The Managing Board of HUGO BOSS officially commits to fair compensation in the supply chain. At HUGO BOSS, we know that fair compensation by our global partners is not only the basis for long-term trust and partnership, but also necessary for employees to live an independent life. For us, this also includes the payment of living wages by suppliers to their employees. For HUGO BOSS, this has been and will continue to be an essential aspect of a sustainable supply chain, which is why we are participating in the design of industry-wide standards and working together with other stakeholders on an individual compensation strategy for our suppliers' employees.
We believe that all employees, both at our own production sites and at those of our suppliers, have the right to receive a regular and fair compensation for their work. At a minimum, the nationally applicable statutory minimum wage must be met. In addition, all employees have the right to receive information on individual salaries, for example through detailed salary statements. Furthermore, HUGO BOSS recognizes the right to freedom of association, collective bargaining and equal pay, and is committed to ensuring that these rights are granted to employees within its sphere of influence.
The work performance of a standard working week, as defined by respective national legislation and the Core Conventions of the International Labour Organization (ILO), shall be sufficiently remunerated by the supplier. The aim is to enable local employees and their families to have a decent standard of living. For HUGO BOSS, this means that the monetary means available are sufficient to ensure the basic needs of food, water, housing, education, health care, transport and clothing for all members of the household. In addition, employees should have disposable income to build up reserves for unexpected events.
We are aware that the statutory minimum wage set in sourcing countries may not be sufficient to provide workers with the above-mentioned decent standard of living. Therefore, as part of our memberships of the Fair Labor Association (FLA) and the German Partnership for Sustainable Textiles, we are also committed, among other things, to promoting political and economic framework conditions that enable a systematic improvement in the wage situation for workers in certain countries.
In addition, we continuously address the specific compensation practices of our suppliers. To this end, we collect wage data from our finished goods suppliers in particular and analyze any wage gaps, among other things. For this purpose, we apply the FLA Compensation Dashboard. The dashboard is used to compare the average wage of suppliers with recognized benchmarks for living wages, in which we refer in particular to the wages specified by the Global Living Wage Coalition. If these are not available for certain countries, we refer to benchmarks such as Asia Floor Wage or Europe Floor Wage. Based on the identified wage gaps, targeted projects can be implemented to gradually improve the wage situation. This is done in collaboration with a wide range of stakeholders, such as national and international NGOs, civil society organizations, trade unions or local legislators.
In 2021, we will develop a concrete strategy to strengthen the promotion of fair compensation in the textile supply chain. As a first step, HUGO BOSS has collected wage data from its strategic finished goods suppliers in Asia. These cover 72 % of the volume of finished goods produced by external strategic partners. We prioritize the analysis of high-volume partners and countries where there is a high risk that living wages are not paid to employees. In the future, we will also gradually collect wage data from suppliers in other regions. Here, too, the initial focus will be on HUGO BOSS' strategic finished goods suppliers. The results of the analyses will then lead to concrete pilot projects in dialog and cooperation with the relevant stakeholders along the supply chain.
We will report regularly on the results of the analyses on wage gaps, on planned measures, and on progress already made by HUGO BOSS in relation to living wages.