32
SOCIAL REPORT 2016
SOCIAL REPORT 2016
ABOUT ENGELBERT STRAUSSFacts & figures 2
Product range 3
SUSTAINABILITYAreas of emphasis, organisation & management 4
PRODUCTIONProduction countries 6
Production cycle & purchasing criteria 8
Selection & further development of production partners 10
MONITORINGengelbert strauss Code of Conduct 12
Audit results 2016 14
China 17
Bangladesch 18
Vietnam 19
Turkey 20
Romania 21
Progress 2014–2016 22
OBJECTIVES & ACHIEVEMENTS 24
DIALOGUE WITH STAKEHOLDERS 25
SUSTAINABILITY ACTIVITY HIGHLIGHTS IN 2016
Fair Wear Foundation membership 26
Cotton made in Africa 27
engelbert strauss colleagues in Laos 28
Climate-neutral parcel delivery 29
Front cover: Nguyên Thi Thuy und Chu Thi Kim Liên sew together the individual parts of a pair of e.s.motion 2020 trousers. engelbert strauss has been working with this production partner in Vietnam for many years.
CONTENTS
KAPITEL 1
Most producers of engelbert strauss products have been our part-
ners for many years. As a family business, it is particularly important
to us to take responsibility for the employees involved in the manu-
facture of our products. With this report, we would like to give you an
insight into the effort we put in to creating a good working environ-
ment in the production operation and what we have already achieved.
Our continuous commitment over the years is proving successful,
with obvious improvements in working conditions for production
staff. This progress is reflected in the audit results: at all partner
businesses where a repeat audit was conducted, positive develop-
ments were seen compared to previous years. This shows us that we
DEAR READER,
are on the right path in our collaboration with our production partners.
The individual results, challenges and achievements are presented on
the following pages.
Joining Fair Wear Foundation in 2016 was an important step on our
journey. We are committed to working with our new partner to achieve
fair working conditions and transparency, taking a more targeted and
intensive approach than ever before.
Yours, the Strauss familyNorbert Strauss with wife Gerlinde and their
two sons Steffen and Henning
2 ABOUT ENGELBERT STRAUSS
CLIMATE-FRIENDLY BUILDINGS:
All our company buildings are completely powered by renewables.
We have installed photovoltaic systems on the roofs of several of our
buildings and workwearstores®. Since 2016, we have obtained the elec-
tric power needed beyond this supply from renewable forms of energy.
Additionally, geothermal energy is used to provide climate-neutral
heating on our new company campus at the site in Biebergemünd.
FACTS & FIGURES
HEAD OFFICE:
BIEBERGEMÜND/FRANKFURT AM MAIN, GERMANY
ESTABLISHED:
1948
EMPLOYEES:
ABOUT 1,200
SALES CHANNELS:
ONLINE SHOPCATALOGUE OWN STORES
CUSTOMERS:
BUSINESS CUSTOMERS FROM THE SKILLED TRADES, INDUSTRY AND THE SERVICE SECTORS, PLUS PRIVATE CUSTOMERSBased on the technical quality and sporty character,
our products are also increasingly worn outside of the
world of work.
OUR PRODUCTS:
WORKWEAR AND PERSONAL PROTECTION ITEMS AS WELL AS RANGE SUPPLEMENTING PRODUCTS
MANAGEMENT:
NORBERT, STEFFEN AND HENNING STRAUSS – the company was originally founded by
father and grandfather Engelbert Strauss
LOCATIONS:
WORKWEARSTORES® IN BIEBERGEMÜND (FRANKFURT), HOCKENHEIM (MANNHEIM), BERGKIRCHEN (MUNICH) ANDOBERHAUSEN (DÜSSELDORF),as well as nine wholly-owned national subsidiaries in Europe.
CAMPUS
WORKWEARSTORE®
ATRIUM & LOGISTICS
3ABOUT ENGELBERT STRAUSS
PRODUCT RANGE
FOOTWEAR• A large selection of shoe ranges for
every requirement.
• Safety shoes for safety classes S1-S5 and
work shoes for various areas – engelbert strauss
has the right shoe whatever the job.
CLOTHING• Clothing systems designed for the requirements
of the respective industry sector.
• Based on the modular system, we constantly
develop new products to match every taste,
designed for different areas of use.
PERSONALPROTECTION ITEMS• A large variety of protective products
for our customers’ personal safety.
• We offer a particularly extensive range
of work gloves.
Safety shoes, workwear, personal protection items – these product segments, as well as supplementary office supplies, tools and equipment, provide our customers from the
skilled trades, industry and the service sectors with everything they need for their daily work.
A comprehensive range of never-out-of-stock items makes up over 80 percent of our products. In addition to this, engelbert strauss creates new products twice a year: for spring/summer and for autumn/winter. The focus of our new product developments is on safety, functionality and design.
4 SUSTAINABILITY
You will find much more information on our commitment at: engelbert-strauss.de/sustainability
HENNING AND STEFFEN STRAUSS JOINT CHIEF EXECUTIVES AT E .S .
„ The emphasis of our commitment to sustainable
development is on our products and their production,
the environment and society. Sustainability manage
ment is based in the Purchasing and Product Develop
ment departments, which report directly to the senior
management team. This is where new production partners are selected, pro
ducts developed and tested in tandem with them and purchasing decisions taken.
The important area of sustainability is thus directly linked to relevant processes.
We have now strengthened the sustainability team by adding a further post: in
addition to Friederike Hoppe, Victoria Lauer has also been helping us manage
sustainability since October 2016.
Key areas of our work include promoting social and environmental standards in
the production process, enhancing sustainability in relation to our products and
coordinating and communicating our sustainability activities.“
PRODUCTIONWorking in partnership
A humane working environment at the production sites, as well as a considerate approach to nature, are fundamental
requirements for us in the manufacture of our products. This social report provides an insight into what we do to
ensure implementation of these requirements.
PRODUCTSHighest quality standards
In addition to function and design, our understanding of product quality includes aspects of safety, environmental
compatibility and fairness. As part of the continuous improvement of our products we also search for materials produced in a more sustainable way.
SUSTAINABILITY: AREAS OF EMPHASIS, ORGANISATION & MANAGEMENT
For us sustainability means bringing social, ecological and economic aspects into line with each other. We take responsibility not only for our business activities,
but also for the people and the environment involved.
By becoming a Fair Wear Foundation
(FWF) member, we are demonstrating our
commitment to promoting good work-
ing conditions in production. FWF is an
independent, non-profit organisation that
works with companies and production
sites to improve working conditions in the
textile industry. engelbert strauss has
been a member since the end of 2016.
5SUSTAINABILITY
SUSTAINABILITY
MANAGEMENT
PURCHASING
PRODUCT DEVELOPMENT
LOGISTICS
MARKETING
SALES
HUMAN RESOURCESPR
FRIEDERIKE HOPPE AND VICTORIA LAUER RESPONSIBLE FOR SUSTAINABIL ITY AT E .S .
„ In order to ensure ever increasing integration of social and ecological aspects into our products and
their production, we consult closely with our colleagues from Purchasing and Product Development. We
are also in direct contact with our production partners. We are also in direct contact with our production
partners and maintain frequent dialogue with other departments. The open interaction, flat hierarchies
and fast decisionmaking at the company contribute greatly to the constructive collaboration.
We now have a new colleague in our team: Victoria Lauer. The aim of her first project was to further strengthen interaction with
other departments, our customers and interested parties. We want them all to receive uptodate, comprehensive information on
the company’s sustainability activities. At the same time, their feedback is very important to us, as it lets us know in which areas
we need to intensify our efforts. Sustainability is therefore also an important topic in numerous meetings and training sessions on
offer. Three years ago, for example, we successfully began holding workshops for customer service staff on engelbert strauss’s
commitment in this area and have continued running these ever since. In these sessions, the employees take part in lively dis
cussions on how we can improve even further. By conducting an employee survey, we were also able to uncover some interesting
ideas on how our work might be developed, many of which we have already implemented.“
ENVIRONMENTEnvironmental awareness
in all company departments
Step by step we promote new environmentally sustainable developments and ideas, from the careful selection of the
raw materials to the product manufacturing process, through to logistics and the disposal of packing materials.
SOCIETYCommitment locally and worldwide
Above and beyond our entrepreneurial activities, we seek to make a useful contribution to society.
The focus of our social commitment is on educational projects in developing and emerging countries.
GERMANY11 SITES
PORTUGAL2 SITES
TURKEY9 SITES
BULGARIA2 SITES
HUNGARY1 SITE MOLDAVIA
2 SITES
BOSNIA AND HERZEGOVINA1 SITE ITALY
7 SITES
SLOVAKIA3 SITES
ZIMBABWE1 SITE
TUNISIA3 SITES
BELGIUM1 SITE
LATVIA2 SITES
ALBANIA1 SITE
ROMANIA3 SITES
POLAND2 SITES
LUXEMBOURG1 SITE
6 PRODUCTION
WHERE ARE THE PRODUCTS MADE?
We currently make our products in 31 countries around the world
– in Europe, Asia and Africa. The largest proportion is produced
at partner businesses in Asia. Well over half of engelbert strauss
workwear is made in Laos, Bangladesh and Vietnam. Some of
the production sites in these countries produce exclusively for
engelbert strauss. In addition to these, China, Turkey and Italy are
among the main locations.
WHAT DOES THIS SOCIAL REPORT COVER?
The present report describes our work and commitment in the produc-
tion countries during the 2016 business year. Of particular importance
in this regard are the sewing operations, as this is both where the most
people are employed and where the most manual labour is carried out.
At other stages of the manufacturing process, yarn or fabric produc-
tion, for example, automation has now become widely accepted.
WHAT DOES THE MAP SHOW?
The main part of the production process takes place in the highlighted countries – this is
where the individual materials are combined to create finished garments. There is, howev-
er, more to this than first meets the eye. Our products consist of all kinds of components,
such as fabrics, buttons and zips. Our trousers e.s.motion 2020, for example, are made up of
around 80 individual parts. These first have to be produced before they ultimately reach the
sewing operation. The production chain begins with the processing of the raw materials. In
the case of these trousers, for example, cotton and polyester are made into yarns and fab-
rics. The sewing operation then combines all the components to make the finished product.
PRODUCTION COUNTRIES
PAKISTAN12 SITES
INDIA2 SITES
BANGLADESH14 SITES
MYANMAR1 SITE
CHINA35 SITES
VIETNAM7 SITES
MALAYSIA2 SITES
LAOS1 SITE
TAIWAN1 SITE
SOUTH KOREA1 SITE
PHILIPPINES1 SITE
THAILAND2 SITES
INDONESIA1 SITE
SRI LANKA3 SITES
7PRODUCTION
WHY DOES ENGELBERT STRAUSS MAKE ITS PRODUCTS
PRIMARILY IN ASIA?
The global focus of clothing production has for many years now been
in Asia. Many production companies there have developed specific ex-
pertise and special know-how – and around them the infrastructures
required for manufacturing. Based on their particular specialisation, we
work with partners from various countries. Some production plants are
located in developing and emerging countries, where social and environ-
mental standards are not yet as developed as, for example, in Western
Europe. Within these businesses we influence the production conditions
and our production partners’ social commitment and ensure through
our work that local development is significantly stimulated.
PRODUCTION PERCENTAGES PER CONTINENT:
(based on purchasing volumes)
DOES ENGELBERT STRAUSS ALSO HAVE
ITS OWN PRODUCTION SITES?
Most engelbert strauss products are made by production partners with
whom we have long-standing business relationships. Production planning
takes place in direct consultation with engelbert strauss in Biebergemünd,
Germany. We do not, however, have any production sites of our own.
A workforce of around 10,000 is employed by our largest production partners to manufacture engelbert strauss work-wear. Through a long-term, steady collaboration we facilitate secure em-ployment for these people.
Number of production sites as of: 31.12.2016
AFRICA 3 %
EUROPE 11 %
OTHER COUNTRIES
IN ASIA 32 %
LAOS 14 %
VIETNAM 14 %
BANGLADESH 26 %
8
HOW LONG HAS ENGELBERT STRAUSS BEEN WORKING
WITH ITS PRODUCTION PARTNERS?
We have been working with around 70 percent of our partners for over five
years and with almost 30 percent of these partners for as long as ten years.
Continuity is also reflected in the fact that for many years around 80 per-
cent of our clothing and footwear range has remained largely unchanged.
We merely optimise small details in the design or functionality. In addition to
this permanent (never out of stock) range, we bring out new products twice a
year for spring/summer and autumn/winter.
Product adaptation
STRATEGY, DESIGN AND DEVELOPMENT PRODUCTION CAPACITY AND PRODUCTION PLANNING
KICK-OFF-MEETING
SIMPLIF IED PRODUCTION CYCLE, USING A PAIR OF TROUSERS AS AN EXAMPLE:
Raw materials production
PRODUCTION
APPROVAL
08
2016 2017
09 10 11 12 01 02
Tests and certification
Definition of materials + ingredients
Sample production
Colour concept
Sketches + cut development
Agreement with production partner
Production of photo-shoot sample
Product presentation
DesignMaterialColours
PRODUCTION CYCLE & PURCHASING CRITERIA
The Strauss family and the engelbert strauss company have a bond based on trust and years of collaboration with many of our production partners. The ‘partnership’ aspect is very
important to us, and it pays off in consistent quality and a good working environment.
PRODUCTION
9
PRODUCTION LOGISTICS AND SALES
Shipping from country of production
Delivery to end customers
03 04 05 06 07 08 09
Manufacture
Incoming goods inspection
Autumn/winter 2017 catalogue launch
HOW ARE PRICES SET?
Whenever we develop new products, we give our partner precise specifica-
tions with regard to design, material and function. Based on this, the partner
proposes a price. If this does not seem reasonable to us, we jointly seek a
solution in order to find a fair price for both parties.
AND HOW DOES ENGELBERT STRAUSS SELECT
NEW SUPPLIERS?
Quality, price, experience, reliability and sustainability – these are the most
important criteria for us in deciding whether we want to work with a sup-
plier. In relation to sustainability this means: if a potential manufacturer
does not agree with our requirements in terms of social and environmental
standards or makes no endeavours towards these goals, we abstain from
any collaboration.
The decision in favour of or against a potential supplier or in favour of/
against commissioning production jobs is taken by the Purchasing depart-
ment, involving the purchasing manager, buyers, product developers and
the sustainability team.
WHAT INFLUENCE DO LONG-TERM COLLABORATION AND
LONG PRODUCT LIFE CYCLES HAVE ON SOCIAL STANDARDS?
For our production partners they mean greater stability, planning certainty
and trust. As production processes and working hours can be planned fur-
ther ahead, overtime can also be more easily avoided. What’s more, the vi-
sion of a shared future is an incentive for the businesses to commit to good,
humane working conditions in the production facilities and to environmen-
tal sustainability. Such ongoing collaboration enables us to exert a positive
influence on the working environment in the production operation over the
medium and long term as well.
TALKING OF PRODUCTION PLANNING, HOW MUCH TIME IS
THEN LEFT FOR THE PRODUCTION PROCESS ITSELF?
Getting from the initial idea to the finished product being in our warehouse
and ready to order takes around a year. When we give our partners the pro-
duction approval and place our orders with them, they still have around four to
six months to make the actual products. If there are any national public holi-
days during this time – such as Chinese New Year, or Eid wherever Islamic
customs are observed – we place our orders earlier to take account of this.
PRODUCTION
10
SELECTION & FURTHER DEVELOPMENT OF PRODUCTION PARTNERS
We impose high standards on our production partners in terms of social standards and environmental protection. To implement this in every aspect is not easy for all of them.
We therefore choose new business partners carefully and assist existing ones in their further development in line with our requirements.
SELF-ASSESSMENTEvery production site has to fill out a self-assessment
form, which provides us with valuable information
about the production conditions. At the same time,
it highlights to the business the aspects of working
conditions and environmental protection that are im-
portant to us. We also take into account the results of
reviews that have been made of the business in the
past. These include, for instance, those of organisa-
tions or standards such as SA8000, FWF, BSCI, WRAP
and/or Sedex.
ADVANCE VIS ITSVisits to new production sites help us to assess
whether they meet our standards or have the po-
tential to develop to that level.
CODE OF CONDUCTThe basis of collaboration with our production partners is formed by
the requirements set out in our Code of Conduct. We require all our
partners and suppliers to adhere to the Code of Conduct and we ask
them to display it at their production sites so that their employees have
access to it. Since joining Fair Wear Foundation, we also ask our op-
erating businesses to put up notices informing workers how they can
complain if the business fails to adhere to their rights arising from the
Code of Conduct. This enables us to review any complaints raised and
look for solutions in collaboration with the business, potentially other
producers of branded garments and Fair Wear Foundation.
PRODUCTION
11
FOLLOW-UP VIS ITSDepending on the outcome of the audit and to what extent
the production site is showing improvements, we arrange
for the auditors to pay another visit. Our colleagues from
Product Development and Purchasing are also at the pro-
duction sites several times a year. During their visits, they
systematically check whether and to what degree the
previously deficient points have been improved.
At the same time, the follow-up visits give the production
sites the opportunity to show improvements and in the
event of any difficulties to work out solutions together.
SUPPLIER ASSESSMENTIf partners perform well, this has a positive influence on our production
decisions. If they do not adhere to our requirements and show no pro-
gress or will to improve, we sever our relationship. However, this is the
last resort. We much prefer to give our partners opportunities and to
assist them in developing and fulfilling our specifications.
CORRECTIVE ACTION PLANIf during an audit any deviations from the required standards
are identified, the auditors discuss these with the managers
responsible and, if there are any, the workers’ representa-
tives while the audit is still going on. Together we draw up a
binding corrective action plan (CAP). This lists all necessary
improvements and sets out actions and realistic timeframes
for rectifying the deficiencies. We assist the production site in
analysing the reasons for the deviations, make suggestions for
improvements and review implementation of the actions.
AUDITSAudits are conducted to review and rate the extent to which the
production site is adhering to the requirements of the Code of
Conduct. We commission an independent auditing organisation
to carry out these audits.
In the course of their checks, the auditors talk to the local man-
agers responsible, analyse relevant operational documents,
inspect the entire production plant and conduct confidential
discussions with the employees and their representatives.
At least one member of the audit team always speaks the local
language and at least one is a certified SA8000 advanced lead
auditor. We generally announce the audit visits in advance. This
ensures that everyone with relevant responsibility is present.
The costs for all audits and follow-up visits to the site are borne
by engelbert strauss.
In these audits, we make no distinction between production
sites with which we work directly and sites at which the man-
ufacturing is performed indirectly via agencies. In the case of
the latter, we are only able to influence the production process
to a limited degree. Nevertheless, we believe it is important to
work on enhancing social and environmental standards as far
as possible with these businesses as well.
PRODUCTION
12 MONITORING
ENGELBERT STRAUSS CODE OF CONDUCT
Our requirements in respect of appropriate working conditions and protection of the environment in the production facilities are summarised in our Code of Conduct for suppliers.
The code forms the basis for our collaboration with our production partners.
Our Code of Conduct is based on the conventions of the International Labour Organization (ILO), the United Nations Universal Declaration of Human Rights (UDHR), the Global Compact, the OECD Guidelines for Multinational Enterprises, and internationally recognised environmental standards. In terms of content,
our Code of Conduct is in line with the strict Fair Wear Foundation Code of Labour Practices.
MANAGEMENT PRACTICE
It is expected of every production partner that fulfilment of the Code of Con-
duct and the statutory provisions is implemented through systematic man-
agement practices. This includes all employees being informed of all rights
and obligations arising from the code. If the standards have not yet been
achieved, the production partner has an obligation to define corrective ac-
tions and to implement these within a reasonable timeframe. All employees
must be given a written contract of employment that sets out all duties pur-
suant to labour and social welfare legislation. In addition, engelbert strauss
does not tolerate any form of corruption or bribery.
REASONABLE HOURS OF WORK
Working hours must at least meet the requirements of the law. Regular
working hours may not exceed 48 per week. Overtime must be voluntary.
The maximum amount of overtime permitted per week is twelve hours. The
employee must be granted at least one day off per week. (ILO Conventions 1,
14 and ILO Recommendation 116 apply.)13
FAIR COMPENSATION
The compensation paid for regular working hours must reach the applica-
ble statutory minimum wage and be sufficient to cover the cost of living and
to have money left over for discretionary spending. The wage paid should
therefore be a living wage. All overtime worked must be remunerated at
the statutory additional rate and all statutory wage components must be
granted. If there are any deductions from wages, these must conform to the
statutory regulations. Employees must receive written and understandable
information about the precise composition of their remuneration for each
accounting period. (ILO Conventions 26, 102 and 131 apply.)
PREVENTION OF CHILD LABOUR
No children may be employed under the age of 15 or who have not complet-
ed statutory compulsory education. In relation to young workers, adherence
to youth protection laws must be ensured. The work entrusted to them must
not constitute a danger to health, safety or morals. Young workers should be
allowed to take part in vocational training or enabled to participate in train-
ing programmes. It must be ensured that no form of slavery or trafficking
of children takes place. (ILO Conventions 79, 142, 182 and ILO Recommen-
dation 146 apply.)
THE KEY POINTS OF OUR CODE OF CONDUCT:
13MONITORING
EMPLOYMENT IS FREELY CHOSEN
The working relationship must be voluntary. This also includes all employees
being allowed to leave the production facility site at the end of their regular
working hours. All forms of illegal disciplinary measures are prohibited. (ILO
Conventions 26 and 105 apply.)
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAININGAll employees are to be given the statutory right to form or join trade unions.
The right to collective bargaining is to be recognised. Where legislation relat-
ing to union rights is limited, employees should be allowed to find an alterna-
tive form of representation of employees’ interests. It is necessary to ensure
that employee representatives are not exposed to harassment, discrimination,
intimidation or reprisal. They must have free access to the workplace, in ac-
cordance with the legal provisions. (ILO Conventions 87, 98, 135, 154 and ILO
Recommendation 143 apply.)
NO DISCRIMINATION
Unequal treatment based on personal or group-specific characteristics such
as ethnic or national origin, skin colour, language, political or religious be-
liefs, sexual orientation, gender, age, family responsibilities, marital status,
dis ability or membership of a labour organisation or union is not permitted.
(ILO Conventions 100, 111, 143, 158, 159 and 183 apply.)
OCCUPATIONAL HEALTH AND SAFETY
Employees must be provided with healthy and safe workplaces. The best
possible solutions for industry-specific occupational health and safety
must be sought. Preventive measures must be implemented at least in ac-
cordance with the legal requirements and include building safety and sta-
bility, fire safety, machine safety, chemical safety and emergency medical
care. (ILO Convention 155 and ILO Recommendation 164 apply.)
ENVIRONMENTAL PROTECTION
The company is required to minimise the impact of production on the envi-
ronment. It must adhere to all statutory regulations and/or internationally
established standards or industrial standards relating to environmental
protection in commercial operations. Operational environmental protec-
tion demands inter alia appropriate handling and disposal of environmen-
tally hazardous substances, waste and water, the reduction of emissions
and water consumption and an increase in energy efficiency.
You will find the complete Code of Conduct, which is binding for our production partners, at:
engelbert-strauss.de/sustainability
14
For each criterion the auditors rank the individual sites
on a scale of 1 to 10, depending on how well a site is
implementing the Code of Conduct’s requirements. If a
site fulfils every requirement, it scores at least 8 points.
If it shows an extraordinary level of commitment to its
employees, their families, society and the environment,
which goes well beyond the required standards, it is pos-
sible for it to score 9 or 10 points.
In essence the auditors examine to what extent process-
es within the site are firmly established in its systems
such that any deviations are avoided. For the ‘Protection
of children and minors’ criterion the auditors evaluate,
for example, the production site’s control mechanisms
for ruling out child labour. In other words, they check
how the site ensures that everyone employed there is
aged at least 15 – or older if so prescribed by the local
legislation. If, in addition, the site does work in support
of younger workers’ training, this has a positive effect on
the rating. For the ‘Employment is freely chosen’ criteri-
on the auditors assess whether the voluntary nature of
the working relationship is guaranteed in every aspect.
This means that forced labour is ruled out, the employ-
ees doing overtime are doing so of their own accord and
they are allowed to leave the production facility site at
the end of their regular working hours.
MANAGEMENT PRACTICE
WORKING HOURS
COMPENSATION
PROTECTION OF CHILDREN AND MINORS
EMPLOYMENT IS FREELY CHOSEN
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
DISCRIMINATION
OCCUPATIONAL HEALTH AND SAFETY
ENVIRONMENT
THE NINE ASSESSMENT CRITERIA:
MONITORING
AUDIT RESULTS 2016The following pages show where our production partners implement the required social
standards well, or even exceed them, and in which areas there is still need for improvement. External, independent auditors commissioned by us thoroughly inspected the
production sites and assessed them on the basis of nine criteria.
15
In 2016, we had 14 audits carried out at our production partners’
premises. On a further four follow-up visits, either our auditors or
our staff reviewed the progress made compared to the audit results
from the previous year. Thus at the sites that together make three
quarters of our product range at least one audit was conducted in
the last three years.
On three other visits to prospective new production partners, the
auditors checked whether the businesses fulfil our requirements
or have the potential to do so in time.
The chart shows the total points that the production sites scored
in the audits. The overall result shows that 40 percent of the sites
were working fully or largely in compliance with the requirements
of the Code of Conduct. None of the production sites were classified
overall as giving cause for concern, while some improvements were
recommended for 53 percent of the other sites checked or deemed
necessary in the case of seven percent. The audit results of 2016
did not give cause for us to terminate our business relationship
with any supplier. All in all, our partners worked with us very well
whenever there was a need to rectify any deviations from the Code
of Conduct that we had identified.
Seven percent of the audits were conducted jointly with other
brand-name companies that have products manufactured at the
same production sites. The aim of this collaboration is to increase
the influence on the individual suppliers and to utilise resources
efficiently.
TOTAL POINTS SCORED OF THE PRODUCTION SITES AUDITED IN 2016
MONITORING
10 Outstanding level of commitment
9 Approaching a level of commitment above the specifications
8 Compliant with the Code of Conduct through systematic management
7 Largely compliant with the Code of Conduct
6 Improvements recommended
5 Improvements needed, though in non-critical areas
4 Improvements needed
3 Cause for concern
2 Cause for great concern
1 Not acceptable
13 % achieved
8 points in total
27 % achieved
7 points in total
53 % achieved
6 points in total
7 % achieved
5 points in total
16
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Ten of the audits in 2016 were repeat audits. That means those
businesses had already been audited by us within the last three
years. The auditors were now reviewing how much the businesses
had improved since then. The graphic below represents the aver-
age results per assessment criterion – from ‘Management Prac-
tice’ to ‘Environment’.
MONITORING
PREVIOUS AUDIT RESULT (2013–2015) LATEST AUDIT RESULT (2016)
5 6 5 6 5 6 6 7 5 6
100 % compliance with the Code of Conduct
The audited businesses showed positive developments of at least one point on all
assessment criteria compared to the previous results. As in prior years, the audi-
tors rated the measures taken by the businesses to prevent child labour as being at
a good level, largely compliant with the Code of Conduct. The businesses at which
repeat audits were carried out are located in China, Bangladesh, Vietnam and Tur-
key. You will find the individual results for these countries on the following pages.
7 7 6 7 6 8 6 7
COMPARISON OF 2016 AUDIT RESULTS WITH THOSE OF PAST YEARS
17
100 % compliance with the Code of Conduct
In 2016, we conducted seven audits in China. The businesses that together make over 90 percent
of the engelbert strauss products in the country have thus been audited by us at least once in the
last three years.
Five of the audits were repeat audits. Every one of the re-audited businesses showed measurable
improvements compared to the previous results. While the results in earlier years had still been
giving cause for concern in some isolated cases, most businesses now ranked as ‘largely’ or ‘fully
compliant with the Code of Conduct’.
The auditors still identified potential for development in respect of management practices, work-
ing hours, remuneration and occupational health and safety. Points were deducted for some busi-
nesses which initially attempted to present the auditors with falsified documents. In a few cases,
the timekeeping records were also incomplete, which made it difficult to check the actual hours
worked and the level of remuneration.
Too much overtime was being worked at most of the production sites. While the employees were
requesting this work and being paid for it, the overtime hours were nevertheless above the pre-
scribed limit in China of 36 hours per month. Points were also lost in respect of employee remu-
neration. The level of pay was always equal to or above the statutory minimum wage and generally
well above it. However, due to the incomplete documentation it could not be assumed everywhere
that the overtime had been correctly paid.
There were also deviations from the required standards when it came to occupational health and
safety. The reason for this in some businesses was inadequate training on the safe handling of
chemicals. All audited businesses agreed with the points for improvement discussed and were
busy implementing them at this report’s time of writing. Left: The worker prepares the sole for gluing to the shoe’s upper.Right: Following the first few steps in the production process, the shoes go through a quality control check.
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18
100 % compliance with the Code of Conduct
In 2016, we audited six production sites in Bangladesh. The auditors also made an advance visit
to another production site due to start manufacturing for us in order to check the extent to which
it meets our requirements. Twelve of the 14 businesses that we work with have thus been audited
by us at least once in the last three years.
The auditors certified that the businesses were implementing our Code of Conduct consistently
well. Local management attaches great importance to social standards and, as a result, most
assessments were at the level of 7 or 8 points.
A need for improvement was identified in respect of working hours. At two-thirds of the audited
businesses, it was evident that there had been too much overtime in some individual months.
While this was in line with the workers’ wishes, it was nevertheless above the number of hours
allowed in our Code of Conduct. Working in conjunction with the production partners, we are now
investigating the reasons for the high level of overtime in order to be able to avoid this in the fu-
ture. One business has already adjusted its production planning to a reduced number of working
hours.
The auditors rated the level of pay at half of the businesses as above average. Particularly at the
businesses that manufacture in large quantities for us in Bangladesh, the wages were appreci-
ably higher than the usual pay level in the sector in the country. At the other businesses, too, the
wages were clearly above the statutory minimum wage. They are supplemented by a multitude of
benefits, such as free accommodation in dormitories, free transport to and from work and heavily
subsidised meals. Several businesses also have a medical facility or company clinic and a well-
run kindergarten.
In addition to this, all audited businesses are signed up to the Bangladesh Accord on Fire and
Building Safety and are committed to working hard on these aspects.Left: Workers in Bangladesh on their lunch break.Right: The garments made here are engelbert strauss T-shirts.
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MONITORING
19
We conducted two audits in Vietnam in 2016. Six of the seven businesses have thus been audit-
ed at least once in the last three years.
Overall, both of the businesses audited by us showed clear improvements compared to audits in
previous years. Accordingly, most aspects previously identified as giving cause for concern have
been rectified. The auditors still found deviations from our Code of Conduct in relation to man-
agement practice, occupational health and safety and operational environmental protection.
Only minor improvements were recommended for one of the production sites. These included,
for example, further increasing the efficiency of training on the safe handling of chemicals. We
have a long-standing cooperation with this business.
At the second business, however, with whom we have only been cooperating for a short
time, the auditors still found knowledge gaps in the management of social and environmen-
tal standards. This was evident in respect of a number of aspects, including ensuring a safe
working environment. For example, the business had not yet fully analysed which risks em-
ployees might be exposed to and how these could be reduced. Accordingly, there has been a
lack of action in these areas.
We are working together with another brand-name manufacturer for whom the business also
produces goods to help the production operation implement the improvements still needed.
This support takes the form of discussions with management as well as regular follow-up vis-
its to the production sites during which we assess and discuss the progress made and advise
on what still needs to be done.
Left: Staff check the leather for the shoe production process.Right: Final quality checks are made.
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100 % compliance with the Code of Conduct
20
In order to look closely at the progress since the previous year’s audit, we had one production site
in Turkey visited by external auditors in 2016. This means over 90 percent of our Turkish produc-
tion operation has been audited by us at least once in the past three years.
We were delighted to see that the audited business had gone up on all criteria by between two and
four rating points, i.e. by an appreciable amount. While management still lacked basic awareness
of the importance of social standards a year ago, significantly greater relevance was now being
attached to them. Management was also much better informed on how to implement them and
the business thus showed that it was well on the way to reaching the standards required. For ex-
ample, it has managed to reduce overtime significantly. Any overtime that still arises is done vol-
untarily. The production site has also been able to establish new methods for assisting workers in
the event of any problems related to any aspect of their employment. These include, for example,
freely elected workers’ representatives who are known to the staff as well as suggestion boxes for
anonymous complaints.
The auditors also observed numerous improvements in terms of occupational health and safety.
These included, for instance, improved fire safety precautions and better general hygiene in the
operation. However, there were also some deficiencies that had not been rectified: for exam-
ple, there was still a lack of training on aspects of workplace safety, such as the safe handling
of chemicals. The steps required in the further development of the business were discussed in
depth during the audit and we are now keeping track of the company’s progress in these areas.
Left: The employee packs the finished products.Right: The worker checks the knitted fabric.
TURKEY6 7 6 56 8 88 7
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In Romania, the auditors checked a production business with which we had not previously
worked. The advance visit showed that the business fully fulfilled our Code of Conduct on almost
all criteria.
The only notable deviations were in respect of occupational health and safety, although there too
the overall rating was good. The production facilities proved to be very safe and tidy. The auditors
also gave an overall good rating to the handling of chemicals. They did, however, recommend
a few improvements. These included equipping all workers with respirator masks appropriate
to their work. Local management indicated their willingness to implement these improvements
promptly using the appropriate equipment.
The auditors rated the operational environmental protection as being at an advanced level. In
particular, they praised the content and scope of training sessions that teach workers about
environmentally responsible behaviour in the business.
As a result of the all-round satisfactory outcome, we have decided to work with the production
facility in the future.
Left: The scenery near the production site. Right The yellow floor markings show the escape route to the exit.
ROMANIA 7 8 8 68 8 88 9
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22 MONITORING
PROGRESS 2014–2016During every audit, we discuss a series of possible or necessary measures for improvement with the production facility. Over the past few years, our production partners have collaborated well with us when it came to implementing these.
The graphics show the progress made in the period from 2014 to 2016. The greater the number of audits in the respective countries, the more improvements suggested – on average 24 per audit. The graphics show that the
production partners have already implemented most of the measures or are well on the way to doing so.
CHINAA great many of our production partners in China have been audited over the last three years, though some were audited only late in 2016. At the time of the assessment, some measures were therefore still outstanding or only just starting to be implemented. For example, more overtime than allowed was be-ing worked at most Chinese production sites, although with the workers’ agreement. Since the audits, these businesses have set about gradually reducing this. There had also been numerous deviations from our Code of Conduct in relation to occupational health and safety. Following close collaboration and concrete suggestions from the auditors, the production businesses have made significant progress in terms of their knowledge and the measures they are taking with respect to workplace safety.
BANGLADESHWe also had numerous audits conducted at the premises of our production partners in Bangladesh, where implementation of our Code of Conduct has proven to be consistently good. Many of the audits only took place late in 2016, meaning that around half of the improvement measures were still outstanding or in the process of being implemented at the assessment date. As an example, the auditors found fault with the fact that, although there was worker representation in a number of cases, the representatives were not freely elected, and also that too much overtime had been worked in some months. In response, many of the businesses have appointed additional individuals responsible for social standards and carried out internal training sessions. In this way, they have been able to correct most of the deviations from the Code.
PAKISTANThe production sites in Pakistan have so far been able to implement over 80 percent of the improve-ment measures. The majority of businesses were audited three years ago, when the auditors iden-tified a lack of knowledge about the implementation of social and environmental standards among the management team in some of the businesses. Several of them have since set about establishing a management system for fulfilling these standards. The workers are also informed of the contents of the engelbert strauss Code of Conduct and their rights in training sessions.
VIETNAMOver the past few years of collaboration, our production partners in Vietnam have shown clear progress and have also come out with good, above-average results in the audits. Management teams there have demonstrated an advanced level of knowledge of social standards. However, it was noticeable in a few businesses that the workers needed permission from their line managers to leave the building during breaks – this was immediately changed after the audits. The businesses have also been putting on training sessions to provide workers with better information about their rights.
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23MONITORING
LAOSProduction in Laos takes place at one business with which we have worked for many years. It manufactures exclusively for engelbert strauss. The result of the audit in 2014 was pleasing across practically all criteria, with the auditors rating the pay as exemplary, for instance. Nev-ertheless, they criticised the fact that a few workers were doing an excessive amount of over-time. As a result, our partner has altered its processes so that in future it will be better placed to avoid these extra hours of work.
MYANMAROne business was audited in Myanmar in 2015. This showed that there was little knowledge there about social and environmental standards or their implementation. Working closely with the business, which included a visit by engelbert strauss staff, possible ways to improve this were discussed. The subsequent visit by the auditors showed that the business had quickly been able to implement most of the corrective measures. For instance, training sessions were being held to inform the workers of their rights. The measures being taken clearly demons-trate how much the business is committed to its ongoing development.
THAILANDWe audited two businesses in Thailand in 2015. Both were able to implement the agreed meas-ures promptly. Matters attracting particular attention had included the high level of overtime and a deviation in the area of ‘Discrimination’, as not all workers had received the same bonus with their wages. These issues were then jointly discussed and improved by around 90 percent.
SRI LANKAAll of the production sites that we audited in Sri Lanka have implemented over 90 percent of the improvement measures. The suppliers have been very open to pushing ahead with the implemen-tation of the social standards. For example, the auditors had found a discrepancy in regards to the ‘Discrimination’ criterion, as agency workers and permanent staff were not being treated equally. After this deficiency was discussed, the supplier took on some of the agency workers as perma-nent staff and implemented measures to put the remaining agency staff on an equal footing. It also provided training sessions for its workers, informing them of their rights and the com-plaints procedures.
TURKEYOur production partners in Turkey are also showing clear signs of improvement. One current challenge in the country is the employment of Syrian refugees. This also applied to one of our partners. Some of the Syrians employed there did not have valid papers. Working in collaboration with the business, we were able to make sure that all workers obtained official work and resi-dence permits. The audited businesses also showed major advances in the areas of occupational health and safety, such as enhanced fire prevention precautions.
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24 OBJECTIVES & ACHIEVEMENTS
OBJECTIVE DATE ACHIEVEMENT STATUS
The production partners have agreed to both the Code
of Conduct and the engelbert strauss monitoring
programme. The production sites have been disclosed.
ON-GOING Over 90% of our production partners have agreed to both the Code of Conduct
and the engelbert strauss monitoring programme. They have all disclosed
their production sites. Following intensive discussions, we have frequently
been able to convince production partners of the benefits of such collabora-
tion. Unfortunately, in 2016 we again had to part company with a few suppliers,
who declined to agree.
95% of suppliers in high-risk countries* have been audi-
ted pursuant to the engelbert strauss Code of Conduct.
2016 By the end of 2016, half of the production sites in high-risk countries had
been audited in accordance with the engelbert strauss Code of Conduct. They
include the production partners that make up the majority of the production
operation. The audited businesses cover 86% of purchasing volume.
The employees who visit the production sites
are trained on sustainability requirements in the
production operation.
ON-GOING Prior to visiting the production facility, employees are given general
checklists and specific information on issues that need to be checked.
Our sustainability team attended conferences and workshops run by
Fair Wear Foundation and Cotton made in Africa.
All audited suppliers are showing improvements in
relation to the audit results a year ago / are putting
corrective action into practice and have implemented
this systematically.
2016 As in previous years, our production partners worked well with us overall
again in 2016. Most corrective measures were implemented quickly.
Only a few have not yet been completed.
We occasionally collaborate with other selected
manufacturers/traders in our audits.
ON-GOING 7% of the audits and the subsequent monitoring of improvement measures
were carried out in conjunction with other manufacturers. This collaboration
enables us to combine our influence on the production partners and to avoid
duplicate audits.
Membership of Cotton made in Africa is continuing. 2017 In 2017, engelbert strauss continues to support the Cotton made in Africa
initiative with a wide assortment of cotton products.
An engelbert strauss Social Report 2016 is available. 2017 You are holding the third engelbert strauss social report in your hands.
There is internal communication to staff on
sustainability activities.
ON-GOING All employees have been provided with information on current engelbert strauss
sustainability activities – through the e.s. magazine REDWHITE, on noticeboards
and through workshops on sustainability.
The Fair Wear Foundation’s complaints procedure
has been introduced by our production partners.
2017 Upon joining Fair Wear Foundation, we decided to adopt its complaints system
for any problems that arise at our suppliers and committed ourselves in the
event of any complaints to working together to find solutions.
* In determining which countries are high-risk countries, we follow the Fair Wear Foundation’s classification.
This means that all countries outside the EU, as well as Bulgaria and Romania are considered high-risk countries. Switzerland is not included.
OBJECTIVES & ACHIEVEMENTS
25DIALOGUE WITH STAKEHOLDERS
Every day we receive enquiries relating to people and the environment. We keep our
interest groups informed in a number of different ways. Our social report offers cus-
tomers and interested parties an insight into the working conditions in our production
operation. We provide up-to-date information on sustainability at engelbert-strauss.
de/sustainability. In addition, we are in contact with our stakeholders by e-mail and
telephone, in face-to-face meetings, on social media platforms and at trade shows.
Staff in customer service and the workwearstores® are offered workshops where they
are encouraged to engage in open discussions. Information is also available to all
staff in the canteen and in the REDWHITE e.s. magazine.
We cultivate an ongoing dialogue with non-governmental organisations, educational
establishments, test institutes, the political arena, the media and our neighbours to
exchange views both on site and at several events. We also maintain a close dialogue
with other partners, such as Fair Wear Foundation, the Cotton made in Africa initiative
and bluesign technologies.
FREQUENTLY ASKED QUESTIONS
HOW CAN I TELL FROM AN ENGELBERT STRAUSS GARMENT
WHETHER IT HAS BEEN MADE UNDER FAIR CONDITIONS?
We demand high standards in respect of the fair production of our clothing. Not just
for some products, but for every single one. We make no differentiation at all. A good,
humane working environment in the production operations is a basic requirement of
engelbert strauss. Our Code of Conduct specifies what this means in detail. This code is
binding for all our production partners.
WHAT DOES ENGELBERT STRAUSS DO TO ENSURE THAT ALL
THE MATERIALS USED IN ITS PRODUCTS ARE SAFE?
For the materials that go into our products we set high standards. Strict rules therefore
apply at our production sites in relation to harmful substances. In 2013, we also signed
up to the world’s strictest textiles standard and became a bluesign® system partner. Our
objective is to develop products that are fully checked and safe throughout the entire
production process. We consult with our partner bluesign technologies in order to im-
prove the safety of substances that go into our materials.
We look forward to any questions or suggestions
on any aspect of sustainability. Please send them to:
DIALOGUE WITH STAKEHOLDERSOur social interest groups (stakeholders) have diverse wishes and expectations of engelbert strauss.
These include employees, customers, production partners and their staff, non-governmental organisations, the political arena, the media, educational establishments and our neighbours.
IS ANIMAL PROTECTION TAKEN INTO ACCOUNT?
Within the context of our production operation we feel a sense
of responsibility for animal protection. There are therefore
strict rules for our production partners. These include that
the leather they use may only be a by-product from meat
production. Down and merino wool must also be obtained in
an animal-friendly way. We do not use real fur or hair at all.
You can find more on this on the ‘Animal welfare’ page at
engelbert-strauss.de/sustainability.
26 SUSTAINABILITY ACTIVITY HIGHLIGHTS IN 2016
engelbert strauss became a member of Fair Wear Foundation (FWF) in No-
vember 2016. This organisation aims to improve working conditions in the
textile industry. Along with FWF, we are committed to a good working environ-
ment for the people who make engelbert strauss clothing around the world.
WHO IS FAIR WEAR FOUNDATION?
FWF is an independent, non-profit organisation that works with companies
and manufacturers. It carries out regular checks to see how the member
companies implement fair working conditions among their production part-
ners and along the supply chain. These checks also include independent au-
dits in the production facilities. FWF also runs checks on its member com-
panies and assesses to what extent they are working on implementing the
specified requirements. Every year FWF publishes a report on the progress
made by the companies on www.fairwear.org.
WHAT DOES MEMBERSHIP MEAN FOR
ENGELBERT STRAUSS?
Collaboration between engelbert strauss and the production businesses
was already closely geared towards the Fair Wear Foundation standards in
previous years. This is demonstrated by a number of aspects, including the
demands placed on production partners, the company’s own Code of Conduct
and the external audits of working conditions in production facilities.
By having become a member company, engelbert strauss is now commit-
ting itself to implementing the strict FWF labour standards at the production
partners’ businesses and across the supply chain and to further intensify-
ing the efforts to ensure good working conditions in the production opera-
tion. This includes healthy working conditions, a living wage and reasonable
working hours. These requirements are also contained in the company’s
own Code of Conduct.
Being a multi-stakeholder initiative, Fair Wear
Foundation is made up by business associa-
tions, trade unions and non-governmental
organisations. Over 85 brand-name manu-
facturers from 10 European countries are
FWF members. FWF is active in 11 production
countries in Asia, Europe and Africa.
FAIR WEAR FOUNDATION MEMBERSHIP
„We look forward to pursuing our aims of fair working conditions and transparency in conjunction with FWF and other member companies in the future. With this membership we want to focus and intensify our previous commitment to establishing good working environments and further improving these for the people that produce our products worldwide.“
Steffen Strauss, co-chief executive at e.s.
27SUSTAINABILITY ACTIVITY HIGHLIGHTS IN 2016
COTTON MADE IN AFRICA
Cotton made in Africa (CmiA) is the largest initiative working in support of sus-
tainable cotton from Africa. CmiA promotes efficient and more environmentally
friendly cultivation methods to improve the working and living conditions of hun-
dreds of thousands of smallholders in Sub-Saharan Africa. engelbert strauss has
been supporting this initiative since 2013.
WHAT IS THE INITIATIVE ACHIEVING?
Cotton made in Africa counteracts deficits in the cotton-growing sector and is
creating a sustainable basis and transparency for the global textile industry. The
ini tiative is thus helping to create future prospects for millions of people in the
region. The Aid by Trade Foundation, which launched the initiative, is also com-
mitted to environmental and social projects in Africa.
WHAT DO SUCH PROJECTS LOOK LIKE?
One example is the Cotton made in Africa Community Programme initiated in
2015. In 2016, this programme launched a number of new projects to support
women. Women play a key role when it comes to improving living conditions in
rural Africa. Promoting the role of women and their equality with men both in the
field and in everyday life is a core theme of the work done by Cotton made in Af-
rica. Workshops are run in which the participants identify issues that play a role
in the farmers’ everyday life. Training material is developed from this that can be
understood by everyone, including those unable to read. Pictures of everyday, rec-
ognisable scenes from the life of the farmers are designed to raise awareness of
the issue of equal rights.
IN WHAT WAYS DOES ENGELBERT STRAUSS
SUPPORT THE INITIATIVE?
We support the initiative with the sale of numerous colourful T-shirts and long-
sleeve shirts made of cotton. In 2016, we increased our involvement significantly
and offered more than twice as many Cotton made in Africa related products.
Around 25 percent of smallholder cotton
production in Africa is already CmiA-certified.
Through the collaboration with Cotton made in
Africa, 690,000 smallholders in 9 African coun-
tries are able to increase their earnings from
harvesting cotton. If you include their family
members, the initiative reaches over 5.7 million
people. With 280,000 tonnes of CmiA-certified
cotton in 2016, CmiA provides a sustainable
basis for the global textile industry.
28
There has been a close working relationship between engelbert strauss and
the production site in Laos for many years. This site manufactures exclu-
sively for us and is one of the most important locations for the production of
engelbert strauss workwear. On the occasion of the site’s 10th anniversary,
engelbert strauss invited the graduates of the 2013 trainee intake to Asia.
WHAT DID THE GRADUATES EXPERIENCE?
On their way to Laos, the employees stopped off in Bangkok, where they vis-
ited a fabric production facility. At the production site in Laos the focus was
then on the sewing operation and the production of the engelbert strauss
garments. The employees found an opportunity to chat with local colleagues
at the anniversary party, which was staged in traditional format. “We place
great value on training at engelbert strauss. Our students in the dual high-
er education system and also our trainees are given the opportunity to gain
experience abroad. The anniversary celebration in Laos is a good occasion
for them to get to know their colleagues in the production process and learn
about the pathway from raw material to finished product,” says Steffen
Strauss, co-chief executive at e.s.
WHAT SOCIAL SUPPORT DOES ENGELBERT STRAUSS
PROVIDE LOCALLY?
The focus of our social commitment is on educational projects in developing
and emerging countries. For many years now, we have been supporting the
‘Angels for Children’ foundation, which is located not far from our production
site in Laos. A joint educational project now covers a primary and secondary
school where students produce some of the best final exam results in the
country. The employees looked in on the foundation as well during their trip
and formed their own impression of the company’s social commitment.
ENGELBERT STRAUSS COLLEAGUES IN LAOS
engelbert strauss has been producing its workwear in Laos
for over 10 years. Since the beginning of the collaboration,
there has been a close relationship between engelbert
strauss and the proprietor of the production facility near the
capital city, Vientiane. Along with the local partner the com-
pany employs around 2,000 people there, making it one of
the country’s most significant employers.
„If you’ve been there yourself, you get a better understanding of the pro-ducts. And that’s not all. Especially when you’re advising customers, it’s very useful to know exactly how the products are made.“
Kristina Drobot,
Wholesale and Foreign Trade
SUSTAINABILITY ACTIVITY HIGHLIGHTS IN 2016
29
In the third year of our participation in the project, the parcels that
we have sent out in this way have led to around 2,240,000 square
metres of woodland in Malaysia being protected and rehabilitation
planting being undertaken. The total area is equivalent to approxi-
mately 300 football pitches. Since 2014 – the start of our partici-
pation in the project – a total of around 4,900,000 square metres
of forest have been protected. The trees in the project area are
actually some of the tallest in the world. Reaching a height of no
less than 94.1 metres, the world’s tallest tropical tree can be found
in the forest directly adjoining the area.
CLIMATE-NEUTRAL PARCEL DELIVERY
Numerous parcels travel hundreds of kilometres every day to get from our
logistics centres to our customers. Working with the courier company GLS,
we have been sending out parcels on a climate-neutral basis since the
start of 2014.
HOW DOES CLIMATE-NEUTRAL DELIVERY WORK?
GLS’s ThinkGreen initiative calculates the CO2 emissions generated by
sending out the parcel. Based on the amount calculated, we then invest in
a certified climate protection programme in Malaysia via the PrimaKlima
organisation.
This helps reforestation projects that create areas of sustainably managed
woodland. These store carbon dioxide that would otherwise aggravate cli-
mate change. The aim of the project is to restore biodiverse, tropical woods
and counteract deforestation. At the same time, the project is creating nu-
merous jobs in nature conservation, eco-tourism and research for the local
population. The programme is verified in accordance with the established
Verified Carbon Standard.
WHAT DEVELOPMENTS WERE THERE IN 2016?
A serious period of drought during the year proved challenging for the
reforestation programme. There was less rainfall in the early months than
in recent years, so not all freshly planted trees took root. A large number of
workers are currently occupied on-site with protecting the forest area. Many of
the trees have already been replanted and are doing well. Through additional
protective measures it has also been possible to prevent logging and poaching.
SUSTAINABILITY ACTIVITY HIGHLIGHTS IN 2016
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