As a large apparel company with highly visible brands, we are regularly in contact with organizations and individuals interested in our approach to social and environmental issues. By communicating openly and listening to their interests, concerns and suggestions, we gain valuable insights that help us to strengthen our program for greater impact. Increasingly, we are looking for ways to engage proactively with our stakeholders in order to ensure that we leverage their diverse perspectives and expertise.
We strive to communicate our CR efforts and how we manage social and environmental risks, specifically through our corporate website, investor presentations, Annual Report and CR Report. We also respond to CR-related queries from both traditional institutional investors and socially responsible investors.
We engage with our stakeholders in ways that best address their inquiry, support our shared goals and leverage best practices and stakeholder guidance.
We conducted assessments in 2013, 2015 and 2018 to guide our CR efforts. Through our 2018 materiality assessment, we identified and prioritized the CR topics and issues that are most material to our business and stakeholders, in line with the GRI Standards guidelines. Following research on the wider landscape of issues that included a review of the Sustainability Accounting Standards Board ("SASB"), the SDGs and the Organization for Economic Co-operation and Development ("OCED"), we refreshed the list of possible CR topics for 2018. We asked PVH leadership, associates and key internal business partners to rate these topics on both the level of risk and opportunity the topic presents to PVH as a business and the extent to which the topic influences our wider stakeholders.
We also sent our assessment to key external partners including Better Work, IDH, The Accord on Fire and Building Safety in Bangladesh ("Accord"), Better Cotton Initiative ("BCI"), Sustainable Apparel Coalition ("SAC"), Textile Exchange, Social and Labor Convergence Project, SASB and Bloomberg.
We sought views through an online survey and met with PVH executives before finalizing the prioritization and key topics. We will engage our stakeholders again to conduct a materiality assessment in 2020.
|Factory Health & Safety||3|
|Bribery and Corruption & Corporate Governance||5|
|Water Preservation & Stewardship||6|
|Inclusion & Diversity||7|
|Compensation & Benefits for PVH Associates||8|
|Talent Management/ Learning & Development||9|
|Supplier Capability Building||11|
|Living Wage for Supply Chain Workers||13|
|Sustainable Materials Innovation||14|
|Community Investment for Sourcing Communities||15|
|Climate, Energy, and Greenhouse Gases||16|
|Sustainable Packaging & Packing||17|
|Sustainable Product Design & Manufacturing||18|
The UN’s Sustainable Development Goals will help guide global efforts to achieve sustainable development over the next 15 years. We have developed our new CR strategy to support the SDGs, as we renew our efforts to achieve positive impacts across our value chain.
|Promote adherence to A Shared Commitment, our code of conduct for business partners, and go beyond compliance to improve the lives of workers within our supply chain.|
|Ensure safe working conditions for workers within our supply chain.|
|Attract and retain world class talent by making PVH a great place to work.|
|Invest in and support PVH associates in reaching their full potential in an inclusive environment where every individual is valued.|
|Practice responsible chemical management by reducing and eventually phasing out hazardous chemicals from our supply chain by 2020.|
|Safeguard and preserve water resources to ensure continuity and quality of water supply for our business and the community.|
|Reduce the amount of packaging used in PVH products and work towards zero materials to landfill by using recyclable materials.|
|Source raw materials more sustainably to minimize social and environmental impacts along the supply chain.|
|Measure and reduce PVH’s GHG emissions by reducing energy consumption, increasing energy efficiency and utilizing clean energy both in our owned and operated facilities and across our value chain.|
|Support the needs of women and children by creating safe spaces, improving access to education and enhancing quality of life.|
Our senior management team, led by Emanuel Chirico, our Chairman and CEO, establishes the vision, sets the tone, and leads the way for our CR program. The CR Committee of the PVH Board of Directors provides support and guidance to management and the full Board with respect to our policies and strategies governing our CR program. Three independent directors form the CR Committee. The Committee meets four times a year in order to monitor our CR performance on social, environmental and community issues and progress against key performance indicators (“KPIs”) established each year to advance the program’s commitments.
Clear lines of accountability for CR exist throughout our organization. Our Chief Risk Officer, Melanie Steiner, directs the development and implementation of our global CR strategy, including our human rights, health and safety, and environmental commitments and policies. She reports to our Chief Operating & Financial Officer, Mike Shaffer, and is supported by our Group Vice President of CR, Marissa Pagnani McGowan, who manages a team of over 70 CR associates in 11 countries across Europe, Asia, Africa and the Americas. Our CR team works closely with PVH businesses to further align our CR goals with the business.
We are committed to maintaining the highest moral, ethical, and legal standards in our business. PVH Legal, led by Mark Fischer, our General Counsel, oversees compliance issues, helping to ensure that we remain up-to-date on relevant anti-corruption, social, environmental and similar legislation in the countries where we operate, providing and facilitating related training and managing our compliance hotline.
We require that all PVH associates, as well as PVH Board members, participate in PVH Complies, our compliance training program. This consists of online courses on key topics including our Code of Business Conduct and Ethics, anti-bribery and anti-corruption policies and legislation, insider trading, and conflicts of interest. In order to help associates understand and comply with all elements of these topics, the program is designed to be engaging, informative, and easy to use. In addition, the PVH Legal team provides in-person training in local languages to address these issues and policies, some of which may be specific to individual regions.
Our global reporting hotline, Tell PVH, was opened in 2017 to all workers in our supply chain. It acts a channel for PVH to capture and address concerns or complaints raised by our associates as well as the people who work for our suppliers and elsewhere. Workers and associates, subject to certain legal limitations, can report any suspected policy violation, inappropriate behavior and unethical practices via the hotline. In the majority of cases, they can make reports anonymously, either online or by telephone, in one of 15 languages. We provide regular updates to the reporter, with whom we can communicate through the hotline.