All sites that manufacture a finished product for Dunelm (Tier 1 suppliers) must provide a low-to medium-risk graded ethical audit (not more than two years old) and a valid building and fire safety certificate. Our ethical audit programme has been extended to cover all warehouses that hold stock of Dunelm branded product and selected Tier 2 sites. In response to our findings, we review and raise our audit standards annually – making it harder to reach our internal targets but ‘doing the right thing’ for the long term, see Modern slavery. In FY21, our ability to audit sites and close off corrective actions was hampered temporarily by Covid-19 restrictions. At FY21 we had in-date audits for 89% of Tier 1 factories. In FY22 we intend to map all Tier 2 textiles suppliers and extend our ethical programme to them.
We use an independent third-party expert Verisio to assess, grade and monitor the social and ethical performance of the supply chain for both product and third-party service providers. Corrective actions and timescales are logged on digitised supplier scorecards on our web portal, giving a ‘live’ overview of individual supplier performance. We work closely with our suppliers – especially key partners – to help them rectify any issues within agreed timescales. However, where participants refuse to engage in continuous improvement or to supply minimum documentation, we will not compromise our supply chain integrity. If action is not taken within an acceptable period, Dunelm will stop buying products from that supplier and supply chain. This year we implemented unannounced, full spot check audits in UK sites on a risk basis and during FY21 we audited over 40% of applicable sites. This was a major initiative which focused on areas such as ‘right to work’, minimum wage payments and Covid safety. We plan to increase the frequency of spot checks in FY22.