Sustainability Report - Fruit of the Loom, Inc.
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Sustainability Report 2020
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 2
2020
Sustainability
Report
Introduction Planet-Conscious37
CEO Letter 3 Our Footprint 40
Business Context 4 Energy Use 41
2020 Highlights 6 Meeting Our Zero Waste Target 44
Our Strategy 7 Waste - Packaging 46
Sustainability Governance 8
Our Initiatives 9 Product Authenticity 47
Our COVID-19 Response 11 Ensuring Product Safety 49
Engaging with Stakeholders 13 Transparency in the Supply Chain 50
Advancing Supply Chain Transparency 51
People-Centric15 Sourcing Sustainably 52
Respectful and Inclusive Workplaces 18
Health, Safety and Well-being 22 Appendix57
Our Global COVID-19 Response 23 Global Reporting Initiative
(GRI) Index
Freedom of Association 25
Learning and Development 26
Diversity & Inclusion 29
Fair Compensation 33
Threads of Change 35
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 3
A Letter From Our CEO
Last year, we launched Fruitful Futures, Our sustainability plan and initiatives Greenhouse Gas Emissions – We made
our sustainability plan, along with our align with the United Nations Sustainable a commitment to the Science Based
first sustainability report. I am pleased Development Goals (SDGs). Throughout Targets initiative and our target was
to share our 2020 report that documents 2020, we continued to implement our approved in this reporting cycle. 60%
our commitments across three key pillars initial approach and alignment with five of our electricity was from renewable
– People-Centric, Planet-Conscious and key SDGs that make a positive difference sources in 2020 which puts us well on
Product Authenticity. Fruitful Futures has in our Company globally. Notable our way to reaching our goal of 100%
made our sustainability priorities clear accomplishments in 2020 include: renewable electricity and halving our
across our global organization. Scope 1 and 2 emissions by 2030.
Threads of Change – We launched
As we reflect on our journey and our global program for community These are just a few examples of how
unprecedented challenges last year, we giving, volunteering and in-kind product we apply our Fruitful Futures principles
were reminded how connected we are donations throughout the communities to the way we operate through our core
to each other, our communities and our where we operate. We reacted quickly to values of integrity, respect for people
universe, along with the importance of natural disasters and community needs and conducting business in an ethical
building a better future for generations with over $1.1M in product and monetary and transparent manner. As you read
to come. We are excited to pursue donations. the report, you will understand how
the opportunities ahead across our proud and thankful I am for our global
environmental, social and governance Diversity & Inclusion (D&I) – We made teams who worked together in 2020
platform to create long-term value to our a commitment to develop transparent to make progress toward our goals
employees, customers, consumers and global D&I goals where our progress and commitments.
business partners. will be reported annually. We created a
global, holistic D&I strategy that included
benchmarking our workforce and
identifying areas for improvement.
Melissa Burgess Taylor
Chairman and CEO,
Fruit of the Loom, Inc.
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 4
Business
Context
ABOUT THIS REPORT
Fruit of the Loom, Inc. is a leading
The 2020 Sustainability Report is an annual publication
global company specializing in the
design, manufacturing and marketing benchmarking the progress of our Corporate sustainability
of products that bring comfort, plan, Fruitful Futures. The report is prepared in accordance with
performance and fun to everyday the Global Reporting Initiative (GRI) Standards Core Option
moments. Our family of brands has built and covers our fiscal year 2020, from January 1 to December 31,
trust, memories and lasting connections
2020. The GRI standards are the most widely used sustainability
across generations.
reporting standards.
We are headquartered in Bowling Green,
Kentucky, and we have a global team For any questions on the report, please contact Mercedes Lopez,
of about 29,000 employees across 11 VP of Corporate Social Responsibility, Fruit of the Loom, Inc., at
countries. Our products are sold in more FruitfulFutures@fotlinc.com.
than 89 countries. We make a majority of
our products in our own facilities, from
managing textile production to sewing
and distribution.
This means we have more operational
and financial control to improve our
environmental and social impact. The
majority of our production for North
America is made in our facilities in
Honduras and El Salvador. We also have
production facilities in Australia, Haiti,
Mexico, Morocco, Vietnam and the
United States.
We also produce products using third-
party manufacturers, and we license our
brands for production and distribution by
licensees. More information is available
at www.fotlinc.com.
Fruit of the Loom, Inc. is a subsidiary of
Berkshire Hathaway, Inc.
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 5
OUR VALUES OUR PURPOSE OUR INTEGRATED SUPPLY CHAIN
To make great products
Respect for People
accessible to enrich our
consumers every day.
Integrity
About 29,000 16 Sewing and 2 Sporting Goods
Employees Worldwide Packaging Manufacturing Sites
Passion to Exceed Expectations
Across 11 Countries
OUR MISSION Facilities
The Will to Win, But Not at all Cost
To create great quality
products inspired by our
Teamwork
consumers that enriches
Good Citizenship
their every day. We will do 11 Distribution 2 Textile Mills
Centers
this around the world by
Make it Fun operating with integrity,
respect for people and Tier 1: Sewing
good citizenship in the We make the majority of 90% Own Operations
communities we serve. the products we sell in our Tier 2: Textiles
own facilities or through 89% Own Operations
strategic, long-term
Tier 3: Yarn
relationships with third-party
90% Strategic Long-Term
manufacturers. Here are the
Relationships
percentages of our products
made in in this fashion. Tier 4: Raw Materials
Strategic Relationship on
Top Commodities
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 6
2020 Highlights
94% 35.3M 67%
of our employees and
face coverings produced.
of our cotton is sourced
68%
sustainably in the U.S.
55
of managers are
women.
90%
energy efficiency
projects across
of the products we sell
are manufactured in
our own facilities.
12
of our facilities.
Zero waste in our
own facilities for the
3 rd
year
in a row.
82% 60%
renewable electricity
online employee
in 2020.
training engagement.
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 7
Our Strategy
We launched Fruitful Futures, our UN SDGs Our Initiatives Our Approach
sustainability plan, in 2020, sharing our
We built a global diversity and inclusion strategy
initiatives, goals and commitments with
to foster a culture of belonging for all employees.
global employees, our external partners, Achieve gender equality
Inclusive Culture Our differences make us stronger, and we
our customers and consumers. Our and empower all
are committed to creating a workplace where
women and girls
strategy was based on a materiality everyone is treated with respect and empowered to
study completed in 2019 (See our contribute on an equal basis.
2019 Sustainability Report to view our
materiality matrix).
Ensure availability and
In 2020, we began communicating the sustainable management Saving Water We work to use less water in our processes and
of water and sanitation return water to better quality than we withdrew.
detailed plan and commitments with
for all
more teams across the Company to help
build awareness and understanding.
We commenced the work by hosting
a series of workshops with four of our
key brands: Fruit of the Loom®, Russell Ensure access to
We are increasing the use of renewable energy
affordable, reliable,
Athletic®, Spalding® and Vanity Fair®. Renewable Energy in our own supply chain and encouraging our
sustainable and modern
Team members from marketing, design, suppliers to do the same.
energy for all
product innovation and communications
came together to explore what the
following initiatives and goals mean
for each brand and their business. We Promote sustained,
We are committed to providing respectful
continue to evaluate and work through inclusive and sustainable Respectful Workplaces
workplaces and upholding human and labor rights.
the ideas, some of which will become economic growth, full and Fair Compensation
Our Threads of Change program helps give back to
future projects and programs. productive employment Threads of Change the communities in which we live and work.
and decent work for all
ALIGNING WITH
GLOBAL GOALS Reduce Greenhouse Gases
Zero Waste
Ensure sustainable We are constantly improving how we produce our
consumption and Green Teams
Our approach to sustainability aligns products, from how we source our raw materials to
with the United Nations Sustainable production patterns Ensuring Product Safety how we deliver finished goods to the consumer.
Development Goals (“SDGs”). In 2020, Transparency in Supply Chains
we continued implementing our plan Sustainable Sourcing
with five key SDGs.
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 8
Sustainability
Governance
Managing our sustainability plan and SVP of Manufacturing and Sourcing
staying true to our goals takes teamwork. Operations leads our work on many
We have implemented the following of our most critical goals through the MANAGING
governance groups: management of a working group that SUSTAINABILITY RISKS
meets every six weeks. The meetings
Sustainability Steering Committee: are used to track progress toward Our Sustainability Steering
Led by our CEO, the Sustainability our science-based target greenhouse Committee considers sustainability
Steering Committee oversees all of gas emissions goals and to discuss risks and opportunities and
our goals. Additionally, the Committee operational challenges and opportunities. leads their incorporation into our
considers sustainability risks and The group is comprised of two senior long-range and annual planning
opportunities, and leads their employees who report one level below processes. Our business also
incorporation into our long-range the Sustainability Steering Committee: identifies sustainability risk
and annual planning processes. This our VP of Corporate Social Responsibility, through our annual Enterprise Risk
Committee meets quarterly, with other who reports to our General Counsel; Assessments. Our Enterprise Risk
meetings held as necessary to discuss and our Senior Director of Sustainability Assessment is run by our Internal
further project updates or plans. It is and Risk Management, who reports to Audit Team and is based on a
comprised of our General Counsel, our our SVP of Manufacturing and Sourcing framework that identifies the top
Chief Human Resources Officer (CHRO) Operations. 10-12 risks across six areas: Business
and our SVP of Manufacturing and Performance, Corporate Reputation,
Sourcing Operations and is led by our VP Key Performance Indicators are set Profitability, Brand Strength, Global
of Corporate Social Responsibility. Each annually by Corporate and key business Supply Chain, Customer Relationship
project is managed through a scorecard areas to include both financial- and and Employee Relationship Risks.
which tracks progress toward goals on an sustainability-related goals. These
annual basis. Corporate goals are also translated to key
business unit (Fruit of the Loom, Russell
Sustainability Working Group: Athletic, Spalding and Vanity Fair) goals/
The majority (89%) of our greenhouse performance indicators.
gas footprint is in our supply chain. Our
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 9
Our Initiatives
People-Centric Planet-Conscious Product Authenticity
Enriching lives for people and Reducing the environmental impact Sourcing sustainably from transparent
communities of our operations supply chains
Respectful Workplaces Reduce Greenhouse Gases Ensuring Product Safety
Human and Labor Rights — Commitment to a science- 100% Oeko-Tex® certification for
uphold human and labor rights based target by 2030 based all global production made in our
through our Code of Conduct. on a 2018 baseline. own facilities by 2025.
No Child or Forced Labor — Saving Water
Transparency in Supply Chains
develop proactive interventions to 10% reduction in water intensity by
100% of our global supply
prevent violations. 2030 based on 2018 baseline.
chain mapped to raw materials
by 2025.
Health, Safety and Well-being — Zero Waste
provide safe working environments Maintain zero waste in our own
and health care. production facilities. Increase Sustainable Sourcing Across
Our Key Materials
Freedom of Association — Reduce packaging. 100% sustainable cotton by 2025.
support workers’ rights to
collectively bargain. Advance the circular economy 30% recycled polyester by 2030.
through textile fiber recycling in
Learning and Development — own facilities. 30% recycled nylon by 2030.
training and initiatives to help our
employees thrive. Green Teams 100% recyclable paper packaging
Engage employees at all of by 2022.
Inclusive Culture our facilities to support our
Develop a global Diversity and environmental goals. Increase recycled content in
Inclusion strategy to ensure all feel packaging by 2025.
they belong.
Increase recycled plastic in
Fair Compensation basketball backboards.
Benchmark our global operations by
the end of 2021.
Threads of Change
Serving and investing in our
communities.
INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 10
A Letter from Mercedes Lopez
VP of Corporate Social Responsibility
Last year, we were excited to launch We have embedded our plan into the
Fruitful Futures, our sustainability plan Company by breaking down our long-
and our first annual, global sustainability term goals into annual targets by project.
report, outlining the Company’s These targets are tracked quarterly
achievements and commitments for and reviewed periodically with the
the future. This moved us from a focus Sustainability Steering Committee.
on responsibility to sustainability for
our organization. We want to ensure I am excited to continue to see the
the impact on our employees and passionate collaboration within our
consumers, the environment and our teams and across multiple functional
products is sustainable and right for the areas and I look forward to sharing our
long-term interest of our business and achievements and newest goals.
industry.
We put a major emphasis on cross-
departmental collaboration, working
together to build on our shared mission.
Mercedes Lopez We brought together leaders from our
VP of Corporate Social Responsibility, brands and manufacturing to participate
Fruit of the Loom, Inc. in roundtables, workshops and consumer
research to turn our strategy into action.
Mercedes leads our integration of sustainability
plans and goals into global workstreams and
creates a movement within the organization for
employee engagement to drive change.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 11
Our COVID-19 The apparel and sporting goods businesses
were not immune to the pandemic in
2020. Retail and supply chains were
closed for up to two months — and we
experienced a decline in production
which had a significant business
Response severely affected. We temporarily paused
production at our own manufacturing
sites around the world — with some sites
impact. The results of this impact
reverberate throughout this report.
Our immediate focus was to ensure the Training was an essential component to keeping our employees safe The Performance Management Process
health and safety of our global employees and preventing the spread of the virus in our facilities. In addition to is one of our core HR programs and
and employees throughout our supply our Corporate Work Healthy | Stay Healthy task force, each facility provides employees and managers the
chain, through our Corporate Work created its own task force to facilitate COVID-19 training at the local opportunity to have a dialogue about
Healthy | Stay Healthy program. level. The groups worked together to develop internal best practice progress made towards goals and
solutions to educate our workforce and implement the Work developmental opportunities.
We developed and launched safety Healthy | Stay Healthy programs across the globe:
protocols that met the ever-changing In 2020, we canceled the midyear
national, state and local COVID-19 Training was required for employees at various review cycle and modified the
guidelines in each region. stages of the pandemic to raise awareness year-end review cycle. This
about the protocols and educate employees flexibility ensured that employee
We established programs and on safety guidelines to minimize positive cases performance would not be
monitored the health of the workforce in facilities. negatively evaluated as business
to support employees and protect priorities significantly shifted and
workplace health. Counseling and other resources were made employees made personal and
available to support employees. professional adjustments to deal
We shared our COVID-19 safety with the implications of the global
protocols with our suppliers and Remote work programs were established to pandemic.
continued to uphold our standards of support continued work and flexible schedules.
human and labor rights in outsourced
facilities through virtual assessments
with suppliers.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 12
Our COVID-19 We are proud of what our teams
accomplished to achieve the results in
this report, despite being faced with
over this reporting year, we look
ahead through a new lens of optimism
and opportunity to build on these
Response extremely challenging conditions. With
the fresh perspective of lessons learned
experiences.
Our approach was to prioritize our Upon returning to work, our first focus Our commitments to our suppliers Our production pauses had both positive
efforts on business continuity plans was the production of personal protective were undeterred. and negative environmental impacts.
that would support our return to full equipment (PPE).
capacity and keep as many of our We supported our suppliers We reduced our absolute greenhouse
employees employed as possible. We produced 35.3 million face throughout the pandemic and worked gas emissions in 2020, surpassing
coverings for PPE worldwide. We with them to adapt to changes in our goal largely due to production
We implemented temporary also donated more than 15,000 face production and delivery schedules. breaks, yet still implemented energy
furloughs and offered flexible work coverings to community groups. efficiency and renewable electricity
options to support all employees, We continued monitoring compliance projects.
especially parents who were by our suppliers through virtual
affected by school closures and the assessments. We reduced our water use in
loss of childcare. absolute terms, but our target on
water is based on intensity — as our
production decreased in 2020, we
saw an increase in water per pound
of production.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 13
Achieving the fruitful future we want to
Engaging with Stakeholders
see in the apparel and sporting goods
manufacturing industries requires SUPPLIERS CUSTOMERS NGOS
addressing systemic issues that no one
company can tackle alone. This is why Our supply chain includes more than We work with a range of customers, We value interactions with NGOs that
we work across our supply and value 450 suppliers, sourcing everything from from large multinational retail partners share our vision for a more equitable and
chain, engaging with key stakeholders finished garments to yarn, zippers and to wholesale apparel providers, to sustainable industry. We collaborate with
such as our suppliers, customers, non- buttons to create the products that meet e-commerce sites. Our goal is to operate a wide range of NGOs, such as Fundemas
governmental organizations (NGOs), consumer demand. Our Code of Conduct, with integrity, providing best-in-class (El Salvador), FUNDAHRSE (Honduras)
industry associations and consumers. Benchmarks and Supplier Guidelines service across all channels. and the Worker Rights Consortium.
outline our expectations, and are
translated into 37 languages and shared We participate in customer-led We are an annual participant in the
with our own facilities and our suppliers. sustainability initiatives, such as CDP climate change questionnaire. In
We uphold our Code of Conduct through Walmart’s Project Gigaton, to reduce 2020, we were recognized as a Supplier
regular assessments and in-depth greenhouse gas emissions. We submit Engagement Leader, in the top 7% of
capacity building and training. Suppliers information on our products to the companies for our supplier engagement
are also measured through performance Sustainability Index, maintaining a score on climate change, based on our CDP
scorecards that balance cost, quality, of over 80%, and we are a founding and disclosure.
delivery and social compliance. active member of Walmart’s Merchandise
Collaboration Board for Sustainability.
We have also identified the potential We work with both Target and Walmart
to work with strategic suppliers to provide facility-level information on
implementing a process improvement the environmental performance of all our
approach to quality and efficiency that facilities and selected suppliers through
will in turn benefit workers and their the Sustainable Apparel Coalition’s HIGG
operations. Facility Environmental Module (FEM).INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 14
CONSUMERS OUR MEMBERSHIPS
Regular consumer research is critical to our product and brand
development teams. In 2019 and 2020, we conducted consumer research
to help us understand interest in sustainable product propositions across
our brands. The Americas
Group
INDUSTRY ASSOCIATIONS
Member since 2016 Member since 2013 Member since 2019
We are members of several industry associations, such as the Fair
Labor Association and the American Apparel & Footwear Association.
Participation in these groups provides opportunities to effect
transformational change on systemic issues while increasing our
knowledge and capacity through shared learning.
Member since 2015 Member since 2009 Member since 2004
Committed to the pledge
against the use of Uzbekistan
cotton since 2013 and
Members since 2004 Member since 2019 Turkmenistan cotton since 2019.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 15
People-
Centric Enriching lives
for people and
communities
We strive to enrich the lives of people and
communities, as people are at the heart of
what we do. We are dedicated to providing
respectful and inclusive workplaces where
everyone can thrive.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 16
Enriching Lives
We are committed to respecting the We work hard to ensure a respectful and
human and labor rights of people across inclusive workplace where everyone feels
our value chain, from our own employees they belong and can thrive. We provide
to our suppliers and their employees. fair and safe employment opportunities
We continuously improve our approach, that empower employees and support
working together with suppliers to career development through a focus on
enhance our programs and better the following areas, which are detailed in
address the needs of employees and this section of the report.
their communities.
OUR INITIATIVES
Respectful and Inclusive Workplaces — Diversity and Inclusion — increasing
upholding human and labor rights as representation and supporting inclusion
outlined in our Code of Conduct through through education and training.
due diligence and in-depth supplier
capacity building and training. Fair Compensation — ensuring fair
compensation and benefits for employees.
Health, Safety and Well-being —
providing safe working environments Threads of Change — supporting and
and access to health care for our investing in the local community through
own employees. our Threads of Change program.
Freedom of Association — supporting
workers’ rights to collectively bargain.
Learning & Development — offering
training and programs to help our
employees thrive.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 17
2020 PEOPLE-CENTRIC HIGHLIGHTS
100% 82% 471,730 12
of facilities implemented new online employee products donated through owned facilities representing
“return to work” protocols to training engagement. Threads of Change. 85% of our global production,
ensure the health and safety collected and analyzed
of our employees during the wages using the Fair Labor
COVID-19 pandemic — our top Association’s (FLA) Fair
priority in this reporting year. Compensation Dashboard.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 18
Respectful and
Our Code of Conduct - Fundamental Workplace Standards
Inclusive Workplaces Employment Relationship
Terms and conditions
Health and Safety
Workplace environment
Working Hours
Regular and overtime hours
of employment that enables employees to be are within legal limits.
respect people. trained and equipped to
OUR CODE OF CONDUCT Business Social Compliance Initiative perform their jobs safely.
(BSCI). These organizations have the
technical knowledge, familiarity with
Our standards for business ethics,
local language and culture, and legal
respect for human and labor rights
expertise to help us more adequately
and environmental sustainability are
assess local working conditions. The
documented in our Code of Conduct
assessments generally include a physical No Forced Labor No Harassment or Abuse Non-Discrimination
(the “Code”). Our Code is translated
visit to the facility to review the working All work is voluntary, Employees are treated Employees are treated
into over 37 languages, and is displayed
environment, a review of documentation, without restrictions on with respect and dignity. equally at every stage
prominently within all locations and movement or personal of employment.
such as internal policies, procedures,
available on our website. belongings.
payroll records, training records, and
private interviews with employees.
We typically assess facilities annually
to ensure compliance with the
Opportunities for improvement are
Code using independent third-party
shared with facility staff and a corrective
monitoring companies such as the
action plan is devised to address issues No Child Labor Compensation Freedom of Association
Worldwide Responsible Accredited
within a specified time frame. Employment of Employees are entitled to and Collective Bargaining
Production (WRAP), Workplace
individuals in violation the legal minimum wage Employees have the right to
Conditions Assessment (WCA) and freely associate and bargain
of the local mandatory for all hours worked, and
school age or under all benefits required by for employment terms and
the applicable legal law or agreed upon in conditions.
employment age a contract.
is prohibited.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 19
COVID-19 IMPACT ON Virtual visits facilitated by our staff
included live video tours that enabled us
ASSESSMENTS
to witness firsthand the implementation
of COVID-19 safety protocols via
The pandemic impacted our own
handheld cameras. Through these
production facilities and those of our
desktop assessments, we were able
suppliers around the globe, initially
to observe staff arriving and leaving
halting production in many locations.
facilities and confirm that other safety
Many on-site assessments and facility
protocols were in place.
visits were canceled in the first part of the
year, and with our established processes
We expect to reengage with in-person,
in place, we were able to quickly adjust
on-site facility assessments during
the timing of assessments for facilities
2021 as circumstances allow, but virtual
with restrictions.
assessments have provided a means
for us to stay connected with suppliers
By July, we began virtual assessments.
during this time.
We focused initially on those facilities
that were past their annual due date
and selected locations on a case-by-case
basis. We conducted desktop virtual
assessments when a scheduled on-site
assessment could not take place due to
the pandemic. On-site assessments were
scheduled three months later.
BY THE NUMBERS
These numbers represent our own facilities and our partners and suppliers.
314 50% 88% 8% 3 months
Code of Conduct of licensing partners of facilities assessed of assessments average assessment
assessments transitioned to our new Licensee- annually (up from delayed due to delay during the
completed in 2020. owned Social Compliance 84% in 2019). COVID-19. pandemic.
Program - for independent
supplier monitoring.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 20
STREAMLINED ASSESSMENT LICENSEE CAPACITY
APPROACH BUILDING AND TRAINING
Our goal in recent years has been to This year, we also focused on
redirect our own internal resources from streamlining assessments with our
assessment to priority issues such as licensees’ facilities. In 2019, 75% of our
in-depth capacity building and training own assessments were in licensees’
and supply chain mapping. We seek to facilities. To help maximize that process,
achieve this in two ways: introducing a in 2020, we created and launched a
risk-based approach to the timing and Licensee-owned Social Compliance
types of assessments and transitioning Program to allow qualified licensees
from managing our own assessment greater accountability for their own
process with third parties to accepting compliance assessments, shifting
more industry assessments such as ownership of monitoring the supply
WRAP, WCA and BSCI. chain to them.
This year, we identified low-risk Many of our licensees are large
subcontractors who provide embroidery companies with their own social
and screen printing in the U.S., Japan, compliance teams. This shift recognizes
Australia and Hong Kong. These facilities their great work while reducing
were previously assessed as low-risk duplication in efforts and reporting. We
and are locations that can be visited found that these licensees are already
using local resources. Instead of a meeting our criteria and benchmarks,
full assessment, we are now allowing and they are capable of independently
these low-risk facilities to complete a managing supply chain social compliance
compliance tool created internally. to successfully meet our requirements.
For all other facilities, we will transition We continue to offer support through
to 100% use of third-party assessments in-depth capacity building and training
in 2021. We also added a new third-party to help develop more robust compliance
industry assessment program, Sedex structures with smaller licensees.
Members Ethical Trade Audit (SMETA), for
the first time in 2020 due to pandemic
restrictions. As a multi-stakeholder
initiative, SMETA was designed to
minimize duplication of effort and
provide members and suppliers with
an assessment format they could easily
share. We will continue to accept this
standard in the future.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 21
SUPPLY CHAIN CAPACITY LOOKING AHEAD TO 2021- Taiwan Supplier Recruitment Fees
BUILDING AND TRAINING GRIEVANCE PROCEDURE
IMPROVEMENTS
In 2020, we held a virtual workshop
with U.S.-based licensing partners We provide a grievance channel to report
to cover social compliance program any Code of Conduct violations through
enhancements, virtual health and a dedicated email and phone line. We
safety facility visits, forced labor strictly prohibit any retaliation against
due diligence, Customs-Trade persons who report violations of our
Partnership Against Terrorism (C-TPAT) Code of Conduct or participate in any
compliance, supply chain mapping and investigations of possible violations.
sustainability goals. We also surveyed Functioning grievance mechanisms
workshop attendees and identified are key to resolving worker concerns
areas for future collaboration and and complaints, ideally at the facility
engagement with recommendations level, escalating to internal confidential
for future discussion topics. reporting channels and lastly to third
parties, as necessary. Our goal in 2021
To support our licensees outside of is to focus our grievance approach on Individuals moving across borders in search of work are often charged
training, we provide the following: expanding workers’ voices. high recruitment fees to cover their travel, visas, and any accommodation
costs. These fees can saddle workers with debt. Over the last few years,
A licensee compliance manual Our grievance approach we have updated our policies and procedures to outline our alignment
available on our Corporate website. enhancements planned for 2021 are: with the Employer Pays Principle that no worker should pay for a job.
A supplier portal including all Develop a plan to evaluate grievance Taiwan has been identified as a region that relies heavily on foreign
translations of the Code of Conduct. mechanisms at the facility level. migrant labor. In 2019, one of our suppliers in Taiwan was audited and
determined to be employing migrant laborers who paid recruitment fees
Detailed Code of Conduct Document a clear process for our associated with their hire. Our Sustainability Team traveled to the facility
benchmarks. supply chain grievance mechanism to follow up on the remediation work by identifying the sums that needed
apart from the internal grievance to be reimbursed to employees. With support and collaboration between
Supplier guidelines. mechanism for employees. our team and the facility, remediation was completed in February 2020.
An additional independent verification assessment was also conducted
Facility safety policy and human Enhance the accessibility of our in October 2020 where we confirmed all reimbursement payments to
trafficking posters. supply chain grievance mechanism. employees had been made.
Access to a SharePoint site that We will continue investing in capacity building and training in Taiwan
includes resources we developed that and other countries that utilize migrant labor, and educate suppliers on
licensees may use to implement or how to responsibly implement recruitment practices that do not include
improve their CSR practices. workers paying recruitment fees.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 22
Health, Safety
and Well-being
We are committed to providing a safe working
environment for our employees and those of our
suppliers around the world by implementing safety
protocols and enacting equipment and operational
procedures.
GLOBAL COVID-19 RESPONSE:
WORK HEALTHY | STAY HEALTHY
PROGRAM
Health and safety are always significant priorities, but it
became critical in 2020 amid the COVID-19 pandemic. At
various points over the past year, most of our facilities
were closed for some period of time as part of our
COVID-19 mitigation efforts. To ensure that we could
reopen and operate safely and effectively, we formed a
cross-functional team to lead our “Work Healthy | Stay
Healthy” program and coordinate our global response in
alignment with the requirements in different countries
and locations.
Our program was created to ensure standardized
training on all applicable COVID-19 protocols, including
face covering usage, social distancing requirements,
handwashing, enhanced cleaning and more. Regular
training refreshers and communications were
disseminated to the workforce to keep pace with the
rapid evolution of the global pandemic.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 23
Our Global COVID-19 Response
NORTH AMERICA EUROPE
We had closures and disruptions to all of our U.S. distribution centers In Europe, we integrated local and global pandemic
due to COVID-19, but reopened with new health and safety protocols guidelines, including working remotely when possible.
based on the Centers for Disease Control and Prevention (CDC), In our warehouse, we had two separate shifts and
Occupational Safety and Health Administration (OSHA) and local enacted new protocols to minimize overlap and
guidelines to include the use of face coverings, face shields, hourly reduce infection risk. These important changes are
disinfecting procedures and remote Corporate office work support. currently still in place in 2021.
We invested in new technology such as electrostatic sprayers for all U.S.
and Canadian facilities and implemented four cleanings each day for
high-traffic areas.
LATIN AMERICA MOROCCO
We closed Honduran production
facilities for approximately 10
Our textile and apparel facility in ASIA
Morocco adopted all government
weeks. Our team worked with In Asia, programs such as flexible
preventative measures, implemented
the local government to create hours, virtual meetings and options to
new standard operating procedures
comprehensive safety protocols, work from home were implemented
(SOP) and conducted comprehensive
which included contact tracing for during different phases of the
training to create a secure and
all employees and on-site doctors pandemic, varying per office locale
safe environment for employees.
and nurses to provide training. to increase social distancing of the
For Ramadan, our facility created
We then implemented a gradual workforce and ensure the health and
designated space for breaking fast,
return-to-work plan monitored safety of employees.
new procedures and best practices
by the government, which went
for caterers, cleaning and disinfection
above and beyond requirements. “
protocols and physical distancing
These protocols were shared with
for employees. This approach was
El Salvadorian and Mexican facilities
audited and approved by Moroccan
to align with local government
government officials.
guidelines; manufacturing was down
10-14 weeks before a gradual return
to work.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 24
SUPPLIER HEALTH & SAFETY HEALTH & SAFETY 2018 2019 2020
PERFORMANCE IN 2020
We maintained close contact with ENTIRE Fruit of
U.S. Bureau
Fruit of
U.S. Bureau
Fruit of
COMPANY of Labor of Labor
our suppliers throughout 2020. In the Loom, Inc. the Loom, Inc. the Loom, Inc.
We record and report all Statistics Statistics
addition to the extra efforts the incidents to help us identify areas
Total Recordable
Company utilized to stay connected for continuous improvement. 0.10 0.80 0.10 0.70 0.20
Incidence Rate
with suppliers operationally during Our recordable incident rate is
pandemic disruptions, we also instituted below the industry standard set Days Away From
Work (DAFW) 0.04 0.20 0.04 0.02 0.01
new protocols to ensure compliance by the U.S. Bureau of Labor Incident Rate
with our Code of Conduct in how our Statistics. The table to the right
Job Transfer/
suppliers managed the disruptions shows our performance from 0.01 0.20 0.03 0.10 0.0
Restriction
and COVID-19 health and safety risks, 2018-2020. Incidence Rate
such as conducting virtual assessments
Other Case
using newly created standard operating 0.05 0.40 0.03 0.40 0.10
Incident Rate
protocols. We also shared the Accord on
Fire and Building Safety in Bangladesh 2020 USBOL data has not been published at this time.
and International Labor Organization
(ILO) protocols on COVID-19 safety
with our suppliers and provided virtual
compliance training.
Virtual assessments revealed that
some countries were ahead of others
in best practices. For example, some
governments mandated the use of
disinfectant misting sprays that would
be harmful to employee health. With
the support of the ILO guidelines, we
intervened to stop this practice. We also
maintained frequent communications
with facility compliance teams to hear
challenges, provide support and identify
safety hazards for remediation. Virtual
assessments will continue in the future,
especially in manufacturing countries
where we have no physical presence or
travel is difficult.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 25
Freedom of
Association
Freedom of association means that We are proud of the cooperative
employees have the right to freely achievements we have realized with our
associate with a union or workers’ union partners and acknowledge that
council, and bargain for employment there is always room for improvement.
terms and conditions once the legal We intend to continue investing in labor
requirements for union recognition have relations across all of our operations.
been satisfied.
A key differentiator in our program is
Respecting workers’ freedom of providing training for our managers and
association and right to collective workers to improve their labor relations
bargaining is a core principle of our skills, organizational awareness and
Code of Conduct. Today, 50% of our market knowledge. We build capabilities NEW COLLECTIVE BARGAINING AGREEMENTS (CBAs)
owned facilities around the world have in teams to more effectively realize
unions or workers’ councils with the shared goals and manage a healthy labor Despite the challenges with social union, which is managed by an executive
active participation of more than half the relations climate in our facilities. distancing and meeting capacity committee of 11 people and a collective
employee base. restrictions, we finalized two collective bargaining agreement is negotiated.
bargaining agreements in this report
timeframe in our Honduras facilities In our Iowa facility in the U.S., an
using a virtual meeting setting. existing collective bargaining agreement
with the International Union, United
We track suppliers to ensure our “Our successful labor model and Automobile, Aerospace, and Agricultural
positive dialogue with the unions Implement Workers of America was set
commitment to freedom of association gave us the ability to bounce to expire near the time of the onset of
is upheld throughout our global supply back faster in 2020 and respond the pandemic. With the future of the
to customer demand in a positive pandemic uncertain, we asked for an
chain. In 2020, 160 out of 400 suppliers way,” said Edward Bardales, extension to negotiate, and the union
reported the existence of unions or VP of Human Resources for agreed. A new agreement was finalized
Latin America. with the union later in 2020, which gave
workers’ councils onsite. Freedom of employees a better understanding
association is a core part of our ongoing Our facility in Vietnam has a positive of what protections to expect, and
relationship with a trade union allowed the Company to better manage
supplier training and capacity building. organization, established in 2016, that all expectations, budgeting, pay and other
employees are free to join. In 2020, 100% areas of concern.
of employees in Vietnam were part of theINTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 26
Learning and
Development
LEARNING AND LEAN manufacturing, Lean Six
Sigma Black Belt Certification and
DEVELOPMENT GOALS
Ergonomics Certifications.
We started 2020 with ambitious
Operational, business and
goals to promote global professional
management training programs.
development and continue to grow our
Leadership Education and Development
Program (LEAD) around the world.
LEADERSHIP
We encouraged global employees
DEVELOPMENT PROGRAM
to complete at least one in-depth
Our LEAD program is focused on
professional development opportunity via
developing leaders at all levels and
our online learning platform, Fruit of the
is based on the Fruit of the Loom,
Loom University (FruitU). The platform
Inc. competency model. In 2020, we
provides over 17,000 on-demand
welcomed 36 new LEAD l Elevate
courses with a range of topics to support
graduates, through a five-month
employee growth and development. We
curriculum focused on leading others.
achieved an 82% response rate, a great
Graduates experienced a hybrid of
accomplishment given the challenges
classroom-based and virtual learning,
that COVID-19 presented.
participating in engaging and applicable
content focused on building credibility,
In addition to our Corporate learning
presenting in a virtual environment and
and development goals, each region had
leading high-performing teams.
a unique set of goals to support local
We were not able to broaden our global
business needs, including:
reach with the LEAD Program due to
shifting priorities caused by COVID-19,
Compliance training for workplace
but we are continuing the global
harassment prevention, safety, global
expansion in 2021.
anti-bribery/anti-corruption, customs
trade partnership against terrorism
and data privacy.
Mental health wellness training series
and an empowerment program for
women in Latin America.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 27
LEAD Leadership Graduate Spotlight
Christina Apple, Senior Manager of Social Compliance, is a graduate of the 2020 LEAD l Elevate program.
Q: Why did you want to get involved in the shoes of a facility worker, facility bring to our teams and the leadership
the program? manager, sourcing manager, licensing qualities that we want others to experience
partner, salesperson, customer, through day-to-day interactions. The small
A: I was eager to participate in the consumer and the countless other group activities fostered the opportunity to
program and looked forward to the people who are comprehending and/or learn about the ways my peers approach
opportunity to build my leadership skills experiencing our sustainability practices certain issues.
further. At the start of the program, I was from very different perspectives.
quite nervous because I knew it would The coaching sessions with my manager,
challenge me in the areas that I needed As a new manager, delegation was an experienced leader, complemented
to develop. another subject I appreciated. Practicing the progression of the course and helped
different levels of delegation was both me identify my blind spots. I feel that the
Q: What was your biggest takeaway practical and applicable for learning how program gave me more self-awareness and
from the program? to effectively communicate and empower motivated me to speak up more often on
others with tasks and projects. subjects of which I am knowledgeable.
A: Two topics that stood out to me were
empathy and delegation. Our discussion Q: How do you feel the program has
about empathy resonated with me and helped your career?
made me realize how important it is
to cultivate empathy within ourselves. A: The program created the space to
I think it’s especially critical in a social reflect on our personal strengths and
responsibility role to put myself in developmental opportunities that weINTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 28
FLEXIBILITY AND DEDICATION TO In Latin America, where most of our Across Latin America, we provided
owned facilities are located, our Fruit English scholarships for family
COMMITMENT EDUCATION members of our employees.
of the Loom Technical Education
Center (FOLTEC) delivers technical,
In 2020, we focused on providing a Promoting education is something we
leadership and professional training
healthy and safe work environment take very seriously, so we offer several
to employees and their families.
for all employees and promoting a programs that enable our employees and LOOKING AHEAD
productive virtual work environment for their families to further their education
Our strategic alliance with the
the global workforce. Our learning and through scholarships and Company- We take with us the valuable learning
University of El Salvador enabled
development resources had to be agile as sponsored opportunities in conjunction and development lessons we
financial support for employees
rapidly changing federal, state and local with local universities and learning experienced during the pandemic.
studying industrial engineering,
COVID-19 guidelines required frequent centers. Agility, flexibility and innovation were
international marketing and
up-to-date training and communication. required in 2020 and these skills
computer systems engineering.
We have a partnership program with will serve us well as we continue to
The talent development teams curated Western Kentucky University, located implement our global training strategy
Together with the Francisco Morazán
e-learning content that supported near our Corporate headquarters in and leadership development programs
National Pedagogical University
employees through the pandemic and Bowling Green, Kentucky, through in 2021 and beyond.
(UPNFM) in Honduras, employees
was delivered via our FruitU platform. which we offer multiple academic
completed training to become
Content areas included tips for working grants. The program provides financial
proficient in electromechanics. We
remotely, time management at home, support to full-time employees, as
are the first private company to
supporting mental health while working well as scholarships to the dependent
partner with UPNFM on this kind
from home and managing a remote children of employees attending
of program.
team. We saw strong adoption of these Western Kentucky University.
online courses from our workforce.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 29
Diversity & Inclusion
We are committed to creating a workplace where everyone is treated with respect and empowered to contribute equally. We want to
foster a culture of belonging for all employees, and we are focused on attracting, retaining and developing diverse talent. We believe
our differences make us stronger, and for this reason, we are committed to diversity and inclusion practices in our organization.
Our goal in 2020 was to develop a We shared our analysis with regional
Diversity diversity and inclusion program aligned HR and business leads to support
with the Company’s business goals and the development of regional-level
Understanding and valuing a values, beginning with a comprehensive goal setting. We aim to complete the
collective mixture of differences understanding of our global workforce. development of these goals in 2021,
between people. We conducted extensive research on with these strategic priorities:
best practices and determined external
benchmarks from global advisory Raise awareness and understanding
Inclusion leaders. We collected internal baseline about the importance of diversity and
data, which was analyzed and measured inclusion in the workplace.
A collaborative, supportive, and against our research and benchmarks
respectful environment ensuring that to identify gaps in representation and to Increase global female representation
people feel a sense of belonging and establish goals in each region. Every year across salaried positions, targeting
support from the organization. we will research best practices and assess region-specific goals.
goals to build on our progress toward a
more inclusive culture. Establish programs and practices
to improve the retention of female “ Our workforce is more diverse
Through our analysis process, gender employees, targeting region-specific and globally connected
representation was identified as the first goals. than ever before. We are
demographic group issue to address committed to promoting
in our program design. We reviewed We will deliver on these priorities through inclusive practices and diversity
existing policies and practices to support a joint focus on talent management
throughout the employee
gender representation goals, including and talent acquisition, and by creating
experience to foster equity,
our recruiting programs, interview strategies to maximize our ability to
process and retention efforts, as well as attract and retain diverse talent. trust, belonging and growth.”
career and development planning. – Terri Wiethorn
Chief Human Resources OfficerINTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 30
REDEFINING OUR CRITERIA EDUCATION AND We also identified training modules for
all global managers and employees.
AWARENESS
The definitions associated with our Covering similar topics as those for our
work population numbers are different leadership team, this training is now
Training is a critical part of our journey
from our 2019 report. The changes in one of our compulsory training courses
to deliver on our diversity and inclusion
percentages reflect this redefining of delivered through our FruitU platform.
goals. In 2020, we introduced our
our criteria, and it is not a change in We continue to monitor progress and
leadership team to our formal Diversity
performance in 2020. We implemented look for additional ways to enhance
and Inclusion program, with 88 members
a new approach to employee tracking learning for our employees.
of our Corporate leadership team
during this report timeframe, expanding completing Diversity, Inclusion and
the range of groups to include Executive Unconscious Bias training led by an
and Senior Management, Management, external advisor. The training focused on
Non-Manager and Hourly employees. educating attendees on the unconscious
Because of the nature of our business, motivators of behaviors and encouraged
these are critical distinctions for us to conscious decision-making.
track internally.
2020 WORK POPULATION NUMBERS
Total Population
Male: Female:
9,420 19,489
33%
67%
76% 24% 56% 44% 52% 48% 30% 70%
Executive / Management Salaried Hourly
Sr. Management Non-Manager
Male FemaleINTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 31
EMPLOYEE RESOURCE
GROUPS — VETERANS DONATIONS FOR
‘PROUD TO SERVE’ VETERANS IN NEED
In 2019, an employee resource group In 2020, donations were made on behalf
called Proud to Serve was formed at our of our Proud to Serve Resource Group
Corporate headquarters to support not to support active military and veterans
only veteran employees, but also those in need. In August, face coverings
with family members serving in active were donated to support the soldiers
duty. The mission of the group is to and families of the U.S. Army 2nd
create a community to support, engage Brigade, 104th Division Reserve unit,
and promote military veterans, guard headquartered in Lexington, Kentucky.
members and reservists throughout
the Company, as well as allow In December, a product donation
opportunities to network with fellow was made to the Southern Kentucky
military employees. Even though working Veterans Council by our Proud to Serve
remotely, the group developed a dynamic Resource Group. The donation served
program, which included activities for the Homeless Veterans Program and
Memorial Day, celebrations for Veterans provided local homeless veterans
Day and mailing care packages to active- with warm clothes during the cold
duty family members of our employees. winter months.INTRODUCTION PEOPLE-CENTRIC PLANET-CONSCIOUS PRODUCT AUTHENTICITY APPENDIX 32
Women at Work
BRANDS ON A MISSION In June 2020, Vanity Fair made a AN INTERVIEW WITH MARIBEL VADILLO
commitment to effect meaningful,
Our brands also have shown their long-term changes for a more diverse Maribel Vadillo is the Country Process
commitment to diversity and and inclusive future. In keeping with Engineering Manager for El Salvador and
inclusion. Russell Athletic, our iconic that promise, Vanity Fair conducted a Mexico. She recently shared her journey
athletic lifestyle brand, made a public comprehensive internal assessment of all and experiences over the last 24 years as
commitment to level the playing field consumer-facing, brand-owned channels a woman in the apparel industry.
and support the Black community. The and assets to evaluate the brand’s
brand has four key goals: diversity and inclusion representation. My first job out of college was with
Additionally, Vanity Fair partnered Fruit of the Loom. Part of my success
Growing their network of with an esteemed group of Black and longevity with the Company is the
collaborators to listen and learn female marketing experts for a candid continued opportunity for development,
from a diverse community. roundtable conversation to learn how both personally and professionally.
the brand could better support women In my first role, as the head of
Redirecting investments to enable within the Black community. The brand is warehouse and parts, I was the first
more opportunities in education currently conducting planning sessions woman in the Company to hold this
and sport. with key partners and interdepartmental position. The warehouse was not
teams to finalize its diversity and typically a place where you would find
Enabling social channels to provide a inclusion strategic plan. a woman.
platform for voices seeking change.
Working for all five locations in El Salvador and Mexico, I have been
Creating a diverse and inclusive in my current role for almost 18 years. Throughout my career, I have
team that reflects communities relied on my capabilities and skills to build success, but I’ve also
and societies at large. worked with many talented people and great leaders that helped to
shape my knowledge.
Russell Athletic showed its support for
a diverse list of collaborators in 2020, I have always felt that great opportunities exist at Fruit of the Loom.
from Carlton Yaio, GangCorp Collective for anyone who is prepared, regardless of gender. Our focus is having
and Made in Tokyo. The partnership with the right person in the right position.
GangCorp, a skateboard and lifestyle
brand, included the creation of a Support I have been blessed to work with many people and learn from
Black Business T-shirt, with all proceeds each one of them. Currently, I have four direct reports who are all
going to The National Association for the women and managers in engineering and quality control for specific
Advancement of Colored People (NAACP). departments.
The brand also donated product to Black-
owned small businesses to help them There are not many companies that can provide the same environment
manage business disruption caused by and culture as Fruit of the Loom. This includes opportunities for
the pandemic. growth, continuous improvement and the possibility to reach your full
potential. You can always be better, both personally and professionally
— it’s an ongoing journey.You can also read
