October 4-7, 2016

TAKING RESPONSIBILITY FOR ANIMALS IN THE VALUE CHAIN

Moderator:Hanna Denes, Integrity Specialist, Textile Exchange

Speakers:

• Susan Irvine, Tommy Hilfiger

• Nina Jamal, Head of Campaigns, Four Paws

• Pamela Ravasio, Head of CSR & Sustainability, European Outdoor Group

Agenda

• Animal Welfare Standard Updates

• Wool• Down

• Looking ahead: Leather

• Developing an Animal Welfare Policy

Chatham House RuleWhen a meeting, or part thereof, is held

under the Chatham House Rule, participants are free to use the

information received, but neither the identity nor the affiliation of the

speaker(s), nor that of any other participant, may be revealed.

Textile Exchange Industry Standards

Responsible Wool Standard

Protecting Animal Welfare

The Five Freedoms of sheep are protected at all times, referencing standards and best practices around the world.

The Five Freedoms

Freedom from hunger and thirst

Freedom from discomfort

Freedom from pain, injury and disease

Freedom to express normal behaviour

Freedom from fear and distress

Num

ber o

f far

mer

s

Level of Animal Welfare Performance

RWS

RWS – Animal Welfare

< All Five Freedoms are met >RW

S m

inim

um th

resh

old

©

• Pass-fail criteria• Engagement with animal

welfare groups and experts• Tools, resources and training

Progressive methods of land management are practised on RWS farms, protecting soil health, biodiversity and native

species.

Preserving Land Health

Num

ber o

f far

mer

s

Level of Land Management Performance

RWS

RWS – Land Management

Poor practices, low KPI results Best practices, high KPI results

RWS

min

imum

thre

shol

d

©

• 50% minimum score, with 10% increase/year

• Engagement with grazing impact NGOs and experts

• Tools, resources and training

Credible Certification

A professional third party certification body audits each stage of the supply chain.

Supply Chain Traceability

The identify of the RWS wool is maintained at all times: from the farm to the final product. Consumers can have full

confidence that the wool in a product carrying the RWS logo comes from responsibly managed farms.

Chain of Custody for RWSThe aim of chain of custody, is to preserve the identity of the claimed material,

and to track its movement through the supply chain up to the final product. This is done through Scope Certificates (SC) and Transaction Certificates (TC).

FARM TRADER YARN FABRIC BRANDSCOURCING RETAILER

Transaction Certificates (TC)

Scope Certificates (SC)

GARMENT

Only products with 100% certified wool may carry the RWS logo.

Confident Communication

Stakeholder Engagement

Our process of standard development is open and inclusive. The RWS was eveloped with the input of farmers, animal welfare experts, land conservation

experts, brands and retailers from all parts of the globe.

Development begins

• Stakeholder mapping and outreach• Terms of reference• Research• Web page • Fundraising• IWG task groups• Writing

Pre-pilot draft completed

Farm pilots – feedback - revisions

First public draft

60-day open stakeholder review - revisions

Second public draft

30-day open stakeholder review - revisions

Templates

Guidance documents

Research references

Group certification protocol

Certification strategy

Website development

Training sessions

Responses to PETA and media

Data collection requirements

Equivalency process

03-14

11-15

2-16

4-16

6-16

RWS TimelineRelease of final standard

Supporting Work

Industry Adoption

Fifteen brands have made commitments to the Responsible Wool Standard, including H&M, Marks & Spencer, William-Sonoma, Inc., Patagonia, Eddie Bauer, REI, Eileen Fisher, Tchibo, Varner, Vaude, Coyuchi, Mountain Equipment Co-op, Deckers, Kathmandu, and Knowledge CottonApparel.

Ten additional companies have expressed support of the standard and are working toward implementation. These include: LL Bean, Arc’teryx, Indigenous Designs, Nau, Point6 and prAna.

There are many wool suppliers who have expressed their own commitment to the Responsible Wool Standard: Rambler’s Way, Imperial Stock Ranch, New Merino Australia, Oviz 21, Chargeurs, ABMT Textiles, Lanas Trinidad and Lemprière.

ResponsibleWool.org

Responsible Down Standard

Key points: Animal Welfare

Any removal of down and feathers from live birds (live-plucking or molt-harvesting) is prohibited

Force-feeding is prohibited

The welfare of the birds is respected at all times: from hatching to slaughter

RDS down and feathers is properly identified at all times; this ensures that non-RDS down and feathers are not mistakenly identified as RDS

Each stage in supply chain is audited by a professional, third party certification body

Only products with 100% certified down and feathers carry the RDS logo

Key points: Chain of custody

RDS Development

Industry Adoption

Over 70 brands have initiated certification of their supply chains to the RDS.

Over 1200 sites have been certified to date, in Eastern Europe, China and Taiwan.

Over 150 million birds under the RDS in 2015.

ResponsibleDown.org

More Humanity towards Animals

Developments in the down industry

2010-presentOctober 4, 2016

Before the shift…

2010-2012

• FOUR PAWS found cruel down in the supply chains of brandsincluding Patagonia, The North Face and Mammut, theyreceived cruelty down even though they didn‘t want it

EDFAMountain Equipment

Bedding

Powerful

Weak

- +

IDFL

OutdoorIndustry Fjällräven

Patagonia

TNF

Mapping according to actions taken to ensure down supply chains are cruelty free

Allied

Downlite

MAPPING 2012

TE /NSF

EOGOIA

TraumpassDownpass

…after which

2013-2015

•Patagonia and the North Face developed their own traceability systems which laterbecame industry standards – TDS and RDS

•FOUR PAWS encouraged key brands in the outdoor industry to commit to traceability•Brands from fashion, sport and outdoor are now implementing the RDS

EDFAMountain Equipment

Bedding

Powerful

Weak

- +

IDFL

OutdoorIndustry

MAPPING THE SHIFT

Fjällräven

Patagonia

TNF

Mapping according to actions taken to ensure down supply chains are cruelty free

Allied

TE /NSF

EOGOIADownlite

TraumpassDownpass

EDFA

Mountain Equipment

Bedding

Powerful

Weak

- +

IDFL

Fjällräven

Patagonia

TNF

Mapping according to actions taken to ensure down supply chains are cruelty free

Allied

Downlite

MAPPING 2016

TE/RDS

EOG

NSF/TDS

AdidasBerghausEquip UK

Jack WolfskinMammutMarmotVaude

Otto group

OIA

Traumpass Bergans

Globetrotter

Downpass HaltiMinardiNordisk

…Meanwhile, RDS under attack?

The bedding industry are yet to follow

EDFA MountainEquipment

Bedding

Powerful

Weak

- +

IDFL

Fjällräven

Patagonia

TNF

Allied

Downlite

TE/RDS

EOG

NSF/TDS

AdidasBerghausEquip UK

Jack WolfskinMammutMarmotVaude

Ottogroup

OIA

Traumpass Bergans

Globetrotter

DownpassHalti

MinardiNordisk

34

TAKING RESPONSIBILITY FOR ANIMALS IN THE SUPPLY CHAINSue Irvine – Tommy Hilfiger Europe

35

THE PVH SOURCE TO STORE APPROACH

36

PVH 10 CR COMMITMENTS

THE WAY WE CREATE OUR PRODUCT :CLASSIC COOL ANDCOMMITED

1. Procure 100% of our cotton from more sustainable sources2. Take an active water stewardship role3. Produce in facilities where water, energy and chemicals are sustainably managed

THE WAY WE OPERATE :LEAN ANDCLEAN

4. Reduce greenhouse gas emissions5. Reduce carton-based packaging6. Reduce plastic-based packaging7. Recycle store, warehouse & office waste

THE WAY WE CONNECT :POSITIVE AND INCLUSIVE

8. Source 100% of our products at facilities that uphold workers’ rights9. Empower and inspire the unique talent in our company10. Help build healthy communities

Be one of the leading sustainable designer

lifestyle brands in the way we create our

products, manage our operations and connect with our stakeholders.

3 PRINCIPLES

10 COMMITMENTS

for 2020

Meeting CR strategy and commitments

Meeting our customers requirements

Meeting our consumer requirements

Mitigate risk – Media and NGOMorale obligation

WHY IS ANIMAL WELFARE IMPORTANT?

39

Animal Rights

ISSUES ASSOCIATED WITH ANIMAL PRODUCTS

Social & Environmental

40

Animal Rights

SOME SOLUTIONS TO THESE ISSUES

Social & Environmental

41

COMPLICATED SUPPLY CHAIN WITH MULTIPLE ISSUES

Farm Slaughter Processing

FinalProduct

42

WHAT’S ALREADY HAPPENING?

Consolidated approach to

leather beyond

tanneries

BLC Leather Impact Assessment

tool

LWG animal welfare sub group

formed

TH & Made-By Impact calculator tool stakeholder

consultation event

Smart leather sourcing event

Temporary brand taskforce

Engagement with other

organizations: TE, GRSB

Ongoing brand engagement

meetings/ discussion group

43

EXERCISE: WHAT ARE THE PRIORITIES?

44

Do we need a standard?

Do we need a standardized risk assessment and traceability tool?

Do we go for a modular framework?

Mass balance and/or identify protected?

Do we start by working with the food industry right away?

Do you want to become involved?

EXERCISE: HOW TO MOVE FORWARD?

THANK YOU

A n i m a l W e l f a r e P o l i c y 1 0 1- o r : W h e r e t o s t a r t , W h a t t o c o n s i d e r -

Speakers:Nina Jamal

4 Paws InternationalPamela RavasioEuropean Outdoor Group

WHAT is an animal welfare policy

• Definition: Animal welfare := well-being of animals.

• Definition: Policy := a course or principle of measurable and verifiable action adopted or proposed by an organization or individual

• Definition: Animal Welfare Policy := a document that outlines the measurable and verifiable principles of action that a business or organisation has implemented (or: is implementing) in order to safeguard the well-being of the animals whose resources are used in the running of the business or organisation.

WHY does it matter• Legal Requirements:

• Many countries have such acts.• Issues: a) stringency b) enforcement• => Law alone is not sufficient in most/some cases

• Governmental Initiatives: • initiatives like Dutch Covenant, EU Garment Flagship, German Textile

Alliance

• Business Due Diligence trends: • Some businesses position themselves as leaders: Stella McCartney • Business Associations provide tools and advice: OIA Animal Welfare, EOG

info and roundtables• Pressure by governments mount: Dutch Covenant, German Textile Alliance

WHY does it matter

The issue is known in investment circles …The key: Reputation risk, leading to loss in value

Consumer Expectations are growing: • Lots of labels to certify against• Example:

• Fashion: Cruelty free, non-mulesedwool,

• Food: products from better keeping conditions (e.g. free-range, mutilation free)

• Cosmetics & Health care: no animal testing

• Example: ethical investment =>

WHY does it matter

• Brand reputation• Strengthens: define what your company is about

Absence: Company reputation and perception by 3rd parties • Basis for concrete action on animal welfare• It is not just a roadmap

• When properly set up: becomes a strategic piece of internal leverage for CSR teams within companies

WHY does it matter

• Context – multiple realities• Reality 1: ‘Animals’ are an industry

• Approx. 550 million wool sheep, 2.8 billion ducks and 700 million geese are slaughtered per year

• Reality 2: Impact of individual businesses (even industries)• 2014: Internationally traded down & feathers

(global): > 270’000 tons Outdoor: < 1% of volume

WHAT will it help to do?

• Help to set and develop clear targets for people and departments to deliver against.

• Transparency: within a company but also externally, specifically if backed up by data

• Clear communication internally what expectations and required business standards are

• Be clear about what is ‘within scope’ and ‘outside scope’• Focus efforts: define priority materials per time frame and whether

some materials might just not be worth the effort to work with them. • More founded and scientific approach to material use: look at animal

welfare as one component of LCA.• Approach to innovation: e.g. Kering – programmes with ITC on Crocodile

(Madagascar) & Python conservation. • Strengthen company reputation

WHAT should it cover

• Address all 5 Freedoms individually, and concretely• Positioning on all animal materials used by your company (fibre,

fabrics, other: leather, fur, hair, wool, down, skins, trims etc.)• Verification requirement for: suppliers’ corresponding commitments,

materials origin, supply chain processes• Consumer communications• KPIs over time (plans, achievement, progress, range coverage, tonnage

per animal-based textile) to come from department of operation=> Overall: Show that use of animal products is based on a conscious decision process turned into operations, up and down the supply chain.

WHAT does it require from a brand

• Owner:• Key Buy-in: board, CEO• Multi-departmental core team responsible for content, ideally

reporting to the board • Key Accountabilities: purchasing, not just CSR, business integration

• Implementation:• Any Policy, also animal welfare, is only worth the degree to which it is

practiced, implemented and adhered to• Operational guidelines: roll out implementation in each relevant department

• Verification:• KPIs• Objective proof of implementation / achievement

WHO is the owner: Accountability

NOT

Campaigning internallyAnalysing the situation will inform your strategy and tactics:• Who makes the decision towards setting-up and implementing

the policy?• Who has the power or ability to influence or convince these decision-

makers?• Is there a basis or reasoning you can use to argue for the development,

implementation and improvement of the policy? (internal CSR process, external reporting via which your company is measured, an animalwelfare/rights organisation‘s exposé or campaign)

• Who are the departments and teams crucial for thedevelopment and implementation of the policy?

• Why would they want to be involved? What would make them want tobe involved and keep improving the policy? (If they get acknowledged? Iftheir efforts are well communicated in the annual reports? If the CEO personally wants it to happen? If it is in their departments‘ KPIs?)

WHAT about campaign NGOs?

• Expect all companies working with animal based materials to have Animal Welfare policies as a basis for action

• Any animal welfare policy is only worth its salt if it is indeed implemented. Expect implementation timelines and clear commitments per animal based material.

Animal Welfare approach Animal Rights approachPhase out cruelty from animal based materials. Work with systems that are adapted to theanimals‘ needs not the opposite. Zero tolerance for materials where crueltycannot be avoided.

Phase out all animal based materials.Low – zero tolerance for use of animal basedmaterials.

Offer non-animal based alternatives. Offer and ideally switch completely to non-animal based alternatives.

Engage towards solution, eliminating cruelpractices then campaign if brands don‘t commit.

Campaign to build the case that all animal basedtextiles are cruel, solution: don‘t use animals.

HOW Example

Down Codex by Mountain Equipment http://www.thedowncodex.co.uk/

• 2009: First thoughts• 2010: China Supply China• 2011: Eastern Europe Supply Chain• 2012: Not just sleeping bags but also apparel• 2013: Reduce number of supply chain partners• 2014: Upscale production in remaining partners• 2015: The great outdoors award

HOW Your turn: Exercise

Introduction• What:

• Spend some time to assess your specific context

• Materials• Who takes THE

decision?• 1st steps:

• How can you ‘make this happen’ for your case?

• Your task• Policy template:

• Gaps to your situation?• Challenges for your

situation?• How will you get buy in,

and from whom?• Formal reporting lines• Informal influencers• Official vs. unofficial

decision takes• What is ‘in for them’?

THANK YOUp a m e l a . r a v a s i o @ e u r o p e a n o u t d o o r g r o u p . c o m

n i n a . j a m a l @ v i e r - p f o t e n . o r g

October 4-7, 2016