Issue No. 05

July 2022

2022 Mid-Year ESG Executive Report

June has always been a month for the Compliance team to look back at the 1^st half and look forward to the 2^nd half of the year. This time we have included new topics like supplier supervision records, sub-contractor risk assessment, supplier engagement activities, and C-TPAT initiatives besides updates on supplier status and CAP progress. Check it out here

Sustainable Materials Library

As part of the ESG Framework Development, we plan to create a sustainable materials library to be leveraged in the product development process.  We will work with the Sourcing Commodity Managers to develop a library of goods that can be used to develop more sustainable products.  Be on the lookout for additional information soon! 

CTPAT Container Inspections Records Update

To meet C-TPAT requirements on inbound container security, we officially introduced our Container Inspection Form last month to our suppliers in Asia and early this month to our foreign suppliers in North America and Europe. As of 6/30, we have received 117 inspection records from 15 suppliers. All the inspection records contained pictures of the container, loaded cargo, and the seal. To view the records click here.

Audit Plan for Acquired Brand’s Suppliers

As the company grows and acquires more brands, there are new top spend suppliers being added in our supply chain. And so we have developed an audit plan for our acquired brands as well:

Remark: For the audit schedule for existing Exemplis suppliers of Asia and North America, please check slide 71 and 72 of our Mid-year Executive Report.

Updates on Audits of Timbuk2 Suppliers

We completed audit to Timbuk2’s China factory Aoking on 5/30th. They received Bronze rating with a generally good system in both labor and EHS management. With regards to the other factory Kodex in Vietnam, we have entrusted Elevate’s Vietnam branch to conduct the audit to them, which is tentatively scheduled on 7/22nd. We will see how it goes by then.

2022 Supplier Diversity Questionnaire

The Supplier Diversity Questionnaire was developed to obtain more accurate metrics about our Supply Base in the U.S. In order for a company to be classified as diverse, it must be at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group.  *The questionnaire is currently being reviewed by Legal.

Supplier Capacity Building Progress Update

We have finished 4 out of the 7 sessions scheduled in Asia’s supplier training plan since it was kicked off last month, including topics of world ESG trends, Occupational Health Management, Machine Safety and Electrical Safety and Environment Management. In total there have been over 100 attendants from around 30 suppliers.

Accenture, Microsoft to Co-Develop Climate & ESG Solutions

June 2nd: Accenture, Microsoft, and their digital, cloud, and advisory services and solutions joint venture Avanade announced today the launch of a new partnership aimed at delivering solutions enabling organizations to address their key sustainability challenges. The partnership will initially focus on helping organizations transform operations, products, services, and value chains to accelerate the net-zero transition, with plans to expand focus in the future to tackle other ESG issues. [More...]

Biden Moves to Scale U.S. Solar Capacity, Secure Near-Term Production

June 7^th: The Biden administration announced on Monday a series of moves aimed at ensuring the continued production and deployment of solar panels in the U.S., and to spur the development of long-term domestic solar manufacturing capacity, including extending duty-free imports and invoking the Defense Production Act to help reduce reliance on foreign manufacturers and boost U.S. solar competitiveness. [More...]

Salesforce Adds Ocean Protection to Policy Priorities

June 8^th: CRM solutions provider Salesforce announced today the addition of ocean protection policy priorities to serve as a basis for its advocacy and policy engagement in supporting meaningful action to protect oceans from the impacts of climate change, and for the reduction of global emissions through ocean-based solutions. [More...]

Canada Launches Emissions Offset Program to Spur Investment in GHG Reduction Projects

June 9^th: The Government of Canada announced today the launch of a new greenhouse gas (GHG) offset credit system, aimed at supporting the development and implementation of projects that prevent emissions or remove GHGs from the atmosphere. The new program forms part of Canada’s 2030 Emissions Reduction Plan, the strategy unveiled by the government earlier this year to achieve the country’s interim climate goals.  [More...]

International Labour Conference Adds Safety and Health to Fundamental Principles

June 10th: Delegates attending the 110^th International Labour Conference  (ILC) have adopted a resolution to add the principle of a safe and healthy working environment to the International Labour Organization’s (ILO) Fundamental Principles and Rights at Work. It will be the 5^th category besides existing ones on freedom of association, forced labor, child labor and discrimination. [More...]

The LEGO Group to Build US$1 billion, Carbon-neutral Factory in Virginia, USA

June 15^th: The LEGO Group today announced plans to invest more than US$1 billion to build a new factory in Chesterfield County, Virginia. Once completed, the 1.7 million square foot (160,000m2) facility will employ more than 1,760 people. The factory will be designed to operate as a carbon-neutral facility. 100 percent of its day-to-day energy needs will be matched by renewable energy generated by an onsite solar park. [More...]

EU Lawmakers Vote to Keep Nuclear and Gas out of Green Investment Taxonomy

June 15^th: Members of the European Parliament (MEPs) supported an objection to the classification of nuclear and gas energy as environmentally sustainable activities under the EU Taxonomy. The objection was supported by a majority of MEPs from the Economic and Monetary Affairs and the Environment, Public Health and Food Safety Committees in a 76 to 64 vote, raising the prospect that nuclear and gas could potentially be left out of the EU’s green investment classification system. [More...]

Only 6% Domestic Workers Have Comprehensive Social Protection, Says ILO

June 16th: Domestic workers make an important contribution to society, providing vital care for families and households, but they remain undervalued. Only six percent of domestic workers worldwide have access to comprehensive social protection, according to a new report from the International Labour Organization (ILO).  [More...]

The Report Offers China's Experience and Wisdom to Help Build Sustainable Development

June 20th: The Center for International Knowledge on Development of China, an independent institute mandated to research and communicate Chinese development knowledge for global sustainability development, issued the Global Development Report, which reviews the progress that has been made toward achieving the targets set out in the 2030 Agenda for Sustainable Development of the United Nations. It also expounds on the challenges that need to be overcome to realize the 2030 Agenda. [More...]

EU to Require Auditing of Sustainability Reporting & non-European Companies’ Disclosure

June 22nd: Marking a major step towards the implementation of a new sustainability reporting system in Europe, the EU Council and European Parliament announced that they have reached an agreement on the rules of the Corporate Sustainability Reporting Directive (CSRD). The new agreement will require companies to have their reported sustainability information independently audited, and will also apply to some large non-EU companies. [More...]