ST/ST - Sustainability Report 2024 - EN

Caring about people

Caring about people

Our policies

Our tools

Code of Conduct

In 2023, we performed 13 internal audits in Bangladesh and two in China. The majority of these were monitoring audits to verify progress made at existing suppliers. We also carried out due diligence audits for potential new partners that were finally not integrated into Stanley/Stella’s pool of suppliers, as well as audits of lower-tier suppliers.

To establish accountability for respecting social, environmental and safety standards, all our partner factories need to sign and comply with the Stanley/Stella Code of Conduct (CoC). This document states our commitment to fair and ethical work practices and outlines the principles we consider essential to our business’ operations. Its standards are derived from the fundamental conventions and recommendations of the International Labour Organisation (ILO) and are in line with the Fair Wear Foundation (FWF) Code of Labour Practices (CoLP). In 2024, we are working to update our CoC to include new principles based on the UN Guiding Principles on Business and Human Rights (UNGPs), including environmental aspects and to enhance transparency.

Monthly Our Monthly Sustainability Observation Report (MSOR), prepared by the QAOs, assesses sustainability and HREDD compliance at each partner factory. The current version tracks 48 criteria across three categories: social, environmental and ethical. These criteria are scored, allowing for the performance scores to be easily consolidated by supplier. As part of the monthly report, the QAOs observe the production to ensure standards are met. The MSOR is carried out at most of our partner factories. Yearly Initially used during the supplier onboarding process, the Sustainability Audit Report (SAR) is then conducted at each supplier location annually. Through this report, we monitor over 150 social, environmental ethical and safety criteria, and follow up on any issues with CAPs. For an existing supplier, compliance is monitored and evaluated based on their previous year’s SAR to guide incremental improvements in sustainability performance.

Daily The Overtime Tracker records working hours on the sewing lines at most of our partner factories in Bangladesh. The tool is monitored by Quality Assurance Officers (QAOs) from our Operations department, based in each factory. This integration of other departments in sustainability-related activities helps amplify the impact we have in our partner factories. Any excessive overtime is identified and should be remedied immediately by factory management. Quarterly Our quarterly Supplier Sustainability Scorecard (SSS) integrates information from sources such as the Overtime Tracker, the MSOR and CAPs from the annual Sustainability Audit Report, and provides a quarterly score for a supplier’s sustainability and HREDD performance across different KPIs. This score aims to support business decisions and order allocation based on a supplier’s adherence to labour standards. The scorecard is shared with suppliers and our Operations department every quarter to foster collaboration and enhance sustainability performance.

Human Rights and Environmental Due Diligence policy

Our Human Rights and Environmental Due Diligence (HREDD) policy is our guiding framework for managing the social, environmental and ethical risks across the Stanley/Stella value chain. It outlines the core principles and guidelines that govern our business relationships with our suppliers, covering all stages from onboarding, through ongoing collaboration, to termination of the relationship. This policy has adopted the UNGP’s definition of human rights and environmental due diligence and is aligned with the OECD Due Diligence Guidance for Responsible Business Conduct. In 2024, we are updating our HREDD policy to include additional principles based on the Common Framework for Responsible Purchasing Practices (CFRPP) and to reinforce our responsible exit processes.

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