Increasing supply chain transparency
The apparel industry is recognised as carrying a higher risk of child labour, forced labour and freedom of association, due to the lower skill level required in the manufacturing process. During the year Target, Kmart and Coles lead the way for Australian retailers in relation to supply chain transparency by continuing to publish the details of the factories that directly produce their own brand apparel.
Kmart has published details of all factories that directly produce Kmart apparel and general merchandise on its website.
Coles has published details of the factories that supply its Mix clothing range on its website.
Target has published details of all factories that directly produce Target apparel and general merchandise on its website.
Coles, Bunnings and Officeworks use SEDEX (Supplier Ethical Data Exchange) to streamline ethical compliance and monitoring, and provide efficiencies to their suppliers. SEDEX facilitates risk assessments and information sharing across its platform for social compliance audits. This maintains visibility and drives consistency across supply chains.
During the year Target and Kmart undertook a number of initiatives to further their ethical sourcing programs:
- A combined Department Stores Ethical Sourcing Program was established to ensure consistency in ethical sourcing policies and procedures between Kmart and Target, and achieve efficiencies in program implementation, monitoring and reporting. This will be accompanied by an overarching Department Stores Ethical Sourcing Program Standard Operating Procedure
- Target has commenced preparations to join the International Labour Organisation (ILO) and International Finance Company (IFC) Better Work program, which aims to improve working conditions in the garment industry and make the sector more competitive. Kmart has already joined the program
- The businesses have continued their participation in the Action, Collaboration, Transformation (ACT) living wage collaboration. In the past year, ACT was established as a foundation in the Netherlands, an Executive Director was hired and secretariat established in Berlin, and ACT was formally recognised at the G20 Labour Ministers meeting in Hamburg.
- The businesses along with other brands signed an Agreement with IndustriALL Global Union and Union Network International Global Union to extend the Bangladesh Accord on Building and Fire Safety to 2021.