Code of Conduct for Suppliers

1. Preamble

The Fashion rEvolution GmbH is committed to environmentally and socially responsible business management. We strive continually to optimize the sustainability of our corporate activities and our products and we ask our suppliers to contribute to these efforts.

For future cooperation, the contracting partners agree on the validity of the following rules for a common CoC. This agreement forms the basis for all future deliveries of supplies. The contracting partners commit to fulfil all of the principles and requirements of the CoC. The suppliers are requested to contractually commit their subcontractors to adhere to the standards and rules specified in this document. This agreement shall enter into force upon signature.

The CoC is based on national laws and regulations as well as international conventions such as the United Nations’ Universal Declaration of Human Rights, guiding principles about children’s rights and child labor, the United Nations Guiding Principles on Business and Human Rights, the International Labour Organization’s international labor standards, and the Global Compact of the United Nations. We expect our suppliers to adhere to all relevant laws and regulations as well as to the requirements of standards.

2. Requirements for suppliers

1. 1. Social and environmental responsibilities
      1. All business activities shall comply to ILO core labor standards as summarized and elaborated in annex to this document.
      2. Suppliers are required to monitor compliance by periodic SA8000-, BSCI- or ETI audits and to share and evaluate the results with us.
      3. Suppliers are required to be GOTS- and Fairtrade certified, to keep these certifications extended and to present the newest scope certificates without prior request.
      4. GOTS Transactions Certificates are to be applied for with every shipment and to be sent to us immediately after availability without prior request.
      5. For productions of dyed and printed merchandise above a quantity of 5000 pieces, we require an independent testing report on the specific production lot for heavy metals, APEOs, NPEOs and AOX.
      6. The supplier has to share with us the name, GOTS-certification number and FLO-certification number of all companies involved in our supply chain, starting from the cotton cooperative. Our code of conduct has to be shared with and signed by all companies involved. With every production the supplier has to check if the supply chain remains unchanged. If there are changes, the supplier needs to update us and share the information specified above.
      7. The supplier shall have an environmental management system in accordance with GOTS version 6.0, chapter 2.4.10 or EMAS or ISO 14001.

1. 2. Business ethics
      1. Fair competition

Norms of fair business practices, fair advertising and fair competition are to be observed. Beyond this, the relevant antitrust laws, which particularly prohibit agreements and other activities to influence prices or conditions, are to be applied. These rules further prohibit agreements between customers and suppliers that are intended to limit customers’ freedom to autonomously determine the prices and conditions for their resale of goods.

1. 1. 2. Privacy / Security

The supplier commits to fulfil the reasonable expectations of the client, subcontractors, customers, consumers and employees concerning the protection of private information. In the collection, storage, processing, transmission and transfer of personal information, the supplier is to observe the laws on data protection and information security as well as the regulatory requirements.

1. 1. 3. Intellectual property

Intellectual property rights are to be respected; transfers of technology and expertise are to be carried out in such a way that intellectual property rights and customer information are protected.

1. 1. 4. Integrity / Corruption

The highest standards of integrity are to be applied to all business activities. The supplier must pursue a zero-tolerance policy regarding the prohibition of bribery, corruption, extortion and embezzlement. Processes for monitoring and implementing norms are to be applied in order to ensure compliance with anti-corruption laws. In case of doubt, please consult OECD Guidelines for Multinational Enterprises, chapter 7.

3. Implementation of requirements

We expect our suppliers to identify risks within supply chains and take appropriate measures. In the case of a suspected violation, as well as to safeguard supply chains with heightened risks, the supplier will inform the company promptly and, if necessary, regularly about the identified violations and risks and about the measures taken.

The supplier needs to monitor compliance with the standards and rules in this document as stated under 2.1.2. and to agree to the client conducting such audits to monitor compliance with the Code at the supplier’s production sites during normal business hours, with sufficient advance notice and as carried out by persons whom the client tasks with doing so. The supplier can object to specific audit measures if these measures violate mandatory data protection regulations.

If a violation of the rules of this Code of Conduct is identified, the client shall notify the supplier of this in writing within one month and will provide a suitable period of time within which the supplier’s conduct is to brought into compliance with these rules.

4. Information and consent of the supplier

By signing this document, the supplier commits to act responsibly and adhere to the principles and requirements specified herein. The supplier commits to communicate the content of this Code in a com-prehensible manner to employees, contractors and subcontractors and to make all necessary arrangements to meet the requirements.

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Annex (social responsibilities as per 2.1.1.)

1. 1. 1. 1. Employment is freely chosen (ILO conventions 29 and 105)

No forced labor, slave labor or similar form of labor may be used. All work must be done by choice, and employees must be able to end the work or the employment relationship at any time. Furthermore, no worker may be subjected to unacceptable treatment such as psychological cruelty or sexual or other personal harassment.

1. 1. 1. 2. Freedom of association and collective bargaining (ILO conventions 87,98,135 and recommendation 143)

The right of employees to form and join organizations of their own choosing and to engage in collective bargaining (e.g. to join trade unions) is to be respected. In cases in which freedom of association and the right to hold collective meetings are legally restricted, alternative possibilities for an independent association of employees for the purpose of collective bargaining are to be permitted. Employee representatives are to be protected from discrimination. They are to be granted free access to their colleagues’ work-places to ensure that they are able to exercise their rights in a lawful and peaceful manner.

The supplier shall respect workers’ right to freedom of association, to joining trade unions, to appealing to worker representatives and to membership in works councils in accordance with the applicable local laws. It must be possible for workers to communicate openly and without fear of reprisals or harassment.

1. 1. 1. 3. Prohibition of child labor (ILO conventions 138 and 182)

Child labor is forbidden at every phase of production. Any employee’s age should not be lower than the age at which compulsory school attendance ends, and should in no case be lower than 15. If children are discovered to be working, the supplier is to document the measures that are to be taken to remedy the situation and enable the children to attend school. The rights of young workers are to be protected and special protective provisions for them are to be complied with. Thus children between 15 and 18years shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals.

1. 1. 1. 4. Prohibition of discrimination (ILO conventions 100, 110, 111 and 159)

Recruitment, wage policy, admittance to training programs, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship shall be based on the principle of equal opportunities. Discrimination against employees in any form is prohibited. This applies, for example, to discrimination on the basis of gender, race, caste, ethnicity or national origin, skin color, disability, political convictions, family or social background, religion, age, pregnancy, sexual orientation or any other condition that could give rise to discrimination. The personal dignity, privacy and personal rights of every individual shall be respected. In particular workers shall not be harassed or disciplined on any of the grounds listed above.

1. 1. 1. 5. No harassment and violence (ILO convention 190)

Employers shall make a commitment within their social compliance policy to foster an environment at work free from harassment, bullying and violence. Sexual harassment, sexual violence and gender-based violence is not permitted in the workplace, irrespective of gender. Equally prohibited is any act of gender-based violence that results in, or is likely to result in, physical, sexual or psychological harm or suffering to women including threats of such acts, coercion or arbitrary deprivation of liberty, whether occurring in public or in private life. Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited. Workers shall be treated with respect and dignity. Human Rights shall be respected and protected. Employers shall have a policy commitment for the same. Confidential reporting of abuse or harsh treatment shall be encouraged by the management. Each facility shall display contact details for the local point of contact at the workplace for grievance redressal, in a way that all workers have access to it. This information shall be provided before signing an employment contract. All disciplinary measures shall be recorded.

1. 1. 1. 6. Occupational health and safety (ILO conventions 155 and 164)

The supplier is responsible for a safe and healthy working environment. Through the construction and use of suitable workplace safety systems, the necessary preventive measures are taken against accidents and injuries to health that could occur in connection with workplace activities. Appropriate personal protective equipment shall be provided to the workers at no cost and their use shall be assured. For all chemical substances and preparations used the corresponding Material Safety Data Sheet (SDS) shall be maintained and it shall be assured that the applicable health and safety measures for handling and storing these chemicals are implemented. The employees are also informed regularly about the applicable health protection and safety norms and measures, and receive training about them in the local language and the languages spoken by the workforce. The supplier ensures that safety signs are available in local language and the languages spoken by the workforce. The employees are provided access to adequate quantities of drinking water, clean sanitary facilities and medical assistance. Vulnerable individuals shall receive special protection. Workers must be able to exit the premises in case of imminent danger without seeking permission.

1. 1. 1. 7. Fair wages (ILO conventions 26 and 131)

The wage for regular working hours and overtime must comply with at least the statutory national minimum wage or the customary minimum wage for the industry, whichever is higher. The wage for overtime hours must be at least 1.25 times higher than the wage for regular hours. In any event wages need to be sufficient to cover the regional/local costs of living in a decent way, while still allowing to accumulate a minimum amount of savings. All legally mandated benefits are to be provided to employees. Wage deductions as a punitive measure are not permitted. Withholding of wages at the end of employment or training is not permitted. Wages shall be paid regularly (at least monthly) and promptly and the supplier must ensure that the employees receive clear, detailed and regular written information about the composition of their pay. If some specified work is paid by piece rate it must be ensured that it meets at least the remuneration achieved by work on hourly basis.

1. 1. 1. 8. Fair working hours (ILO conventions 1 and 14)

The working hours must comply with the applicable laws and industry standards. Overtime is only permitted if it is performed on a voluntary basis and does not exceed a total of 12 overtime hours per week. After six consecutive working days, an employee is to be provided with at least one day off. The total weekly working hours cannot regularly exceed 48 hours.

1. 1. 1. 9. No precarious employment (ILO convention 102)

To every extent possible work performed shall be on the basis of recognized employment relationship established through national law and practice. Obligations to employees under labor or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labor-only contracting, subcontracting, or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.

1. 1. 1. 10. Migrant workers (ILO conventions 97, 143)

Equality in treatment shall be provided as compared to local workers who work at employer’s facilities. This includes remunerations, social security, access to training and other provisions. Migrant workers shall have access to their travel documents. Besides other standard requirements, written employment contract shall include - in a language that the worker understands- clear information about provisions of terms, duration and hours of employment, deductions, benefits (such as leave and insurance), housing, food, transportation, and other applicable provisions. If food, accommodation, transportation or other services are provided, they shall be provided at a rate not higher than the market rate.

1. 1. 1. 11. Social compliance management (GOTS v.06. 3.12)

Companies shall have a policy for social accountability to ensure that the social criteria can be met. They shall support the implementation and monitoring of the social criteria by nominating a person responsible for social accountability and by monitoring compliance with the social criteria and implementing necessary improvements at its facilities, also keeping in mind potential adverse impacts. Workers shall be informed about the contents of their employment contract, minimum social criteria and any other related information in this CoC in the applicable local language(s). The employer has to maintain records of the name, age, working hours and the wages paid for each worker. Workers shall be allowed to nominate a representative for social accountability that can provide feedback to the management regarding implementation status of and compliance with social criteria. The employer shall provide time and space to workers to organize and engage in collective bargaining. Complaints from workers or third parties related to the adherence to the social criteria need to be recorded and investigated and records about any necessary corrective measures arising from them need to be maintained. A functional and effective complaint mechanism shall be established. Anonymous complaint mechanism shall be followed to the maximum possible extent. Upon request, Certified Entities shall provide information about complaint records to their Certified Buyers should complaints possibly be related to the business practices of such Certified Buyers. The employer shall refrain from disciplinary measures, dismissals or other forms of discrimination against workers for providing information concerning observance of the social criteria. For home-workers, data on the nature, extent and characteristics of home-work shall be compiled by the employer and made available to Certification Bodies. Appropriate access to private home-working premises shall be arranged by employers for the purposes of inspection and audit.