As a company with international production activities and business operations, sustainable procurement and production processes are of paramount importance to HUGO BOSS. Subsequently we bind ourselves and oblige our suppliers to comply with recognized labor and social standards, and work together in reducing environmental impact throughout the production process.
HUGO BOSS products are manufactured all over the world. We produce approximately 20% of our total procurement in our own plants in Metzingen (Germany), Radom (Poland), Morrovalle (Italy) and Izmir (Turkey). These cover a significant share of our classic tailored menswear and womenswear collections. With around 4,000 employees, Izmir is HUGO BOSS’s largest production facility, and produces many of the suits, sports jackets, trousers and shirts, as well as women’s outerwear items. By producing in our own plants, we are able to retain important expertise within the company, for example on production technologies. Furthermore, quality standards can be developed independently. Sharing this knowledge with our partners is an important part of our procurement strategy, given that in addition to our in-house production, about 80% of our procurement comes from independent suppliers, manufactured to order or bought for resale.
In this context, a careful selection of partners, cooperation based on mutual trust and the creation and maintenance of long-term strategic supplier relationships are very important. Aside from qualitative aspects, ensuring a common understanding of social and ecological requirements plays an important role in our sustainability management.
To further develop our commitment in compliance with good and safe labor and social conditions at our partner companies and further enhance transparency, we work with the German Partnership for Sustainable Textiles and through our membership with the Fair Labor Association (FLA). The FLA is a multi-stakeholder initiative, which aims to protect workers’ rights and improve working conditions worldwide. The cooperation makes it possible to work together with other companies, civil society organizations and universities; to learn from sector best practices and work towards improving working conditions in supplier countries in the long term.
HUGO BOSS commits itself and its suppliers to comply with the HUGO BOSS Social Standards, which are based on internationally recognized standards, such as the core conventions of the International Labor Organization (ILO) and the UN Universal Declaration of Human Rights. Compliance with the social standards is a prerequisite for including a company as a partner in the HUGO BOSS supplier portfolio. The standards include for example the prohibition of child and forced labor and require decent working conditions and wages. Furthermore, they include provisions on the adherence with environmental standards. The HUGO BOSS Social Standards apply to all employees in the production facilities of HUGO BOSS and all our external partners. In countries with inadequate national legislation, the HUGO BOSS Social Standards become the minimum standard. Compliance with these is verified through regular social audits. In the case of a violation of the social standards, HUGO BOSS works with the supplier to develop an action plan and checks the subsequent implementation. However, if progress is inadequate and there is a lack of willingness to change, the company reserves the right to terminate the partnership. Overall, we strive to achieve a long-term cooperation based on mutual trust.
HUGO BOSS is convinced that better compensation by its partners not only lays the basis for a long-term partnership, but is also a prerequisite for a self-sufficient life for employees. Every employee has the right to wages for a regular working week, which is sufficient to live on and ensures an amount of disposable income. Therefore, employers are obliged to pay a wage that meets minimum wage requirements or the standard wage in the region and industry, whichever is higher. All statutory requirements for wages must be complied with and all fringe benefits required by law or contract must be offered.
The HUGO BOSS Better Compensation Framework developed in 2016 is based on fundamental principles of better compensation. This includes requirements for regular payment of wages, payment for hours worked, fair compensation systems, adequate information for employees on individual salaries (for example, detailed salary statements) and the right to collective bargaining. More information can be found in the HUGO BOSS Sustainability Report.
As part of its membership of the Fair Labor Association (FLA), HUGO BOSS collaborates on the “Fair Compensation” program, which documents the state of wages in the textile sector. The goal of this working group is to develop possible approaches for improving compensation and thus create new, industry-wide standards.
Before embarking on a business relationship, all finished products suppliers must undergo a social audit. These are repeated regularly in the course of the cooperation.
The following criteria are evaluated in the social audit:
Through the HUGO BOSS Social Standards the company also commits its business partners to comply with environmental standards and ensure transparency. Aside from compliance with local and national environmental regulations, HUGO BOSS requires its suppliers to be proactive at their locations in implementing environmental protection measures. To cooperate with our suppliers in mitigating environmental impact in the supply chain, we systematically document data on environmental issues together with our partners.
The basis for documenting and improving environmental conditions in the supply chain is the environmental module of the Global Social Compliance Program (GSCP) of the Consumer Goods Forum. In cooperation with the GSCP and other environmental experts, we have further optimized the GSCP Open Source environmental program in the past two years. This helps us to review standard minimum environmental protection requirements among our suppliers worldwide and further develop existing standards.
Full rollout of the environmental module for all strategic suppliers was completed in 2016.
Within the framework of the GSCP environmental audits, HUGO BOSS commits its suppliers to provide environmentally related information, for example:
More information is available in the HUGO BOSS Sustainability Report.
The Company sees chemicals management as an important lever in further reducing the environmental impact in production.
For this reason HUGO BOSS has encouraged the industry-wide sharing of information for many years and collaborates with other companies, for example through AFIRM (Apparel & Footwear International RSL Management group). The focus of AFIRM’s work is on defining an industry-wide Restricted Substances List (RSL), sharing best practices and defining common approaches. HUGO BOSS is involved in several working groups and thus makes an active contribution towards the further development of chemicals management in the textile industry. Through the membership, HUGO BOSS offers its suppliers free training in dealing with chemicals and their regulation. Moreover, HUGO BOSS collaborates with companies from the premium and luxury segment, and is currently working on creating a uniform understanding of chemicals management (see Products).
To ensure that the quality of our products is beyond reproach, all our partners are required to sign a warranty of compliance with the HUGO BOSS Restricted Substance List (RSL). The HUGO BOSS RSL establishes requirements for the use of chemicals in producing textiles and requirements for the production processes. Compliance with the RSL is ensured through regular product tests, carried out by external laboratories.
Joining the Textile Alliance in 2015 marked HUGO BOSS’s commitment to achieve greater transparency in the use of chemicals in the textile value chain and continuously decrease their use.
HUGO BOSS rejects all kinds of forced labor, especially modern slavery and human trafficking. HUGO BOSS regularly audits direct suppliers and partners to verify their compliance with the prohibition of modern slavery and human trafficking in accordance with our Code of Conduct, our social standards and the United Kingdom Modern Slavery Act of 2015. The following statement should send a clear signal of the HUGO BOSS commitment against all kinds of forced labor and demonstrate that HUGO BOSS is a socially responsible and reliable company.
HUGO BOSS AG
Phone: +49 7123 94-0
Fax: +49 7123 94-80259
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