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Adidas, H&M top list of world’s largest brands on supply chain transparency

Adidas and sister business Reebok have topped a list of 150 of the world’s largest brands and retailers measured on supply chain transparency, according to Fashion Revolution’s 2018 index.

Released overnight in the UK, the sixth edition of the Fashion Transparency Index has tracked an increase in industry stakeholders disclosing their suppliers, but the average score across all 150 brands and retailers surveyed was just 52 out of a possible 250 points, or 21 per cent.

Adidas Group scored 58 per cent to top the list, beating the likes of H&M, Gap and Puma – who all scored lower in the 51-60 per cent range.

The most improved brands on the list were The North Face, Timberland and Wrangler, which saw their scores increase by 22 per cent compared to last year’s index.

The international transparency findings come less than a week after Baptist World Aid’s local report found that a large portion of Australian retailers are still failing the ethical grade when it comes to supply chain ethics.

Indexx

Fashion Revolution, which is partly funded by the charitable arm of global fashion retailer C&A, scores some of the world’s largest retailers and brands on five areas, including governance, policy & commitments, traceability, the ability to spotlight issues and the capacity to identify and address problems.

Traceability and capacity to identify and address supply chain issues are weighted most heavily, accounting for 64 per cent of total scoring.

Brands scoring between 51-60 per cent provide detailed supplier lists, including manufacturers and processing facilities.

The likes of Zara, ASOS, G-Star, Levi Strauss & Co and The North Face all scored in the 41-50 per cent range, which is described as being likely to provide detailed supplier lists, as well as information about policies, procedures and goals.

Further down the list in the 31-40 per cent category are a myriad of luxury and premium brands, including Gucci, Hugo Boss, Burberry and Hugo Boss, as well as sneaker giant Nike and Target (US).

At the bottom in the 0-10 per cent range are those who have either not published supplier lists or publish little information, which is by far the largest category on the index at 48 brands.

Amazon, Neiman Marcus and Forever 21 all scored between 10-5, while Dior and Nine West both scored 0, among others.

Of the 98 brands and retailers on the list that were scored last year there was a 5 per cent average increase in scores, while 22 brands (or 15 per cent) have increased their traceability score by more than 10 per cent.

Fashion Revolution said the results indicate that there’s still a “long way to go”, but that an influx of additional brands onto the index had weighed down 2018’s average score.

“This year, 65 brands and retailers (or 43 per cent) have scored 21 per cent or higher — above the mean average score — compared to 43 brands and retailers (or 43 per cent) in 2017. 42 brands and retailers (or 28 per cent) have scored 31 per cent or higher, compared to 20 brands and retailers (or 20 per cent) in 2017,” it said.

Overall higher scored were achieved in the areas of governance and policy & commitments than actioned traceability and a demonstrated ability to identify and address problems.

H&M, which scored 92 per cent in policy & commitments and a 77 per cent in governance scored a much lower 47 per cent in traceability.

This story first appeared on sister site Inside Retail Australia.

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