As a large apparel company with highly visible brands, we are regularly in contact with organizations and individuals interested in our approach to social and environmental issues. By communicating openly and listening to their interests, concerns and suggestions, we gain valuable insights that help us to strengthen our program for greater impact. Increasingly, we are looking for ways to engage proactively with our stakeholders in order to ensure that we leverage their diverse perspectives and expertise.
We engage with our stakeholders in ways that best address their inquiry, support our shared goals and leverage best practices and stakeholder guidance.
We conducted materiality assessments in 2013 and 2015 to guide our CR efforts. Through our 2015 materiality assessment, we identified and prioritized the CR topics that are most material to our business and stakeholders, in line with the GRI G4 guidelines. Seeking input from stakeholders was integral to this process. We evaluated each topic according to the level of risk and opportunity it presents to our business. This helped to inform our enhanced CR strategy and will be integral to our long-term strategy development and reporting. In 2017, we will conduct another materiality assessment to refine our material issues and ensure that we continue to focus our efforts on the issues that matter most to our business and our stakeholders.
The stakeholders that participated in our 2015 assessment included PVH associates and partners, including the Fair Labor Association (“FLA”), Better Work, the Zero Discharge of Hazardous Chemicals (“ZDHC”) Programme, the Sustainable Apparel Coalition (“SAC”) and New York University’s Stern Center for Business and Human Rights. We sought external views through an online survey and conducted in-depth interviews. We also held a roundtable with PVH executives and associates before finalizing the prioritization of key topics. We will engage the same types of stakeholders when conducting our materiality assessment in 2017.
|Factory fire and structural safety||•||•|
|Responsible sourcing by PVH business units||•||•||•|
|Supplier capacity building||•||•|
|Bribery and corruption & corporate governance||•||•||•||•|
|Health, safety and wellbeing1||•||•|
|Talent management/learning and development||•||•||•|
|Inclusion and diversity||•||•|
|Compensation and benefits||•||•|
|Responsible entry and exit of factories||•||•|
|Packaging and packing||•||•||•|
|Greenhouse gas emissions||•||•||•||•|
|Sustainable product design and manufacturing||•||•||•||•|
The UN’s Sustainable Development Goals ("SDGs"), agreed upon by 193 countries in 2015, will help guide global efforts to achieve sustainable development over the next 15 years. We have developed our new CR strategy to support the SDGs, as we renew our efforts to achieve positive impacts across our value chain.
|Promote adherence to A Shared Commitment, our code of conduct for business partners, and go beyond compliance to improve the lives of workers within our supply chain.|
|Ensure safe working conditions for workers within our supply chain.|
|Attract and retain world class talent by making PVH a great place to work.|
|Invest in and support PVH associates in reaching their full potential in an inclusive environment where every individual is valued.|
|Practice responsible chemical management by reducing and eventually phasing out hazardous chemicals from our supply chain by 2020.|
|Safeguard and preserve water resources to ensure continuity and quality of water supply for our business and the community.|
|Reduce the amount of packaging used in PVH products and work towards zero materials to landfill by using recyclable materials.|
|Source raw materials more sustainably to minimize social and environmental impacts along the supply chain.|
|Measure and reduce PVH’s GHG emissions by reducing energy consumption, increasing energy efficiency and utilizing clean energy both in our owned and operated facilities and across our value chain.|
|Support the needs of women and children by creating safe spaces, improving access to education and enhancing quality of life.|
Our senior management team, led by Emanuel Chirico, our Chairman and CEO, establishes the vision, sets the tone, and leads the way for our CR program. The CR Committee of the PVH Board of Directors provides support and guidance to management and the full Board with respect to our policies and strategies governing our CR program. Three independent directors form the CR Committee. The Committee meets four times a year in order to monitor our CR performance on social, environmental and community issues and progress against key performance indicators (“KPIs”) established each year to advance the program’s commitments.
Clear lines of accountability for CR exist throughout our organization. Our Chief Risk Officer, Melanie Steiner, directs the development and implementation of our global CR strategy, including our human rights, health and safety, and environmental commitments and policies. She reports to our Chief Operating & Financial Officer, Mike Shaffer, and is supported by our Group Vice President of CR, Marissa Pagnani, who manages a team of over 70 CR associates in 11 countries across Europe, Asia, Africa and the Americas. Our CR team works closely with PVH businesses to further align our CR goals with the business.
We are committed to maintaining the highest moral, ethical, and legal standards in our business. PVH Legal, led by Mark Fischer, our General Counsel, oversees compliance issues, helping to ensure that we remain up-to-date on relevant anti-corruption, social, environmental and similar legislation in the countries where we operate, providing and facilitating related training and managing our compliance hotline.
We require that all PVH associates, as well as PVH Board members, participate in PVH Complies, our compliance training program. This consists of online courses on key topics including our Code of Business Conduct and Ethics, anti-bribery and anti-corruption policies and legislation, insider trading, and conflicts of interest. In order to help associates understand and comply with all elements of these topics, the program is designed to be engaging, informative, and easy to use. In addition, the PVH Legal team provides in-person training in local languages to address these issues and policies, some of which may be specific to individual regions.
Associates, subject to certain legal limitations, can report any suspected policy violations, inappropriate behavior, and unethical practices via Tell PVH, our global reporting hotline. In most instances, associates can make reports anonymously, either online or by phone, in one of 15 languages. We plan to expand this global reporting line in 2017 to those working in our supply chain.