Sustainability Drives Innovation Corporate Social Responsibility Report 2012
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Sustainability drives Innovation Corporate Social Responsibility Report 2012 TABLE OF CONTENT before Body Re-think Commitment We before before before Begin Fabric Use Activities CEO Letter 8 Products & Customers Environment Social Responsibility CMO Letter 9 Hi-Tex 25 Materials and Waste Management 51 Stakeholders Engagement 72 Target Summary 10 Products 30 Raw Materials 51 Community 73 Customers 32 Waste 52 Delta’s Donations Policy 73 Performance Summary 11 Our Own Brands 34 Energy and Climate Change 53 Ethical Code 75 Energy 53 Equal and Fair Employment 76 Carbon Footprint 56 Employee Diversity 79 Air Emissions 60 Safety and Quality 80 Water and Wastewater 61 Health & Safety 80 Water Consumption 61 Quality 80 Wastewater 62 Vision Structure before before Action Performance Value About This Report 82 GRI Index 84 Delta in General Corporate Governance before At a Glance 14 The Delta Board 42 Chain The Story of Delta 16 Organizational Structure 43 Our Mission 18 Company Holdings 43 Supply Chain Delta’s Sustainability Policy 19 Economic Performance 44 Global Presence 20 Changes During the Reporting Period 45 “(Ad) Dressing a Sustainable Risks and Opportunities 45 Future” Program 68 Membership in Associations 46 Logistics 69 page 4 page 5 before We Begin CEO Letter CMO Letter Target Summary Performance Summary page 6 page 7 CEO CMO LETTER LETTER Dear stakeholders, Dear stakeholders, It gives me great pleasure to present Delta’s I’m delighted to introduce Delta Galil’s third third GRI report, which addresses our activities GRI report. This tradition of reporting comes from pertaining to Delta’s environmental and social an organizational culture of transparency and responsibility for the years 2011-2012. involvement of our stakeholders. Our sustainability initiative was implemented in 2007 and since With regard to our social responsibility, we strive to participate in For us, in Delta, the meaning of sustainability is being able to We continue to meet the high standards we set and high then, we have made great progress. Our vision of success the most meaningful way and to maximize the impact we have create the most innovative, tailor made solution for our customers expectations of our customers regarding social responsibility, combines the principles of environmental sustainability with on the communities in which we live, work or otherwise have a while creating a social, environmental and economic value. We throughout our supply chain. Compliance audits related to those economic growth. presence. Our donation strategy is a work in progress – modified believe that the investment in innovation is an investment in our issues are ongoing in all our sites and in our suppliers’ sites. as necessary to reflect the changing needs in our communities. future, and that in order to get to this future we must conduct our Furthermore, we continue to be involved in the communities in Sustainable development incorporates economic growth with Between 2011 and 2012, we are proud to say that we were able business in a sustainable manner. which we operate and expand the scope of our contribution to social responsibility and minimizes environmental impacts. to triple our charitable donations, and we have many plans in those communities. Delta has experienced 13 consecutive quarters of organic, This philosophy is reflected in our everyday work, and its fruits place to further expand our involvement in community projects. extensive growth and in 2012 realized a 20% increase in sales can be found in this report. I would like to take this opportunity and thank all of Delta’s from 2011 levels. Our 2012 acquisition of the Schiesser Group, Successful business results and growth over time are not the employees, suppliers and everyone else that took part in all During the past 2 years we have been working on building an Germany’s leading apparel brand, was a large contributor to our results of a single effort; they are the rewards of the ongoing of the activities elaborated in this report, and still take part infrastructure to enable us measure our scope 3 emissions 2012 growth and greatly increased our branded footprint and investment in our social and economic growth and Delta’s “best- in our ongoing efforts to create continues improvement in and impacts. European presence. in-class” culture of excellence and leadership. We are grateful our performance. you have chosen to be our partners on this journey! Our logistics program is moving forward; data of all transportation Beyond the measures of profitability and shareholder value, lines – air, sea and land, of materials and finished goods, has however, are the positive environmental and social impacts Delta been gathered and analyzed for the last 2 years. We intend to Sincerely has made and continues to make across the board. Yours, broaden this program and analyze the data in higher resolution This report is the most comprehensive report we published thus in the next phase. far, and includes a data study of greenhouse gas emissions in We are making efforts to broaden our supply chain program to our supply chain (Scope 3 emissions). It is our intention to further Esti Maoz include more suppliers that are reporting on their sustainability expand our scope of reporting on the environmental impacts of Issac Dabah SVP Chief Marketing Officer efforts, activities and achievement. This is a challenging project our global supply chain. CEO and we are still learning, but we are determined to succeed and Among our environmental activities and initiatives, I would like to to grow from it. highlight the ongoing construction of two of our buildings – the Our innovative sustainable technologies, ReaLasting CottonTM first is our new warehouse in Caesarea, Israel and the second is and ReaLasting Softness TM, which enables energy-efficient our socks manufacturing plant in Bulgaria. Both structures were use of our products, longer life cycle and comprise other built according to green building standards and incorporate the environmental and healthy attributes, accounted for 6.4% of principles of resource efficiency, environmental protection and a our sales. healthy work environment for our employees. page 8 page 9 TARGET PERFORMANCE SUMMARY SUMMARY We believe that in order to achieve any goal, targeted steps must first be This table summarizes Delta Galil’s 2012 determined. Therefore, in 2009 we set long term targets in different domains performance in accordance to GRI’s key concerning corporate social responsibility. The following table presents environmental, social and economic indicators: Delta’s main objectives and their pursuance status: Index Objective Target Date 2012 Status Page 2011 2012 Change in % GRI index Carbon Footprint Measure carbon footprint 2015 56 Financial information Measuring Scope 3 carbon emissions from 2012 56 Operating Profit in millions of dollars 39.7 50.7 +27.7% EC1 transportation of finished goods and raw materials Sales in millions of dollars 678.8 817.8 +20.5% EC1 5% reduction 2015 56 Donations in thousands of dollars 50 150 +200% EC1 Energy consumption 5% reduction 2015 53 Water 10% reduction 2015 61 Environmental commitment and responsibility Energy Energy (fuel) consumption in GJ 86,787 74,725 -13.9% EN3 Wastewater Quantitatively record all chemical discharges to 2015 62 wastewater treatment systems and operate an Electricity consumption in GJ 189,650 179,943 -5.1% EN4 aggressive chemical discharge reduction program Water and Water consumption in m3 446,189 398,989 -10.5% EN8 Materials & Packaging To base 5% of sales on more sustainable 2012 29 technologies1 Wastewater Wastewater in m3 148,828 121,855 -18.1% EN21 To base 10% of production on eco-friendly materials. 2012 51 Carbon Carbon Emissions(CO2e) 33,224 30,490 -8.2% EN16 Operate an aggressive corporate-wide chemical 2012 63 Footprint in tons maintenance, storage and reduction program. Waste Total waste recycled in % 42 57 +35.7% EN22 Meet all requirements of our customers packaging 2012 32 efficiency programs Total waste landfilled in % 58 43 -25.8% EN22 Use efficient packaging for Delta’s own brands 2012 69 Social commitment and responsibility Waste Expand waste reporting to all of Delta Galil's sites 2015 52 Fairness and work Number of employees 7130 9040 +26.7% LA1 5% reduction in waste generated 2015 52 procedures Work accidents* 36 17 -52.7% LA7 5% growth in recycling rates 2015 52 Innovative Products 50 million sales of innovative products 2012 30 * Does not include minor injuries (first aid). ** In this report, unless it says so specifically, the data does not include Schiesser Supply Chain Create a transparent reporting infrastructure for main 2012 68 strategic suppliers Logistics Create a wide reporting infrastructure for 2012 69 transportation of raw materials and products As the table shows, we met some of our goals ahead of time, some we met on time and two goals targeted for 2012 are still in progress: 1) to base 10% of production on eco-friendly materials, and 2) to use efficient packaging for Delta’s own brands. Please refer to pages 51 and 69 to read about our efforts on those two goals. 1 The word “Technologies” here replaces the word “Materials” that appeared by mistake in this objective in the 2010 report. The next objective deals with sustainable materials. Done In progress page 10 page 11 Vision before Action Delta in General At a Glance The Story of Delta Our Mission Delta’s Sustainability Policy Global Presence page 12 page 13 DELTA At A GLANCE Delta's facilities in Egypt, Jordan, Thailand, Czech Republic and Slovakia operate approximately Over 9,000 Founded in employees 4,000 sewing in machines, our facility in Israel operates approximately 1975 4 continents 130 seamless sewing machines and our facilities in Israel and Bulgaria 3,817 TONS operate approximately of products Produced in our sites in 2012 550 knitting machines for socks This is In 2012 sales volume rd has grown to Our 3 GRI $ 817M Report page 14 page 15 THE STORY OF DELTA Delta Galil Industries is a leading global manufacturer and marketer of Our operations are spread over 4 continents, providing us with a global competitive edge and enabling a flexible manufacturing branded and private label apparel products for men, women and children.