We at Esprit established a department that is responsible to promote sustainability initiatives along our organization. To reach and mobilize the entire company, we implemented a number of different measures:
Supply Chain Based
The Sustainability Team at Esprit includes 11 members, based in Bangladesh, China, Germany, Hong Kong, India, Turkey and Vietnam. It is important to be in close touch with our supplier factories for many aspects of the work, which means that we need people who speak the languages of the factories and are located in the same time zones as much as possible.
Direct Reporting to our Management
The sustainability function at Esprit is part of the Supply Chain Management, which is represented on the company’s Executive Management Team by our Chief Supply Chain Officer. The Executive Management Team is Esprit’s top management body, and includes the Chief Executive Officer along with all global function heads.
Esprit also organizes a Sustainability Committee, which includes those members of the Executive Management Team whose functions impact the company’s overall sustainability performance, as well as key executives from other specific functions. While the Executive Management Team helps set overall direction, the Sustainability Committee is how the work is carried out, defined and executed in all other parts of the company.
Within the Buying Department, the Sustainability Team has direct impact on the supply chain, on issues including social compliance, environmental sustainability, and sustainable materials. Since 2015, Esprit has established a system to score our suppliers twice per year in different areas, including quality and delivery, as well as social and environmental sustainability. The idea is to assess vendors’ performance in sustainability with other aspects of vendor performance. We want to send a clear message about the importance of sustainability to our suppliers. Moreover, the annual bonuses of all Head Buyers are tied to the performance of the suppliers that they choose to work with. In June 2018, we will take the system to the next level by having our vendors begin to rate Esprit’s performance in the same way that we rate theirs. With this, we hope to increase transparency and support a fair and equal partnership with our suppliers to incentivize their improvement.