complex issues on a organisations and with trade unions – daily basis. is the best way to overcome them. Our commitment to behaving Our membership of the UN Global responsibly remains undimmed Compact is one such partnership. despite the ongoing global economic We are proud to have signed up downturn and the resulting pressure to the UNGC’s Ten Principles, and on businesses to cut costs. In fact we are committed to engaging with the are increasing our focus, for example organisation in its efforts to make by working more collaboratively responsible business practices across the Group to reduce our mainstream, to tackle human rights carbon footprint. We have also abuses, and to help lift people out of further defined our Group corporate poverty. I am delighted to share with responsibility direction and objectives, you this Review, which presents our to set a clearer path for our future activities and progress in 2011, and activities. You can read more about comprises our latest Communication our strategy overleaf. on Progress to the UNGC. R Stephen Rubin Chairman, Pentland Group plc _6 _7 External partnerships In 2011 we introduced a new staff Pentland Brands is a Founding handbook that includes a summary of Collaborating with industry bodies and Circle member of the our commitment to being a responsible organisations outside the Group is essential Sustainable Apparel Coalition business and suggests employees for achieving our CR objectives. We partner contact the CR team with any questions. with others to understand CR trends, share Pentland Brands becomes experiences and resources, and build relationships a member of AFIRM CR strategy that make progress possible. We work at local and global levels with business alliances, In 2011 we reviewed and refined our CR strategy. We renewed focus on governments, non-governmental and advocacy Pentland Brands signs organisations, community groups and charities. our most material CR issues, including International Buyer Principles of an increased emphasis on product Notable partnerships include: the Better Work programme sustainability. + Better Work: an International Labour Chair of the WFSGI The strategy has four pillars: Organization and International Finance CSR Committee Corporation collaboration that aims to improve compliance with labour standards, PRODUCT and competitiveness, in global supply chains. Pentland Brands is a signatory to Better Work’s Chairman Stephen Rubin Objective: Buyer Principles. receives OBE for services to business and human rights To reduce the impact of our products on Behaving responsibly brings with it Managing CR at Pentland + Ethical Trading Initiative (ETI): established the environment. significant opportunities to grow our Brands in 1998, ETI brings together companies, trade Pentland becomes a business, improve the lives of those unions and voluntary organisations to improve UNGC signatory Pentland Brands’ CR team – based in around us, and reduce the impact of ENVIRONMENT workers’ lives. Pentland Brands is a long- London, Hong Kong and Shenzhen, our activities on the environment. standing member. China – manages day-to-day CR Objective: Corporate responsibility (CR) has activities in collaboration with brands. To reduce the environmental impact of + International Business Leaders Forum Pentland once again always been a fundamental part Where appropriate, it also engages (IBLF): an organisation that works with business becomes a private of Pentland’s approach. We have our business operations. company with other Group companies on CR leaders to inspire sustainable development. long believed that companies have issues and initiatives. Pentland Group is a Council Supporter of responsibilities – not just to make Pentland joins the newly- money for shareholders, but also to To encourage best practice across ETHICAL TRADE the IBLF. Pentland Brands, we share information formed Ethical Trading behave as good corporate citizens, + UN Global Compact (UNGC): an initiative about CR activities and collaboration Objective: Initiative adhering to high ethical standards and to help businesses align their operations and opportunities. In late 2011, for To conduct business honestly, fairly and upholding the interests of all people who strategies with ten principles on human rights, example, we launched an internal with respect for people, their dignity and make and use our products. labour rights, the environment and anti- case study bank that gives brands the their rights. CR department – then corruption. Pentland Group is a UNGC signatory. Our Chairman, Stephen Rubin, takes chance to showcase their work and called Business Standards a strong personal interest in CR and is learn from one another. + World Federation of the Sporting Goods – formed a recognised advocate for improving COMMUNITY workers’ rights in the supply chain. Every employee has a role to play in Industries (WFSGI): an independent, non- profit association that supports and coordinates In 2002, Mr Rubin was awarded an helping us be responsible. At Pentland Objective: Brands, we raise awareness about industry collaboration in areas such as CR, OBE for his work on human rights and To contribute positively to the Pentland listed on London CR through regular training sessions, trade and intellectual property. Pentland business. The Chairman has oversight communities in which we operate. Stock Exchange of all Pentland
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