SUSTAINABILITY REPORT 2016 - #opentheworld kathmandu.com.au kathmandu.co.nz kathmandu.co.uk
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2016 SUSTAINABILITY REPORT #opentheworld kathmandu.com.au kathmandu.co.nz kathmandu.co.uk
N AV I G AT I O N
CONTENTS
HIGHLIGHTS 2016............................................................. 2 OUR FOOTPRINT
Measurable impact We believe in the power
CHAIRMAN AND CEO'S REPORTS......................................4 Goals to reduce our footprint.......................................... 30
Green building
of travel and adventure
OUR CORE VALUES............................................................6 Christchurch support office gets five stars.........................31
Shifting building culture.................................................. 32
to change the world.
OUR STORY Waste survey
We are Kathmandu Measuring is the first step towards change...................... 33
Our core values inform our actions.................................... 7
End–of–life recycling
Clothing donation programme
OUR JOURNEY keeps gear out of landfill................................................. 34
Sustain the Dream
Our plan and goals...........................................................8 Measuring carbon
Reducing and offsetting to bring emissions down............. 36
Self–assessment
Our commitment to the Higg Index...................................9
OUR COMMUNITY
Investing in people
OUR SUPPLIERS Global change through individual actions........................ 38
Our Code of Conduct
What we expect from suppliers........................................10 Gear for good
Supporting Red Cross......................................................40
Working together
How industry partners are helping us evolve.....................12 Living the dream
Outward Bound scholarships........................................... 42
Audit fatigue
Helping factories focus on improvement...........................13 Campground enhancement
Giving back to a favourite destination............................. 43
OUR PRODUCTS Getting dirty
Material priorities Conservation work in the field......................................... 45
Working towards a resilient industry.................................16 Enabling adventure
Responsible down Our customers tell us how to invest.................................46
Rising to the challenge.....................................................18 Nepal
Sustainable cotton Investing in the region that inspired our brand................. 48
Heading towards 100%................................................... 20
Recycled polyester OUR TEAM
Solving two problems in one............................................ 24 People and passion
Making a more engaging workplace................................ 52
Responsible wool
Looking after animals and the land................................. 26 Values in action
Outward Bound leadership courses.................................. 56
Safety
A focus on children’s products......................................... 28
GRI INDEX...................................................................... 58
APPENDIX...................................................................... 62
About this report
This is our fifth annual sustainability report. It covers the period from 1 August 2015 to 31 July 2016. The report is prepared in accordance with the core requirements
of the Global Reporting Initiative (GRI) G4 reporting framework. It accompanies our Kathmandu Annual Report 2016, available online at kathmanduholdings.com,
which includes our full financial results. Data in this report covers Kathmandu’s operations, including our stores, distribution centres and support offices in New
Zealand, Australia and the United Kingdom. If any issues are material beyond these boundaries, we have reported on these issues and our approach to managing
them, but we may not have complete data available. Financial figures are expressed in New Zealand dollars unless otherwise specified. We’d love to hear your
feedback on the report. Feel free to send comments and questions to our team at sustainability@kathmandu.com.au
HIGHLIGHTS 2016
ACHIEVED 100
% RANKED WON AN
RDS CERTIFICATION
across our entire
insulation range
+ #4
in the Textile Exchange Report’s
AWARD WITH
THE AUSTRALIAN
PACKAGING COVENANT
Moved into our new
5 Green Star rated
from Winter 2016 top global users of certified down office in Christchurch
UPCYCLED 1.2 MILLION PLASTIC SUPPORTED OUR FIRST
BOTTLES TO THE REPREVE RANGE CARBON OFFSET IMPLEMENTED OUR
ADVISORY MEMBER
GARMENT REUSE
for the new RWS
PROJECT PROGRAMME
INCREASED USE OF SUSTAINABLE COTTON
FROM 38 TO 59 across our cotton range
% % COMMITTED TO USING THE HIGG INDEX
2 Sustainability Report 2016
N AV I G AT I O N
THE CHAIRMAN THE CEO
Each year, sustainability becomes more engrained within our business. The Kathmandu brand exists to inspire travel and adventure. Our business
We’ve made progress this year. We achieved 100% Responsible Down is about creating value for our customers, our shareholders and our team
Standard (RDS) certification for all our down products. We opened a members. We create value by operating a responsible business with
5 Green Star Rated support office in Christchurch and helped develop sustainability at the core of our business strategy and embedded into
a Green Star rating tool specific for retailers. our core values.
But our biggest impacts will be in the opportunities we’ve helped create Looking back on a year of solid financial performance, we recognise that our
for our whole industry – using collaboration to have a multiplier effect. sustainability commitments have also helped drive operational efficiency.
By collaborating with the Green Building Council of Australia, we’ve helped This year, I was pleased to be directly involved in our materiality assessment,
develop a retail–specific Green Star Rating system. This will make it easier which gave me greater insight into the business’s social and environmental
for retailers to adopt green building standards, which in turn puts pressure impacts.
on the building industry to develop less wasteful systems and show more
Our stakeholders’ feedback outlined human rights as our number one material
transparency in the products they source. The built environment contributes
issue, and materials stewardship and waste management were also top priority
more than a third of all greenhouse gas emissions, so even small steps here
material issues.
can make a big difference at scale.
This feedback informs our sustainability strategy. This year, we continued to
Scale is a key factor for meaningful change. The Better Cotton Initiative
integrate the use of the Higg Index, which is an industry based, best practice
now accounts for almost 12% of global cotton production. That means
framework for assessing our work in this area.
1.6 million cotton farmers around the world are using less pesticides and
getting better yields. Kathmandu became the first Australasian member Completing the Higg Index modules for each area of our business gives us a
‘It’s exciting to of this initiative in 2015 and it will be a big part of achieving our goal of
100% sustainable cotton by 2020.
‘As a design-led score that we can benchmark against an industry standard, helping us to
understand where we are and how we can improve. We are committed to
be in this part of The Higg Index is another great example of industry collaboration.
business, designing collaborating across industry to drive sustainability outcomes.
our sustainability This sustainability self–assessment tool helps brands track their progress great, innovative, As a design-led business, designing great, innovative, distinctive and sustainable
journey, where and benchmark themselves against industry standards. It helps us ask
the right questions so we can focus on the biggest problems. distinctive and quality products and solutions remains our core strategy.
Sustainability informs how we design, make and innovate our products, so that
being an industry By thinking beyond our doors and working together with our industry, sustainable quality our customers realise their full potential in the great outdoors.
leader is not we have a chance to solve problems that extend right through our
supply chains. It’s exciting to be in this part of our sustainability journey,
products and More than a retail business, Kathmandu is a great brand. We will continue to
about winning, where being an industry leader is not about winning, but about finding solutions remains strengthen our engagement with customers, particularly with our 1.6 million
Summit Club members. Sustainability is a key part of this conversation.
a better path.
but about finding our core strategy.’ In the year ahead, we will celebrate our 30th year of designing great outdoor
a better path.’ David Kirk
Chairman
equipment. I look forward to delivering further value to our stakeholders in
this area.
Xavier Simonet
Chief Executive Officer
4 Sustainability Report 2016 Sustainability Report 2016 5
N AV I G AT I O N
INTEGRITY RESOURCEFULNESS
We are ethical, honest and always We celebrate ingenuity and
strive to do right by our customers inventiveness with a 'hands–on'
and each other. approach to get the job done.
LOVE OF TRAVEL
AND ADVENTURE
This is our unique and addictive passion.
ENVIRONMENTAL
ACTION
We not only believe in protecting the
OUR STORY
It's our business, our life and is the outdoors, we act. Together, customers and
heart and soul of Kathmandu. team members are a force committed to
minimising our environmental footprint.
We were born in New Zealand – a breathtaking
country where isolation breeds innovation
OPENNESS AND PASSION AND and the hunger to explore.
DIRECTNESS DETERMINATION
For 30 years, we have designed our gear to endure
the rugged landscapes of our homeland and to outfit
the adventurous spirit of our people.
We act with transparency to create We love what we do, we believe in
With Kiwi ingenuity, and an open mind, we continuously
a productive, naturally efficient working life, what we create, and we go the extra mile
adapt our gear to endure different weather conditions,
with no time for bureaucracy. for our customers and our people. diverse terrains, and the ever–changing needs of travellers.
We act with people and the planet in mind –
from the creative minds of our designers, to the careful
hands of our suppliers, to the backs of our customers
all around the world.
We believe that adventure begins when you pack your bag.
We are Kathmandu.
OUR CORE VALUES 161 TOTAL STORES TOTAL SALES:$425.5m (+4.0%)
PROFIT: $33.5m
KMD.NZ
47 NEW ZEALAND STORES KMD.AX
Kathmandu is listed on both the Australian (ASX)
and New Zealand (NZX) stock exchanges.
114 AUSTRALIAN STORES More information about our performance and governance
structure is available in our company annual report.
Sustainability Report 2016 7
OUR JOURNEY
N AV I G AT I O N
OUR JOURNEY
HIGG INDEX
OUR ENVIRONMENTAL & SOCIAL IMPACTS
WHAT IS THE
MORE HIGG INDEX?
The Higg Index is a ground–breaking
How important is this to our stakeholders?
self–assessment tool designed by
2 the Sustainable Apparel Coalition
in collaboration with the Outdoor
Industry Association. It empowers
1 brands to measure their environmental
4
Sustainability and social impacts and identify areas
for improvement.
is in our DNA
The Higg Index is made up of
6 3 several online tools or ‘modules’.
By entering data about their business
7 impact areas, members generate
performance scores. The SAC, which
AT KATHMANDU, It’s built into our stores, designed Informing our plan 8 represent nearly 40 per cent of the
into our products, lived by our staff 5 global apparel and footwear supply
SUSTAINABILITY IS NOT and worn proudly on the backs of
To find out where we need to act,
chain, aggregates anonymous scores
we talk to the people who our brand
A DEPARTMENT – IT’S A our customers. touches – customers, suppliers,
to create an industry benchmark –
WAY OF DOING THINGS We’re driven by a love of the outdoors partners, our team and investors. 10 an incentive for brands to continue
and an awareness that our exquisite Since 2011, we have consulted 9 to raise the sustainability bar.
world is finite. True sustainability puts those people to find out what they As a member of the OIA, we have
back as much as it takes out. We know care about most. This is called a LESS committed to using the Higg Index
we’re a long way from that, but at materiality assessment and it helps LESS How important is this to us? MORE and to helping collectively revise
least we’re not in it alone. Global us to refine our priorities. and improve our score. By working
problems need global solutions and as an industry, the SAC’s aim is
We have ongoing conversations with
1. Human rights
FOUR GOALS
our industry is coming together in to make the Higg Index the
our customers in–store, online and
exciting new ways. We’ve found a most comprehensive and robust
through social media. We use regular
WE HAVE SET place at the table. surveys to talk to our customers and
our team. Our conversations with
2. Materials stewardship sustainability assessment tool
possible – one that propels users
Sustain the Dream beyond compliance and towards
suppliers happen throughout the year.
3. Packaging, waste and recycling innovation and impact.
FOR 2017 Our Sustain the Dream Plan drives We are in contact with shareholders
Use 2.5 million how we integrate sustainability via investor briefings. In addition to Higg touches on every aspect of
plastic bottles for across the business. At Kathmandu, this regular communication, we sat 4. Sustainability leadership our business and the scores show
our Repreve range sustainability is not a department – down this year with 17 internal and us clearly the areas where we need
it’s a way of doing things. And it 18 external stakeholders. 5. Employee engagement improvement. But it’s not about
only works when every department scores as much as it is about
We asked them how important
BY 2018 is busy making a difference every
certain issues were to them and
making steady improvement.
day. This year, we updated our 6. Industry collaboration
Zero waste asked them for feedback about This tool is core to our strategy,
to landfill Sustain the Dream Plan for financial
how we’re doing overall. and in the future will drive our
years 2016–2018. 7. Supply chain transparency policies, plans and our materiality
From these interviews, we developed
We set new strategies for addressing assessments.
BY 2020 human rights in our supply chain,
a list of our top 10 most ‘material’
8. Carbon footprint
100% sustainable issues. Human rights was number
product stewardship, minimising our
cotton one, which reminds us that
environmental footprint, community
sustainability is as much about people 9. Community engagement
engagement on a local and global
as it is the planet. Of course, the
scale, developing our team and
CO2 BY 2020 growing our brand. Our sustainability
two are intrinsically connected.
10. Product quality and safety
20% reduction of When we mapped all the issues
governance team called the Dream
carbon emission according to how they link in the
Team drives the sustainability plan
minds of stakeholders, they formed
and reports to our executives.
an interconnected web. This tells us Interconnectedness is also a mark Overlapping our materiality
that these issues need to be managed of how complex these issues have assessment and our Higg Index
together, rather than in isolation. become. To help break down these scores give us a clear picture of
complexities, we have committed what we need to improve on.
to using the self–assessment tool,
See page 62 and 63 for more
the Higg Index, to map out our
information on where our impacts
environmental and social impacts
occur and how we engage with
in greater detail.
our stakeholders.
8 Sustainability Report 2016 Sustainability Report 2016 9
OUR SUPPLIERS
N AV I G AT I O N
OUR SUPPLIERS
WHERE OUR GEAR IS MADE
Many hands of
the supply chain
OUR CODE OF Our products go through many Our Code of Conduct addresses the
hands on the way to our customers. potential operational risks for suppliers
CONDUCT DEFINES HOW 85 % 8% 7%
It’s important to us that all of these involving child labour, collective
WE EXPECT OUR people are treated well. That means bargaining, freedom of association
CHINA
MANUFACTURERS TO they earn a fair wage and work in and forced or compulsory labour.
LOOK AFTER THEIR safe and healthy workplaces. VIETNAM
Our social compliance programme
STAFF TO EARN A FAIR Around 240 million workers rely on audits aim to make sure these OTHERS
the garment industry for employment. standards are upheld. This programme New Zealand, Taiwan, India, Indonesia, Israel, Guatemala
WAGE IN HEALTHY
Factories are a valuable source of jobs so far has focused physical audits on
WORKPLACES and can help improve livelihoods of manufacturers of Kathmandu branded
workers and their families, but poor product with whom we spend more OUR SUPPLY CHAIN
working conditions remain a problem than US$50,000 each year with. All of
across the sector. The industry’s these suppliers are audited at least
challenges are vast and complex. once over a three year cycle. In 2016, TIER 4 TIER 3 TIER 2 TIER 1
Some workers don’t even know their we audited 28 factories and completed
rights or how to achieve them. four unannounced audits. Suppliers
with whom we spend less are reviewed
In an ideal world, governments would
with a ‘desktop audit’. We recognise
take the responsibility to protect their
that in the future, we must find a
citizens, but the reality of our global
solution to make sure all workers in our
supply chain is that sometimes these
supply chain are protected – regardless RAW RAW MATERIALS MATERIAL MANUFACTURING DISTRIBUTION RETAIL
laws are not adequate or not enforced. CUSTOMER
of the value of our spend. MATERIAL PROCESSING PRODUCTION PARTNERS CENTRES NETWORK
This is why we have a responsibility
to make sure we’re clear about the We do our best to audit the companies
standards we expect and we have that fall under the US$50,000 spend
a system in place to make sure that threshold when our own auditors are Global challenges These practices don’t comply with We believe progress in this area
standard is met. in the vicinity. We also continued a Our most common findings continue the law and they don’t comply with will only be made through multi–
project looking for ways for our agents to be excessive working hours in Asia the compensation requirements stakeholder initiatives and industry
or buying houses to provide input. in our code. collaboration.
Code of Conduct and payment of social benefits in
And we perform desktop assessments China. These are global challenges. Our approach is to engage in One opportunity for collaboration last
We’ve developed a Workplace Code
of suppliers who do not receive full continuous improvement. To reduce year was the Australian Fashion Forum,
of Conduct, which is based on the In China, employers are required to
audits. All of our new suppliers are excessive working hours, we propose which was first held in November 2015
International Labour Organisation’s contribute to six categories of social
required to follow our social and prioritised steps to our suppliers. This to promote dialogue on traceability
standards and on internationally benefits. These help pay for things like
environmental criteria – this year, stepped methodology is intended to within the fashion supply chain.
accepted good labour practices. pensions, medical care and maternity
eight new suppliers and 32 new minimise negative impact on workers This forum highlighted the living wage
The code spells out what we expect leave. It’s a complex system that is
factories were briefed into our Code who, in most cases, actually want the and other topics, and we were pleased
from our suppliers. It defines working not particularly well enforced and is
of Conduct. extra wages that comes with overtime. to be invited to be part of a panel to
hours, safe working conditions and made more difficult by large numbers
explains what sufficient compensation Our programme continues to evolve of migrant workers coming in from open discussion.
looks like. It also includes environmental as we navigate our way through rural areas. Living wage The full Kathmandu Supplier Factory
standards we expect suppliers to meet. best practice and methodologies. We have followed the guidance of Workplace Code of Conduct is
All of our manufacturing partners must It remains a fine balance – asking We have found some employers
the Fair Labor Association (FLA) to available online at:
sign up to our Code of Conduct before suppliers to improve working conditions don’t enforce workers to pay what
better understand how a living wage www.kathmandu.co.nz/get–to–
we’ll do business with them. but also trying to understand the they should. And workers often avoid
can be achieved. We look forward to know–us/corporate–responsibility
complex regulations and cultures paying their contribution in order
continued participation in the Fair
they operate in. to have more money in hand.
Compensation Work Plan, a project
which aims to address this issue.
10 Sustainability Report 2016 Sustainability Report 2016 11
OUR SUPPLIERS
N AV I G AT I O N
Working together Fighting
audit fatigue
Industry partners are helping
to evolve our social compliance ‘We applaud the progress that HELPING FACTORIES TO Factory audits are the tool we use
to make sure suppliers are meeting
Better Work Programme
FOCUS MORE ON Last year, we also replaced one
programme. has been made. We hope this IMPROVEMENT AND
our Code of Conduct to provide safe
working conditions and fair pay to
audit with a Better Work Programme
We are working with industry
partners to identify gaps in our report will help the fashion industry LESS ON PAPERWORK workers. But when every company
assessment report for a factory in
Vietnam. The Better Work Programme
social compliance programme.
Using feedback from the Fair Labor
contribute to a world free from sends auditors, it puts strain on the
factories and actually begins to
requires commitment from the factory
Association (FLA), Baptist World poverty and exploitation.’ hamper progress. To address this,
and from the company. If all the
factory’s customers accept the
Aid and the Higg Index will give us the Sustainable Apparel Coalition Better Work report, they will have
confidence that we’re focusing on the Australian Fashion Report 2016 announced the Social and Labour one consistent and continuous
right areas as we prioritise our next Convergence Project in 2015, calling improvement plan as opposed to
steps. In the short term, we’re using for collaboration to create a standard multiple versions. This will help them
this feedback to improve. For example, In April 2015, the FLA shadowed a It scored 87 apparel companies on assessment tool. to focus more on improving standards
we’ll be looking at our internal policy Kathmandu staff auditor in our first their labour rights management and less on completing multiple reports.
We’ll be watching this project with
and process to formally document FLA field observation. The observer system. The average score was C+.
interest. Our own work to help ease
who takes responsibility for social was looking at the effectiveness of our Six companies received an A grade
audit fatigue includes occasionally
compliance within our business – from programme across many areas including and nine companies received an
accepting paper audits when they
the supplier management officer and content, knowledge and ability. Overall, F grade. Kathmandu was graded B–.
meet our criteria. Last year, we
right up to the CFO, CEO and the we were found to be ‘satisfactory’ which In real terms, this was the same as
reviewed 21 audit documents and
Board of Directors. In the long term, means assessors are doing a good job the previous year’s score but because
15 of them met our criteria, which
we’ll be focusing on making sure and fulfilling requirements. Some areas a new grading tool was adopted,
relieved 10 physical audits during
everyone in our supply chain is paid came back ‘average’ or ‘insufficient’, it made it more difficult to achieve
the year.
a living wage. which shows we still have a lot to learn. higher grades.
The field observation highlighted our ‘We value this assessment of ourselves
dependency on translators when using and other brands, and the opportunity
our own auditors. Our own Kathmandu it provides to examine where our
staff auditors are valuable because they programme falls short to identify areas
give us more than a black and white of improvement – namely auditing and ‘We recognise that the proliferation
report, but not speaking the local
language can be a barrier, especially
worker empowerment,’ says
Kathmandu Supplier Management of differing codes, audits, protocols
Working towards
FLA accreditation
when conducting staff interviews.
We’re trying to balance these factors by
Officer, Donna Didham. and approaches are hampering the
We are working toward FLA accreditation looking at options – either finding staff improvement of social and labour
of our social compliance programme.
This will give us confidence that our
auditors who speak the local language
or using a mix of staff and third–party
performance within global supply
programme is robust. audit services. HIGG Index chains. We believe that there is
In 2014, Kathmandu became the first
Australasian company to join the FLA.
Kathmandu reports can be read on
the FLA Site at www.fairlabor.org/
Our business is now committed
to using the ground–breaking
both a need and an opportunity
We completed a self–assessment in 2015 affiliate/kathmandu self–assessment tool, the HIGG for collaboration.’
and the feedback from that helped us Index, to measure our performance Sustainable Apparel Coalition statement
identify areas to focus on. In late 2015, on human rights in the supply 21 October 2015
the FLA undertook Social Compliance chain. We’ve assessed our work
Initiatives at three of our factories. using the detailed questionnaire
These assessments go much deeper in the HIGG’s ‘Social/Labor
than a standard audit and typically Management Performance’
involve two auditors up to three days. module. This scoring criteria will
The results help us to assess our reinforce the most important
programme. For example, we realised areas for us to focus on in the
that subtle language in our corrective 2017 financial year.
action plans could do more to Baptist World Aid
encourage suppliers to find their own Kathmandu participated in the
solutions to problems. We hope that Australian Fashion Report for the
these factory–led solutions will do more third year. The report is researched
to address the root problems and will and written by international aid
be more earnestly adopted. and development organisation,
Baptist World Aid.
12 Sustainability Report 2016 Sustainability Report 2016 13
OUR SUPPLIERS
N AV I G AT I O N
CASE STUDY
OUR AUDIT FAILED: CORRECTIVE ACTION CORRECTIVE
PROGRAMME PLAN FOCUSES ON SOLUTIONS ACTION PLANS
Our audit programme
includes inspections and
staff interviews. An un–announced audit of one of our suppliers this year found OPENED 27
non–compliance across most sections of the audit report.
IT AIMS TO: CLOSED 16
Pre-audit and inspect all
1 new potentially significant We aim to make sure all our
Tier 1 Suppliers’ factories The ‘failed’ count was high and The factory used a fingerprint Corrective Action Plans are:
before placing orders. included incomplete working hour system to record working hours,
records, fire drills not performed but with a high turnover of new
Perform a full audit then frequently enough, emergency exit workers, they were not keeping up SPECIFIC
2 subsequently a re-audit routes not clearly marked, first aid with adding new workers into the
on a three year cycle of kits not fully stocked, collective system. Understanding this difficulty,
existing significant Tier 1 bargaining agreement not clearly we agreed the factory should have
Suppliers’ factories unless documented and a lack of procedure a three day grace period where new MEASURABLE
an acceptable accreditation for chemical storage. The factory workers’ hours would be recorded
or copy audit is provided. didn’t seem to have a good grasp of manually. We worked with them to
the requirements, so the first step was make their manual recording system ATTAINABLE
Focus re-audits on to find someone to take responsibility more robust. This solved the problem
3 verifying remediation for educating and training the team. for us and for them. A re–audit will
has taken place. The factory nominated a senior validate the effectiveness of the
manager to take action. improved manual system. RELEVANT
Focus inspections on visual One corrective action plan addressed Because the factory was willing to
4 health and safety. the issue of incomplete working improve and agreed to reasonable
hours records. timeframes, we will continue to TIME BOUND
work with them.
Re–audits and inspections Their critical failures included: working Pre–assessment for
We’ve designed our audit programme hours, non–payment of minimum new factories
to be flexible. We commit to one wage, insufficient overtime wage,
This year, we developed a process to
full–audit or one re–audit of all attempts to hide the kitchen and CASE STUDY
pre–assess potential new significant
a blocked emergency exit.
‘significant’ suppliers in each three
year cycle. If the full audit shows no A flexible programme also allows
suppliers’ factories. The aim was to
flag any concerns about workers’
GOOD ON PAPER: EXCESSIVE
problems in the documentation, we
might concentrate the re–audit on
us to be alert for changes, like new
management or new legislation, and
rights before placing any orders.
Our auditor’s feedback on this
THE VALUE OF BEING THERE WORKING HOURS
worker interviews to make sure the adjust our audit focus accordingly. pre–assessment process has said that Limiting excessive working hours is one
workers’ comments back up this this should not be done in place of a In 2015, we implemented a procedure for pre–assessing of the biggest challenges for suppliers.
great on–paper performance. Our re–audit is mainly a review of new factories prior to commencing business. When we find breaches here, we always
full audit. So we are looking at how
previous audit findings and aims try to understand the root cause and
We terminated our relationship with we can improve by performing full work together for improvement.
to validate evidence which has
one supplier as they had subsequently audits on all new suppliers up–front.
been provided through photos or
HERE’S WHAT WE EXPECT FACTORIES
failed their 2015 and 2016 audits. documentation. Last year, we used This range of audit activity means TO PROVIDE FOR EMPLOYEES:
We had put in place a remediation more third-party services so that we do not always ‘score’ our audits. We start with documentation and The factory looked good on paper.
plan for them since 2013, therefore we could interview workers directly Instead, we focus on improvement by One day off in seven consecutive
the latest critical failures were not
then follow up with an inspection. Our desktop audit and a copy of an 1 working days is upheld.
in their own language, rather than issuing corrective action plans and This has been invaluable. In our 2016 audit gave us confidence. However,
acceptable. The supplier received social with translators. following these up. We identified 13 Overtime will not exceed three
financial year, we visited 14 factories on–site, it was a different story.
compliance training in 2014, in place ‘failed’ assessments (37%) as having and found six of them did not meet It didn’t take long for our auditor
2 hours after an eight hour
Worker interviews are important working day.
of a re–audit to enable improvement. actual and potential negative human our Code of Social Responsibility to establish that the factory would
Whilst the supplier had remained for validating what is reported in Overtime of one to two hours is
willing to improve, their audit history the documentation. We ask specifically
rights impacts. One supplier was requirements. We proceeded to do not meet many of our standards. 3 maximised after an eight hour
dropped as a result. business with two of the remaining We did not proceed with an order. working day.
was poor. about how workers are involved
in decision making and if there factories. The others were not used
are effective grievance procedures for other reasons.
We learned from this process that 4 A 60 hour week is not the norm.
copy audits are not always reliable –
in place. One factory that did not meet our and we need to bear this in mind as A working week shall not
requirements was a manufacturer we look for solutions to audit fatigue. 5 exceed 48 hours.
in China. Even though it was classed
as ‘insignificant’, with annual orders 6 Full compliance with country law.
expected to be worth only US$10,000,
we took the opportunity to inspect In order to focus on those factories
where this is the biggest problem,
when we were in the area visiting we classify our findings as minor, major,
other factories. or critical. A critical classification will
be assigned where (1)(2)(4) are found.
14 Sustainability Report 2016 Sustainability Report 2016 15
OUR PRODUCTS
N AV I G AT I O N
OUR PRODUCTS
Towards a resilient
textile industry
IF YOU DON’T KNOW Whether the raw materials are When we look at our products
farmed or extracted, textile production across their entire lifecycle, up to
WHERE YOU’RE GOING, depends on natural resources – and 85% of the impact comes from
YOU WON’T KNOW WHEN these are limited. Textile production what they’re made of, so materials
YOU GET THERE also has socio–economic impacts on are an important part of our
the people and communities where sustainability strategy.
they are sourced and processed. To be
We’re working to use more and
truly sustainable, the textile industry
needs to move to a circular model
more fabrics that are recycled or
sustainably produced, and reducing
OUR PRIORITY OF
that rebuilds the earth’s natural capital
and recognises how all these things
our use of resource–heavy materials
like conventional cotton and
PREFERRED MATERIALS
are connected.
virgin polyester.
Kathmandu Textile R&D and
We’ve made a list of our preferred
Responsible Materials Manager
fibres and materials and ranked
Manu Rastogi says, ‘Population
them in order of priority.
growth, competition for land and 1. RESPONSIBLE DOWN
limited water and fossil fuel resources ‘It’s a fluid list,’ says Manu. ‘It changes
demands a new way of looking at as global trends and organisational
fibres. If we don’t make changes, priorities change, and as our business
we will not have enough resources evolves. By diversifying into a portfolio
on earth for both food and clothing of preferred fibres and materials,
in the future.’ we minimise our risk and align our 2. RECYCLED POLYESTER
materials strategy to global trends.’
‘ We will not have PRIORITIES
enough resources 3. SUSTAINABLE COTTON
for both food
and clothing.’
4. BLUESIGN APPROVED FABRICS/TRIMS
Manu Rastogi,
Textile R&D and Responsible
Materials Manager
5. RESPONSIBLE WOOL
16 Sustainability Report 2016 Sustainability Report 2016 17OUR PRODUCTS
N AV I G AT I O N
Rising to
CASE STUDY
A LOOK DOWN THE SUPPLY CHAIN
the challenge Responsible Down Standard certification is an important part of
our work towards making sure animals are treated ethically. But we
also want to connect directly with the farms. We’ve visited and talked
about animal welfare with every one of our down processors in China
BIG STRIDES IN Down jackets are a big part of our Every time a product with RDS down
and Taiwan.
business. So making sure the down changes ownership, a certificate
RESPONSIBLE DOWN and feathers in them come from (called a transaction certificate) In October 2015, Textile R&D and Responsible Materials Manager
SOURCING HAVE EARNED well–treated animals is important is required, to track the material Manu Rastogi travelled to Lu’an, China to investigate the supply
US GLOBAL RECOGNITION to us – and to our customers. from the source to the final product.
chain of our high–end 800 fill power goose down. He visited farms,
More than 150 million birds are now
With the release of our Winter 2016
under farm certification to the RDS.
slaughterhouses, agents and processors to better understand the
range, we used 100% RDS certified real–life challenges they face.
down across our entire insulation Four Paws, an international animal
range. We can trace the origin of welfare advocate, launched the
our down from purchase order to Cruelty Free Down Challenge in 2014.
sewing factory and right through Four Paws developed a series of
to the farm level. steps, represented by five levels I took a train from Shanghai
that manufacturers could take to to Lu’an, Anhui, China to visit our
There are lots of links in the supply
make sure there is no live-plucking white geese farms, where the 800
chain – down processors, agents,
or force–feeding in their supply chain. fill power white goose down used in
slaughterhouses, down farms.
Plotting these levels on a mountain, the XT Ultralight Down Jacket and
For one organisation to monitor all
Four Paws challenged outdoor Vest comes from.
of these is a huge task. That’s where
manufacturers in a ‘race to the top’.
the Responsible Down Standard In this region, the birds are mostly
comes in. Set up by global non–profit, In 2015, Kathmandu took up the owned by families and sold to many
the Textile Exchange, RDS is part of challenge. We started climbing the different small slaughterhouses in
their vision to create a global textile mountain but Four Paws ranked us the region.
industry that protects and restores almost at the bottom. In 2016, we
have reached the highest level and are In most villages, the birds spend
the environment and enhances lives.
ranked number four, behind Fjällräven, their days roaming around. They
RDS makes sure that the down spend most of their time near the
Patagonia and Mountain Equipment.
in a product does not come from waterways that often run through
birds that have been live–plucked or The Textile Exchange has also ranked the middle of the village.
force–fed, and that their welfare has Kathmandu at number four of
89 participants among its Top 5 The animals had free access to food
been protected from the time they
Users of Certified Down in its latest and water, lots of space to move
were hatchlings to when they are
2016 Preferred Fiber and Materials around and a sheltered barn or
slaughtered. Independent, professional
Market Report. enclosure to spend the night in.
certification bodies inspect each part
of the supply chain: farms, agents, After the farm visit, we went to
Kathmandu Textile R&D and I think we need more pressure and It is difficult to explain to the farmers
slaughterhouses, down processors, the slaughterhouse that these
Responsible Materials Manager involvement from the meat industry and slaughterhouses the importance
and sewing factories. geese are normally transported to.
Manu Rastogi says, ‘We're incredibly and other major users of down – of animal welfare and the need for
proud of what we’ve achieved in just These slaughterhouses slaughter the
birds and deliver the meat to local from the bedding, furniture and higher levels of record keeping.
two years. Other brands at this level hospitality industries.
have been on the journey for seven markets, while the down and feather It’s not that these farms or
or eight years.’ material is usually dried in the sun This was a very insightful journey that slaughterhouses are live–plucking
and then packed into bags for sale. highlighted some of the challenges that or force–feeding. The challenge is to
As a vegetarian, this was a difficult Kathmandu and the wider outdoor convince them that the extra work
part of the trip for me, but goose industry are also facing. and record keeping is necessary.
2016 100% RDS ACHIEVED is a very common meal in this part
of the world. In fact, close to 90%
At the farm level, the highest grade
of education was just 6th grade
of the value of a bird is in the meat, while at the slaughterhouses, it was
and, at best, 10% of the bird’s
2015 RESPONSIBLE DOWN STANDARD ADOPTED
12th grade. They don’t possess any
value is in the feather and down. computer skills whatsoever. Excel and
This means there is not a lot of other spreadsheet tools are completely
financial motivation for many of foreign to them.
2014 DOWN POLICY PUT IN PLACE
the farmers and slaughterhouses
to do the extra work required for
a down standard certification.
OUR DOWN JOURNEY
18 Sustainability Report 2016 Sustainability Report 2016 19OUR PRODUCTS
N AV I G AT I O N
Heading ‘We used to spray
with pesticides that
towards 100% killed even the snakes.
A MIX OF SUSTAINABLE Cotton is a renewable natural The textile industry is undergoing
We reduced our pesticide
COTTON SOURCES WILL
resource, but only if we manage
it responsibly.
a major reform this decade. This is
good news. The race is on for different
use, increased our
REPLACE CONVENTIONAL
COTTON BY 2020
We’re on a path to a more circular
systems to meet consumers’ and
manufacturers’ desires to have more
profits and improved
materials system – one that replaces
the natural capital it removes. This
path is not paved with conventional
ecologically and socially sustainable
management systems in place. our health.’
cotton, which takes out huge amounts We’ve decided to combine three Drissa Coulibaly,
of water and puts back huge amounts sustainable cotton initiatives – BCI BCI Farmer, Mali
of chemicals. (Better Cotton Initiative), organic and
Fairtrade – to build a flexible fabric
Our goal is to phase out conventional
sourcing strategy that moves us away
cotton completely by 2020. Despite a
from conventional cotton.
dip last year, we’re firmly on track to
get there.’ This strategy makes good sense.
Not only does it secure for us a
‘We care about promoting and
long–term supply of sustainable raw
protecting workers’ rights throughout
BREAKDOWN OF our supply chain, and improving
material, it also allows us to become
SUSTAINABLE a market leader in Australasia.
working conditions,’ says Textile R&D
2016 COTTON
100 %
RDS ACHIEVED
and Responsible Materials Manager
Manu Rastogi.
‘The mix of BCI, organic and Fairtrade
cotton in our portfolio gives us the
opportunity to create an organic,
‘We also care about sustainability
Fairtrade product range for our highly
2015
and protecting the outdoor
responsible consumers, who are
5% FAIRTRADE
RESPONSIBLE DOWN STANDARD ADOPTED
environment we love to play in.
willing to pay a higher price, and also
As we use cotton in a range of our
take responsibility for bulk cotton
21% BCI products, it’s important the cotton
production via the Better Cotton
2014 33POLICY
DOWN %
we use is environmentally–friendly
PUT IN PLACE
ORGANIC and ethically produced.’
Initiative. This means Kathmandu can
improve its social and environmental
performance and can still meet the
demands and expectations of its
OUR DOWN JOURNEY customers,’ Manu says.
2020
2016 59% SUSTAINABLE COTTON 100%
SUSTAINABLE
COTTON
2015 38% SUSTAINABLE COTTON
2014 59% SUSTAINABLE COTTON
OUR COTTON JOURNEY
Suzanne Lee, Fairtrade International
20 Sustainability Report 2016 Sustainability Report 2016 21OUR PRODUCTS
N AV I G AT I O N
A better way
CASE STUDY
THE POWER
THE BETTER COTTON There are lots of sustainable cotton BCI’s reports show farmers in OF A SINGLE
INITIATIVE IS SCALING
standards out there. And they’re all
aiming to shift cotton production
India have raised their yields by
11% while cutting synthetic pesticides
T–SHIRT
UP TO MAKE A BIG to be more environmentally and by 20%. These results really are
DIFFERENCE FOR PEOPLE socially responsible. better – better for farmers, better Summit Club member Tricia
AND THE PLANET Kathmandu chose to work with the
for the environment. Cutforth was named 2015
Better Cotton Initiative because it’s The initiative aims to have 5 million Fairtrade Supporter of the
the fastest growing standard by far. farmers producing 8.2 million metric Year for her moves to make
It might not be as rigorous as organic tonnes of Better Cotton by 2020. Whangarei a Fairtrade
and Fairtrade standards, but it is a That’s around 30% of global cotton District. Tricia travelled to
very realistic first step for farmers to production. Organic cotton, by India to see Fairtrade cotton
take towards a more sustainable comparison, makes up around 1% supply chains in action.
cotton production. of global cotton production.
The Better Cotton Initiative came For some farmers, BCI is just the
out of a ‘round table’ led by the first step towards achieving organic
World Wildlife Foundation back in or Fairtrade certification. The system Tricia took with her several Kathmandu
2005. The goal was to find more has also been designed to work Fairtrade certified cotton T–shirts,
sustainable solutions for farmers, the other way – so that organic or which are supplied by the Pratibha–
for the environment and for the Fairtrade farmers can also qualify Vasudha cotton project in the Madhya
future of the sector. as Better Cotton farmers. Pradesh region of central India.
Pratibha supplies all of Kathmandu’s
The programme began implementation Kathmandu became the first Fairtrade tees.
in 2010. By 2015, BCI had reached Australasian member of the Better
1.6 million cotton farmers across Cotton Initiative in March 2015. ‘My journey involved tracing
21 countries in five continents. BCI will be an important part of the T–shirt back to its source and
BCI cotton was grown on 3.4 million our plan to have 100% sustainable witnessing the processes that
hectares of land. cotton by 2020. go into making each garment,’
Tricia explains. ‘Ultimately, it was
the people I met along the cotton
supply chain that will resonate
‘We are building in my memory.’
the momentum we These people include Rakesh
Agrahai, general manager of
need to transform Pratibha–Vasudha, who explained
the market.’ how farmers are encouraged to
use natural waste products, like cow
Alan McClay, dung and compost to feed cotton
BCI Chief Executive Officer crops. Pratibha–Vasudha trains
farmers on organic practices.
‘My visit
Tricia also visited the local school and
a sewing project aimed at empowering unquestionably
women in self–employment, both of
which are supported by Fairtrade
deepened my
Premium investments. commitment to
‘Every time I pull on my Kathmandu the cause and
BCI BY THE NUMBERS 2015 Fairtrade certified organic cotton
T–shirt, I think of the farmers who opened my eyes to
the power of buying
1.6 MILLION
tended the crops, the women who
11.9% harvested the cotton, and the workers
who sorted the cotton to be milled a single T–shirt.’
FARMERS of global cotton
production
FARMERS’
YIELDS UP
before it was processed and sewn to
become the garments we wear today
in New Zealand,’ Tricia says.
Tricia Cutforth,
2015 Fairtrade Supporter of the Year
‘Through Fairtrade, consumers can
23 % 3.4 MILLION PESTICIDE
support these farmers and workers
to become more valued members of
USE DOWN
HECTARES
the supply chain. It just shows how
increase powerful a single Fairtrade certified
cotton T–shirt can be.’ Suzanne Lee, Fairtrade International
22 Sustainability Report 2016 Sustainability Report 2016 23OUR PRODUCTS
N AV I G AT I O N
Solving two
RECYCLED BOTTLES
ARE COLLECTED AND FLAKED
1
problems in one THE
HOW RECYCLED FABRIC
CAN MEET THE WORLD’S
Global demand for polyester outstripped cotton to become the number one fibre
in the early 2000s and continues to rise. There is now twice as much demand for REPREVE
PROCESS
polyester compared with cotton.
GROWING DEMAND
FOR POLYESTER
70
60 GLOBAL FIBRE DEMAND
(million tonnes)
50
40
4
17 2
30 17 BOTTLES MAKES BOTTLE FLAKES ARE FORMED
ONE BACKPACK INTO REPREVE CHIPS
20
10 COTTON
POLYESTER
0
1980 1990 2000 2010 2020 2030
With limited fossil fuels available to Last year, we set a goal to recycle
3
feed this demand, and a mounting one million bottles. We beat our REPREVE CHIPS ARE EXTRUDED
mountain of post–consumer plastic target by 20%. That means 42,000 INTO REPREVE YARN
waste, recycling is the obvious answer. litres of oil didn’t go into our garments.
The amount of greenhouse gases
Polyester is Kathmandu’s number
saved was about the same as what
one fibre in terms of use and so we
are working to shift our supply from
you’d release if you drove a family NUMBER OF PLASTIC BOTTLES RECYCLED THIS HAS HELPED SAVE
sedan around the earth five times.
virgin polyester to recycled solutions.
Energy2 equivalent of
Next year, our goal is more than 2016 target: 1 million
Repreve is a recycled polyester that
not only meets demand – it also fixes
double – we’re aiming to re–use 42,000L of petrol
3
2.5 million plastic bottles in our enough to drive a car on every road4
a problem. Polyethylene terephthalate
(PET) plastic (marked with a #1 on
2017 financial year.
2016 ACTUAL in New Zealand over four times
1.2M
plastic bottles) is the same material We can help to grow the raw
as polyester. Unifi, the makers of resource by encouraging more Equivalent
Repreve, have developed a process recycling. Right now, only 32% Greenhouse gases2
to turn bottle flakes into fibres, which
can be made into everything from
of plastic bottles are recycled
in the US (48% in Western Europe
emitted from driving around
the earth5 five times
CO2
backpacks (approximately 17 bottles) and 83% in China).
to fleece jackets (15 bottles) to T–shirts
(6 bottles).
PLASTIC BOTTLES RECYCLED 1
As much
Carbon
as sequestered by
2017 target: 2.5 million 416 acres of forest
1. These are conservative estimates for 500ml water bottles. Carbonated drink bottles are heavier. 2. Energy and GHG savings data provided by Unifi, Inc. from Unifi
product–specific LCIs and other published LCI data; equivalencies are based on US EPA Greenhouse Gas Equivalencies Calculator. 3. From USA – EPA data based on an
average passenger vehicle. 4. The total length of New Zealand roads is 94,000km. 5. The mean equatorial diameter of earth is 12,756km. 6. A conversion on the EPA
site for CO2 sequester by pine trees was unavailable. Instead, it’s based on ‘US forest’.
24 Sustainability Report 2016 Sustainability Report 2016 25OUR PRODUCTS
Responsible wool
CASE STUDY
PUT TO THE TEST
means looking after Ultralight waterproof fabrics hold great promise for sports where weight
matters – like hiking or trail running – but are they tough enough?
the animals and the land
Wool is a fantastic renewable Preserving land health means using Last year, Kathmandu initiated a This is what Technical Development ‘Their tiny packed size and weight ‘I was expecting the sleeves to become
material. It naturally resists smelly progressive land management pilot RWS programme. We visited Manager Anneliese Carlson wanted mean that I almost always have had ribbons but they were surprisingly
microbes and regulates temperature. methods to protect soil health, suppliers and began working with to know. She asked Outward Bound one on me, for those just–in–case robust with no ripping, and after a few
It’s repeating renewable, but like biodiversity and native species. our supply chain to get them ready instructor Dave Ryan to put it to times while instructing or missioning.’ goes, only a couple of pin–prick holes
any natural resource, it’s only for the launch of a RWS certified the test. that didn’t spread at all.’
The RWS specifically prohibits the Dave sometimes carried the packable
sustainable if it’s managed in a merino range in 2018.
practice of mulesing, which involves ‘On first glance I would not buy this jacket in his pocket: ‘In the past With such rave reviews, Anneliese was
way that looks after the animals
removing strips of skin from a Kathmandu Textile R&D and jacket for tramping,’ Dave reported. I would have carried a daypack more confident to recommend these
and the land.
sheep’s rear. Mulesing has been Responsible Materials Manager ‘It appeared to me to be too light to around with a heavier jacket in it.’ types of fabric for Kathmandu’s new
Kathmandu is part of the a common practice in Australia Manu Rastogi says the big gains do a good enough job.’ At one point, one of Dave’s tramping Zeolite trail running range.
collaborative industry group but has been phased out in come from working together. companions realised that he would be
For six weeks, Dave carried his two ‘That’s what I love about this job,’
developing the Responsible Wool New Zealand. ‘It’s about combining quantities less wet by exposing himself to a warm
lightweight test jackets on adventures, she says. ‘I get to connect with
Standard. RWS is a voluntary global so it becomes economical for the drizzle than sweating away in a heavy
The Responsible Wool Standard from a seven–day alpine tramp to a the customer and challenge their
standard that addresses the welfare whole supply chain. That opens up three–layer jacket.
launched in June 2016 as an three–day adventure race to a month expectations and follow it right
of sheep and of the land they graze opportunities for other brands to
independent, voluntary standard. instructing at Outward Bound’s ‘I was at the perfect temperature through from concept to development.’
on. The international working group be a part of it. We are leading
From farm and right through Anakiwa school. and my moisture was managed well,’
includes farmers, scientists, animal the way in bringing this standard
production, certification ensures says Dave.
welfare groups and brands like H&M, to the market.’ ‘Both these jackets have challenged
that wool for certified farms is
Patagonia and The North Face. my belief that a waterproof jacket As for durability, Dave put this to the
properly identified and tracked. ‘For me, it’s not just about looking
must be thick and robust in order to test by purposefully dragging the
The working group spent time at standards and adopting them,
The standard will create an keep the elements out,’ Dave says. sleeves across a thorny bush.
researching existing animal welfare it’s about working to develop
industry benchmark to drive
and land management standards them for the whole industry,’
improvements in animal care
for sheep farms to come up with a Rastogi says.
and land management and
standard for best practice for the
provide traceability from farm
industry. The standard has two key
to final product so that consumers
areas. Protecting animal welfare
can be confident that the wool
means that the Five Freedoms of
in the products they choose is
sheep are protected at all times.
truly responsible.
FIVE FREEDOMS OF ANIMAL WELFARE
1 2 3 4 5
Freedom from Freedom from Freedom from pain, Freedom to express Freedom from
hunger and thirst discomfort injury or disease normal behaviour fear and distress
by ready access to by providing by prevention by providing by ensuring
fresh water and a an appropriate or rapid diagnosis sufficient space, conditions and
diet to maintain full environment and treatment. proper facilities and treatment which
health and vigour. including shelter company of the avoid mental
and a comfortable animal’s own kind. suffering.
resting area.
Sustainability Report 2016 27OUR PRODUCTS
N AV I G AT I O N
Keeping kids safe
CASE STUDY QUALITY INSPECTIONS
FOCUS ON BUTTON BATTERIES INSPECTIONS
CHILDREN’S PRODUCTS We have a responsibility to make The first step is to identify the Coin lithium button batteries can cause DOUBLE CHECK
WERE ONE AREA
sure that all products we sell are
well-made and safe to use. There are
conditions of use. Kathmandu’s
children’s products are designed
severe injuries when swallowed. QUALITY
WE FOCUSED ON standards to meet in every country we for outdoor activities. We also have
We inspect products in our Australian
sell products in. And we have our own to acknowledge that children are
IMPROVING THIS YEAR standards, too. Both of these are more vulnerable than adults. and New Zealand distribution centres
documented in our Quality Manuals Electronic devices are getting smaller, slimmer to make sure they meet our quality
Our risk assessment involves: standards. We identify products to
and Standards, which we continually and sleeker. But inside mini remote controls,
review and update. Our core manuals flameless candles, singing greeting cards and inspect based on an internal risk
are reviewed annually to add new
1. Asking what could go wrong? CR2032 other electronics, may be a very powerful coin– matrix. It might be because it’s been
legislative requirements. Last year, LITHIUM BATTERY sized button battery. When a coin–sized lithium produced by a new supplier. Or maybe
2. How likely is this to happen? there were quality concerns in the
we created new and improved button battery gets stuck in a child’s throat,
manuals for product inspection 3V the saliva triggers an electrical current. This prototype and development stage.
as well as for tents, hand luggage 3. How bad would it be? These are what we call pro–active
causes a chemical reaction that can severely
and children’s products. burn the oesophagus in as little as two hours. quality inspections. Reactive quality
If the answers to these questions
inspections happen when a shop or
The Kathmandu Children’s Product reveal an unacceptably high risk,
Repairing the damage is painful and can require feeding tubes, a customer raises a quality concern.
Safety Standard, published in June then we go back through our design
breathing tubes and multiple surgeries.
to look for ways to make the product
CARE AND
2016, helps our designers, product
safer or include warnings. Small children often have easy access to these devices, and many
technicians and suppliers to develop
parents do not know there is a risk. At greatest risk are children under
safe products for infants and children
up to 14 years of age.
Our suppliers are responsible for
making sure the children’s products
three years of age, who may not be able to explain that they have
swallowed a battery.
REPAIR
We looked at regulations in the they produce are safe in their design, NZ AU
materials and componentry used. According to the Australian awareness group, The Battery Controlled,
countries where we sell products, garments
but we also took time to think They make sure the labelling and
packaging meets requirements.
around 3,500 button battery swallowing cases are reported to US poison
control centres each year. The number of cases where children have been
1751 repaired 908 garments
repaired
about what might happen when
seriously hurt or have died in the US more than quadrupled over the last products
our products were used as expected
and when they were misused.
And they make sure the entire
production meets the same standards decade. Dr Ruth Barker, from the Queensland Injury Surveillance Unit, 0 recalls 192 tested
that we have signed off in the product estimates that at least four children per week present to an emergency
We built in a risk assessment process
to guide product designers and
development and sampling process. department in Australia with an injury related to a button battery. 26 planned
inspections 30 reactive
inspections
technicians through a series of steps
to make sure safety is built into new ‘Many of these incidents
products right from the early stages could be prevented through PRIVACY
of development.
better education and warnings TWO CUSTOMER
on packaging.’ COMPLAINTS
Robyn Mapp,
We have a stringent policy and
RISK ASSESSMENT PROCESS Kathmandu Senior Product Technician
supporting process in place to
protect the privacy of our Summit
Kathmandu Senior Product Technician Robyn Mapp joined an industry
Club members and online account
How serious YES working group on button battery safety last year, after a passionate
New How will What could customers. In 2016, we received two
it be used? How likely would the customer and doctor contacted us to participate.
product go wrong? is this? injury be? substantiated customer complaints
Is the risk Proceed
tolerable? The group worked to develop a voluntary industry code for consumer regarding breaches of privacy.
goods that contain button batteries that will be released this year.
While searching for member accounts
‘I have seen how button batteries are easily accessible to small children in our Point of Sale system, employees
and the damage that they can do,’ says Robyn. ‘I really believe that from two stores revealed personal
it is important for us to inform our customers of the risks associated customer information. Store managers
with these batteries and I think many of these incidents could be provided coaching to both employees
NO prevented through better consumer education and through warnings and delivered refresher training to all
on packaging.’ their staff. As a further precaution,
Adapt the design
or add warnings a mandatory communication bulletin
‘Working on an industry group to create change is one of the best ways
with revised guidelines was distributed
that we as a brand can address big safety issues like this,’ Robyn says.
to every store.
Kathmandu has used the code to develop a plan for adopting its
We received no complaints from
recommendations. For products and packaging, we have already started
external organisations or any
taking on some of the requirements, but these will need to be refined
regulatory body regarding privacy,
and improved. Another step in our plan this year will be to audit existing
and no leak, theft or loss of customer
products to see where improvements can be made.
data was identified.
28 Sustainability Report 2016 Sustainability Report 2016 29You can also read
