Gramme and it follows the global reporting initiative

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gramme, and it follows the Global Reporting Initiative guidelines and sustainable reports, the leading international benchmark for sustainability reporting systems. Adidas has initiated audits of their suppliers on certain key performance indi- cators and rates them innovatively on their ability to deliver fair, healthy, and environmentally sound workplace conditions in an effective manner. The cumula- tive score of key performance indicators and the average score are rated as 1C, 2C, 3C, 4C, or 5C, as described in Table 2 . Based on the rating, the suppliers are trained to build their capacity sustainably. Adidas capitalizes on the expertise of their Social and Environmental Affairs (SEA) and Capacity Building and Development teams for the continuous improvement of workplace conditions of their suppliers. The company also has initiated a text messaging system and a worker hotline, through which employee Table 1 Sustainability Measures Brands, retailers, and manufacturers Sustainability measures Brands: Adidas, Burberry, Eileen Fisher, Esprit, Levi s, Nike, Patagonia, Puma Retailers: C&A, Gap, H&M, JCPenney, Target, Walmart Manufacturers: Dystar, Lenzing, MAS Holding, Novozymes Supplier rating and auditing system based on certain key performance indicators Social compliance and fair wages Sustainable materials and life cycle assessment Sustainable collection Sustainable design tools Virtual technology Code of conduct or ethical trading policy Sustainable standards Digital and print campaigns focusing on sustainability Carbon footprint disclosure Energy-ef fi cient practices Table 2 Key performance indicators and scores of Adidas Key performance indicators PI score (%) Rating i. Management commitment and responsiveness ii. Management systems iii. Worker-management communication and industrial relations iv. Compliance training v. Transparency in communication and reporting vi. Compliance performance 0 29 1C 30 59 2C 60 79 (good or better) 3C 80 89 (self-governance) 4C 90 100 (self-governance) 5C Sustainable Measures Taken by Brands, Retailers, and Manufacturers 111
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grievances are sent to the Adidas Group for redress, which has been proven to have a direct impact on workers attitude. The strategic compliance plans of the suppliers are audited and enhanced by the Adidas Group s SEA team to identify the gaps in the plans and/or their implementation, which are then reported back into the stra- tegic action plan. The report card process of Adidas is very transparent; it is executed by the SEA team, which measures the effectiveness of the compliance systems of the business entities in their daily operations. Fair wages at Adidas are determined from the social dialogue, balanced pay systems, and legal compliances. Adidas strongly believes that the success of sustainability in innovation basically lies in a combination of the choice and manufacturing of materials and components.
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