What are the material issues the company has identified?

In its FY2022 Corporate Responsibility Report Tapestry identified a range of material issues, such as climate change, business ethics and compliance, equity, inclusion and diversity, gender pay parity. Among these, promoting human rights among its suppliers stands out as a key material issue for Tapestry.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Tapestry engages with:

Stakeholder Group	Method of engagement
Customers	·      In-store interactions with sales associates ·      Company and brand websites ·      Social media and email ·      Brand-distributed surveys sent directly to customers
Employees	·      Internal intranet (The Loop) ·      Internal communications ·      Employee Engagement Survey ·      Meetings (Store Manager conferences, company Town Hall, department Town Hall)
Communities, nonprofits/NGOs	·      Giving time and resources through Tapestry’s brands and company Foundations ·      Team and individual volunteer activities ·      Direct engagement on corporate responsibility objectives, including Tapestry’s matching gift programme, grants and product donations ·      Focused feedback on corporate responsibility activities
Suppliers	·      Supplier summits ·      Adherence to the Supplier Code of Conduct, Global Operating Principles, Animal Welfare Policy and Anti-Corruption Policy ·      Environmental strategy meetings ·      Supplier training for business ethics and anti-corruption ·       Audits
Academics	·      University-led sustainability projects and partnerships
Investors	·      Regular financial reporting (SEC filings) ·      Press releases ·      Meetings and briefings ·      Quarterly earnings calls ·      Annual stockholder meeting ·      Stakeholder engagement discussions

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Tapestry engaged with its stakeholders through a survey.

What actions were taken by Tapestry to promote human rights among its suppliers?

In its FY2022 Corporate Responsibility Report Tapestry reports that it took the following actions for promoting human rights among its suppliers:

• Promoting compliance
• Tapestry holds its suppliers to its own high standards and requires them to sign and comply with its Supplier Code of Conduct. Tapestry’s SCOC prohibits the use of child or forced labour, and Tapestry maintains policies on modern day slavery and human trafficking in compliance with the California Transparency in Supply Chains Act (SB 657) and the UK Modern Slavery Act 2015. When onboarding direct suppliers that it contracts to make its branded products, Tapestry requests a credible social compliance audit report that was conducted within six months of the date of submission. Suppliers that fail to meet Tapestry’s standards are not approved until an acceptable audit report is provided. In 2022, Tapestry worked with third-party consultants to review its SCOC and updated it to reflect industry best practices. Tier 1 finished goods suppliers and a portion of Tapestry’s Tier 2 raw material suppliers undergo semi-announced, annual audits by independent third-party audit firms. When a factory is found in violation, Tapestry works with them to support remediation and develops a corrective action plan based on the audit findings and reserves the right to develop exit plans or terminate the relationship with suppliers based on compliance issues. Tapestry also provides its suppliers with onboarding and biennial topic-specific training. Additionally, Tapestry holds a quarterly meeting to report on supplier social compliance with its Chief Supply Chain Officer. Tapestry is a partner of ILO Better Work, which takes an advisory approach to monitoring and protecting worker rights and wellbeing, helping companies and governments uphold the ILO’s (International Labour Organization) core labour standards and national labour laws. Tapestry’s Social Compliance Program implements the requirements for health and safety, labour and environmental practices in its global supply chain factories. This programme maintains its effectiveness through regular programme review.

• Auditing suppliers
• In FY2022, Tapestry conducted approximately 150 audits; 89.4% of the audits were of its Tier 1 suppliers and 10.6% were facilities beyond Tier 1. Of these audits, approximately 94% were semi-announced and 6% were announced. Over 2,200 workers were interviewed throughout this year’s audit process, and around 14% of the audits performed included an interview with a trade union representative. In addition to the audits Tapestry ordered or conducted, its teams reviewed audits through verified Higg Facility Social & Labor Module responses and other parties to make sure they met its standards. As a member of the Sustainable Apparel Coalition (SAC), 55 of Tapestry’s direct suppliers completed the Higg Facility Social & Labor Module (FSLM). These suppliers responded to questions related to social and labour impacts, including Recruitment & Hiring, Working Hours, Wages & Benefits, Employee Treatment, Employee Involvement, Health & Safety, Termination & Retrenchment and overall Management. 87% of the suppliers that completed the Higg FSLM had their responses verified, which allowed Tapestry further insight into the social and labour practices within its partner factories.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 414-1 New suppliers that were screened using social criteria

2) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

 Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.1

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.1

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

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References:

This case study is based on published information by Tapestry, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://tapestry.gcs-web.com/static-files/f40114ac-bc34-41d5-996a-43420da452b6

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