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Annual report 2008/2009
- 2008/2009 In brief
- President’s comments
- Hemtex share
- Presentation of operations
- Board of Directors’ report
- Income statements
- Balance sheets
- Changes in consolidated shareholders’ equity
- Changes in Parent Company shareholders’ equity
- Cash-flow statements
- Notes
- Nine-year summary
- Proposed distribution of earnings
- Audit report
- Board of Directors
- Corporate Governance
- Management
- Hemtex stores
- Information about the AGM
- Annual reports archive
- Annual report 2009
- Annual Report 2010
- Annual Reports archive
Work for sustainable development
Hemtex is responsible for ensuring that Group operations are sustainable, both with regard to the company’s own operations and those carried out by companies with which Hemtex chooses to cooperate. This responsibility applies to all those countries and communities in which Hemtex is active.
Hemtex purchases all of its textiles and other products from suppliers globally. Purchasing from Asia continued to increase in scope and in 2008/2009 was 74%. About 81% of the Group’s purchases are direct from the suppliers.
Since Hemtex is not directly in control of production, the Group has produced guidelines for suppliers in terms of a Code of Conduct to ensure that the products are manufactured under satisfactory working conditions and in the correct manner. The Code of Conduct is based on the UN’s Convention on the Rights of Children and conventions that the UN’s agency for labor market issues, ILO, has established for working conditions and rights in working life. The Code of Conduct deals with such issues as discrimination, child labor, working hours, salaries, working conditions and the right to form and belong to trade unions. In 2008, the Code of Conduct was updated with environmental requirements.
All Hemtex suppliers have signed framework agreements regarding delivery, quality, environmental and ethical demands and also demands in terms of copyright protection. The framework agreement is connected to the purchasing conditions, Hemtex Purchasing Instructions.
Environmental requirements on manufacturing
Hemtex operations have the greatest impact on the environment in conjunction with manufacturing and transport. Among other aspects, environmental work therefore focuses on reducing the use of harmful chemicals in manufacturing through establishing stop lists and permissible levels for certain chemicals, and making environmentally conscious choices as regards packaging materials.
In the framework agreement that is signed by suppliers, Hemtex demands that they comply with local environmental laws and have all necessary permits for their operations. The environmental requirements in Hemtex’s Code of Conduct include regulations regarding purification of air and water emissions, certificates from authorities, lists and safety factsheets for all chemicals and demands concerning the handling of chemicals and waste.
Environmental requirements on transports
For logistic services, suppliers are contracted who strive to be leaders in environmentally sustainable transport and logistic solutions. For the most part, shipments to Hemtex occur by sea and to a far lesser extent by air. Procedures for when air freight may be used have been produced, and only a marginal share of Hemtex’s transports are by air. Emissions from the transportation of goods have been studied, and the results will form the basis for future emissions requirements.
Systematic monitoring of suppliers
Hemtex implements systematic monitoring of work conditions and environmental practices at supplier operations. Hemtex has produced its own inspection manuals that comply with the company’s Code of Conduct and build on previous experience of the established BSCI and SA8000 systems.
The purchasing offices in Dhaka, Bangladesh, and in Shanghai, China, function as hubs for both purchasing and inspection activities, which are closely connected. Hemtex carries out inspections under its own management and also contracts inspections from independent, certified companies such as SGS and ITS.
During the 2008/2009 fiscal year, most suppliers in Asia were inspected. Action plans were developed for all suppliers that were not approved. Hemtex’s Code of Conduct is an important parameter in the evaluation of suppliers.
Hemtex’s goal for 2008/2009 was to inspect all suppliers in Asia during the year. That the goal was not achieved depended on two factors. One was a consolidation of the Group’s supplier base in which the emphasis was on important long-term suppliers and purchasing markets to become even more efficient by concentrating purchases to fewer suppliers. The other was that Hemtex performed extensive inspections of the delivery chain for down and feathers in China both through its own controls and in collaboration with other Swedish companies and Chinese industry associations. Hemtex purchases down and feather products directly from suppliers in China. In the inspections that were performed on all suppliers in this area, no hand-plucked products were detected. Hemtex also checked the delivery chains from producers of quilts and pillows to where and how the animals were slaughtered.
Increased commitment within the Better Cotton Initiative (BCI)
In an effort to positively influence conventional cotton production, Hemtex is committed as a partner member of the Better Cotton Initiative (BCI). BCI is an international organization that works to make large-scale cotton cultivation less damaging to health and the environment and more economically viable than today’s conventional cultivation. Among other aspects, the goal is to reduce the use of pesticides, artificial fertilizers and water. Proposers and members of the BCI’s Board are global environmental organizations and leading companies in the textile industry. BCI has attained an important role in environmental work within cotton production, which results in a broader environmental impact than merely focusing on increasing the share of ecological cotton. Hemtex will further increase its commitment to the organization in the future.