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Capacity Building Initiatives

Environmental risks and social inequality are making the world more complicated and unpredictable. The size and complexity of most sustainability and societal issues mean they cannot be addressed by any one solution or organisation. 

Our goal is to deliver sustainable value for our stakeholders through the high quality, own brand products we offer in the UK and internationally. To do this, we must look beyond our operations to the wider supply chain, where the biggest impacts occur. Simply put, we cannot deliver Plan A alone. 

It is important to recognise that no-one has all the insights, resources or networks to deal with these complex issues. Capacity building has varying interpretations, but to us it’s about what we are doing to fill these gaps. It can include providing training and guidance to our suppliers, sharing insights about our business or sector with civil society, working collaboratively with our industry peers, helping governments craft effective public policy and a whole range of other activities. The overriding objective is to make individuals or organisations stronger and better equipped to deal with global environmental, social and economic change. 

Partnership has always been at the heart of Plan A. We appreciate that it can be challenging for our suppliers to meet our sustainability requirements and whilst we need to be demanding we also need to help incentivise. Through collaborative working and advocacy we aim to achieve shared objectives and mutually beneficial economic, social and environmental outcomes.

Commitments and targets
Our ambition is to accelerate change by leading with others. We’re committed to achieve this by working collaboratively with a broad range of stakeholders: suppliers, civil society, the science community, governments, customers and other businesses. 

We focus on challenges that are important to our business and where we can most effectively influence change.

Approach
We have an aspiration to be a leading major retailer on sustainability, but we can only achieve this if we are able to spark systemic, innovative change within our supply base. We need suppliers to be able to stay ahead in a rapidly evolving and complex commercial world. We recognise that it can be difficult for many suppliers to see what this brings in terms of direct benefits to them. We need to understand and be sensitive to these issues. Capacity building is absolutely essential to achieve the scale and pace of change we need to see in our global supply base.

Whilst ongoing monitoring of compliance is of course necessary and useful, it is not the be all and end all. For instance, solely focusing on individual non-compliances can result in underlying issues being missed. In addition, this approach may not identify emerging issues or trends, or promote the development of a continuous improvement culture within our supply base. 

We therefore complement our approach to compliance by going ‘beyond’ and defining areas of collaboration that will promote continuous improvement with our suppliers. We do this by providing a range of capacity building tools and incentives to align our respective goals and objectives. This includes capacity in terms of resources, technical skills, knowledge, as well as research and development. 

Our ultimate goal though is to make sustainable production the norm and for it to be fully integrated into global supply chains. To achieve this change at a global scale and rapid pace, we need to think beyond the capabilities of our business and supply chains by working with industry partners and other stakeholders. 

We cannot deliver our objectives overnight – which is why our long-term commitment to delivering change through capacity building remains critical to our overall Clothing & Home strategy.

Our approach to capacity building focuses on:

Enhancing sustainability capability within our supply base

C-100 Factory Energy Reduction Programme & Eco Factory Programme
In 2007, we committed to work with our suppliers to pioneer innovative methods of more sustainable manufacturing through our Model Eco Factory Programme. Within two years our Clothing & Home suppliers had opened a new ‘green’ factory in Sri Lanka and refurbished three factories in Sri Lanka, China and Wales. These factories used around half the energy and less than half the water required by traditional factories. The factories also aimed to be carbon neutral, use renewable energy and send no waste to landfill.

We used our Supplier Exchange to drive best practices, stimulate innovation and help suppliers secure funds to build on the lessons of our Model Eco Factory Programme. We took these best practices and turned them into two key programmes:

C-100 Factory Energy Reduction Programme 
Manufacture of clothing (final finishing and assembly) accounts for a relatively small part of the carbon footprint of clothing but tackling greenhouse gas emissions across hundreds of factories will make a positive difference.

We know from experience that there are three key improvements clothing factories can make to help reduce their carbon footprints:

  • More efficient lighting
  • Improved insulation
  • Improved temperature controls
As a result in 2010 we made a commitment to require our top 100 clothing factories to take action across these three areas to reduce their energy usage by an estimated 10% by 2015. We call this the C-100 Factory Energy Reduction Programme. 
We’ve developed a range of tools to support factories in the C-100 programme. This includes guidance notes on efficient factory lighting, improved insulation and temperature controls. 

As a first, step we recommend factories commission an energy audit to establish a baseline. The audit should be performed by either a third party M&S approved auditor or by a competent employee of the factory. This should done with relevant sub-metering to identify all key areas where energy usage needs to be assessed, and the potential for its reduction and control identified.

An energy reduction plan should be produced showing an action plan, estimated savings in energy (kWh and costs at current rates) and payback times for recommended investments in equipment or changes to factory operations. 
We have developed a C-100 Self-Assessment tool for factories to use with supporting Grading Guide. Factories scoring 30 and above are classed as a C-100 factory once validated by one of our experts. Those scoring above 41 are encouraged to upgrade to the full Eco Factory Programme (see below).  

By March 2015, 102 of our clothing factories had adopted energy efficiency best practices on lighting, insulation and temperature control. These were factories that featured in a rolling top 100 between 2011 and March 2015. 

Having achieved our target we’re now requiring our top 100 clothing factories to reduce their energy usage by an estimated 10% by 2020. As a result, we’ve adopted 2015 as our new starting point. For 2015/16, 54 of our rolling top 100 clothing factories have met our requirements. 
Eco Factory Programme
Launched in 2011, ‘Eco Factory’ status is similar to the C-100 Factory Energy Reduction Programme however measures are taken on energy efficiency, renewable energy, water and waste as well as more extensive measures on lighting, insulation and temperature control. The factory should adhere to our minimum standards, have good environmental management. We also encourage factories to consider third party certification, such as the LEED scheme, WWF Low Carbon Manufacturing Programme, ISO 14001, or other schemes approved at M&S’ discretion. 

The starting point for many factories is achieving C-100 status. However, the Eco Factory Programme is open to all clothing and home factories. 

We have developed an Eco Factory Self-Assessment tool for factories to use with supporting Grading Guide. Factories need to achieve scores of over 80% to achieve M&S ‘Eco Factory’ status. Third party certification is only scored if relevant and failure to comply with our minimum standards (e.g. Global Sourcing Principles) results in an automatic failure. 

Factories send their completed self-assessments to the M&S regional offices teams for their review who then organise for a site visit to confirm the assessment. If the regional office agrees that the factory has achieved the necessary scores they will be granted ‘Eco Factory’ status. If factories do not pass the assessment an action plan is developed and a follow-up assessment is scheduled for a later date. 

As of the end of March 2016 we had 157 factories which had achieved M&S Eco Factory status. An Eco Factory will typically reduce their energy by 20-40%. A small number of factories have also achieved both Eco Factory and Ethical Excellence status (see below). 

All M&S products produced in an approved Eco Factory are eligible for a Plan A product attribute. To maintain the attribute the factory’s status is reviewed every 3-6 months.
Ethical Model Factory Programme & Ethical Excellence Factories
We’re committed to working with suppliers to create factories with world class working conditions. 

Ethical Model Factory Programme

We developed our original Ethical Model Factory programme for our Clothing & Home suppliers during 2007. Our goal was to set up factories that could demonstrate best practice for ethical compliance, illustrate solutions to difficult ethical issues and consult with its workforce giving equal rights and better pay and conditions. To achieve this three training programmes were set up to help increase workers’ wages: 

  • Workers’ rights training (20 hours) covering topics such as hours, wages, holidays, contractors, payslips, discrimination, misconduct, and housekeeping
  • Human resource (HR) systems and industrial relations management training (14 hours) covering topics such as grievance procedures, recruitment policy, organisational behaviour, communications and worker committees for middle management and HR personnel
  • Productivity training for industrial engineers and production line management which includes analysis and measurement of existing production methods
The programme was piloted in 11 factories in Bangladesh between 2008 and 2011. We extended the programme to 2 factories in India in 2012.  

We partnered with local organisations including GIZ (the German Government Development Agency), the Bangladesh Institute of Management (BIM) and General Sewing Data (GSD) to deliver the training.

We also commissioned PwC to carry out a study to identify the net benefits created through the programme. This concluded that there was a quantifiable financial figure per worker which was shown in the increase in their wages. 

During the period of the pilot the programme trained over 38,000 workers on employee rights. In addition 130 supervisors and middle managers received 14 hours of training each on HR policies and procedures, industrial relations and behavioural skills. The programme resulted in wage increases between 12% and 54%. This work has continued and on average wages at our supplier factories in Bangladesh are now 60% above the current minimum wage. 

Ethical Excellence Factories

We took the learnings of the Model Ethical Factory programme and drew on elements of our Foods Sustainability Scorecard to develop our Ethical Excellence Factories programme which was rolled out in 2011. 

In order to achieve Ethical Excellence status, factories must:

  • Achieve our minimum standards on their last two annual ethical audit with no outstanding issues associated with the previous audit
  • Complete an M&S Ethical Excellence Factory Self-Assessment
Those factories that achieve Ethical Excellence status can demonstrate that they have world class working conditions and outstanding HR practices in all areas including payment of living wages. The headline measures required are:

Health & Safety Demonstration of health and safety initiatives beyond audit requirements 
WorkingConditionsEvidence of World Class Working Conditions and verification of conditions through existence of a worker survey 
Child Labour and Young Workers Existence of clear child labour policy and procedures for young workers 
Living Wages Demonstration and verification that all workers are paid above the legal minimum wage and towards living wage figures (where they exist) 
Working Hours Procedures and policies exist to ensure correct working hours are done and overtime is within legal limits 
Management Systems Demonstration that the factory employs outstanding HR and management systems 
Freedom of Association Existence of a method of Freedom of Association must be in place in the factory from a fully operational workers committee, to a union or other parallel means (e.g. Collective Bargaining Agreement)
Employment Conditions Existence of policies ensuring Freedom of Association covering regular labour, temporary or contract workers
Discrimination Demonstration of policies of procedures which ensure no discrimination in any area of employment
Discipline & Grievance Procedures Existence of policies in place covering areas of discipline and fully operational grievance procedure in place
Training Demonstrate that effective training programmes are in place for all levels of workers and management 
Factories send their completed self-assessments to the M&S Ethical Trading team for their review, if factory meets minimum scoring the Ethical Trading team will organise a site visit to confirm the assessment. Factories deemed by M&S to have met the criteria will be awarded ‘Ethical Excellence’ status.  All M&S products produced in an Ethical Excellence factory are also eligible for a Plan A product attribute. To maintain the attribute the factory’s status is formally reviewed every 6 months. M&S also carry out factory verification audits/visits on a regular basis to confirm the conditions required for approval are maintained. Find out more about our approach to product sustainability.

We currently have 22 Ethical Excellence Factories which includes all factories which originally took part in the earlier Model Ethical Factory pilot programme.

Workers’ Rights Training Programme
We’re committed to working with our suppliers to help them develop the necessary skills and competencies to meet our requirements by offering an extensive range of training and development opportunities. We believe that worker training is a critical element in achieving an excellent workplace. 

Our workers’ rights training programmes cover a range of topics including employees’ roles, responsibilities and rights, basic health care, fire safety, numeracy and literacy and our Global Sourcing Principles. They are delivered by our Ethical Trading team or specialist third parties through a variety of formats including e-learning, presentations, workshops, practical assessments, webinars or case studies.  

We actively encourage our supply base to take part in our training programmes and help our suppliers find the right course to meet the needs of the workers or the factory. We aim to provide a training and education programme for 800,000 workers by 2020.

We’ve launched a series of initiatives in partnership with third parties. These courses range from financial literacy, to employee rights, understanding contracts, pay and holiday entitlement, fire safety training to health awareness and life skills training.  

For example, since 2012 we’ve implemented a Fire Safety programme in all factories in Bangladesh with Worldwide Responsible Accreditation Production (WRAP). The programme is unique to M&S due to its fire champion module which takes workers right through from how fires start, the context and risks within the workplace, to how to effectively evacuate the workplace, the importance of safe practices and how they play a part in reducing the risk of fire in the workplace and their homes. By December 2015 all of our garment factories had a worker fire champion in place and by the end of March 2016 130,000 workers had received this training. 

In 2012, we piloted a Workplace Communications programme with garment suppliers in Turkey for 12 months. Based on the experience, we developed a global Workplace Communication module for all our suppliers which sets out how to develop or improve the provision of, and management interaction with, trade unions, worker committees, effective communication channels and trade union relationships. By the end of March 2016, over 40,000 workers in our garment supply chain in China, Sri Lanka and Turkey have received this training. 

Through our Ethical Model Factory Programme (see above) we developed a comprehensive worker rights training programme with GIZ. This programme was developed in conjunction with local stakeholders and workers, and covers all elements of the ETI Base Code, in addition to other elements directly related to workers’ rights. The format of this training programme enables the basis for mature industrial relations by promoting active dialogue between management and workers. This training is an ongoing programme and as of the end of March 2016 169,699 hours of supplier training have reached 32,296 individuals.

In addition to our own programmes we invest in a number of advocacy and collaborative working initiatives (see below) which include training. For example, M&S suppliers in Bangladesh, India and Sri Lanka provide work experience and employment opportunities for more than 250 people with disabilities. Our work on youth unemployment has grown significantly in recent years as we have worked with our suppliers to share best practice and encourage similar programmes. This is part of a larger programme which we helped to found in 2013 called Movement to Work which, since launch, has created nearly 15,000 vocational training and work experience opportunities for young people.

We’ve also recently launched our Global Community Programme to benefit people in key regions of the world where we source our products, including the UK, Asia and Africa. The programme’s key aim is to develop resilience and efficiency by empowering people in our supply chain. For example, in partnership with Geosansar since 2012, 15,626 workers in India have received financial literacy training over 115 training sessions across 27 factories in Bangalore, Ludhiana, Tirupur, Coimbatore, Delhi and Chennai. In total, over 31,000 bank accounts have been opened by workers and others in the communities surrounding the factories and 70% of workers now have savings. Find out more about our Global Communities Programme.

By April 2016, we’d provided training to more than 762,000 workers in our Clothing & Home supply chain since 2010. 

Sustainability Management Framework Pilot Project
We are continuously looking for tools to help suppliers to develop their own strategies and ways of working to improve their sustainability performance. While several international standards exist for quality and environmental elements of manufacture very few are available for employee rights and working conditions. However, in 2013, the International Organization for Standardization (ISO) launched a new tool – ISO 26000 – the international standard developed to help organizations effectively assess and address those social responsibilities that are relevant and significant to their mission and vision; operations and processes; customers, employees, communities, and other stakeholders and we were the first retailer worldwide to look at implementing ISO 26000 in its supply chain. 

8 of our largest clothing manufacturers in India, Sri Lanka and Bangladesh agreed to participate in the pilot to integrate the standard’s principles of social and environmental sustainability into their business strategy. 

The project commenced in 2013 with a three-day capacity building workshop in New Delhi where our CEO introduced the concept, highlighting how important sustainability was to M&S. Each supplier received information and training on ISO 26000, the project expectations, and information on potential costs. 

Over a period of 18 months the following steps were taken:

  • Gap analysis using a self-evaluation tool developed for M&S and professional support available from the Confederation of Indian Industries (CII)
  • An assessment by CSR Company International – an independent sustainability consultancy
  • An action plan based on the principles of ISO 26000
  • A scorecard for implementing the agreed actions in the day-to-day running of the factories (from top management level to the ‘shop floor’)
Nine months after the first workshop each supplier was visited by CSR Company International and M&S to confirm that all aspects were being applied consistently and correct. If the assessment was positive the supplier was granted ‘Gold’ status and were rewarded with fewer ethical audits. All eight suppliers successfully completed the programme and achieved ‘Gold’ status and continue to be some of most progressive suppliers.

The project was completed in June 2015 and we’re are currently reflecting on the outcomes of the programme.

Model Eco Dyehouses Programme
The dyeing and finishing stages of clothing and textiles production can be quite resource-intensive and use significant amounts of water, energy and chemicals.

We don’t have direct contracts with any of the dyehouses within our supply chain but we wanted to help develop and showcase environmental best practice for the wider industry. In 2010, we committed to support the development of three Model Eco Dyehouses within our supply chain by 2012. The purpose of which was to demonstrate how environmental best practice for the colouration of textiles can help drive improvements in water use, energy consumption, reduce chemical impacts as well as deliver commercial benefits.

We first introduced our first Model Eco Dyehouse in 2010. By 2012 we had three facilities in Turkey and one in China. Our aim was to work with these suppliers to deliver a leading standard of sustainable manufacturing. 

For example, a pilot trial of cold pad batch dyeing of cotton and blends took place at one facility in Turkey highlighted environmental savings in terms of water, chemicals, salt and effluent loading as well as inputs such as dyestuffs on basic cotton fabrics. The results were independently verified by Istanbul University. 

The Model Eco Dyehouse programme identified a number of Plan A product attributes such as Eco Dyeing (cold pad batch technology). Find out more about our approach to product sustainability. 

The programme also helped inform the development of our Environmental and Chemical Policy for Textile and Leather Processing which was launched in 2011. Find out more about our approach to responsible chemicals management.

Supporting market transformation through working with industry partners and other stakeholders

Advocacy
Most of the sustainability issues we face can’t be resolved by a single organisation, or by implementing one solution. We frequently advocate a specific position or approach to an issue in order to promote wide-scale change at the right pace – focusing on public policy and thought leadership. 

Public policy can help make change easier (e.g. setting guiding principles, offering incentives, regulation, and so on) or it can get in the way. And contributing to thought leadership is important to ensure that the retail sector transforms itself as quickly as possible. 

We’ve developed a bilateral relationship with the Department for International Development (DFID) to facilitate dialogue at various levels, including policy dialogue, knowledge sharing and exploratory discussions to identify areas of potential collaboration.

We’re active members of the British Retail Consortium (BRC) Labour Working Group and work collaboratively with key stakeholders like the ETI on consultations on new legislation and on collective response to key issues. Through our membership of the Consumer Goods Forum we’re to helping to drive global collaboration between retailers and manufacturers and thereby address forced labour. 

Collaborative working
Partnership and collaborative working has always been at the heart of Plan A. This is because we know we need outside knowledge and expertise to help us understand what changes are required and how best to achieve them. We invest in partnerships that deliver tangible outcomes, working at all levels – from local communities to international forums. 

In pursuit of our goal to eliminate deforestation from the use of key commodities in the production of products by 2020 we’re working collaboratively with a number of organisations such as WWF’s Global Forest and Trade Network (GFTN) and Roundtable on Sustainable Palm Oil (RSPO). Find out more about our approach to protecting forests.

Through our collaborations with the Sustainable Apparel Coalition, Textiles Exchange, Sustainable Clothing Action Programme, and Zero Discharge of Hazardous Chemicals (ZHDC) we are working with others to improve the sustainability of the global apparel and textiles industry.  

We’re also helping to drive convergence in responsible sourcing practices. For example, through our involvement in the Supplier Ethical Data Exchange (Sedex) we’re sharing best practice on data, assessments, training of auditors and audit quality. We’re also an active member of a number of multi-stakeholder initiatives such as the Ethical Trading Initiative (ETI). 

We also helping to improve labour standards through our participation in initiatives such as the Accord on Fire and Building Safety in Bangladesh, ILO Better Work and Better Factories Cambodia.

We are members of the BSR HER Project working group and have run the HER Project programme to increase women’s health awareness and access to health services in 5 countries – China, Indonesia, Vietnam, Bangladesh and Kenya. 10,000 women workers have now been trained.

Supporting programmes that build resilient supply chain communities

Global Communities Programme
We launched our Global Community Programme (GCP) in 2014, to drive growth and increase efficiency by establishing partnerships to tackle some of the systemic issues that our suppliers and their local communities face. Our ambition is to become a more resilient business by empowering people in our supply chains to build more resilient local communities. 

This is on the belief that if suppliers, workers, producers and communities are more resilient, the supply chain is more resilient and our supply for the future is more secure. It should also strengthen our brand, improve quality and drive innovation. 

We don’t focus exclusively on specific communities, although a large number of GCP initiatives help the large number of women and small-hold farmers in our supply chain. 

We’ve been pleased with our progress so far with 28 different projects operating in 16 countries, with more than 35 partners, directly benefiting around 91,000 people during 2015/16 (58,000 in 2014/15). For example, we’re working directly with WWF in the Warangal and Karimnagar districts of India and indirectly funding projects in many other countries as part of the Better Cotton Fast Track Programme (BCFTP). 

Find out about how we're leading with others to accelerate change


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