Be responsible – we want to create a safe and sound environment for all employees and partners
Nelly sees it as both an opportunity and an obligation to act sustainably from economic, social and environmental perspectives. We as a company want to take our responsibility through sustainability work that covers the entire chain, including responsibility for customers. We do this by working in accordance with accepted guidelines in the field, the UN Guiding Principles on Business and Human Rights and by addressing the challenges of the fashion industry to contribute to a positive impact in the value chain. A more ethical fashion industry is an important part of Nelly's sustainability work. To meet the challenges of the fashion industry, we are constantly looking for relevant partners. We also work to continuously improve our work towards our own employees.
RESPONSIBLE SUPPLY CHAIN
As a company in the clothing industry with a value chain that includes a large number of brands, suppliers and factories, we have assessed that our greatest risk of negative impact is in the supply chain. Nelly wants to work with suppliers who, like us, are committed to human rights and good working conditions. Therefore, our focus is primarily on working with risk assessment, requirements, audits and measures linked to the supply chain.
Risk analysis and evaluation before contracting new suppliers
Before new suppliers are contracted for own brands, a human rights risk assessment is carried out, which includes obtaining information from the supplier, reviewing previous audit results and action plans as well as a visit, if possible. Based on this risk analysis, any action plan is set up at the start of the cooperation. For the supplier to be approved, the action plan must be addressed within the set timeframe. If a supplier is not willing to comply with the UN Guiding Principles on Human Rights and is not willing to work with continuous improvements, no collaboration will be initiated.
Require respect for human rights in conditions and code of conduct for suppliers
Nelly's ambition is to work together with its suppliers on a long-term basis to achieve as consistent and good a level of quality as possible and to ensure that there is a well-functioning work on human rights and the working environment. Nelly has been a member of Amfori since 2018. All suppliers for Nelly's own brands have signed the Amfori BSCI Code of Conduct and have undertaken to comply with the code's guidelines in their operations and to pass it on to their subcontractors at the start of a collaboration. The code is based on internationally recognized conventions, declarations and guidelines and contains prohibitions against child and forced labour, as well as regulating issues such as fair wages and working hours, the right to union negotiations, and health and safety in the workplace. Read the code here.
For external brands, human rights and fair working conditions are ensured through clauses in our purchasing agreements.
Monitoring of social responsibility in the supply chain and management of deviations
To manage risks in the supply chain and to ensure compliance with the requirements of the Code of Conduct, audits of our suppliers' operations are conducted with the help of third-party partners such as Amfori and Sedex. Nelly's own brands are manufactured by 25 suppliers who in turn use 42 manufacturing units (Tier 1 factories). 41 of these are located in the risk countries (according to Amforis classification) China, Turkey, India, Bangladesh and Cambodia, and one in the UK. In 2023, the company has reduced the range of variants and thus reduced the number of utilized manufacturing units for the year to 33. Our own brands are manufactured by 24 suppliers who in turn use 42 manufacturing units (Tier 1 factories). 40 of these factories are located in the high-risk countries of China, Turkey, India, Bangladesh and Morocco and 2 in the UK, classified as a low-risk country by Amfori. All suppliers in risk countries are regularly audited with the aim of ensuring that all first-tier suppliers in risk countries have a valid audit result. The audits take place annually or every two years depending on the audit results, where results C- Acceptable are reviewed annually and B-Good and A- Very Good every two years. Read more about audit results below.
Through audits, deviations from the requirements of the Code of Conduct are identified. Upon detection of serious deviations, so-called Zero Tolerance, immediate action is taken in the form of a tripartite meeting initiated by Amfori and the buying company together with the manufacturer. The purpose of the meeting is to protect the worker and to create a quick action plan for improvement. Examples of Zero Tolerance deviations are forced labor, child labor, discrimination, violence, abuse or bribery. No Zero Tolerance deviations were identified in the 2023 audits.
Amfori BSCI inspections are rated on a scale from A (highest) to E (lowest). All manufacturers are expected to work on continuous improvement. In case of a score of C or worse, an action plan is drawn up for identified non-conformities. The purpose of the action plan is to find the root cause of the nonconformity and identify action or training that can lead to improvement. In 2023, 98% of Nelly's own production factories were audited through third party inspections (under BSCI or Sedex) within the specified audit cycle. Most deficiencies were found in the areas of Decent working conditions, which may include, for example, too long working days or too much overtime, and Health & Safety, which may include, for example, lack of fire safety or lack of use of protective equipment. It is mainly in these areas that Nelly prioritizes driving improvements.
Audit results 2023: A – Very good: 6% B – Good: 29% C – Acceptable: 62% D – Inadequate: 3% E – Unacceptable: 0%
Working together for better conditions in the supply chain
Nelly works with Better Cotton, The International Accord and Amfori on human rights. In 2022, Nelly started a collaboration with a factory in Bangladesh and signed The International Accord for health and safety in the textile and garment industry. The International Accord is an independent legally binding agreement between brands and trade unions containing commitments to ensure a safe and healthy textile industry in Bangladesh. In 2023, Nelly partnered with a new factory in Cambodia, and a site visit was made in the fall to ensure conditions there. Read more about our partnerships here.
Transparency
Nelly is convinced that transparency in the supply chain contributes to a more sustainable future. The company does not own any factories, but is responsible for monitoring working conditions and demanding action when deficiencies are identified. Together with Nelly's suppliers, the company contributes to improvements through motivation, training and follow-up.
Nelly publishes an annual list of manufacturing units (Tier 1 factories) used for its own brands.
See the factory list for Nelly's own production here.
Employees
Nelly's respect and commitment to human rights and decent working conditions naturally extends to the direct activities of Nelly's employees.
We work to maintain a healthy workplace through systematic work environment management promoted by caring and sound values. To ensure that we conduct our business with shared values and ethical foundations, we have a Code of Conduct that all employees must read as part of their introduction to Nelly. Processes for employee interviews, target management and follow-up of the physical and psychosocial work environment are well established and systematically run by the People organization and implemented by managers in the organization. The entire company is covered by collective agreements.
To ensure a good internal environment, Nelly has a whistleblowing policy to make employees and business partners feel confident in reporting suspicions of irregularities. Whistleblowing is expected from employees when necessary. Reporting of suspicions can be done anonymously and the information will be investigated. In 2023, Nelly had no reports of irregularities.
Nelly has a policy and action plan for equality and diversity that complements the Code of Conduct. There is also a work environment policy and a policy and action plan for victimization and harassment. These policies are important in the work against social ill health and are available on the company's intranet. All employees must read these as part of their introduction.
Anonymous digital employee surveys are conducted on an ongoing basis with all employees.
The workplaces at Nelly are designed to be ergonomically adapted to the needs of the individual employee. For example, screens and workstations can be adjusted according to the employee's height.