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Making things better Pentland Group Corporate Responsibility review 2016 Contents Introduction Who we are and what corporate responsibility means to us 02 Building brands with social purpose Using our brands to make a positive difference 14 Future-proofing our supply chain Continuing to reduce the impact of our products across our supply chain 22 Respecting human rights and tackling inequality Continuing to conduct business ethically and fairly, respecting everyone involved in making our products 34 UN Global Compact: Ten Principles Reporting in line with the UN Global Compact’s Ten Principles 46 Introduction Who we are and what corporate responsibility means to us 01 02 We raised 2016 Highlights % This page summarises some of the 47 £10,000 year’s key achievements: MITRE of our spend was with vendors is using environmentally friendly inks we have worked with for for our charity partners through our across all its training balls MORE THAN 10 YEARS partnership with Africa Shoes We reduced Every area of the business 40% GREENHOUSE GAS EMISSIONS Pentland Brands worked with % OF BERGHAUS’ RANGE LANCASTER UNIVERSITY 6 PARTICIPATED IN GIVE BACK DAY now carries the Made Kind™ swing tag to develop a modern slavery risk in the UK year on year – a day of volunteering in the community assessment tool % 90 % ZERO 100 596 OF LACOSTE’S & NO ZERO We used WE DONATED SURPLUS BERGHAUS’ LEATHER PRODUCTS TO 596 CHARITIES TOLERANCE ISSUES 100% RENEWABLE ENERGY comes from Leather Working Group through our partnership with In Kind Direct found as part of our factory at Pentland Brands sites across the UK medal-rated tanneries social audit process 32,500 We sent SPEEDO WORKERS AT SUPPLIER FACTORIES ZERO WASTE We were named as one of the launched its H2O Active range made BEST LARGE WORKPLACES with recycled fishing nets in Southeast Asia are covered to landfill at Pentland Brands HQ, the Glover by the Better Work programme Distribution Centre and Berghaus HQ by the Great Place to Work® Institute 03 04 Introduction Introduction 1.1 Continuously evolving Reporting in line with the UN Global Compact Ten Principles If you want to see how our our approach activities align with the UN Global Compact, see page 47. Building a sustainable A note from our Chairman Consumer interest in how products are made, business has never been how long they last and how they end their life 2016 marked another successful year for is at an all-time high. This is why Pentland more important. It’s also Pentland Group across its three business Brands initiatives like Speedo’s H2O Active the right thing to do, and groups: Pentland Brands, JD Sports Fashion range, made using recycled fishing nets, are our stakeholders expect it. and our Ventures Division. so important. Not only do they deepen our relationships with consumers, but they reduce As a family company, people are at the heart the impact that these products have on of what we do. We work hard to create a the environment. working environment that inspires and nurtures, where everyone feels welcome to contribute I am proud of the way we have continued ideas on how we can do things better. In this to commit to doing business responsibly. spirit, I’m pleased to report that, once again, We hold ourselves to high standards of ethics Pentland Brands has been named as one of and corporate responsibility, especially those the Best Large Workplaces by the Great Place outlined in the United Nations Global Compact. to Work® Institute. We are delighted to renew our commitment to this initiative and its Ten Principles, which set We’ve continued our long history of collaborating a clear framework on how business can help with others to improve factory working conditions. to address the world’s prevailing issues. In 2016, Pentland Brands’ activities included developing a toolkit to prevent modern slavery R. Stephen Rubin and making our due diligence in Thailand even Chairman better. Meanwhile, JD Sports Fashion continued Pentland Group to work with suppliers to reduce chemical use and the JD Foundation raised over £1 million for eight youth charities. 05 06 Introduction Introduction 1.2 Who we are We’re in business to Pentland Group plc PENTLAND BRANDS This report focuses on build great brands and A family business Pentland Brands make great products for This report provides an overview people to love, generation Pentland Group plc is a family-owned company operating in the areas of sports, outdoor and of activities that relate to Pentland after generation. fashion. As a family business, honesty, fairness, Group plc and its three business respect and hard work run through everything * areas. It focuses especially on we do. Pentland Brands. This is because * we fully own this business and therefore have more opportunity Our three divisions * Footwear Licensee to influence positive change Pentland Brands across the supply chain. JD SPORTS FASHION PLC Our brand management division, Pentland You can find more information Brands, is made up of 12 sports, outdoor and about JD Sports Fashion plc’s fashion brands. activities in its annual report. We refer to its report throughout JD Sports Fashion plc this review. Our retail division comprises of the JD Sports Fashion plc group, one of Europe’s leading retailers of aspirational branded sportswear, fashion wear and outdoor clothing and equipment. For a full list of outlets and brands visit the JD Sports Fashion plc website We hold a 57% share in the company, which has approximately 1,200 outlets. INVESTMENTS AND Pentland Ventures Division TRADING SUBSIDIARIES We also take equity in other businesses across a variety of industries. RIGHT DETAIL FROM OUR HISTORY WALL 07 08 Introduction 1.3 Our approach to Pentland Brands corporate responsibility strategy corporate responsibility Respecting human Building brands with Future-proofing our We have three pillars Management and governance We endeavour to persuade other companies rights and tackling that guide our efforts in which we have non-controlling stakes to social purpose supply chain Our standards and policies guide the way comply with these polices. inequality to make our business we work. They also provide a template for more sustainable. They our employees and suppliers. They include At Pentland Brands, all new starters receive make sure we go beyond guidance on how to do business ethically with training that sets out our corporate responsibility integrity and with respect for our stakeholders, priorities and shows what we expect of people FOCUS AREAS FOCUS AREAS FOCUS AREAS the boundaries of our and include our standards on anti-bribery. and suppliers. business and contribute to the UN Sustainable We require all Group companies in which we hold 50% or more of the share capital to align Using our brands to make a Responsibly managing our Tackling modern slavery Development Goals. with these policies and procedures. Our central positive difference in society use of chemicals CR team sets standards, monitors compliance and drives our strategic approach. Paying living wages Supporting causes that matter Reducing exposure to climate and water risk Understanding workers and Volunteering and giving back giving them a voice Reducing the environmental impact of supply chain operations Using better materials and contributing to the circular economy CONTRIBUTING TO THE UN SUSTAINABLE DEVELOPMENT GOALS 09 10 Introduction The Ethical Trade Initiative AFIRM Group bluesign® system The Ethical Trade Initiative (ETI) is an The AFIRM Group is an industry collaborative The bluesign® system works to reduce the 1.4 Partnerships alliance of companies, trade unions and effort to reduce the use and impact of harmful exposure of consumers, workers and the voluntary organisations collaborating to substances in the apparel and footwear environment to harmful chemicals. It eliminates and collaborations improve the lives of workers. We were a supply chain. In 2016,we adopted the substances posing risks from the beginning founding member. AFIRM Restricted Substance List (RSL) of the supply chain while also promoting helping to promote the harmonisation of safe production standards and the responsible restricted substances management in the use of resources. Berghaus is a bluesign® University College London (UCL) shared supply chain. system partner. We continue to work with UCL to offer a Global Public Policy masters scholarship. Responsible Down Standard Better Work The programme offers talented young Working with industry professionals from the southern hemisphere The Responsible Down Standard (RDS) is This scheme aims to achieve lasting groups, academic a chance to study at two of the world’s top an independent, voluntary, global standard, improvements to working conditions while universities – with teaching split between which companies can use to certify that the creating a more profitable business model institutions and UCL and NYU – as well as an internship with down in their products has been sourced for factories. In 2016, we collaborated with non-governmental Pentland. This year’s programme saw a large responsibly. In 2016, 100% of Berghaus Better Work in 12 factories, across Vietnam, organisations means we number of applicants, with the scholarship down jackets were certified to the RDS. Cambodia and Indonesia. being awarded to an impressive community are aware of best practice organiser from sub-Saharan Africa. and we can make positive ACT Living Wages Verité change happen at scale. The Pentland Centre for Action, Collaboration, Transformation In 2016, we started working with Verité, Sustainability in Business (ACT) brings together brands and retailers, supply chain specialists, to take action on manufacturers and trade unions to address modern slavery. We worked with them to In 2015, we launched the Pentland Centre the issue of living wages in the textile and develop a suite of training modules and a with Lancaster University. The centre tasks garment supply chain.

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