Apparel giant PVH Corp has released its tenth corporate responsibility (CR) report, highlighting achievements in three strategic focus areas – worker empowerment, environmental preservation and community engagement and impact – including making its global reporting hotline available to every worker in its supply chain.

The developments are outlined in the company’s 2017 report which owns brands including Calvin Klein, Tommy Hilfiger, Van Heusen, Warner’s and Izod.

This year’s report focuses on PVH’s reinforcement of its longstanding human rights commitment and expansion of its environmental programme.

“The fashion industry is changing and PVH has a role to play in driving fashion forward – for good. We believe that what happens behind every design we make is more important than ever and we have an ambitious vision for the future. Our latest CR Report is a celebration of our achievements over the past year, making positive impacts where we work and live,” said chairman and CEO Emanuel Chirico.

“As one of the world’s largest apparel companies, we recognise our responsibility to address our industry’s social and environmental impacts, and we are doing our part to leverage our scale, to help create a new pattern of positive change for the industry.”

PVH’s comprehensive CR programme is a key factor in driving the company’s growth, performance, creativity and success. Corporate responsibility is embraced and enforced throughout the entire value chain – from “source to store”, touching close to one million lives around the world, the company says.

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PVH recently committed to sourcing 100% renewable electricity throughout its owned-and-operated offices, distribution centres and stores globally by 2030, with an interim goal of 50% renewable electricity by 2025, and last week joined the Action, Collaboration, Transformation (ACT) initiative aimed at achieving living wages for workers in the global garment and textile industry.

The company has highlighted a number of accomplishments in each of its three strategic focus areas in 2017, including:

Workforce

PVH embarked on a more advisory approach to its human rights assessment programme during 2017 through an expanded partnership with Better Work Academy. The new approach trains CR advisors in coaching skills and demonstrates to suppliers how giving workers an active role can help improve working conditions, including through the creation of worker-management committees.

The company has also made its ‘Tell PVH’ global reporting hotline available to every worker in its supply chain to empower and give a voice to the entire workforce. The hotline allows workers to contact PVH directly with any issue or concern, opening a direct channel for open and anonymous (where allowed by law) communication to report concerns about misconduct and violations of the group’s code of conduct and to ensure that concerns are heard and addressed in a timely manner.

Meanwhile, as part of its drive toward supplier self-management, PVH has piloted its Gold Programme; a supplier-empowerment initiative designed to recognise “strategic, top-performing suppliers in the CR space”. In order to participate in the Gold Programme, a vendor must not have any non-code violations in the past three years (eg, no unauthorised subcontracting), and they must be a Tier 1 vendor.

PVH now has five gold vendors: TYH, Brandix Essentials Ltd., MAS Intimates, PT Ungaran Sari Garments and Esquel Group, accounting for 40 factories in nine countries.

Looking ahead, the group say it is now leveraging engagement with its gold vendors to pilot and drive shared strategic projects related to advancing its social and environmental goals. In 2018, it will expand its Gold Programme to a new class of strategic suppliers.

In addition, the group also launched its PVH Responsible Business Practices programme during the year in a bid to help its associates better understand the human rights implications of their daily decisions.

Environment

During 2017, PVH implemented the SAC Higg FEM environmental assessment tool throughout its supply chain and has so far rolled it out to 530 facilities – a move it says has allowed it to gain a deeper understanding of chemical performance and compliance at the facility level and to identify areas for improvement.

The group also announced a global multi-year partnership with conservation organisation World Wildlife Fund (WWF) to support water stewardship efforts in its key sourcing communities. The three-year collaboration will see PVH work with WWF on freshwater conservation in Ethiopia, India, China and Vietnam. The firm will also work with the environmental non-profit on developing its water stewardship strategies and connection points to other key sustainability matters.

In addition, the group has joined the Better Cotton Initiative (BCI) that aims to make the production of more sustainable Better Cotton a standard practice, and has also launched a global Animal Welfare Policy, which focuses on seven key materials: angora, fur, exotic skins, leather, wool, non-down feathers and down.

Community 

Other highlights during the year include the launch of an Associate Relief Fund in collaboration with The PVH Foundation in response to Hurricane Maria in Puerto Rico. To scale the impact, contributions from associates were matched by PVH dollar for dollar, raising a total of US$360,000.

PVH contributed nearly $24m through contributions and retail store consumer donations to the communities in which it operates.

“Our North Star has always been to drive impact. If we cannot see the positive impacts of our work, then we shouldn’t be doing it,” said Melanie Steiner, chief risk officer.

The new CR report provides information and performance data on its operations during its 2017 fiscal year. It also explores the importance of addressing social and environmental issues, challenges and achievements and highlights next steps for future progress. PVH’s CR strategy incorporates the United Nations’ Sustainable Development Goals (SDGs) and seeks to achieve sustainable development over the next 15 years.

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