We are aware that the statutory minimum wage that has been set in countries we source from may not be sufficient to provide workers with the above-mentioned decent standard of living. Since we recognize fair compensation as a human right – and have also embedded this in our Supplier Code of Conduct – we work with initiatives such as the Fair Labor Association (FLA) to further promote this right. As part of this membership, as well as 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 specific countries.
In addition, we continuously address our suppliers' specific compensation practices. 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 other reference values recognized by the FLA and the German Partnership for Sustainable Textiles. Based on the identified wage gaps, targeted projects involving our suppliers can be implemented to reach a sustainable increase in wages. This is done in collaboration with a wide range of stakeholders, such as national and international NGOs, civil society organizations, and trade unions or local legislators. Our newly established task force, which will drive the issue of fair compensation in the supply chain internally and anchor it in the company, also plays an important role in our various measures.