Tapestry's Approach to Engaging Their Suppliers

·7 min read

Northampton, MA --News Direct-- Tapestry, Inc.

A pre-loved bag, reworked and reimagined as part of the Coach (Re)Loved program
A pre-loved bag, reworked and reimagined as part of the Coach (Re)Loved program

We are working with our suppliers to integrate environmentally sustainable practices throughout our supply chain and are committed to increasing the use of environmentally preferred materials and manufacturing processes throughout our company.

All our suppliers are required to comply with our Supplier Code of Conduct (SCOC), which includes expectations on environmental and social issues. Tapestry monitors suppliers’ adherence to local rules and regulations through a combination of regular social compliance audits, corrective action plan management and biennial topic-specific training.

To track, manage and reduce environmental impacts across our supply chain, we joined the Sustainable Apparel Coalition (SAC) in FY2020 and requested over 100 of our raw material suppliers to complete the SAC’s Higg Facility Environmental Module (Higg FEM). Suppliers are asked to report to 7 sections (Environmental Management System (EMS), Energy & Greenhouse Gas Emissions,

Air Emissions, Water, Wastewater, Waste and Chemicals). They achieve Levels 0-3 based on the quality of disclosure that they provide and their level of management of the sections. The Higg FEM is not a pass/fail assessment. Rather, it is designed to drive improvements to sustainability management practices and identify opportunities to improve sustainability performance over time. Of the 90 suppliers that completed the Higg FEM, 651 have had their responses verified by third- party agencies and more continue to complete verification.

Please see the table below for data regarding supplier ratings and the relevant topic sections of the report for additional supply chain information.

SECTION OF HIGG FEM

RATING LEVELS AND CRITERIA FOR LEVEL SCORING

AVERAGE SECTION SCORES FOR VERIFIED TAPESTRY SUPPLIER FACILITIES

Energy & GHG

Level 1:

  • Identify and disclose all energy sources, energy use, unit of measure, and tracking methods

Level 2 (must meet all requirements for Level 1):

  • Establish baselines for energy use

  • Understand processes and operations which consume the most energy

  • Set targets for improving energy use or GHG emissions

  • Develop an implementation plan to improve energy use or GHG emissions

  • Compare against its baseline year-over-year

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Calculate and disclose annual Scope 3 GHG emissions

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Water

Level 1:

  • Identify and track the facility’s water sources, quantities and unit of measure

Level 2 (must meet all requirements for Level 1):

  • Set a normalized baseline for water use

  • Identify processes which require the most water use

  • Establish normalized targets for annualized water reduction

  • Develop an action plan to achieve these targets

  • Show water reductions against a baseline year-over-year

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Implement a water balance or other analysis to evaluate traceability of water intake vs. usage and output

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Wastewater

Level 1:

  • Track the facility’s wastewater volume

  • Provide name and contact information of off-site wastewater treatment plant

  • Establish emergency plans related to wastewater

  • Proper disposal of hazardous and non-hazardous sludge

  • Treat septic wastewater before discharge

Level 2 (must meet all requirements included in Level 1):

  • Disclose any alignment with verified wastewater standards (Zero Discharge of Hazardous

  • Chemicals (ZDHC), Business for Social Responsibility, etc.)

  • Request wastewater quality test from the off-site wastewater treatment plant

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Have a closed-loop reuse and/or recycle process for wastewater

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Waste

Level 1:

  • Identify hazardous and non-hazardous waste streams and identify where the facility generates

  • on-site waste, the type and quantity of waste

  • Identify how waste is managed and disposed of

  • Segregate all waste streams and store hazardous and non-hazardous waste separately, in well-

  • marked and designated waste storage areas

  • Avoid open burning and dumping on-site

  • Train all employees involved with hazardous waste handling

Level 2 (must meet all requirements included in Level 1):

  • Set a baseline for solid waste and waste disposal methods

  • Set formal targets to reduce waste quantity and improve waste disposal methods

  • Establish an implementation plan to reduce waste quantity and improve waste disposal methods

  • Reduce waste quantity or improve waste disposal methods compared to an established baseline

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Validate final disposal and treatment of all hazardous waste

  • Divert at least 90% of all discarded materials from landfills, incinerators and the environment

  • Upcycle some waste and/or insert it into a circular economy system

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Chemicals

Level 1:

  • Keep a full chemical inventory list including the supplier’s name

  • Have safety data sheets (SDS) available to all employees

  • Train all employees in case of hazards/risk and train employees in Manufacturing Restricted

  • Substance List (MRSL) and Restricted Substances List (RSL)

  • Establish proper emergency plans in case of hazards/risk

  • Provide appropriate and operable safety equipment to employees

  • Have visible and proper hazard signage

  • Requirements on chemicals purchased in compliance with RSLs

  • Establish an environmental and occupational health and safety program

  • Provide well-marked, designated chemical storage areas

  • Document processes to identify, monitor and verify compliance with all RSL/MRSLs

  • Visibility into traceability of chemicals from manufacturing process into inventory

Level 2 (must meet all requirements included in Level 1):

  • Establish an implementation plan to improve chemical management

  • Establish an implementation plan to reduce use of hazardous chemicals beyond regulations or

  • MRSL/RSLs

  • Source from approved/preferred chemical positive lists beyond regulations or MRSL/RSLs

  • Level 3 (must meet all requirements for Level 1 and Level 2):

  • Collaborate with brands and/or chemical suppliers for chemical alternatives

  • Contribute to chemical analysis against human and environmental hazards

  • Contribute to a Life Cycle Assessment (LCA) for chemical alternatives

  • Ability to trade chemicals from product lot number to chemical lot number

  • Set a documented Quality Assurance (QA) program including performance of chemicals

  • Ensure contractors and/or subcontractors source from approved/preferred chemical lists

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Air Emissions

Level 1:

  • Identify an inventory of all sources of on-site emissions

  • Ability to track and measure all sources of production air emissions and have an abatement plan

  • in place

  • If refrigerants are in use and if there are any leaks, have an established action plan to improve

  • Install operating control devices for all operating emission sources and production process

  • sources and ensure they are being managed and that there is an abatement plan in place

Level 2 (must meet all requirements included in Level 1):

  • Go beyond permit requirements for nitrous oxide and sulphur oxide

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Establish a strategic plan to upgrade equipment and to reduce and/or eliminate air emissions and improve indoor air quality

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Environmental Management System (EMS)

Level 1:

  • Identify EMS responsible staff

  • Establish EMS strategy that guides long-term decision making

  • Ability to identify significant environmental impacts of the facility

  • Establish a program or system to review and monitor environmental permit statuses and renew

  • dates

  • Monitor local laws, regulations and standards

  • Establish a process and schedule to maintain all equipment

Level 2 (must meet all requirements included in Level 1):

  • Review of the environmental management strategy by top management at least annually

  • Staff includes competent technicians, training and engagement of EMS to all workers

Level 3 (must meet all requirements for Level 1 and Level 2):

  • Promote awareness of environmental strategies to all employees

  • Engage and monitor subcontractors on EMS using the Higg Index

  • Engage with local organizations and stakeholders in environmental improvement

  • Engage and monitor upstream suppliers on EMS using the Higg Index

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Our Leather Working Group (LWG) suppliers must already meet a certain set of environmental and social requirements. They individually provide us with their responses regarding waste, water, energy, wastewater and chemical management. Accordingly, for those suppliers, we did not ask them to submit data to the Higg FEM. As indicated throughout the report, we have aggregated the data we received from LWG-audited tanneries with the data we received from our suppliers through the Higg FEM to present a comprehensive overview of the environmental impacts of our supply chain.

1 As of November 2021

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