In a significant move toward improving supply chain transparency and sustainability, Bestseller has published its Supply Chain Due Diligence Report for 2023-24. This annual report outlines the Danish fashion giant’s multi-layered approach to managing human rights, environmental risks, and product safety in its supply chain. Structured according to international standards, including the OECD Due Diligence Guidance, Bestseller’s report details its efforts to mitigate risks, improve worker conditions, and minimize environmental impact across its global supplier network.
The Purpose of the Report
Bestseller’s report, aligned with frameworks like the German Supply Chain Due Diligence Law and the UN Guiding Principles on Business and Human Rights, aims to ensure responsible business conduct. This year’s report focuses on highlighting the company’s commitment to addressing human rights violations and environmental harm. Bestseller hopes that by laying out transparent, detailed findings and frameworks, it can contribute to industry-wide improvements in the apparel and textile sectors.
According to the report, Bestseller’s supply chain management follows five core pillars:
- Embedding Responsible Policies: This involves aligning internal policies with industry standards and laws, ensuring all suppliers adhere to Bestseller’s Code of Conduct.
- Identifying and Assessing Risks: Bestseller regularly conducts comprehensive risk assessments across its suppliers, focusing on human rights and environmental issues.
- Ceasing, Preventing, and Mitigating Risks: By creating proactive strategies, Bestseller aims to address and reduce key risks within its operations.
- Addressing and Remediating Issues: Bestseller’s framework includes grievance mechanisms, worker feedback systems, and remediation steps to rectify issues as they arise.
- Tracking and Transparency: Publishing a public factory list and using data-tracking mechanisms, Bestseller maintains transparency and accountability with stakeholders.
Key Findings and Actions in Bestseller’s Supply Chain
1. Policy Implementation and Supplier Standards
- Bestseller enforces strict onboarding processes, requiring suppliers to sign agreements that include human rights and environmental policies. This applies to factories involved in production, including subcontractors.
- A Supplier Code of Conduct mandates compliance with global labor and environmental standards. Bestseller’s policies address child labor, forced labor, gender-based violence, and environmental hazards.
2. Human Rights Due Diligence
- The report identifies high-priority risks in human rights across countries such as Bangladesh, Cambodia, and Pakistan. These risks include gender-based violence, forced labor, and child labor.
- Bestseller’s tiered approach categorizes suppliers into Tiers 0-4, each with specific monitoring and compliance measures.
- The company actively engages with local unions and organizations to ensure worker rights, including collective bargaining and freedom of association. It uses worker interviews and regular factory audits as part of its Factory Standards Program.
3. Environmental Due Diligence
- Bestseller addresses significant environmental issues like water usage, greenhouse gas emissions, and hazardous chemicals.
- Regions such as Pakistan, Bangladesh, and Myanmar are identified as having high risks in terms of water and chemical waste management. Bestseller’s collaboration with Higg Index tools like the Higg Facility Environment Module (FEM) ensures consistent environmental performance measurement.
- Bestseller also partners with local organizations for sustainability practices, especially in Bangladesh, where the focus includes effluent treatment training and water resource management.
4. Product Safety and Chemical Management
- Bestseller’s Product Safety Manual requires risk assessments for all products, with additional testing protocols for high-risk chemicals.
- Bestseller mandates suppliers to adhere to a restricted substances list (RSL) to ensure materials meet strict safety standards, particularly regarding volatile organic compounds and toxic chemical substitutes.
Mitigation Strategies and Remediation
Bestseller has structured its mitigation strategies based on ongoing risk assessments and third-party evaluations. The company collaborates with industry stakeholders like the Ethical Trading Initiative (ETI) and the International Labour Organization (ILO) to align its policies with global standards. In cases of identified human rights violations, Bestseller employs corrective action plans and supplier training. Environmental risks are managed through wastewater management protocols and requirements for factories to adopt clean energy practices.
Tracking and Transparency
Bestseller publishes a public factory list bi-monthly, covering its Tier 0 and Tier 1 suppliers, which account for over 90% of its production volume. The company encourages full disclosure from suppliers and emphasizes the importance of transparency for all supply chain levels. This approach includes frequent audits, worker feedback mechanisms, and monitoring systems to assess compliance.
