In 2019 we established a process to assess the environmental practices of all sites that manufacture our own brand products. This covers assessments for water, energy, waste and emissions reduction. We have assessed over 50% of our sites and already have a far better view of where we can make the most positive impact. For example, we have identified opportunities to reduce emissions by reducing pack sizes and weight and optimising use of transport. Much of this work overlaps with our packaging reduction initiatives. We will align this work to the carbon reduction targets that are being developed in FY21 to enable us to set priorities with our suppliers.
Promoting an ethical supply chain
We use a third-party assessor to manage our social compliance auditing and modern day slavery due diligence. The Dunelm Quality team receives ‘live’ updates of supply chain risk ratings and works closely with our third-party assessor to actively manage continuous improvement of factory standards. We hold an industry-leading position, having carried out ethical audits in over 99% of Tier 1 supplier factories (for Dunelm own brand and exclusive products) with over 37% of audited supplier sites graded low risk, and a further 35% medium risk. The programme has been extended to our Pausa suppliers and third-party branded suppliers. In 2020 we launched our supplier portal that sets out compliance standards for working conditions in all our factories.
EXAMPLE OF SUPPLY CHAIN RISK RATING QUESTIONS: ETHICAL EMPLOYMENT AND TERMS AND CONDITIONS
- Work is not voluntary, for example, unpaid overtime, bonded, forced or trafficked.
- Any involuntary prison labour.
- Retention by employer or employment agent of original identification papers and/or passports unless required by law.
- Complete absence of toilet and rest breaks.
- Substantial loans held by workers, with excessive interest rates and/or onerous financing schemes and/or unreasonable repayment terms.
- Workers are led to believe that if they do not comply with what is being asked of them they, or their family, will be subject to physical, social or financial retribution.
- Workers are controlled through religion/faith, violence or threats either to self or others.
- Undocumented migrant workers have been subjected to threats of being returned to their home country and/or reported to authorities if they leave employment.
- Workers who refuse overtime are penalised, for example, threats of dismissal, pay cuts, demotion, etc.
- Workers are not allowed to leave the facility when shifts end.
- Workers are not able to resign from the factory.
- Workers paying deposits when they commence employment.
- Unreasonable delays in payments due to workers when they leave.
- Monetary deposits, for example, for work tools, PPE, training.
- Excessive monetary deposits for accommodation.
- Workers monitored when they go to the toilet.
- No policy on prison labour.
- No free employment policy.
- Extended probation period.