ETHICAL TRADE REPORT

2013-2014 Contents

Letter From Our Ceo, Anders Kristiansen 4

Introduction: New Look And Ethical Trade 5

2013-14 Ethical Objectives 16

1. Continually Improve Workers’ Lives And Livelihoods 19

Fire And Building Safety In 22 Women’s Empowerment 22 Wages 23 Evaluation 24

2. Empower People In Factories To Raise And Resolve Issues 27

Fostering 31 Evaluation 31

3. Build Factory Management Skills And Systems 33

Rags Benefits For Business And Workers Programme 36 Evaluation 37

4. Build Trust, Transparency And Shared Responsibility Along The Supply Chain 39

Subcontracting 43 Evaluation 43

5. Make Sure New Look’s Team & Suppliers Share The Responsibility in Delivering The Ethical Trade Strategy 45

Evaluation 47

Key Learnings And Commitments 48

Next Year 48

Partners 50

Who We Are 52

Appendix 54

Imagery © Subathra Vaidhiyanathan

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Letter from our CEO Introduction Anders Kristiansen New Look and Ethical Trade

Looking back over the year 2013- 2014, it 33 training programmes, covering topics We began our ethical trade journey in 1993. This year has been the most high profile marks an important period in our ethical trade such as gender, freedom of association, It’s important to us that our business and yet for ethical trade, with the tragedies at journey where we went back to the drawing in-factory communications and labour rights. trade has a positive impact on the people it Rana Plaza and Tazreen fashions bringing board with stronger resolve and insight to We’ve also established worker committees in touches; especially the workers who make public awareness to the highest level ever. make a positive impact on the workers. Bangladesh, China, India and Turkey, which our products. We believe that ethical trade Although these factories were not our have been used to raise important workplace is about providing good quality jobs for suppliers, we’ve responded to the call to The tragedies at Rana Plaza and Tazreen issues and to get these issues addressed by the workers in our supply chain. To make action, strengthening our regional teams Fashions in Bangladesh have brought factory management. In recognition of our sure this happens, we are always looking and joining other brands, NGOs and trade awareness of ethical trade to its highest level work and commitment to , we to better understand workers’ needs and unions to make real progress in partnerships ever. New Look didn’t have any production at were awarded a Source Award by the Ethical work in collaboration with other relevant on the ground. these factories but we still recognise the need Fashion Forum. stakeholders to better meet these needs. to join hands within the industry to provide We’re committed to delivering a programme We’re looking to build on these challenges safer working conditions for workers. This Despite these achievements, we’re aware that provides direct improvements to and successes year on year. But for our work has further strengthened our commitment that there’s much more to be done. There’s working conditions in the factories that to be both successful and sustainable, it to provide safe and good quality jobs to the a long way to go before all our aims are met. supply to us. has to deliver on the needs of all our key people in our supply chain, not only because However, through reviewing our strategy, stakeholders. This means contributing to it’s important, but above all, because it’s the evaluating the lessons learnt and building We talk to thousands of workers around the success of our business and driving real right thing to do. upon our successes, we believe that we’ll the world every year. They tell us that they improvements for workers around the world. continue to improve the lives of the people want higher wages, more respect, better We strongly believe that in order to create in our supply chain and make significant prospects and an improved future for their This report explains our ethical programme long-lasting change, we need to understand progress towards our ethical trade vision. children. These needs form the basis of our in detail and sets out the progress we’ve workers’ challenges and priorities, so we ethical trade strategy and this year we’re able made against our targets over the past year continue to speak to thousands of workers Thank you for your interest in our ethical trade to report some successes in meeting them. to April 2014. We aim to be as transparent as in our supply chain to put their voice at the work. Please read this report and visit our Whilst we may not always get it right, our possible and we hope this report provides a centre of our ethical trade strategy. This report website to find out more. priority is to make sure our work brings real useful resource to understanding our strategy details our approach to meeting their needs benefits to workers. and our work this year. and our progress in meeting our targets. Yours sincerely,

I’m proud of what we’ve achieved this year. Our projects have reached more than 184,000 people in factories, over 25% more than the previous year. Health and safety has been a key priority, particularly in Bangladesh, Anders Kristiansen where we’ve delivered training to all of our CEO supplier factories to make sure none are high-risk. Our work this year included a further

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Today, we’re a key collaborator working towards positive and long lasting change with a variety of partners, including NGOs, trade unions and brands.

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Our journey so far

We aim to build long-term, sustainable improvements for workers in our supply chain. We review our strategy regularly to see what we’ve achieved, what we’ve learned and where we could do more. We also think it’s important to learn from our mistakes and continuously improve our approach. This process of continuous improvement defines our ethical trade journey.

2001 2002 2003 2005 2009 2011 2012 2013

We developed our Ethical We reduced working hours We joined the Ethical We were the first company We were one of 7 We began working We receive an Inspiring We win a Source Award Aims, which set out our through productivity gains Trading Initiative to build improvements pioneering brands working with the Self-Employed Good Governance Award from the Ethical Fashion ethical trading policy in China in productivity and HR to roll out RAGS BBW across Women’s Association of at the TVE Corporate Forum, recognising our and standards. They are together to increase wages 73 factories employing India (SEWA), developing Responsibility Film Awards commitment based on ILO conventions 112,000 workers a commercial partnership for our film about our to sustainability and cover core labour through which workers work improving wages receive training, support standards issues We issued our and conditions in garment and better pay homeworking policy, factories in Bangladesh recognising homeworkers as full members of the We banned sandblasting workforce who should in all our product lines due enjoy equal conditions to to the high risk it posed to other employees workers’ health and safety

We start building an We banned any of our international ethical team suppliers from sourcing cotton from Uzbekistan, due to the widespread use of forced and in its production

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Building our approach

We follow 6 key principles:

1 2 3

Never lose sight Support our Engage with of doing the right supplier businesses suppliers and thing for workers and support better monitor progress jobs for workers 4 5 6

Be transparent and Strong supplier Keeping things real work with factories relationships in everything we do to understand their concerns and challenges

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Due to the continued widespread use of organised child labour in cotton cultivation in Uzbekistan, we’re against the use of Uzbek raw cotton in New Look products. Our suppliers must not source textiles from mills that source cotton from Uzbekistan whilst these practices continue.

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2013-2014 strategy

How we developed the strategy

We want our business and trade to have In the first year of implementing our strategy a positive impact on workers. Improving we saw some great achievements, including: the lives of workers in our supply chain is • Training 121 factories in China, important to our customers and it also makes Bangladesh, , , India good business sense for us. Our ethical and Turkey on health and safety trade strategy is important for both of these reasons, but above all else, we believe in this • Delivering wage improvements in strategy because it is the right thing to do. 119 factories • Working with 159 factories and over We spend a lot of time talking to the workers 92,000 workers to increase awareness of who make our products about their needs labour rights and their aspirations. We hear a wide variety of responses from workers, but the central • Training supervisors and management themes are higher wages, more respect at at 129 factories on topics like improving work, and better prospects which will lead working environments, health and safety, to an improved future for their children. and communication between workers We’ve designed our Ethical Trade strategy to and management meet these needs. In 2012, we identified 5 strategic objectives that were vital to meeting One year on, in April 2013, we brought these needs and tackling the issues present together our ethical trade team to evaluate in our supply chain. the objectives: • Are they strong enough? These were: • Are they brave enough? 1. Continually improve workers’ wages and working conditions • How can we improve them and make them more relevant to each country we work in? 2. Enable workers to raise and resolve issues 3. Build factory management skills We’re proud of our achievements, but we and systems want to learn from our mistakes and we’re always looking for ways to improve. Our 4. Build transparent relationships evaluation of our programme in April 2013 5. Make sure our team and suppliers showed us that we needed to listen more understand their role in delivering our to our teams, suppliers and factories so that ethical trade strategy we can work together to make sure our objectives make sense everywhere we work.

2012-13 Objectives Evaluation of Aspirations for Define 2013-14 previous objectives next year Objectives

Table 1. Process for development of the 2013-14 Ethical Strategy

14 15 NEW LOOK GROUP LIMITED Continually improve workers’ lives and livelihoods

We want happy, safe and inspiring workplaces for everybody who makes products for New Look. We 2013-14 aim to continually improve the livelihoods of workers in our supply chain, looking within and beyond the ethical objectives factory walls to improve workers’ wages and careers.

Empower people in Build factory factories to raise management skills and resolve issues and systems

We want workers to be confident in their ability to We want all our factories to have effective systems for represent themselves and bring about positive change monitoring and managing issue such as wages and in their workplaces. working hours in place, and we want managers and supervisors to have the knowledge and ability to resolve workers’ issues.

Build trust, transparency Make sure our team and and shared responsibility suppliers share the along the supply chain responsibility in delivering

Long term relationships with our suppliers are key to the ethical trade strategy our business and ethical model. We aim to build trust and openness down our supply chain, and through We aim to embed ethical trade across our business. our strong relationships we work to build a sense of Our buying teams play a key role in creating quality jobs responsibility and a vision for ethical trade among our for the people who produce our products and we work suppliers and factories. closely with them to make sure that our ethical aims are reflected in the way we do business.

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Continually improve workers’ lives and livelihoods

2013-14 ETHICAL OBJECTIVES

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Continually improve workers’ lives & livelihoods This year, we committed to: Work with 208 factories across 76 suppliers in 7 countries to deliver healthier and safer working environments

Year Target Achieved

2013-14 208 275 132% Continue specialist project work based on case by case priorities including: home-working, financial inclusion, gender and child labour remediation

Year Target Achieved In 2013-2014 we: 2013-14 14 15 • Provided health and safety training to 231 factories across 7 countries • Provided training and monitored progress on fire and building safety at % all the factories we source from in Bangladesh • Worked with 77 factories to make 107 sure accident and injury insurance is Deliver wage improvements to workers provided to all workers through capacity building projects across 43 • In Bangladesh our team has worked We want to ensure safe and happy workplaces for everybody who factories in 4 countries with local NGO Nari Uddug Kendra to produces our products. We aim to continually improve the livelihoods provide free eye tests to 3,033 workers of workers in our supply chain. Health and safety and wages form a Year Target Achieved central part of this, but we also aim to go beyond the factory walls • Trained supervisors on gender equality and improve the lives and livelihoods of workers outside the factory. 2013-14 44 89 and issues of discrimination and Workers tell us that issues such as lack of financial literacy and the harassment in the workplace in 25 gender divide have a strong impact upon their lives and their standard factories in Bangladesh and Cambodia of living, but ethical trade programmes often don’t prioritise these • Worked with factories to improve the areas. We’ve expanded our approach and are attempting to tackle wages of workers at 13 factories in these difficult issues as part of our commitment to continually improving % China and with Geosansar to open bank workers lives and livelihoods. accounts and provide financial literacy 202 training for 387 workers in India

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Case studies We have a short meeting “ twice a month with our

supervisors about the issues we’re facing and “ what our rights are

1. Fire and building safety in Bangladesh The factory has installed We’re committed to making sure all the emergency lights and factories we source from are safe places to work. Fire and building safety is a crucial practice regular fire drills. requirement for all of the factories that This makes me feel more supply to New Look and we’ve focussed our efforts on improving workplace safety confident that I’ll be safe in Bangladesh. As an early adopter of in the factory the Accord on Fire and Building Safety in Bangladesh, we’ve been working at the 2. Women’s empowerment forefront of efforts to secure safer working conditions alongside other brands, trade The gender divide can be seen at all levels of unions and NGOs. Our Ethical Trade the supply chain and it has a huge impact on Manager sits on the Worker Participation the livelihoods of female workers. The majority Working Group, helping to develop Accord of workers on production lines are women, provisions around complaints mechanisms, but supervisors and managers are largely men. worker participation on health and safety We want to empower female workers to break committees and training programmes. through the gender barrier and the negative We’ve delivered training on building and impact it has upon their livelihoods. fire safety at all the factories we source from in Bangladesh. During the training, factory We’ve provided training on gender Since the training, female workers in We’ve also been working with BSR (Business owners, managers and workers were trained equality, discrimination and harassment in both Cambodia and Bangladesh have for Social Responsibility) to implement the on the causes of fires and how to carry out the workplace in Bangladesh. We’ve also reported that their supervisor’s behaviour HER project in China and Vietnam. The risk assessments and maintain a risk register. collaborated with the International Labour has improved and they have a better HER project is being rolled out in two of We focussed not only on raising awareness, Organisation’s (ILO) Better Factories initiative understanding of women’s issues in the our factories in China and Vietnam. The but also on encouraging workers to take to provide similar training in Cambodia. We workplace, meaning it’s now easier for project uses a peer education model to train control of monitoring and improving safety worked to shift perceptions of women and workers to apply for maternity leave and women in factories to become Peer Health in their workplaces. Our team supported their role in the workplace, with workers benefits. The factories have also updated Educators (PHEs) and deliver training to the factories to implement improvements trained to better understand the rights of their anti-discrimination/harassment increase awareness of women’s health issues and tracked progress over the year. We’re female workers, the issues that women face policies and provided further training to and facilitate better access to health services. continuing to work on the ground in in factories and the need for social dialogue. line supervisors. We’re now working with Between the two factories, 44 PHEs have Bangladesh to make sure that none of our Supervisors also received training on the factories to increase the number of been appointed and trained. During the first factories are high risk and that they are all communication skills, in order to encourage female supervisors (one factory has already two months of the project, the training has cooperating with our local teams and with the more constructive dialogue with workers and promoted 4 female workers as supervisors). been rolled out to 167 workers. This project Accord on further building improvements. prevent verbal harassment. is on-going, so we look forward to including an update on the results in next year’s report.

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Case studies (continued) I’m going to use my new account to “ start saving from my salary. I need to send money to my family but

the banks are not open once I leave work, now I’m happy because I can do “ transactions after my working hours

3. Wages We’re one of the first retailers to support Geosansar: a social initiative providing practical Wages are one of the most important issues support to workers to help increase their for workers. In China, workers usually receive level of financial literacy and security. This the minimum wage, but this is not keeping year, we’ve worked with Geosansar to open pace with living costs and workers’ everyday bank accounts and provide financial literacy needs. This problem is worsened by the training to a further 387 workers in India and underpayment of overtime at many factories. Bangladesh. Workers told us that they can now save much more easily and can send money to In order to combat this issue, we’ve run a their families regularly. number of studies into understanding wage levels in China. This research has helped Evaluation us gain a better understanding of what’s happening in our supply chain. Tracking real Our projects to improve the lives and take-home wages can be difficult, as some livelihoods of workers have exceeded targets factories keep double records to hide the true across the board this year, reaching over hours of overtime being worked and associated 144,000 workers and we’re proud of the wages. But we’ve successfully set benchmarks difference we’re making. and wage improvement targets for factories in China and our team has been working The Rana Plaza disaster and factory fires in with them to introduce systems for tracking Bangladesh highlighted the importance working hours and wages. These systems of improving fire and building safety, and encourage transparency and allow us to track making sure that these events are never improvements in wages over time. They also repeated poses a significant challenge for show that workers at a number of our factories all parties involved. Our focus on this issue already have an average monthly take-home has meant that we’ve not been able to give wage that is higher than the Asia Floor Wage, as much time to other issues that we’re We’re still at the early stages of the journey, but passionate about, but we’re proud of the our work on wages reached 18,000 workers strong impact our health and safety projects this year and we’re committed to driving have had and our role in the Accord. forward with our approach. Gender is an area that we’ve started to focus Alongside improving wages, we want to help more of our attention on. Gender disparity our workers maximise the impact of wage plays a strong role in many workplace issues improvements on their standard of living. In and negatively impacts women’s lives and 2010, migrant workers in our Delhi factories livelihoods outside of the factory. Our told us they find it difficult to open bank work on gender this year has significantly accounts, making them vulnerable to loss and increased our understanding of the issues theft, and some are forced to use informal that women workers face and gives a strong money lenders or deposit schemes which take foundation for further focus in the future. a significant percentage of their savings.

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Empower people in factories to raise and resolve issues

2013-14 ETHICAL OBJECTIVES

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Empower people in factories to raise and resolve issues

Workers in many parts of the world aren’t able Maintain a New Look complaints to represent themselves, bargain with their mechanism in the factories visited by New employers or see their issues and grievances Look across 7 key sourcing countries resolved. Raising awareness of labour rights is an important first step, but we want to In 2013-2014 we: go beyond this and empower workers to represent themselves and inspire them to • Increased workers knowledge of bring about change in their workplaces. their labour rights through training at 33 factories This year, we committed to: • Opened a ‘we chat’ text and voice messaging service for workers to use in Deliver projects across 133 factories and 42 38 factories in China suppliers to raise worker awareness of their • Established worker committees in 72 labour rights and FOA in 4 countries and factories across 4 countries support locally relevant grievance mechanisms

Year Target Achieved % 2013-14 133 117 88

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Case studies

1. Worker committees across Bangladesh, China, India and Turkey. 2. Fostering freedom of association These results represent a significant step We’re monitoring these committees to see towards effective worker representation and Creating worker representation and Trade Unions are central to ethical trade. We whether they can find solutions to workers meaningful freedom of association. This is bargaining processes with employers is very engage with national and international trade grievances and we’ve seen excellent results a substantial achievement considering the difficult to achieve. Workers often have low unions on advocacy campaigns and mutual so far. culture of hostility and misunderstanding awareness of their rights and aren’t confident project work. around this topic in Turkey. This pilot in presenting their issues to management. Examples of the successes of these worker has improved our understanding of this Managers themselves are commonly We were an early signatory of the Accord committees include: challenging area and we’ll continue to develop suspicious of forms of worker representation on Fire and Building Safety in Bangladesh this work with confidence. and don’t appreciate the benefits it can • Increasing workers’ benefits – including and we play an active role on the Worker bring. Depending on the context, there may better holiday provision and access to Participation Working Group. We’re now Alongside our project work, we’re also active be no independent trade unions or relations social insurance working alongside our suppliers and our supporters of campaigns aimed at improving between trade unions and employers may be brand partners to make sure all the factories • Increasing pay – a bigger festival bonus workers’ rights. One of the most prominent undermined by mistrust on both sides. we source from in Bangladesh meet stringent and a higher attendance bonus campaigns of the last year has been the Accord requirements. raising of the minimum wage in Cambodia. Where access to local trade unions is • Better cash flow - earlier payment of salary Cambodian trade unions have been running problematic and where worker committees to help workers’ cash-flow This year, we’ve been working to trial new an on-going campaign to achieve a significant are legally mandated, we support workers approaches to foster freedom of association • Improving the cleanliness of the shop floor wage rise for workers and we took part in the to raise their grievances and get them in a pilot project in Turkey. We provided Cambodia Advocacy Group led by the Ethical resolved through establishing effective initial training to managers and workers to At one factory, workers have also held Trading Initiative (ETI). worker committees. We’ve worked to build promote the benefits of worker representation constructive, on-going discussions with the confidence of workers and change the and understand what good workplace management on how to reduce worker absence. Evaluation perspective of management in order to communication looks like. After the training, establish worker committees at 72 factories 5 factories were chosen to take part in a We delivered projects at 117 factories this pilot project, to co-create and implement year, which is slightly under the target we action plans that strengthened grievance set for ourselves. We scaled down some of mechanisms and worker representation. our projects to concentrate on piloting our We better understand By the end of the project: approach and learning from our experiences. “ worker grievances Projects to empower workers to raise and

resolve issues have proven particularly difficult

• All factories had developed written now and can to implement. Building effective forms of “ procedures for grievance mechanisms and worker representation is a difficult process, as anticipate problems worker-management communication the mind-set of managers and workers needs well in advance • 3 had held democratic elections with 13 to be shifted towards mutual understanding new worker representatives elected and open dialogue. Nevertheless, we’ve had a number of notable successes through • 2 factories had established fully the newly created worker committees and functioning committees holding regular, gained some key insights to build on. Working minuted meetings. with IndustriALL and other trade unions has also helped to increase our knowledge and understanding of this area, and we’re keen to move forward with empowering workers to create change.

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Build factory management skills and systems

2013-14 ETHICAL OBJECTIVES

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Build factory management skills and systems

We work directly with our suppliers to improve In 2013-2014 we: their ethical standards. Our suppliers tell • Implemented a buddy system on all us that they need support to improve their production lines in 4 factories in India capability in managing workers. This is why we’ve embraced management training, • Worked with 4 factories in the UK to develop working directly with our suppliers to improve formal payroll and hours systems to reduce their capacity to manage their factories and errors in calculating workers’ pay enhancing their understanding of what good • Continued to follow up on key training and factories look like. This can result in a treble projects at 33 factories – including RAGS win – better job quality for workers, a more Benefits for Business and Workers and age profitable business for factories and better verification training – to ensure long-term, quality products. sustainable impact

This year, we committed to: Follow up with 46 factories to make sure the Capacity building projects across 27 learnings from training conducted in 2012 factories in 4 countries continue to be implemented

Year Target Achieved Year Target Achieved

2013-14 29 34 2013-14 41 33 117% 80%

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Case studies

1. RAGS Benefits for Business and Many factories have continued to implement 2. Dealing with specialist issues responsible for making sure any underage Workers Programme BBW learnings and have continued to workers found are put into full time education Child labour is a problem in some of the improve. For example, through productivity programmes and continue to receive their We began to work on building countries we source from. It’s something we improvements, one factory has increased the monthly salary until they reach legal working improvements in HR and productivity to strongly oppose and our Ethical Aims stipulates number of workers receiving a production age. This means that children are removed increase wages back in 2005. This came to that all workers in factories producing for us bonus by 136%. from the workplace and can return to full time full fruition in 2010, when we collaborated must be over the local minimum working age. education, but without losing the valuable with 7 other brands, UK AID and Impactt Our key partners in Cambodia, ILO Better We’ve also continued to learn from our source of income which can be the main to develop the Benefits for Business and Factories Cambodia (BFC) told us that they earlier projects, using techniques from BBW driving force for child labour. Workers (BBW) programme across 73 were finding an increase in instances of to inform our work. This year, we rolled out factories in India and Bangladesh. underage labour in Cambodia. Factories often a buddy system in 4 of our factories in India. Evaluation struggle to spot underage labour and the Buddies were assigned to new workers in The project reached 112,000 workers. first step to preventing this is to build the HR Our work building factory management the factory to help them get settled in and By its conclusion in 2012, it had achieved team’s age verification skills. In January 2013, skills and systems has exceeded our targets understand how the factory works. Before some fantastic results: we asked BFC to train all our suppliers how to this year and reached over 67,000 workers. the project, workers told us it took them 5-6 spot and prevent young people working in We’ve focussed on following up on previous days to learn factory processes, while new their factories. Since the training, the factories projects and training to make sure that • A 52% reduction in worker turnover in workers under the buddy system required have been very proactive in developing robust progress is sustained. Our follow up on BBW Bangladesh and a 26% reduction in India only 2-3 days to settle in. This has enabled a age verification systems. Our team continues and age verification training in Cambodia drop in the turnover of workers, as workers • A 8% increase in average monthly take to monitor the situation and no cases of child has demonstrated that our projects have a are less likely to leave if they quickly feel home pay in Bangladesh and a 5% labour have been identified since the training. long-term impact, but we’ve also learnt a lot comfortable and supported in their new job. increase in India. This meant annual pay about the challenges that factories face trying increases totalling £4 million We’re committed to working with our suppliers to maintain improvements. The turnover of to make sure they do not hire any child managers is often high and that of workers It’s important to us that the projects we’re labour but just like other retailers, we have is even higher, meaning that people who involved in are not only successful, but very occasionally found underage workers in received training can leave the factory soon have a long-lasting, sustainable impact on factories that supply to us. We’ve adopted after, taking the skills and knowledge they workers. We’ve continued to follow up with industry best practice to make sure that we learned with them. In order to combat this factories that graduated from the project. do the right thing for any young person problem, we need to carry out regular follow we find, with all our suppliers signed up to ups at factories and provide top-up/retraining the Child Labour Remediation Procedures. to secure long-term impact. This is something These procedures state that our suppliers are we aim to prioritise.

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Build trust, transparency and shared responsibility along the supply chain

2013-14 ETHICAL OBJECTIVES

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Build trust, transparency and shared responsibility along the supply chain

We believe that long term relationships with • Developed a guide for using Sedex our suppliers are key. We aim to build trust (the system we use to gather data on and openness down our supply chain, and conditions at our factories) through strong relationships we work to • Ourselves visited 260 factories across build a sense of responsibility and a vision Bangladesh, Cambodia, China, India, for ethical trade among our suppliers and Turkey, UK and Vietnam factories. This year, the average length of our supplier relationships has increased from • Held quarterly catch up meetings with top 1611 days to 1874 days. 20 suppliers • Launched a new supplier management We have 264 suppliers and 880 factories system across 25 countries. Gaining transparency Our scoring system is as follows: and a good understanding of the ethical • Researched subcontracting in our supply issues at these factories is a challenge and chain by mapping 2 jewellery home is only the first step in encouraging our workers and one cotton farm in China Level 0 suppliers to join us on our journey to improve Not fulfilling our basic ethical requirements ethical standards. Building Responsibility Level 1 Working towards our basic ethical requirements

We get the best results when suppliers: This year, we wanted to increase the Level 2 Fulfilling our basic ethical requirements understanding of and responsibility for • Understand our requirements – so they Level 3 Demonstrating actions that go beyond our basic ethical requirements ethical trade among our top 20 suppliers, know what standards we expect who are responsible for 77% of our products Level 4 Significant investment in ethical trade • Are engaged – so that the support we give in store. them really makes a difference to workers To do this, all our field teams work closely • Are strategically important for us – Currently 77% of our top 20 suppliers do to improve suppliers’ ability to meet with these suppliers in each country. suppliers that we source most of our are at Level 3 or above, demonstrating our needs. That’s why at the same time

products from and have worked together actions that go beyond our basic ethical as working with our suppliers to improve We hold regular meetings and use an ethical for many, many years are more willing and requirements. This can mean they’re their performance, we also benchmarked scorecard for our top 20 suppliers. able to prioritise our needs building and developing their own ethical the level of supplier trust and their ability teams and/or are investing in proactive to raise concerns and feedback on ethical • Our work this year has been about getting Each supplier is given a score and a target projects to benefit workers. trade and buying team behaviour. We’re these factors right. To do this we have: to achieve by the end of the year. This We realise that two-way communication now using the results to improve the way encourages suppliers to prioritise ethical • Set ethical targets for the top 20 is important. While we want our suppliers we work with suppliers across the business trade and work in a way that benefits workers suppliers and supported suppliers to to improve their ethical credentials, we and we hope this will help suppliers go and the environment. achieve these goals also know that there are things we can even further next year. • Communicated our ethical requirements to all suppliers

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(continued)

Improving Transparency It also enables our buying team to understand Subcontracting including health and safety breaches, long if factories they are placing orders with are working hours and problems in protecting This year, we set ourselves a number of Subcontracting is when a factory outsources registered with us (to avoid subcontracting) worker rights. We’ve continued to build our targets to audit our supply base and improve part of an order to another factory or site. It and take ethical scores and improvements understanding this year, visiting factories and compliance with our ethical aims. However, can also include outsourcing to much smaller into account when placing orders. homeworkers in Turkey and India to understand during a review of our audit process, we workshops and sometimes to home workers. the issues they face and what we can do to identified the need to overhaul the way we We know that subcontracting is a key challenge By reducing the size of our supply base bring about improvements. In Turkey, we manage audits and risk across our supply chain. in our industry and we take transparency and sharing information across our ethical investigated small, subcontracting workshops seriously. We don’t allow undisclosed and buying teams, we’ve increased our and found a clear lack of health and safety Firstly we needed to consolidate our supply subcontracting and factories are obliged understanding of the working conditions at systems. To combat this, we provided training base to gain greater transparency and focus to notify us of their intent to subcontract. factories which produce the majority of our on how to identify health and safety risks and on improving ethical trade across a smaller We can then check that the subcontracted products. This means we can concentrate develop systems to mitigate them. We’re number of sites. This meant working out factory meets our ethical aims. This year, our efforts on areas where we can have the using pilot projects like this one to inform which suppliers are important to us and really we’ve rolled out our policy on subcontracting greatest positive impact on workers. our approach to subcontracting and we will understanding their capacity: what can they internationally, implementing fines for continue to develop our approach in this area. produce, how much, and what type of product. unauthorised subcontracting. Since the review, we’ve reduced the number of Evaluation suppliers we source from and are now focussing Understanding what’s going on all the way on strengthening our relationships with this down our supply chain and making sure not This year our focus was on building supplier smaller group of suppliers. only our suppliers, but also their subcontractors responsibility and transparency across the respect labour standards is a key challenge. supply chain. The majority of our suppliers We also identified the need to work more In 2009, we issued our homeworking policy, have shown a commitment and real progress to closely with our buying teams on audit recognising homeworkers as full members improvements. Linking our ethical knowledge compliance and risk in our supply chain. of the workforce who should enjoy equal with the commercial teams knowledge of each To do this we rolled out a new supplier conditions to other employees. Since then, supplier means we’re able to be more strategic database which provides information on we’ve been working to understand the issues in our ethical activity. our suppliers and factories. This tool helps that workers face further down our supply chain our ethical trade team identify which sites to and identify areas for improvement. These changes have significantly improved our prioritise for ethical audits and projects. ability to manage risk and we feel like we have a Last year, we worked with our suppliers in solid base on which to build next year. China to help map their jewellery supply chains. We identified a number of issues,

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Make sure our team and suppliers share the responsibility in delivering the ethical trade strategy

2013-14 ETHICAL OBJECTIVES

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Make sure our team and suppliers share the responsibility in This year we’ve trained 79 people on key • Surveyed suppliers to understand what ethical issues. Our approach is practical and buyers need to do in order to increase two the training gives buyers the tools to spot way communications and fed this back to delivering the ethical issues and how to prevent them happening. key staff in the commercial teams We send regular updates to the commercial teams so that everyone is in the loop and Ethical champions trade strategy buyers are aware of issues affecting our factories and product. “The seminar was really interesting and insightful. The role play of working on a At the start of the year we launched the production line made me think more about Ethical Champions programme. We now how my actions as a buyer have an impact on have a team of 20 buyers, merchandisers and factories. I came out of the meeting feeling very We aim to embed ethical trade across our Our ethical trade activities have been closely design team members who are passionate passionate about the cause” - Daniel Barker business. Our buying teams play a key role aligned with the commercial teams since the about ethical trade and are responsible for in creating quality jobs for the people who very beginning of our ethical journey. As our spreading awareness within their own teams. “Coming from the BMD team, it’s mainly produce our products and we work closely commercial team and supply base develops, about the product, cost price, lead times with them to make sure that our ethical aims it’s essential to keep ethical trade on the A workshop was delivered to our Ethical and the sales. In this process, somehow we are reflected in the way we do business. agenda for everyone. Our ethical trade team Champions, providing training on the forget to look at the factory workers ‘without are in the same office as commercial teams, so importance of ethical trade and key issues whom there will be no product’. The seminar Ethical trade is a team effort. Ultimately, we it’s easy to communicate. facing workers. The Ethical Champions was reality check of how my decisions can want all our staff working with suppliers to We hold regular meetings to share news and were also asked to suggest ideas to help affect everyone involved in supply chain. The give the same message on ethical trade and coordinate activity and we run lots of initiatives commercial teams to support ethical trade. mock production set up was really helpful support suppliers to do this. However, this to integrate buying and ethical. Some of their suggestions include: for me to understand the real picture and needs to be balanced with the needs of a how sometimes being reasonable can help fast-fashion business. Integrating sustainability and ethical trade • More time with ethical trade teams everyone.” - Samara Curtis-Quick across our business is important to New Look So we take a two step approach to meet and a key part of our company’s strategy. • More information on ethical trade “It was very interesting to see how BMD both business needs: Our Champions will be an important part of • Work hard to make sure suppliers feel decisions can affect not only the suppliers, rolling out ethical trade improvements. comfortable to raise issues with buyers but also the factory workers. The seminar was 1. Help suppliers understand our e.g. if lead time is too tight to deliver order a great understanding of New Look’s attitude requirements and build their capacity without breaking ethical aims towards ethical trade.” - Cloudia Castano to meet them – through our work under objectives 1 – 4 We listened to them and are working hard to Evaluation meet these needs. This year we have: Our end goal is for ethical trade to be 2. Train buyers on ethical trade and help them Roger Wightman incorporated into everyone’s day job - not understand how best to support suppliers to Chief Creative Officer • Launched an ethical trade microsite just that of the ethical trade team. While be compliant with our ethical standards to provide a one-stop shop for our this is still a long way off, we feel we have commercial teams to get all the taken big strides towards this goal. Our information they need. Information on buyers are increasingly knowledgeable and the site includes a map of all our factories passionate about ethical trade. Having a in our key sourcing countries and an group of people within the commercial team overview of common ethical issues in these promoting ethical trade has also increased areas, including how to spot them when this. We’ll continue to work increasingly they visit sites close with top level management and the commercial teams to promote ethical trade • Increased our presence at internal across the company, and give our teams the commercial team meetings and have tools needed to support suppliers to make strong support from senior management ethical improvements in their sites.

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Key learnings and commitments

Key Learnings from 2013-14 Next year We’re constantly evaluating our work and We’ve evaluated our approach and improving our approach to ethical trade. We designed our new strategy with the senior want to learn from our experiences and build management, ethical champions and on them for next year. We’ve identified some sourcing team. One of the key outcomes of key lessons: the new strategy was to rebrand as Corporate Social Responsibility (CSR) to bring ethical, • Gender is a new but important area for environmental and animal welfare projects us and it must be included as part of our under the same umbrella. Our CSR team approach to improving workers’ lives and continues to work closely with senior livelihoods management to integrate our strategy more • We’ve significantly increased our closely with the company’s business plan. knowledge of freedom of association and our experience delivering projects Some key priorities include: to empower workers and ensure effective • Integrating CSR across the entire New representation Look group • Follow-ups and refresher projects are very • Working closely with suppliers and buyers important in order to deliver long-term to launch new processes which will align sustainable impact for workers buying practices with the CSR leadership • Collaboration remains key to our message approach, whether it be with other • Focussing on strategically important brands, NGOs or trade unions factories, so that we can work more closely • Consolidating our supply base and with the factories and maximise our impact maintaining excellent relationships with over the long-term our suppliers will play a strong role in • Increasing the number of project follow creating ethical improvements in the ups so that we can assess improvements factories that supply to us and further support any specific needs • Close cooperation between the buying • Improving our knowledge and approach and ethical teams, particularly through in key areas, including gender, worker sharing information, plays a strong role in empowerment and freedom of association making sure ethical trade is a core part of our business model We look forward to updating you on our journey in our next report.

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Partners

We feel that the best way to bring about long lasting sustainable change is through collaboration. So we partner with experts, NGOs, other retailers and various government initiatives around the world. Here are some of the organisations we partner with and the work that we do with them:

The Accord is an independent and legally binding agreement designed Nari Uddug Kendra (NUK) was established in 1991. It’s a non-government to make all garment factories in Bangladesh safe workplaces. It has been national women’s development support organisation, which promotes signed by over 150 apparel corporations from 20 countries in Europe, gender equality, human rights and personal empowerment of women and North America, Asia and Australia; two global trade unions, IndustriALL girls in Bangladesh. It works both directly and in partnership with local and UNI; numerous Bangladeshi unions. A number of NGOs are women’s organisations, garment factories and Trade Unions, political witnesses to the Accord and the ILO acts as the independent chair. parties, and local government bodies.

Better Factories Cambodia is a programme of the International Labour Solidaridad is an international civil society organisation that brings together Organization for improvement of working conditions in the garment supply chain actors to find innovative solutions to improving production industry. We’ve worked with them to tackle mass fainting in Cambodia. and ensuring a transition to a sustainable and inclusive economy that maximises the benefits to all.

BSR are a global non-profit business network dedicated to working with businesses to create a just and sustainable world. MADE-BY are a non-profit organisation that provide consultancy services to fashion and textile brands in order to improve environmental and social conditions within the fashion industry. The ETI is an alliance of companies, trade unions and voluntary organisations working together to improve the working lives of poor and vulnerable people across the globe who make or grow consumer Carnstone are an independent management consultancy specialising in goods. The ETI Base Code forms the basis of our ethical programme. corporate responsibility and sustainability.

Geosansar is a social initiative based in India which aims to achieve BRAC Bank was established in 2001 to help build profitable and socially ‘Financial inclusion in the supply chain’ by educating workers in financial responsible business in Bangladesh through offering key financial services literacy and providing access to bank accounts. We’ve worked together to small and medium sized enterprises. to provide workers in our supply chain with access to bank accounts and financial training. Phulki, meaning ‘spark’ in Bengali, is a non-profit organisation in Bangladesh that aims to promote and improve the rights of women Impactt is a leading consultancy in ethical trade, human rights, labour workers and their children. standards, gender and international development. We work with Impactt on developing our strategy and dealing with difficult issues on the ground.

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Key contacts

Our eight member ethical trade team are based in the UK, Bangladesh, China, India and Turkey.

We want to hear from you!

We hope you found this report and our website useful and informative. We want to hear your thoughts so please get in touch if you have any feedback or would like to know more. This will also help us understand the aspects of ethical trade most important to our customers and keep ethical trade at the top of our agenda.

We have a member of our ethical team on hand to answer any queries. Just email [email protected] and we’ll do our very best to answer.

UK Bangladesh

Subathra Vaidhiyanathan Sharif Uddin Senior CSR Manager Ethical Trade Manager

Rohini Kale India Ethical Trade Assistant Giriraj Jajware Ashish Sachdeva Ethical Compliance UK Compliance Officer Turkey Far East Sevinc Aktas Super Wang Ethical Compliance Ethical Trade Manager Far East Region

Frannie Wen Ethical Trade Specialist

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Appendix

New Look Retailers Ltd Suppliers who enter into business with NEW 3. Working conditions are safe and hygienic 4.4 These policies and procedures shall conform Our Ethical Aims LOOK should show a clear commitment to to the provisions of the relevant ILO standards. achieving our ethical aims and should ensure 3.1 A safe and hygienic working environment At NEW LOOK, we recognise that a large that factories producing our product share shall be provided, bearing in mind the 5. Living wages are paid part of our success has been due to the this commitment. We require that suppliers prevailing knowledge of the industry and of 5.1 Wages and benefits paid for a standard establishment of direct and close working and factories commit to working towards any specific hazards. Adequate steps shall be working week meet, at a minimum, national relationships with our Suppliers. Building these standards over an agreed timescale. taken to prevent accidents and injury to health legal standards or industry benchmark on this partnership, we set out below those Where we see a continued failure to meet our arising out of, associated with, or occurring in standards, whichever is higher. In any ethical and environmental standards we would standards, we will give notice to terminate our the course of work, by minimising, so far as is event wages should always be enough to want our Suppliers and their sub-contractors business relationship. reasonably practicable, the causes of hazards meet basic needs and to provide some to share. These views are supported by all inherent in the working environment. discretionary income. members of NEW LOOK, and will be used as Ethical Aims Based On The Ethical Trading Initiative 3.2 Workers shall receive regular and a framework when conducting our business. 5.2 All workers shall be provided with written Base Code recorded health and safety training, and The standards New Look has adopted are such training shall be repeated for new or and understandable information about their those of the Ethical Trading Initiative (ETI), of employment conditions in respect to wages 1. Employment is freely chosen reassigned workers. which New Look is a member. These in turn before they enter employment and about the are based on the internationally recognised 1.1 There is no forced, bonded or involuntary 3.3 Access to clean toilet facilities and to particulars of their wages for the pay period standards of the International Labour prison labour. potable water, and, if appropriate, sanitary concerned each time that they are paid. Organisation (ILO). facilities for food storage shall be provided. 1.2 Workers are not required to lodge 5.3 Deductions from wages as a disciplinary We do not stand alone in the ethical and “deposits” or their identity papers with their 3.4 Accommodation, where provided, shall measure shall not be permitted nor shall environmental views we state below. A employer and are free to leave their employer be clean, safe, and meet the basic needs of any deductions from wages not provided rapidly growing number of consumers and after reasonable notice. the workers. for by national law be permitted without businesses care about how their products are the expressed permission of the worker manufactured and the working conditions in 2. Freedom of association and the right to 3.5 The company observing the code shall concerned. All disciplinary measures should which they are produced. In trying to satisfy collective bargaining are respected assign responsibility for health and safety to a be recorded. these concerns you will not only help us and senior management representative. future customers but also your manufacturing 2.1 Workers, without distinction, have the 6. Working hours are not excessive 4. Child labour shall not be used environment should be a better and safer right to join or form trade unions of their own 6.1 Working hours comply with national laws place in which to work. choosing and to bargain collectively. 4.1 There shall be no new recruitment of and benchmark industry standards, whichever child labour. We believe that Suppliers should carry 2.2 The employer adopts an open attitude affords greater protection. on business to the best ethical standards towards the activities of trade unions and their 4.2 Companies shall develop or participate in 6.2 In any event, workers shall not on a regular achievable, and that their employees and organisational activities. and contribute to policies and programmes basis be required to work in excess of 48 workers in factories and units producing 2.3 Workers representatives are not discriminated which provide for the transition of any child hours per week and shall be provided with goods for us should be treated with fairness, against and have access to carry out their found to be performing child labour to enable at least one day off for every 7 day period on dignity, and respect. Working conditions representative functions in the workplace. her or him to attend and remain in quality average. Overtime shall be voluntary, shall should be safe and acceptable and education until no longer a child; “child” not exceed 12 hours per week, shall not be demonstrate care and concern for people and 2.4 Where the right to freedom of association and “child labour” being defined in the demanded on a regular basis and shall always the environment. and collective bargaining is restricted under law, appendices. be compensated at a premium rate. the employer facilitates, and does not hinder, the We realise that our aims may not be met development of parallel means for independent 4.3 Children and young persons under immediately, and with this in mind, recognise and free association and bargaining. 18 shall not be employed at night or in that we have a joint role to play in achieving hazardous conditions. continuous improvement.

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(continued)

7. No discrimination is practised • Using renewable energy sources where The provisions of this code constitute • All information obtained will be used in possible minimum and not maximum standards, and confidence 7.1 There is no discrimination in hiring, this code should not be used to prevent compensation, access to training, promotion, 10.2 Suppliers should demonstrate care and companies from exceeding these standards. When a Supplier signs this document, this termination or retirement based on race, concern for the physical environment in which Companies applying this code are expected to indicates their commitment to meeting our caste, national origin, religion, age, disability, they operate. comply with national and other applicable law ethical aims. It is the responsibility of the gender, marital status, sexual orientation, Supplier’s management to communicate 11 New Look’s ethical aims and, where the provisions of law and this Base union membership or political affiliation. Code address the same subject, to apply that these ethical aims to all its employees, and to all employees of the factories used for New 11.1 Suppliers, agents, factories and units provision which affords the greater protection. 8. Regular employment is provided Look production. This document should be producing for New Look show commitment to Monitoring displayed in the local language in all factories 8.1 To every extent possible work performed work toward achieving these standards. used to make New Look product. It should must be on the basis of recognised New Look will monitor performance against easily visible to all employees and available to employment relationship established through 11.2 If an employee feels they are unable to these standards through the Sedex database. read at all times. national law and practice. resolve an issue through existing procedure, they should be able to contact New Look’s Management Action Failure to meet our ethical aims may result in 8.2 Obligations to employees under labour Ethical Department on: termination of the business relationship and or social security laws and regulations arising Senior management of Suppliers should the cancellation of all outstanding and future from the regular employment relationship New Look Ethical Team, Supply Base make sure: New Look orders at our discretion, without shall not be avoided through the use of Department, New Look House, Mercery liability to New Look. labour-only contracting, sub- contracting, Road, Weymouth, Dorset DT3 5HJ UK • All the factories used for New Look Tel: 00 44 (0) 207 405 5009 production understand and are working or home-working arrangements, or through Where immediate corrective action is needed, Email: [email protected] towards our ethical aims apprenticeship schemes where there is no continued authorisation as a New Look real intent to impart skills or provide regular 12. Appendix – Definitions • They follow New Look’s authorisation Supplier will be subject to an independent employment, nor shall any such obligations be process. assessment at the Supplier’s own expense. avoided through the excessive use of fixed- Child: Any person less than 15 years of age term contracts of employment unless local minimum age law stipulates a • All required information is provided to higher age for work or mandatory schooling, New Look and requests responded to 9. No harsh or inhumane treatment is allowed in which case the higher age shall apply. If within 24 hours however, local minimum age law is set at 14 9.1 Physical abuse or discipline, the threat of • They regularly review and audit their own physical abuse, sexual or other harassment years of age in accordance with developing country exceptions under ILO Convention No. processes and maintain records of these and verbal abuse or other forms of reviews intimidation shall be prohibited. 138, the lower will apply. Audit and Inspection 10. Enviroment Young Person: Any worker over the age of a child as defined above and under the age of 18. Suppliers and factories must provide 10.1 Suppliers should be environmentally immediate access to premises, records, and conscious in particular: Child Labour: Any work by a child or young person younger than the age(s) specified in the documentation on request to New Look staff • In the use of recyclable materials above definitions, which does not comply with or their Agents. the provisions of the relevant ILO standards, • Reducing waste • New Look staff or their Agents may make and any work that is likely to be hazardous or unannounced on-site inspections • Disposing of toxic materials safely and to interfere with the child’s or young person’s cleanly education or to be harmful to the child’s or • Suppliers and their factories used for New young person’s health or physical, mental, Look production must provide all required • Using production processes designed to spiritual, moral or social development. information eliminate hazardous by-products

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