CSR Report 2017
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FENIX OUTDOOR CSR 2017 CSR_2017_1803122.indd 1 2018-03-23 12:25 Contents Foreword by the CEO ...........................03 Overview ................................................04 Nature ......................................................12 Economy .................................................22 Society .................................................... 27 Well-being ..............................................34 Reporting ................................................39 With the help of our management compass, this report takes us on a journey through the business of FENIX Outdoor and gives in- sights into our visions, aims and further steps. N = Nature: As an outdoor company, we believe that business activities should contribute to resilient and well- functioning natural systems. E = Economy: Ethical and sustainable activities can only be car- ried out if a business is healthy and its finances are sound. Thus, we rely on long-term partnerships and create sustainable working conditions. S = Society: We are a responsible actor in society, enriching and inspiring ourselves and those beyond our company to move towards a sustainable future. W = Well-being: We look for excellence in staff members; in turn, they expect a fair and responsible employer. 2 CSR 2017 FENIX OUTDOOR INTERNATIONAL AG CSR_2017_1803122.indd 2 2018-03-23 11:07 on track even through potentially troubled times. We also believe that the best network forms are based on common ethical principles. By involving stakeholders in our business we are able to identify new business opportunities as well as po- tential risks. We held our second stakeholder roundtable in May 2017, and through an inspiring dialogue gained beneficial insights into stake- holder concerns, ideas and recommen- dations. The stakeholder discussion is a sub- stantial help when we direct the com- pass towards the future direction of Fenix Outdoor. All our activities are taken to unite our own vision of a sus- tainable economic system with the perspectives that our partners share with us. Dear Outdoor Enthusiast, This is the last time I address you all as President of the Group. Even In 2017, Fenix Outdoor developed into though I will remain as Chairman and a leading, global player in the outdoor CEO, my task will change as I will be clothing and equipment industry. We focusing more on strategy and develop- made essential improvements to our ment. Many current operative processes and enhanced our efficiency responsibilities will be taken over by in several key areas. With the pur- the new President Alex Koska. The chases of the Danish retail brand Fri- new structure will be very good for luftsland A/S, and our Korean distrib- the Group, and it is completely in line utor Alpen on the one hand, and the with our policy of making sure people establishment of our new logistics can focus on what they are good at. center in Ludwigslust in northern The division of labor between Alex Germany on the other, we took addi- and me will ensure that our future tional steps towards our goals. performance will be successful. In times of fast-moving, volatile po- As our tracks are steadily exposed litical and socio-economic landscapes, to external society challenges and communication with stakeholders is changes, we need to reconsider past crucial. The entire industry needs to events and learn from our experiences. adapt to the ongoing process of digitali- We want to revise The Fenix Way and zation and interconnected information prepare for what lies ahead of us. I in- flowsin order to remain ahead of the vite you to join us as we take the next business development curve. step into an even more sustainable That does not hinder us fom staying future. committed to our Fenix Way and the principles of the UN Global Compact. Yours, Through these ethical guides, we stay Martin Nordin, President and CEO CSR 2017 FENIX OUTDOOR INTERNATIONAL AG 3 CSR_2017_1803122.indd 3 2018-03-23 11:07 1. O VERVIEW – Our sustainability management approach Summary of governance and structure of CSR activities enix Outdoor International AG All activities under the sustainabili- By the end of 2017 about 95,6 per cent F develops and markets high-quality ty agenda are centrally organized and (2016: 91,2 per cent) of our suppliers outdoor gear through a selected retail implemented under a common frame- had signed the code, according to data network with a high level of service work by individual brands and en- from four brands and all Tier 1 and professionalism to highly discern- tities. This allows the responsible suppliers. One brand has changed its ing consumers. While the various managers to identify the appropri- entire supplier base, and could there- brands have different roots, the group ate individual approach and goal set- fore not be considered in this survey. originated in Örnsköldsvik, Sweden, ting. The speed of development and The signature rate by Tier 2 suppliers where Fjällräven was founded and the focus of the entities within Fenix among our four brands lies between had its first headquarters. In 2017, the Outdoor Group vary but all follow the 80 and 90 per cent, due to two factors. group consisted of five brands and four same direction. On the one hand, we have begun to retail organizations. Frilufts Retail The CSR/Sustainability organization engage more directly with most of our Europe, Brands and Global Sales are did not change in 2017: Fjällräven, supply chain partners and we will con- the three distinct operational units, Globetrotter and FRILUFTS each tinue to do so. On the other hand, we each headed by a Group Vice Presi- have an appointed employee who see the effects of a further consolida- dent, while the common services (IT, takes responsibility for matters of tion of our supplier-base and the intro- Finance/HR, Logistics, and CSR Corporate Social Responsibility to duction of a more stringent supplier /Compliance) are organized as central at least 50 per cent of their time. management system under the auspic- service units and report directly to The managers directly report to the es of our Social Compliance Guideline. the Group CEO. No major operational Group’s Chief Sustainability Officer. From a management perspective, changes affecting the Sustainability During 2017, we focused on the inte- we still consider climate change and /Compliance Department in 2017. gration of Globetrotter Ausrüstung the associated extreme and unpredict- Fenix Outdoor International ac- and the improvement of our social com- able weather as a strategic risk and a quired two new entities last year: the pliance system. We updated the social priority. While everyone seems to be Korean distribution arm Alpen (Global compliance guidelines, and strength- talking about climate mitigation and Sales) and the Danish retail entity ened the partnership with Elevate. ‘a path to a rise of maximum two Friluftsland A/S (Frilufts Retail Several training sessions were held for degrees’ in average temperature, little Europe). They were integrated through CSR managers, purchasers and pro- seems to have happened in concrete various measures, such as the issuing duction responsible. We conducted so- terms at the political level and there of a Korean version of the Fenix Way, cial compliance audits at our own fa- is a similar lack of urgency when it and the development of a Danish cilities and production sites and were comes to public opinion. Discussions ‘Friluftsland Way’ as documented audited by the Fair Labor Associa- still circle around what to do rather foundations for ethical and sustaina- tion in preparation for the accredita- than doing something that has a truly ble business. tion of our social compliance system. positive long-term impact. ► 4 CSR 2017 FENIX OUTDOOR INTERNATIONAL AG CSR_2017_1803122.indd 4 2018-03-23 11:07 ► CSR 2017 FENIX OUTDOOR INTERNATIONAL AG 5 CSR_2017_1803122.indd 5 2018-03-23 11:07 ► Communication of the sustainability implementation plans. Responsibilities in the Sustainable Apparel Coalition. strategy, goals and current develop- have been assigned and implemen- We have continued to rollout the Higg ments is an ongoing process at Fenix tation deadlines have been set. To co- Index suite and engaged with our re- Outdoor. Twice a year, during the kick- ordinate these efforts effectively, all tail business in the digital identity off meetings for each season, the Chief brands were asked to fill in a project pilot project. We are also pilot-testing Sustainability Officer (CSO) updates plan and submit it for approval to the the product module, which allows for the Group on progress towards our sus- CSO. The respective plans are a Life Cycle Assessment (LCA) of the tainability goals. On emerging issues, frequently up-dated and presented to products. The update of the Higg we deliver information on an ad-hoc the Group. Index suite has also led to us revisit- basis directly to affected staff members. ing our information and maintenance Other means of corporate communi- Sustainability program structure. cation are general e-mails and the use and partnership As a member of the Fair Labor of intranet sites. In 2017 we uploaded Over the past few years we have built Association (FLA) we have continued an introduction video on the intranet new partnerships and reinforced ex- to develop our social compliance gov- to educate new employees on the isting relationships, and we did not ernance. We are committed to fair Fenix Way and the compliance sys- change our network in 2017. Fenix labor conditions and we support the tem. We held regular CSR and Social Outdoor has been a reliable and con- concept of a living wage. In 2017 we Compliance meetings and will contin- stant signatory to and supporter of the audited all of our own production sites ue to do so in 2018. In addition, we in- UN Global Compact since 2012 and is under the FLA procedures and the tend to hold top management round- committed to supporting the Swedish FLA audited our headquarters in the table events as regular Sustainability and Nordic Network organizations.