Matthijs Crietee dep. secretary general IAF Frankfurt am Main, June 11th, 2013 Global responsability and sustainability: Battling audit fatigue across the globe

2 Agenda –Introduction IAF –Global Responsibility and standardisation –What can companies do now 2

The Dream of our Founders founded in 1976 in Williamsburg (USA) a non-political platform for the world apparel industry promote the common business interests and encourage best practice and support for apparel manufacturers worldwide | |

IAF wants to maximize the positive effects its members can obtain from global cooperation

IAF Membership National Apparel Associations – 43 countries – representing > companies – > 20 million workers Corporate Members Associate Members Educational Institutes | |

IAF’s Membership | | Australia Bangladesh Brazil China incl. Hong Kong Chinese Taipei Colombia Europe (27 countries) India Korea Mexico Pakistan Peru South Africa Sri Lanka Turkey USA Vietnam

Key areas market information global responsibility innovation and research education standardisation IAF committees (technical, education, global responsibility and cultural) | |

IAF World Fashion Convention Since 1984 the World Fashion Convention annually attracts high level executives from companies in the fashion chain. Next convention: Shanghai, Sept | |

Global responsibility or CSR and sustainability is a very serious issue in the clothing and textile chain Labour Intensive Internationalised Water use high Chemical use high Pesticide use high First industry to internationalise. First to encounter boundaries 9

10

Current systemic problems Audit Fatigue Relatively high costs of control And not sufficient control 11

Key learnings Just auditing is not sufficient It is about continuous improvement, risk assesment, knowledge, research into the supply chain, organising information flows 12

A balanced and credible approach is needed The fashion industry must tackle the problem of audit fatigue, but it must also have a credible strategy to make visible and real improvements. Just focussing on reducing audits will send the wrong message. 13

So, what is the IAF’s role in global responsibility based on? IAF is the only association that is truly global, represents both buyers and sellers and reaches big companies, SMEs and all-in between. The IAF is not a political organisation, but on behalf of the industry it strives for harmonisation of rules and practices 14

The IAF Board of Directors is in the proces of accepting an action plan on Global Responsibility Overview of worldwide good practices Global discussion on adopting the Ruggie guiding principles Standardisation Education (Bangladesh) 15

16 Labour conditions FLA, FWF, Wrap, BSCI, etc. ILO better works Training Global discussion and joint programmes Sedex /FFC Chemical Safety Reach Greenpeace detox campaign Global RSLs GAFTI on harmonising test methods Good practice in chemical management

17 Environment Alternative materials Recycling Process improvements SAC LCAs Government regulation on labelling Investments by suppliers Fire and building safety Accord on Fire and Building Safety in Bangladesh North American Safer Factories Initiative Companies' own programmes Harmonisation efforts in progress

What can companies do now? Devise/revise strategy that fits the company Choose Communicate Join a grouping, initiative Get involved in projects/pilots Dig deep into supply chain Work with key suppliers Measure Learn 18

Build your own Roadmap  19 Build your own roadmap Social Compliancy RSL/ REACH Sustainable fabrics CR Strategy & goals CR Evaluation CSR Marketing Water & Energy management

 20

Profit of CR  Survey ING & MODINT 16% > profit of fashion companies in short term  Bloomberg : Sustainable focucussed companies > ROI  Sustainability Index: Results! Investments ( Sustainable energy)  Stakeholders loyalty and trust (government, NGO etc)  Consumer asks for it, or worse..believes its already true  Brand Image  Competition among brands  Last but not least: human rights & environment  21

And as a company, how can you support standardisation? Develop a clear GR strategy based on global standards as much as possible Stay in contact with your industry association when developing a GR strategy Join GAFTI or SAC (working groups) Check iafnet.com frequently 22

Matthijs Crietee IAF Thank you for your attention!