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2 | Date | 08/03/2022 | |||||||||||||||||||||||||||
3 | Company / Brand Name | Chanel | |||||||||||||||||||||||||||
4 | Scope of Evaluation | Company / Brand | |||||||||||||||||||||||||||
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6 | Impact Area | Sub-category | Criteria | Questions | Tips: Consider if the following publicly available. Can consumers researching your company find this information? | Possible Points | Points | Yes/No | Score | Explanation/ Notes | Links to Evidence | ||||||||||||||||||
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8 | 1. Traceability: Publicly sharing critical information about where products are made and the makers that make them. Ability to trace products and their components back through each step of the supply chain to the origin of raw materials. | 1.1 Supply Chain Traceability: Public disclosure of what a company knows about where its products are made, the people who make them, and what conditions they live and work in. | 1.1.1 Supply Chain Disclosure: Company shares names and critical information about the factories and farms it sources from. | 1.1.1.i) Is the company publicly disclosing full supply chain traceability? | 1. Company publicly discloses its Tier 1, Tier 2, Tier 3 and Raw Materials suppliers (including mines) 2. Factory list (w/names, locations, number of workers, photos/video, etc) (1 point for tier 1 & 2 (cut and sew & fabric producers), 2 points for tier 3 (yarn producers) and 3 points for RM) | 8 | 3 | No | 0 | Our supply base consists of more than 3000 suppliers around the world... Of these suppliers, over 1400 supply chain partners are for our Fashion activity, 69% of which supply finished goods. The majority is based in Europe (France and Italy). (noted as of 2018). We expect Chanel to comply with industry standards and publicly disclose its supplier list. | p 1 https://media.business-humanrights.org/media/documents/Chanel_Limited_snapshot_2021-01-11_164739.5576390000.pdf | ||||||||||||||||||
9 | 1.1.1.ii) Does the company publicly share the following information about existing labor conditions for Tier 1 workers and is it working towards full supply chain transparency? | 1. Lowest paid workers by country (1 pt) 2. Average wages by country (1pt) 3. Health and safety data violations (1 pt) 4. Hours worked/ overtime (1 pt) 5. Incidents of discrimination/ harassment / GBV (1 pt) | 5 | No | 0 | No insight into T1 labor conditions/violations. | |||||||||||||||||||||||
10 | 2. Wages & Well-being: The extent to which makers and workers are empowered in their role in the fashion industry. This starts with the protection of basic labor rights (as defined by ILO Core Conventions), but goes beyond to ensure that makers and workers benefit from earning enough to invest in their well-being and futures and can gain access to skills and / or resources to help them and their communities advance. | 2.1 Labor Standards: Policies and mechanisms in place to ensure that the basic rights and safety of makers and workers are being protected / respected. | 2.1.1 Labor Standards Oversight: Company uses a standard or product-level certification to assess factories' compliance with internationally accepted labor standards. | 2.1.1.i) Does the company have a publicly available Code of Conduct / standard for assessing factories' compliance with international labor standards (and health and safety)? | CoC is equivalent to or more stringent than (1pt): -ILO Standards -Fair Labor Association Code of Conduct | 4 | 1 | No | 0 | Actual CoC undisclosed. Does not stipulate that working hours should not exceed 48 hours in the work week or 60 in total. "We also expect our partners to respect the United Nations Universal Declaration of Human Rights and the core conventions of the International Labor Organization (ILO), taking into account their size and situation, and to ensure their own partners do the same..." | p 4 https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf https://media.business-humanrights.org/media/documents/Chanel_Limited_snapshot_2021-01-11_164739.5576390000.pdf | ||||||||||||||||||
11 | 2.1.1.ii) Does the company publicly share full apparel factory audit and remediation reports, and does it make the reports and their findings available to garment workers, union leaders and garment maker committees (in their native languages) in audited factories? | 1. Reports should be unredacted and include (1 pt): -factory names -buyer/brand names -names of auditing partners 2. Company should have language specifying the frequency at which factories are assessed and if taking a risk-based approach (1 pt) 3. Company should disclose how audit information is shared (1 pt) | 3 | Yes | 1 | No disclosure of full audit reports. "Chanel conducts selected overall audits of suppliers, including audits regarding conditions of work and notably the use of forced labor. Such audits have been conducted by both internal and external auditors and have been conducted on both an unannounced and announced basis. Some of these audits have been based on the International Standard: Social Accountability 8000." 2. CHANEL's internal auditors plan and implement in-person audits on an annual basis. | Audits https://www.chanel.com/us/california-transparency-in-supply-chains/ p 3 https://media.business-humanrights.org/media/documents/Chanel_Limited_snapshot_2021-01-11_164739.5576390000.pdf | ||||||||||||||||||||||
12 | 2.1.2 Worker / Maker Voice: Makers have channels to voice concerns, issues and suggestions, or advocate for their rights so that they can be heard and addressed (while protecting their anonymity and safety, if necessary). | 2.1.2.i) Does the company take efforts to increase sourcing from factories that are unionized or are cooperatives? AND in environments where freedom of association is constrained, does the company have efforts / programs to promote trade union capacity building, or to strengthen worker-management cooperation? | 1. % of products sourced from unionized or cooperative factories (i.e. makers have representation and/or part ownership) is increasing, with the goal to reach 100% (1 pt) 2. Does the company disclose what % of workers are covered by collective bargaining agreements, with goals to increase? (1 pt) 3. Company uses its power to advocate for union capacity building in environments where FOA is constrained (1 pt) | 3 | 3 | No | 0 | No evidence of such. Chanel notes in its Responsible Procurement Policy that it asks partners to "uphold the freedom of association and the effective recognition of the right to collective bargaining," but does not provide information on # workers covered by CBAs or how it is supporting FOA among its sourcing partners. | p 3 https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf | ||||||||||||||||||||
13 | 2.2 Fair Wages & Social Programs: Ability of makers and workers, as a result of being able to earn a living wage, to improve their quality of life, and benefit from increased access to essential services, education, and investments in the well-being of their communities. | 2.2.1 Living Wage: Makers of the product earn (or are on their way to earning) a living wage. | 2.2.1.i) Does the company ensure that the majority (>50% by volume or number of factories) of garment makers in its entire supply chain earn a living wage (or significantly above minimum wage / industry average, with the goal of reaching a living wage)? | 1. The company publicly discloses the percentage of garment workers receiving living wages (2pts) 2. Company is working with labor organizations to establish a living wage benchmark and is transparent about living wage benchmark methodology, i.e. the "basket of goods" a LW would need to cover (2 pts) 3. Publicly disclosed year-on-year wage data shows that the company is on track to provide 100% of makers with a living wage (2 pts) | 12 | 6 | No | 0 | No wage data available. "All workers must be paid at least the statutory minimum wage, with no discrimination whatsoever, and not be subject to withholding from their pay for disciplinary reasons or for any other reason not provided for by applicable regulations." | p 4 https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf https://fashionchecker.org/brand-profile.html?q=2612054 | |||||||||||||||||||
14 | 2.2.1.ii) Does the company ensure that the majority (>50% by volume or number of warehouses and stores) of all additional indirect employees in its entire supply chain (including drivers, models, and warehouse workers) earn a living wage (or significantly above minimum wage / industry average, with the goal of reaching a living wage)? | 1. The company publicly discloses the percentage of additional indirect employees (delivery drivers, models, warehouse workers, etc.) receiving living wages (2pts) 2. Company is working with labor organizations to establish a living wage benchmark and is transparent about living wage benchmark methodology, i.e. the "basket of goods" a LW would need to cover (2 pts) 3. Publicly disclosed year-on-year wage data shows that the company is on track to provide to 100% of indirect employees with a living wage, or partner with companies in these sectors that provide living wages (2 pts) | 6 | No | 0 | No wage data available. | |||||||||||||||||||||||
15 | 2.2.2 Well-being: Makers of the product benefit from well-being investments / programs. Well-being initiatives include those shown to increase access to essential services (financial, health, benefits, housing, energy, water, sanitation, etc.); employment / career advancement; education. | 2.2.2.i) Does the company produce a majority (>50% by volume or number of factories) in factories where well-being programs are implemented? | Well-being programs can include (2 pts): -adequate childcare facilities, maternity benefits and maternal facilities -worker-driven/selected benefits, housing allowance, transportation, healthcare, education stipends -access to financial services, energy, water, sanitation, etc. WHAT DOESN'T COUNT: trainings, one-off donations | 2 | 2 | No | 0 | No evidence of relevant well-being programs in supplier facilities. | |||||||||||||||||||||
16 | 2.3 Grievance Mechanisms: Company should have clear and transparent procedures for addressing worker complaints and grievances throughout its supply chain that workers feel confident using without fear of retribution. | 2.3.1. Grievance Mechanisms: Effective, adequately funded, and governed operational level grievance mechanisms are in place to receive and address the concerns and grievances of affected or potentially affected stakeholders. | 2.3.1.i) Does the company have clear and effective grievance processes made accessible for workers in each part of the supply chain? | This means that (2 pts): -The company has several access points for workers to share grievances -The company publicly discloses, and guarantees workers' awareness of, the grievance process, including appeals -Workers have the ability to escalate grievances up to the brand level without fear of retaliation -The company shares data around worker satisfaction with grievance procedure and outcomes -The company publicly discloses the number of grievances and actions taken to resolve them | 2 | 2 | No | 0 | No disclosure of grievance processes. | ||||||||||||||||||||
17 | 3. Commercial Practices: How a company relates to its factories and other suppliers with respect to contracting, pricing, placing and changing orders, addressing conflicts that arise, and terminating the relationship. Company takes action to ensure it is not doing business in a way that undermines human rights, and that it is creating purchasing practices that foster fair pay and a humane pace of work. | 3.1 Commercial Practices - Public Commitment: Company publicly acknowledges how its purchasing practices impact ability of suppliers throughout the value chain to uphold interntional labor standards. | 3.1.1. Buyer Code of Conduct: Company shares contractual and financial responsibility with its suppliers and factories upholding international labor standards. | 3.1.1.i) Does the company publicly commit to insert a Buyer Code of Conduct in all purchase order contracts with all Tier 1 suppliers? | A Buyer Code should include, at a minimum, commitments to (1 pt): -Carrying out human rights due diligence, including responsible purchasing -Selecting suppliers using both commercial and human rights standards -Negotiating contracts fairly and agreeing to prices that cover all costs of production, including costs associated with responsible business conduct -Engaging in ongoing dialogue with suppliers throughout the course of the contract to ensure that buyers’ requirements, including change orders, do not undermine human rights -Participating in human rights remediation processes in collaboration with other buyers, where appropriate -Exiting contracts responsibly, by giving reasonable notice, paying outstanding invoices, and mitigating adverse impacts Please see this example published by the American Bar Association’s Business Law Section Working Group to Draft Model Contract Clauses to Protect Human Rights in International Supply Chains, developed in wide consultation with industry stakeholders. -The Code is legally binding, i.e. inserted into contracts -The Code is publicly available on the company's website -The company measures progress against the Buyer Code, including compliance in company KPIs | 1 | 1 | No | 0 | No Buyer Code disclosed. Chanel discloses its due diligence process for forced labour, slavery and human trafficking. | p 4 https://media.business-humanrights.org/media/documents/Chanel_Limited_snapshot_2021-01-11_164739.5576390000.pdf https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf | ||||||||||||||||||
18 | 3.2 Commercial Practices - Due Diligence-Aligned Buyer-Supplier Agreements: The contracts that brands and retailers draw up with the manufacturers that supply their products protect human rights and support fair pay and humane working conditions. The commitments reflect the conditions covered in the Buyer Code of Conduct. The Buyer Code of Conduct when inserted into purchase order contracts is legally binding. | 3.2.1. Fair Pricing: The prices that companies pay to their suppliers for goods should foster fair pay, sustainable progress and high labor standards. This encompasses planning and forecasting; sourcing; design and development; and costing and payment terms. | 3.2.1.i) Do the company’s purchasing practices ensure the suppliers' ability to guarantee/support social and environmental sustainability? | This means that (2 pts): -Company makes a public capacity commitment to all Tier 1 supplier factories (not relevant for small businesses) -Company’s purchasing practices reward suppliers for safeguarding worker’s rights (higher prices, repeat business, higher values etc) -Company publicly commits to set prices high enough to cover investments in sustainability, safety and other compliance demands at the supplier level -Company publicly commits to putting down at least 30% upfront investment in orders, to even out the risk between buyers, suppliers and garment makers -Company publicly commits to never asking suppliers for discounts on orders | 8 | 2 | No | 0 | Chanel shares no such commitments. | https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf | |||||||||||||||||||
19 | 3.2.1ii) Does the company commit to responsible sourcing timelines, in order to protect worker rights and well-being? | -Company publicly commits to negotiating order timelines, factory bookings and changes in orders with respect to human rights (1 pt) | 1 | No | 0 | Chanel shares no such commitments. | |||||||||||||||||||||||
20 | 3.2.1.iii) Do the company’s purchasing practices ensure the suppliers' ability to provide workers with a living wage? | This means that (5 pts): -Company publicly commits to set prices high enough to cover living wages -Company publicly commits to increase prices paid to suppliers in order to reflect increases in cost of living and wages and benefits over time WHAT DOESN'T COUNT: ACT Outcomes from ACT are as of yet unclear, thus ACT membership does not yet fulfill this requirement | 5 | No | 0 | No transparency into pricing methodology. | https://www.rspo.org/acop/2017/chanel-parfums-beaute/M-Policies-to-PNC-ethicalconducthr.pdf | ||||||||||||||||||||||
21 | 3.2.2 Commitment to Remediation: Companies are responsible for rectifying and remediating issues, both which arise as a result of their actions and those which they did not directly contribute to. Remediation prioritises the needs of those harmed. | 3.2.2.i) Does the company publicly commit to address concerns and grievances in a manner that prioritizes the human rights of supplier factory workers? | This means that (2 pts): -Where the company caused or contributed to the harm, it commits to resolve and addresses the root cause of the grievance -In instances where its actions did not cause or contribute to the harm, the company commits to support remediation proportionate to the scale and significance of the impact before terminating the contract | 2 | 2 | No | 0 | Chanel shares no such commitments. | |||||||||||||||||||||
22 | 3.2.3 Responsible Exits: The impact of buyer exits on the supplier and workers are considered and integrated into the supplier contract at the outset. | 3.2.3.i) Does the company publicly commit to responsible exits and works to honor contracts without delays in payments and discounts at all times, including during the pandemic or other unforeseen disruptions? | This means that (4 pts): -Force majeure clauses are not used to refuse payment on completed or in-process goods - If brand cancelled orders during pandemic, they corrected actions within a short amount of time. -Exits must involve negotiations with suppliers and implemented with a commitment to mitigate any adverse human rights harms -The company ensures that when terminating a contract with a supplier/ factory, paying out workers' wages, severance and other benefits is first priority -All products and materials are paid for at time of exit, whether completed or in-process Company gets 1 point if it does not explicitly have a Responsible Exit policy but it acted responsibly towards its suppliers during the Covid-19 pandemic. | 4 | 4 | No | 0 | Chanel makes no makes no reference to workers and suppliers within its own supply chain in its COVID-19 Relief statement. | https://www.chanel.com/us/covid19-global-relief-efforts/ | ||||||||||||||||||||
23 | 3.3 SPOTLIGHT ISSUE: BRAND BEHAVIOR DURING THE PANDEMIC | 3.3.1 #PayUp: When retail stores were shuttered and fashion sales were in freefall as a result of the Covid-19 pandemic, countless fashion brands and companies cancelled orders and refused to pay for an estimated $40 billion worth of finished goods, triggering mass layoffs without pay. Some brands honored commitments to suppliers, staving off the worst effects of these decisions. Others did not. | 3.3.1.i) Did the company deploy abusive commercial practices and shift the financial burden of the Covid-19 pandemic on to the most vulnerable individuals in its supply chain? | -Company cancelled in-process or completed orders due to the pandemic OR -Company refused to pay for orders, in-process or completed, due to the pandemic OR -Company asked suppliers for discounts on orders or delays in payment due to the pandemic. | - | - | N/A | - | |||||||||||||||||||||
24 | 4. Raw Materials: The extent to which a company strives to use (and convert to) raw materials that are more sustainable and improve the lives of the growers and makers and animals in the supply chain. | 4.1 Raw Materials Producers' Human Rights: Use of raw materials that are produced with assurance that growers and producers have their basic human and labor rights respected. | 4.1.1 Raw Materials Producers: Raw Materials used were produced with respect for human rights (and investments in well-being / livelihoods of growers and their communities). | 4.1.1.i) Does the company publicly commit to actively protecting the labor / human rights (and/or well-being) of raw material producers (through its own programs, multi-stakeholder initiatives, or certifications), ensuring that >50% of raw material is produced under such conditions, with a time-bound target to reach 100%? | This means that (5 pts): -Company can prove how its practices have a positive social impact on the communities where it sources its raw materials from -Year-on-year data shows that the company is on track to meet its targets -If relevant, company addresses Uyghur forced labor | 5 | 5 | No | 0 | "In addition to our risk analysis at the corporate level, CHANEL has commissioned independent third parties to conduct in-depth human rights impact assessments at the source of our raw material supply chains, when actual and potential risks have been identified." No allegations have been made tying Chanel to UFL-linked supplers, though EUFL has noted that Chanel is among companies that they do not believe are yet taking adequate steps to fully remove Uyghur forced labour from their global supply chains. | p 3 https://media.business-humanrights.org/media/documents/Chanel_Limited_snapshot_2021-01-11_164739.5576390000.pdf p 7 https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. https://enduyghurforcedlabour.org/fashion/ https://docs.google.com/spreadsheets/d/1khcHPo1Pst0uwZrxN1NOHiPzdSwBeaOwLfOc609QnoE/edit#gid=0 | ||||||||||||||||||
25 | 4.2 Raw Materials Environmental Sustainability: Use of raw materials that are more environmentally sustainable (e.g. inputs required, land conversion, soil health impact, deforestation, etc.) than conventional materials. | 4.2.1 Biogenic Materials: Materials made of or from life-forms (includes Manmade Cellulosic Fibers). | 4.2.1.i) Does the company ensure that >50% of biogenic materials sources are net positive (protects biodiversity, restores and regenerates land and ecosystems, avoids all land conversion to agriculture) for the environment by 2025, with a time-bound target to reach 100%? | This means that, for example (4 pts): -Year-on-year data shows that the % of regenerative agricultural materials used is increasing -Year-on-year data shows that the % of recycled biogenic materials used is increasing -Company can demonstrate through certifications that virgin MMCFs are sourced from responsibly managed forests -Year-on-year data shows that company is on track to meet its net positive goals | 4 | 4 | No | 0 | Chanel says they are proponents of regenerative agriculture but makes no reference to specific practices, aside from a general mention of participation in agroforestry projects, associated with cultivation of their raw materials for garments. Company is "one of the corporate founding members of the International Platform for Insetting (IPI)," promoting insetting practices/projects, for example, in Haiti where they are "working to support vetiver farmers to encourage ecosystem restoration and protect the wider community from the impacts of climate change." Mentions use of eco-responsible tweeds made from more than 70% ecoresponsible yarn, including GOTS-certified yarns. | p 8 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf p 7 (11) https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. p 43 https://services.chanel.com/i18n/en_US/pdf/Report_to_Society.pdf | |||||||||||||||||||
26 | 4.2.2 Non-biogenic Materials: Materials that are not made of or from life-forms. | 4.2.2.i) Does the company have a time-bound target to reduce all virgin polyester and virgin oil-derived synthetic materials in its value chain to the lowest feasible amounts? | This means that (2 pts): -Year-on-year data shows that % of virgin polyester and oil-derived materials is decreasing -Data shows that company is on track to meet its virgin oil-derived materials reduction targets | 6 | 2 | No | 0 | No data indicating % of virgin polyester and oil-derived materials is decreasing. No clear virgin oil-derived materials reduction targets. | |||||||||||||||||||||
27 | 4.2.2.ii) Does the company have a time-bound target to ensure that the highest feasible amount of non-biogenic materials used in its products are recycled and that these materials are sourced responsibly? | This means that, for example (4 pts): -Year-on-year data shows that the ratio of recycled oil-derived materials to virgin oil-derived materials used is increasing OR that company is on track to reduce its use of oil-derived materials to the lowest feasible amount -Company discloses where it sources its post-consumer PET, (plastic bottles, fishing nets etc.) -Company prioritizes sourcing from local waste-management systems rather than outsourcing collection of plastic waste for fabric production to developing countries -Year on year data shows that the company is on track to phase out materials for which there is not currently fiber-to-fiber recycling technology within five years | 4 | No | 0 | No evidence of such. | |||||||||||||||||||||||
28 | 4.3 Raw Materials and Animal Welfare | 4.3.1 Animal Welfare: Welfare is respected in use of animal-sourced materials. | 4.3.1.i) Does the company have a public commitment to guarantee the welfare of the animals in its value chain (that applies to materials derived from animals)? | 1. Company's animal welfare practices reflect an animal welfare policy that is dated and revised at least every three years (1 pt) 2. The policy recognise/references the overarching requirements for animal welfare (1 pt) i.e. The Five Freedoms or The Five Domains/Five Provisions 3. The policy recognise major species-specific animal welfare challenges (1 pt) 4. The company has a clearly defined policy against the use of furs and exotic skins (1 pt) 5. The policy includes clear, measurable targets for improvement, and year-on-year data shows company is on track to meet these targets (1 pt): - volume of traceable product - volume of certified products (material specific and certification specification) If the product was NOT made with animal-sourced materials, answer N/A here | 5 | 5 | Yes | 1 | 4. Chanel has no animal welfare policy publicly available, though it appears they have banned the use of fur and exotic skins in 2018. | https://www.peta.org/blog/chanel-bans-fur-exotic-skins/ https://wwd.com/fashion-news/fashion-scoops/chanel-to-halt-use-of-exotic-skins-1202920043/ | |||||||||||||||||||
29 | 5. Environmental Justice: The intersection of both social justice and environmentalism, where the inequity in environmental degradation is also considered. The extent to which the company is taking action to eliminate the adverse social and environmental effects of its products and operations, particularly in the communities where its sourcing and manufacturing processes are having the most negative impact. | 5.1 Commitment to Intersectional Environmentalism | 5.1.1 Intersectional Environmentalism: Company has commitment, plan, and resources dedicated to assess and reduce environmental impact, especially in communities most adversly affected - both by its operations and the climate crisis more generally. | 5.1.1.i) Does the company demonstrate a commitment to intersectional environmental sustainability (through environmental sustainability policies, goals, collections etc., especially in the geographical locations that are being most impacted by the climate crisis or where the company itself has an environmental impact)? | This means that (2 pts): -The company demonstrates its understanding of the relationship between social and environmental impacts -There is language on the website about commitment to intersectional environmentalism and goals - particularly in the global South/ regions where the company is sourcing and manufacturing. -Red flag: does the company have lawsuits against it by communities over environmental justice? | 2 | 2 | No | 0 | Company shares no such commitments. | |||||||||||||||||||
30 | "Chanel’s total carbon footprint in 2021 was 887,368 tonnes CO2e." Scope 3 emissions (tCO2e): 2020 Total: 870,800 tCO2e | 5.2.1 GHG Emissions Measurement & Disclosure: Company measures and discloses greenhouse gas emissions associated with manufacturing its products. | 5.2.1.i) Does the company publicly disclose CO2 emissions across its value chain? | -CO2 emissions at product level from manufacturing stage only; company discloses aggregate Scope 3 emissions (1 pt) | 1 | 1 | Yes | 1 | "Chanel’s total carbon footprint in 2021 was 887,368 tonnes CO2e." 2021 Scope 3 emissions (tCO2e): 859,511 2020 Total carbon footprint (tCO2e): 870,800 2020 Scope 3 emissions (tCO2e): 722,342 | p 4 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf p 3 https://services.chanel.com/media/files/Press-release-2021-Results-ENG-FINAL.pdf | |||||||||||||||||||
31 | 5.2.2 GHG Emissions Reduction: Company is taking action to reduce GHG emissions from the manufacturing of its products. | 5.2.2.i) Does the company have absolute, time-bound science-based targets to reduce its GHG emissions across its entire value chain, that are in line with the 1.5 degree pathway? | This means that (3 pts): -Company is pursuing at least a 45% reduction in net C02 emissions by 2030 compared to 2020 levels -Company is pursuing net-zero emissions by 2050 -Year-on-year emmissions data shows that company is directly reducing its emissions every year and is on track to meet its targets WHAT DOESN'T COUNT: Carbon-offsetting | 7 | 3 | No | 0 | "We have set science-based targets to decrease our own carbon footprint (scope 1 and 2) by 50% by 2030 (equivalent to -66% per unit sold) and decrease emissions from our value chain (scope 3) by 40% per unit sold by 2030 (equivalent to -10% absolute).These targets are independently validated by the Science Based Targets initiative (SBTi) and use 2018 as a baseline year." 2021 Progress: "...scope 1 and 2 emissions (from our owned and operated production sites, distribution centres, boutiques and offices) decreased by 33% compared with our 2018 baseline, despite adding over 75 new boutiques into our footprint over the past two years. We need to reduce a further 25% by 2030 to reach our target of -50%" "In 2021, scope 3 increased by 4% in absolute value versus 2018. The change is driven in part by an increase in digital media activities. A 13% reduction is needed to reach our absolute target of -10% by 2030." Company utilizes carbon-offsetting. | pgs 3, 5 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf https://sciencebasedtargets.org/companies-taking-action | ||||||||||||||||||||
32 | 5.2.2ii). Does the company provide financial incentives to suppliers implementing low carbon processes? | Could be in the form of (2 pts): -Better prices -Preferred Supplier Status -Extension of Credit -Better contract terms | 2 | No | 0 | No evidence. | |||||||||||||||||||||||
33 | 5.2.2.iii) Does the company invest in eliminating negative health impacts of pollution along its value chain? | -The company can demonstrate that it is working to improve the health of both human beings and ecosystems along its value chain, as it relates to emissions pollution (2 pts) | 2 | No | 0 | No evidence. | |||||||||||||||||||||||
34 | 5.3 Water Stewardship: Contributing to sustainability of water resources. | 5.3.1 Water Stewardship Disclosure: Company discloses its water footprint and water stewardship strategy associated with manufacturing its products. | 5.3.1.i) Does the company publicly disclose its water footprint and water risks throughout the value chain? | -All the way up to raw material and animal by-product (cotton, leather etc.) (1 pt) | 1 | 1 | No | 0 | No disclosure of water footprint. | ||||||||||||||||||||
35 | 5.3.2 Sustainable Water Management: Company is taking action to responsibly and sustainably source water used in its products. | 5.3.2.i) Does the company have time-bound targets to ensure that water is sustainably managed on a local level by 2030? | This means that (3 pts): -Targets focus on water-stressed areas -Targets are context-based; taking into account local ecological limits -Year-on-year data shows the company is on track to meet its water stewardship targets | 5 | 3 | No | 0 | No indication of such targets. | |||||||||||||||||||||
36 | 5.3.2.ii) Does the company invest in local programs and provide financial inventives to farmers and suppliers to implement water-efficient technologies and processes? | -Company is invseting in local programs and providing financial incentives to suppliers to increase water efficiency/use-reduction (2 pts) Could be in the form of: -Better prices -Preferred Supplier Status -Extension of Credit -Better contract terms | 2 | No | 0 | No evidence. | |||||||||||||||||||||||
37 | 5.3.3 Water Quality: Company is avoiding the discharge of hazardous chemicals from manufacturing. | 5.3.3.i) Does the company publicly publish their wastewater guidelines and test results which are in line with ZDHC wastewater guidelines? | -Test results show year-on-year reduction in water pollution (2 pts) | 2 | 2 | No | 0 | No evidence. | |||||||||||||||||||||
38 | 5.4 Health + Environmental Hazards: Avoiding chemicals and manufacturing processes that are harmful to human health and the environment. | 5.4.1 Avoidance / Ban of Hazardous Chemicals: Company avoids the use of hazardous chemicals. | 5.4.1.i) Does the company have time-bound targets to eventually eliminate the use of hazardous chemicals throughout the entirety of its supply chain? | 1. Publicly shared metrics show a reduction in hazardous chemicals year-on-year (that applies to all suppliers) (1 pt) 2. The company uses and enforces a Manufacturing Restricted Substances List (MRSL) that is equivalent to or more stringent than the ZDHC MRSL, and this MRSL is updated regularly (1 pt) 3. The company also discloses a list of chemicals that ARE used along the value chain (1 pt) | 6 | 3 | No | 0 | We expect all large companies to disclose an MRSL. Chanel is not a ZDHC signatory or contributor. | https://www.roadmaptozero.com/contributor-category/signatory-brands-brands-and-retailers | |||||||||||||||||||
39 | 5.4.1.ii) Is the company actively working to reduce chemical pollution in garment supply chains more generally? | This means that (1 pt): -Company is supporting suppliers to implement new technologies that reduce chemical usage OR -Company is involved in R&D to develop cleaner, safer chemistry and less-chemical intensive processes | 1 | No | 0 | No evidence. | |||||||||||||||||||||||
40 | 5.4.1.iii) Does the company seek to eliminate negative health impacts of chemical pollution along its value chain? | -The company can demonstrate that it is working to improve the health of both human beings and ecosystems along its value chain, as it relates to the impacts of chemical pollution (2 pts) | 2 | No | 0 | No evidence. | |||||||||||||||||||||||
41 | 5.5 Product Life Cycle Stewardship: Taking responsibility for the product and its social and environmental impact throughout the upstream and downstream value chain. | 5.5.1 Product Design: The company prioritizes decreasing product output, increasing product quality and reducing enviornmental impact right from product inception. | 5.5.1.i) Does the company have a time-bound target to eliminate both pre- and post-consumer textile waste to landfill through innovative design techniques? | 1. Year-on-year data shows that the amount of textile waste throughout the product manufacturing process is decreasing (1 pt) 2. Data shows that the company is on track to meet its textile waste elimination targets (1 pt) | 8 | 2 | No | 0 | No evidence. | ||||||||||||||||||||
42 | 5.5.1.ii) Does the company prioritize creating durable, high-quality products, made to last, over more low-quality garments? | 1. The % of the company's products that are designed for ease of mainentance and repair is increasing year-on-year (1 pt) 2. Year-on-year data shows that discard rate of company's products is decreasing (1 pt) | 2 | Yes | 1 | Chanel focuses on creating high-quality goods and offers product-specific care instructions. | https://www.chanel.com/us/fashion/care-instructions/ready-to-wear/ | ||||||||||||||||||||||
43 | 5.5.1.iii) Does the company design for minimal environmental impact (minimal energy, water, material use) during product's "use phase"? | 1. Year-on-year data shows that an increasing % of the company's materials and products are designed in such a way that minimises shed of synthetic microfibers during washing (1 pt) 2. Year-on-year data shows that an increasing % of the company's materials and products are designed such that minimal washing, or only less environmentally impactful washing methods are required (1 pt) | 2 | No | 0 | No indication of such. | |||||||||||||||||||||||
44 | 5.5.1.iiii) Does the company design with the post-consumer phase in mind? | Products are designed with recycling ease in mind: 1. As blended fibers are still challenging to recycle, brand shows that year-on-year % of mono-material garments is increasing (1 pt) 2. Year-on-year data shows that % of products designed for ease of dissassembly is increasing (1 pt) | 2 | No | 0 | No indication of such. | |||||||||||||||||||||||
45 | 5.5.2 Product Life Extension: The company is prioritizing implementation of repair, rental, or resale initiatives above the production of new garments | 5.5.2.i) Does the company provide repair and upcycling services AND does it provide incentives to encourage consumers to prioritize use of these services over purchasing new products? | 1. Company discloses % of brick-and-mortar stores in which these services are available (1 pt) 2. Company can prove that it is increasing consumer accessibility to its repair and upcycling services (2 pts) 3. Company can prove that it is increasing consumer awareness about these services AND that it is incentivizing use of them (1 pt) | 7 | 4 | Yes | 1 | Chanel "has created the CHANEL & moi program that promises to help you preserve and safeguard the incomparable quality of each creation. Tailored services and other initiatives will revive and restore your CHANEL pieces, allowing them to live on and be passed down from generation to generation." States intent to "unveil CHANEL Restoring Care, an array of unique care services will exist in each of the House’s boutiques across the world. Other facilities will enrich the program such as dedicated restoring care spaces, available in selected boutiques." Unclear which/how many boutiques will offer such services or to what extent customers are already utilizing repair/care services. | https://www.chanel.com/us/fashion/services/chanel-et-moi/ https://www.chanel.com/us/care-services/ | ||||||||||||||||||||
46 | 5.5.2.ii) Does the company have rental initiatives to increase product lifespan and reduce reliance on the production and consumption of new garments? | This means that (1 pt): -For garments that tend to have shorter consumer phases (i.e. baby and children's clothing, maternity wear, occasion wear, work wear) company prioritizes rental over new production and consumption AND -Company has initiatives in place to reduce carbon and energy impacts of rental: - Company prioritizes renting and shipping locally/ regionally - Company uses brick-and-mortar stores - Company actively educates consumers about more sustainable rental behaviour, i.e. longer renting periods vs one-time wears and sending clothes back and forth | 1 | No | 0 | Chanel does not appear to offer such initiatives. | |||||||||||||||||||||||
47 | 5.5.2.iii) Does the company have resale initiatives to increase product lifespan and reduce reliance on the production and consumption of new garments? | This means that (1 pt): -Company is transparent about its resale initiatives, including where clothes that aren't resold end up (exported, sold to shredding companies, etc.) -Resale stock is pre-owned and not unsold products -Company prioritizes the resale of its own products | 1 | No | 0 | Chanel does not appear to offer such initiatives. | |||||||||||||||||||||||
48 | 5.5.2.iiii) Does the company acknowledge that circularity must be used to replace linear production, not merely run parallel to the production of new goods? | -Company is transparent about its circularity commitments and how they plan to replace their linear business model with circular business models (1 pt) | 1 | No | 0 | "We are inspired by the ways in which circular economy principles can help us on our decarbonisation journey by integrating more recycled content and eliminating waste." | p 8 (12) https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. | ||||||||||||||||||||||
49 | 5.5.3 Post-Consumer Phase: The company takes full responsibility for its downstream value chain. | 5.5.3.ii) Is the company transparent about what happens to garments once they have been collected via take-back schemes? | Company publicly discloses (1 pt): -quantity of items collected via takeback scheme annually -quantity or % of items recycled -quantity or % of items exported for resale in a secondhand market in the global south -quantity or % of items sent to landfill -quantity or % of items incinerated | 2 | 1 | No | 0 | Chanel does not appear to offer such schemes. | |||||||||||||||||||||
50 | 5.5.3.iii) Is the company transparent about both its non-profit and for-profit clothing donation programs? | This means that (1 pt): -Company publicly discloses its takeback partners and whether they are non-profit or for-profit -Company publicly discloses quantities of clothing sent to each country -Company makes consumers aware of this data (i.e. company does not greenwash its takeback schemes) -Company is transparent about its use of profits from resale | 1 | No | 0 | Chanel does not appear to offer such programs. | |||||||||||||||||||||||
51 | 5.5.4 Packaging: Company is reducing the environmental impact of its packaging. | 5.5.4.i) Does the company have time-bound targets to reduce the amount of packaging sent to landfill AND to source packaging raw materials sustainably/responsibly? | This means that (1 pt): -Year-on-year data shows that the amount of packaging produced is decreasing -Year-on-year data shows that company is on track to eliminate virgin plastics in its packagaing -Year-on-year data shows that % of fiber-to-fiber recycled and recyclable packaging is increasing -Year-on-year data shows that company is on track to eliminate packaging raw materials sourced from endangered forests | 1 | 1 | No | 0 | No relevant year-on-year data or evidence that amount of packaging produced/plastics used is decreasing. Mention they are exploring re-usable packaging solutions for Fragrance and Beauty products. Sell some refillable products and have started using thinner glass bottles for its "GABRIELLE CHANEL fragrance...which has a 40% lower carbon footprint during its life cycle than a typical 50ml perfume bottle." Chanel has also signed a partnership agreement with a Finnish start-up, SULAPAC, which has developed a plastics alternative "made from FSC certified woodchips from industrial waste streams and plant-based materials." Company is looking into using this material for future cosmetics packaging. | p 8 (12) https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. | ||||||||||||||||||||
52 | 6. Governance: The company's corporate strategy and commitment to retaining, and investing in, employees (supportive of unions, living wages and DEI at the corporate and retail levels). | 6.1 Growth: Business strategy acknowledges that the pursuit of exponential growth of material goods, which ultimately outstrips all environmental sustainability efforts, is incompatible with the 1.5 degree pathway. | 6.1.1 Growth and Production: Company's financial philosophy and production trajectory takes into account the climate crisis and finite planetary boundaries. | 6.1.1.i) Does the company publicly disclose how many items it produces every year? | -The company discloses the actual number of garments, not, for example, the total mass of the garments produced annually (1 pt) | 7 | 1 | No | 0 | No disclosure of # garments produced. | |||||||||||||||||||
53 | 6.1.1.ii) Does the company recognize that the pursuit of exponential growth of products, virgin resources and energy is incompatible with the 1.5 degree pathway? | This means that (3 pts): -Given the climate crisis and our finite planetary boundaries, the company needs to demonstrate that it's producing fewer new products year-over-year (not relevant to small businesses) -For companies of all sizes: The company demonstrates that it recognizes that limits come with opportunities | 3 | No | 0 | Growth remains and apparent priority. "Chanel sales reached record highs in 2021 across all product categories...Fashion showed strong results driven by double-digit growth in all product lines." | https://services.chanel.com/media/files/Press-release-2021-Results-ENG-FINAL.pdf | ||||||||||||||||||||||
54 | 6.1.1.iii) Does the company have a time-bound strategy in place to move away from a linear growth model? | This means that (3 pts): -For companies of all sizes: the company has identified, and begun to pursue, ways to make revenue in sustainable and resilient ways -The company does not have plans to increase its virgin product offering or the number of brick-and-mortar stores (not relevant to small businesses) -Year-on-year data shows that the company is on track to reduce its overall environmental impacts, a.k.a its net impact | 3 | No | 0 | No evidence. "...Chanel continued to make significant investments in its current and future retail distribution network, including the acquisition of a retail building in San Francisco, and the opening of a boutique in Miami’s Design District." | p 2 https://services.chanel.com/media/files/Press-release-2021-Results-ENG-FINAL.pdf | ||||||||||||||||||||||
55 | 6.1.2 Changing Business Models and Just Transitions: Company is rethinking its business models while considering the wages and employment of the workers along its value chains. | 6.1.2.i) Does the company place the well-being of its employees and the workers along its value chains at the center of its business model transition plans? | This means that (2 pts): -The company prioritizes the needs and voices of employees and factory workers in its business model transition plans -The company has a responsible transition plan including paying living wages and a humane pace of production | 2 | 2 | No | 0 | Company notes the need for an inclusive energy transition, but it is unclear how employees and factory workers are being prioritized in this shift. "In each market we sign a deal, we will look to ensure our investment benefits communities that have historically experienced economic or social exclusion. Our priority will be to work with community businesses and organizations to provide training and professional opportunities in energy infrastructure for local residents, and ensure equal access to these opportunities." | p 45 (43) https://services.chanel.com/i18n/en_US/pdf/Report_to_Society.pdf p 10 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf | ||||||||||||||||||||
56 | 6.2 Diversity, Equity and Inclusion: The company takes a "top down and bottom up" approach to investing in historically marginalized communities. | 6.2.1 Hiring Policies: The company's hiring policies take into account regional histories and recognize that traditional methodologies may be limiting. | 6.2.1.i) Is the company investing in the communities where it operates in terms of its hiring practices, taking into account class, gender and race? | -The company is building relationships with local communities and HBCUs to create career pipelines and opportunities for historically marginalized communities? (2 pts) | 4 | 2 | No | 0 | No evidence. "Chanel entered into a three-year partnership with the University of Cambridge Institute for Sustainability Leadership (CISL) which focuses on education and sustainability leadership programmes, innovative operational projects, as well as a bursary to drive greater inclusion by supporting students from under-represented backgrounds as future sustainability leaders." | p 2 https://services.chanel.com/media/files/Press-release-2021-Results-ENG-FINAL.pdf | |||||||||||||||||||
57 | 6.2.1.ii) Do the company's job descriptions and requirements take into account local/ regional history? | -The company recognizes that a pool of uniquely qualified candidates may not meet the criteria usually sought out in traditional job descriptions (2 pts) | 2 | No | 0 | No evidence. | https://cc.wd3.myworkdayjobs.com/en-US/ChanelCareers | ||||||||||||||||||||||
58 | 6.2.1.iii) Does the company's board and leadership reflect the region's population? | -The demographic of the company's board/leadership team is reflectIve of that of the region (4 pts) WHAT DOESN'T COUNT: Tokensim | 4 | 4 | No | 0 | https://www.linkedin.com/company/chanel/people/?keywords=board https://www.google.com/search?q=chanel+executives&rlz=1C5CHFA_enUS910US910&oq=chanel+executives&aqs=chrome..69i57j0i512l3j0i457i512j0i512l2j69i60.2657j0j7&sourceid=chrome&ie=UTF-8 https://www.bloomberg.com/profile/company/4471447Z:LN | ||||||||||||||||||||||
59 | 6.2.2 Retaining and Investing In Employees: DEI goes beyond "box-ticking" - the company is invested in setting all of its employees up for success throughout their career trajectories. | 6.2.2.i) Does the company provide all of its direct employees with a living wage? | 1. The company publicly discloses the percentage of direct employees receiving living wages (1 pts) 2. Company is transparent about living wage benchmark it uses i.e. MIT Living Wage Calculator (1 pts) 3. Publicly disclosed year-on-year wage data shows that the company is on track to provide 100% of direct employees with a living wage (2 pts) | 10 | 4 | No | 0 | No disclosure of wage data. | |||||||||||||||||||||
60 | 6.2.2.ii) Does the company actively support and promote the participation of its direct employees in trade unions and other collective bargaining associations? | 1. Does the company disclose what % of direct employees are covered by collective bargaining agreements, with goals to increase? (1 pt) 2. Company uses its corporate power to advocate for union capacity building in environments where FOA is constrained (1 pt) | 2 | No | 0 | No evidence. | |||||||||||||||||||||||
61 | 6.2.2.iii) Does the company have the infrastructure in place to be able to welcome and retain employees from diverse backgrounds? | The company incentivizes employees, removes hurdles and sets them up for success (4 pts): -paid a living wage and can demonstrate year-over-year improvements on wages that keep pace with the cost of living -investment in employee education -job training -travel stipend -mutual aid -employees have the right to unionize and their collective bargaining rights are protected -employees can air and escalate grievances without fear of retaliation/ retribution | 4 | No | 0 | No evidence. | |||||||||||||||||||||||
62 | 6.2.3 Investment in BIPOC and Marginalized Communities: | 6.2.3.ii) Does the company invest in the same communities it extracts value from? | This means that (3 pts): -Company reinvests the profits it extracts from marginalized communities back into those communities -Company does not exploit, wokewash or co-opt movements and cultures for profit DOES NOT COUNT: selling product, merch around BLM, Pride etc. simply because it is trending | 3 | 3 | Yes | 3 | Company says it finances "projects that enable communities and landscapes to adapt to climate change," it seems, as a means of offsetting its carbon emissions. We plan to invest with a focus on building resilience in low income countries in Asia, Africa and Latin America, particularly those from which we source." CHANEL is committing to invest $25m over the next five years in projects aimed at protecting local communities from the impacts of climate change within and outside our supply chain. "This past year, Chanel began investing in two separate funds which help advance our commitment to climate adaptation and the strengthening of local communities: the Livelihoods Carbon Fund (LCF3) and the Landscape Resilience Fund (LRF). In addition to these funds, Chanel continues to invest in specific initiatives to protect and restore land and support the livelihoods of communities in five landscape areas in Africa, Southeast Asia and Latin America." Chanel has also partnered with Sunrun to "finance over 27 megawatts of solar installations in communities which are most impacted by pollution, lack access to clean energy, and where 80% of tenants fall below 60% of the area median income." Through the Chanel Foundation, Chanel "works in partnership with nonprofit organizations, social enterprises and institutions worldwide to address overlapping discriminations against women and adolescent girls." | pgs 10 (16), 12 (20), 15 (26) https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. p 10 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf https://www.fondationchanel.org/en/foundation/ | ||||||||||||||||||||
63 | 6.3. Corporate Strategy and Environmental Justice | 6.3.1 Corporate Strategy: The company's long term policies and frameworks center around social and environmental justice. | 6.3.1.i) Does the company have an overall environmental justice strategy to address community impacts where their biggest supply chain footprint is? | This means that (2 pts): -There is a board/executive- level policy in place -A system exists by which to consult stakeholder communities -There are investments to address impacts | 2 | 2 | No | 0 | Strategy does not explicitly center environmental justice, though Chanel does support "initiatives that preserve and restore the natural environment and increase the resilience of communities to adapt to the effects of climate change." "Chanel has been focused on expanding its sustainability talent with over a 40% increase in the number of experts globally focused on driving the sustainability strategy for the Group. It also established a Sustainability Performance and Reporting function, with dual reporting into the Chief Financial Officer and Chief Sustainability Officer, to further strengthen the integration of sustainability into decision-making." | p 10 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf p 2 https://services.chanel.com/media/files/Press-release-2021-Results-ENG-FINAL.pdf | |||||||||||||||||||
64 | 6.3.2 Board and Executive-Level KPIs and Remuneration: Environmental Justice is embedded in KPIs | 6.3.2.i) Does the company link the compensation of its executives and key teams to the achievement of publicly disclosed social and environmental targets along its value chain? | This means that (4 pts): -There is board/leadership-level accountability for human and environmental rights in the supply chain -Compensation of C-suite, Buying teams etc. is tied to the meeting of social and environmental targets -Performance targets are made public | 4 | 4 | No | 0 | "Senior leaders at Chanel are committed to CHANEL Mission 1.5° and to building a resilient and sustainable business. To ensure sustainability is truly embedded into its core business strategy, Chanel has established two Sustainability Committees (that include all regional and divisional Presidents) as sub-committees of the Executive Committee...going forward there will be regular connections on sustainability performance and the overall sustainability strategy, as part of the set meeting calendar with the Board." | p 12 https://services.chanel.com/media/files/Chanel_1_5-Performance-Update2021.pdf p 17 (30) https://corpo-services.chanel.com/medias/Chanel-Climate-Publication.pdf?context=bWFzdGVyfHBkZnw1NjQ0ODc5fGFwcGxpY2F0aW9uL3BkZnxzeXMtbWFzdGVyL3BkZi9oMTgvaDlmLzg3OTcwNzc1MzY3OTgvQ2hhbmVsX0NsaW1hdGVfUHVibGljYXRpb24ucGRmfDUxMTY2OTIxNDE0MzBiNTllNGU5YzNmZGUwYTNkMzI2MTY2ZDE2MTYxZTBkZmY1YjViMjM5OTVmNGI5Y2JmN2E&_gl=1*vqr377*_ga*NjEzODM5NjAzLjE2MTk2ODU1NjA.*_ga_FNK4X913R4*MTYyMzY4NzA4Mi4xMDAuMS4xNjIzNjg4NzAxLjA. | ||||||||||||||||||||
65 | 6.4 Worker-Driven Advocacy + Enforceable Agreements: The company recognizes that brand-driven voluntary efforts and unenforceable agreements and codes of conduct have been ineffective in reforming the fashion industry and empowering garment workers. The company will work to adopt binding contractual agreements and legislation that centers people and planet over profit. | 6.4.1 Give Workers Center Stage: Garment maker representation must extend to the governance structures of brand-funded multi-stakeholder initiatives and major conferences and events that shape the ethical and sustainable fashion agenda. | 6.4.1.i) Does the company ensure representation of women garment worker voices in its conversations about worker's rights? | -When the company hosts any kind of public-facing event on its ethics or supply chain performance, including webinars and IG Lives or attending major conferences, it includes garment workers from its own supply chain in those discussions (2 pts) | 2 | 2 | No | 0 | No evidence. | ||||||||||||||||||||
66 | 6.4.2 Sign Enforceable Contracts and Help Pass Laws: Brands must commit to worker-driven binding agreements and support legal reforms that hold companies accountable for preserving human and labor rights in their supply chains. | 6.4.2.i) SPOTLIGHT ISSUE: Has the company signed the International Accord, the extended and expanded Accord on Fire and Building Safety in Bangladesh? | -Was the brand an initial signatory to the 2013 Accord, did the brand resign? -If the brand sources from Bangladesh but was not a part of the original Accord, has it signed onto the new agreement? | - | - | N/A | - | ||||||||||||||||||||||
67 | 6.4.2.ii) Does the company support brand accountablity for garment makers in legislation and private regulatory schemes, such as bans? | This means that (4 pts): -The company does not lobby against, or pay dues to, industry groups that advocate against labor and human rights regulations that hold brands accountable to their supply chain -The company endorses national and international labor and human rights policies/ regulations that hold brands accountable for their supply chains - Endorsed SB62 - Endorses Mandatory Human Rights Due Diligence - Endorses End Uyghur Forced Labor Call to Action | 4 | 4 | No | 0 | No evidence. | ||||||||||||||||||||||
68 | 6.4.2.iii) SPOTLIGHT ISSUE: Did the company oppose SB62, the California Garment Worker Protection Act? | For brands that produce in California OR are on the board or a member of an industry association that lobbied against SB62 (including the American Apparel and Footwear Association, the California Retailers Association or the California Chamber of Commerce): -Prior to it being signed into law, did the company fail to support, or did it publicy oppose the Bill? | - | - | No | - | No allegations have been made tying Chanel to UFL-linked supplers, though EUFL has noted that Chanel is among companies that they do not believe are yet taking adequate steps to fully remove Uyghur forced labour from their global supply chains. Company has made no commitments regarding UFL. | https://enduyghurforcedlabour.org/fashion/ https://docs.google.com/spreadsheets/d/1khcHPo1Pst0uwZrxN1NOHiPzdSwBeaOwLfOc609QnoE/edit#gid=0 | |||||||||||||||||||||
69 | TOTAL POINTS | 150 | 150 | 8 | |||||||||||||||||||||||||
70 | 1.Traceability | 8 | 0 | ||||||||||||||||||||||||||
71 | 2. Wages & Well-being | 23 | 1 | ||||||||||||||||||||||||||
72 | Labor Standards | 7 | 1 | ||||||||||||||||||||||||||
73 | Fair Wages and Social Programs | 14 | 0 | ||||||||||||||||||||||||||
74 | Grievance Mechanisms | 2 | 0 | ||||||||||||||||||||||||||
75 | 3. Commercial Practices | 15 | 0 | ||||||||||||||||||||||||||
76 | Public Commitment | 1 | 0 | ||||||||||||||||||||||||||
77 | Due Diligence-Aligned Buyer-Supplier Agreements | 14 | 0 | ||||||||||||||||||||||||||
78 | PayUp | 0 | 0 | ||||||||||||||||||||||||||
79 | 4. Raw Materials | 20 | 1 | ||||||||||||||||||||||||||
80 | Producers' Human Rights | 5 | 0 | ||||||||||||||||||||||||||
81 | Environmental Sustainability | 10 | 0 | ||||||||||||||||||||||||||
82 | Animal Rights | 5 | 1 | ||||||||||||||||||||||||||
83 | 5. Environmental Justice | 42 | 3 | ||||||||||||||||||||||||||
84 | Committment to Intersectional Environmentalism | 2 | 0 | ||||||||||||||||||||||||||
85 | Climate Change and Energy | 8 | 1 | ||||||||||||||||||||||||||
86 | Water Stewardship | 8 | 0 | ||||||||||||||||||||||||||
87 | Health and Environmental Hazards | 6 | 0 | ||||||||||||||||||||||||||
88 | Product Life-Cycle Stewardship | 18 | 2 | ||||||||||||||||||||||||||
89 | 6. Governance | 42 | 3 | ||||||||||||||||||||||||||
90 | Growth | 9 | 0 | ||||||||||||||||||||||||||
91 | Diversity, Equity and Inclusion | 21 | 3 | ||||||||||||||||||||||||||
92 | Corporate Strategy and Environmental Justice | 6 | 0 | ||||||||||||||||||||||||||
93 | Worker-Driven Advocacy and Enforceable Agreements | 6 | 0 | ||||||||||||||||||||||||||
94 | |||||||||||||||||||||||||||||
95 | |||||||||||||||||||||||||||||
96 | |||||||||||||||||||||||||||||
97 | |||||||||||||||||||||||||||||
98 | |||||||||||||||||||||||||||||
99 | |||||||||||||||||||||||||||||
100 |