In line with previous years, the audits were conducted by a qualified and experienced independent body to ensure maximum impartiality.
Social and ethical audits were centred on fundamental human and workers’ rights, particularly on forced labour, child labour, freedom of association, working hours, minimum wages, and – last but not least – occupational health and safety. In 2017, the Company focused particularly on auditing all its façon manufacturers (of jackets – Tier 1), as well as a significant sample of suppliers of other commodity groups.
Environmental audits, some of which particularly on wastewaters, focused mainly on suppliers with internal production units, and on the analysis of their policies and procedures to minimise impact.
The scope of the audits and the suppliers and subcontractors to involve in the auditing process are determined by the Internal Audit division based on a risk analysis, which takes into account various factors, such as the amount of orders placed with the given supplier, the type of good or service provided, and geographic location.
The risk analysis also considers other parameters, such as the supplier’s number of employees and plants, and/or the use of subcontractors and their geographic location. The outcomes of previous audits are also an important selection criterion.
Additional audits on animal welfare and on down traceability as per DIST Protocol (Down Integrity System & Traceability) were conducted across the entire down supply chain.
In 2017, a total of 60 social and ethical audits were performed (on both suppliers and subcontractors), covering 81% of the volume produced by façon manufacturers (of jackets), 46% of the volume of knitwear, 41% of the volume of soft accessories (footwear and bags), and 100% of the volume of down purchased from direct suppliers. 10 environmental audits were carried out on a sample of raw material suppliers (in particular, on fabric and down suppliers and on suppliers with in-house galvanic processing). And 85 audits on animal welfare and traceability were conducted across the down supply chain (covering 100% of the value of the down purchased).
Moncler has a zero tolerance policy against major compliance breaches, which could indeed lead to immediate contract termination. That being said, the Group is committed to raising awareness and driving continuous improvement within its supply chain, requiring the implementation of corrective measures when deemed necessary. In this case, the Group verifies that measures are implemented by an agreed deadline through follow-up audits.