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Production Partners and more

Scandia Gear works with 45 production partners, each of which has been selected with great care and attention. These production partners are spread all over the world, which sometimes makes it difficult to monitor social working conditions. At Scandia, we always strive to monitor and improve their working conditions. To better manage this, we became a member of amfori BSCI (Business Social Compliance Initiative) in November 2019. Doing this has entailed replacing our existing Code of Conduct with amfori BSCIs, itself shaped and adopted by its 2,500 member companies in 46 countries. Before we start a partnership with a new production partner, the amfori BSCI process is carefully discussed, so that our new production partner understands our commitments and what we expect from
them. If available, social audit reports are reviewed.

Social compliance and amfori BSCI

Being a member of amfori BSCI is part of our sustainability policy. The amfori BSCI platform is a tool to monitor production partners, schedule audits, and to cooperate on improving working conditions in factories. There are several social compliance initiatives, but we chose amfori BSCI because the initiative’s work is not exclusive to the textile industry. This means that our production partner of footwear and PPE can also be audited in accordance with amfori BSCI guidelines. In addition, our membership can be expanded into amfori BEPI (Business Environmental Performance Initiative), which focuses on the environmental aspects of factories and is something we would like to include more
in our policy in the future. The amfori BSCI Code of Conduct is built around 11 principles, based on, among others, the Universal Declaration of Human Rights, UN Guiding Principles for Business and Human Rights, and the ILO Conventions.

It is important to note that amfori BSCI is not a certificate but is instead a continuous improvement program. Together with our production partners, we continue to work on improving the working conditions in our supply chain. amfori BSCI monitors us as a member using a commitment formula. In this way they guarantee that you cannot be a member of amfori without actually doing something with it. Elements from this commitment formula are, for example attending training and courses, logging onto the platform, scheduling audits in time, checking remediation plans, and encouraging producers to take training courses. Members who do not do this can, after a number of warnings be (temporarily)
expelled from the initiative. By means of audits, our production partners are checked on 13 performance areas, which are based on the 11 principles of the Code of Conduct. These
audits are carried out by an independent party. For example, audits are often carried out by SGS, Intertek, ALGI, or Bureau Veritas. These agencies are trained by amfori and are authorised to conduct these audits. So, this is not done by amfori itself. In an audit you can get the rankings A to E, where A is the best and E is worst. Each production partner is first audited based on a full audit, which is valid for two years when receiving an A or B score. If the result is a C or lower, a follow-up audit will be scheduled within one year to see whether any identified points have actually been improved. Audits can be fully announced, semi-announced (within a time frame), or completely unannounced.

Currently, 46% of our production partners have had an amfori BSCI audit. This equates to 4,120 people working in safe conditions. Another 4% of our production partners have had a WRAP (Worldwide Responsible Accreditation Production) certificate. This is another social compliance initiative that Scandia Gear also accepts, provided it has obtained gold or platinum certification. This 4% represents another 287 people who work in safe working conditions. Other social compliance initiatives that we accept include Sedex (SMETA) and SA8000. Every initiative has its own way of audititing and reporting, and we will determine on the basis of audit reports whether we can accept the audit results for the producer concerned. In addition, 26% still has to be audited in high-risk countries designated by amfori BSCI. We have made the following multiyear plan for this number:

The goals we have set for 2025 are as follows:

1. Garment production partners from countries designated high-risk that have not yet been audited for social compliance must undergo audits.

2. By 2025, all production partners must be physically visited at least once and / or all production partners must be visited every year by means of an online factory tour by our Social Compliance officer (taking into account COVID).

3. Before 2025, we have 80% insight into the Social Compliance status of our third party suppliers.