product
responsible sourcing
Responsible sourcing is fundamental to our business strategy and integral to delivering value for our stakeholders. In 2024, we strengthened our position as an industry leader in supply chain transparency and traceability while advancing worker well-being across our global operations. Our comprehensive approach combines rigorous supplier monitoring, innovative traceability technologies, and strategic partnerships designed to create lasting positive impact.
We have enhanced our vendor transparency by publishing our full list of Tier 1 suppliers, which can be found on the footer on our website.
Traceability Excellence
Our enhanced traceability capabilities strengthen collaboration with supply chain partners to reduce the risk of forced labor in raw materials sourcing and production. We maintain ongoing monitoring of all applicable value chain regulations.
Our comprehensive traceability program focuses on:
- Capability Screening: Assessing the ability of suppliers to provide documentation showing material origin
- Factory Training: Providing training and education to suppliers and building competencies as needed
- Mock Audits: Verifying and validating material tracing capabilities
A cornerstone of this effort was an extensive supplier engagement tour in Asia, where we conducted focused training sessions with key manufacturing partners. These interactive workshops helped suppliers understand our expectations regarding regulatory requirements, while providing practical guidance on documentation and verification.
Traceability Program Components
1
Comprehensive Supplier Onboarding Program
Upfront vetting and screening of suppliers through social compliance audits
2
Product Admissibility
Focus suppliers on regulatory product admissibility requirements
3
Science-based Testing
Validation of cotton claimed country-of-origin11
In 2024, we complemented our in-person training with a new online traceability course that is mandatory for all Tier 2 suppliers. This digital training helps standardize knowledge across our supply base, while providing consistent access to essential information and best practices. Our training emphasizes:
- Understanding regulatory requirements and compliance expectations
- Documentation protocols and verification procedures
- Organizational structures needed for managing traceability
- Best practices for supply chain mapping and validation
Our investment in supplier education and capability building has yielded measurable results, contributing to a 100% success rate in addressing regulatory compliance incidents. We continue to refine our approach based on supplier feedback and emerging needs, equipping our partners with the tools and knowledge necessary to meet evolving supply chain transparency expectations.
In 2024, we expanded our isotopic testing to encompass our top 10 cotton fabrics, providing scientific validation of the materials’ country of origin. This testing revealed full compliance across all evaluated materials, reinforcing the integrity of our supply chain controls.
Responsible Sourcing in Action
In 2024, we faced an unforeseen regulatory challenge when several product shipments were detained over potential responsible sourcing concerns. Prior to this incident, we had engaged HAP, a recognized industry leader in supply chain traceability and due diligence, to conduct a thorough evaluation of our global supply chains and assist in implementing enhanced internal controls. In parallel, we established collaborative relationships with key regulatory stakeholders to create a shared understanding of our sourcing practices and traceability protocols. Because of these efforts, we were able to act swiftly and comprehensively. All shipments were released without penalties, and regulatory authorities confirmed our full compliance. This outcome underscores the effectiveness of our proactive approach to risk management and regulatory readiness.
social compliance
Our social compliance program begins with an extensive supplier onboarding process that evaluates a potential vendor’s policies and practices against our Vendor Code of Ethics and Corporate Social Responsibility Policy. Once we onboard a supplier, rigorous monitoring is implemented that includes annual compliance assessments and supports the maintenance of our labor standards.
We continue strengthening our commitment to social compliance, enhancing worker protections while supporting business growth. In 2024, we enhanced our supply chain monitoring and grievance mechanisms to amplify worker voices.
Labor Line Initiative
In 2024, we implemented the Labor Line worker helpline program across 35 facilities. This new platform provides:
- Multi-channel access for workers to report concerns anonymously
- Real-time case management and resolution tracking
- Enhanced data analytics for identifying trends and systemic issues
- Support in workers’ local languages
This helpline program positively impacts almost 40,000 workers.
Supplier Onboarding
Building on our foundation of Tier 1 supplier monitoring, we made significant strides in 2024 to expand visibility across our broader supply chain. As consumer expectations and regulatory requirements evolve, we recognize that comprehensive supply chain oversight is crucial for mitigating risks and upholding responsible practices. In 2024, we fully implemented systematic monitoring of Tier 2 suppliers, while initiating preliminary assessments of Tier 3 relationships. This expanded scope reflects our commitment to transparency and understanding that meaningful social compliance requires collaboration across all levels of our supply chain.
Tier 1 and 2 Supplier Compliance Auditing
2022
2023
2024
Number of Active Suppliers
88
85
278
Number of Active Factories
137
12612
393
Number of Factories with a Passing Score
137
125
391
Number of Factories with a Below Passing Score
0
1
2
Number of Unannounced Audits Conducted
36
21
59
As part of our monitoring and oversight, we hold suppliers accountable for maintaining compliance with our programs and policies. In 2024, we terminated relationships with four Tier 1 suppliers and with one Tier 2 supplier, due to their inability to demonstrate improvement.
partnering for worker well-being
We believe lasting positive change in our supply chain requires collaboration with organizations that share our commitment to worker well-being. In 2024, we strengthened partnerships and introduced initiatives to empower workers and strengthen the communities where we operate.
RISE
Our partnership with RISE: Reimagining Industry to Support Equality continues to be a cornerstone of our worker empowerment strategy. Our participation delivers comprehensive training programs to suppliers, with particular emphasis on financial literacy and digital inclusion for women. In 2024, we expanded our reach through:
- Financial Health Program: Two factories completed workers’ training in financial literacy and money management skills
- Digital Advancement Initiative: Six factories implemented digital tools and training to enhance worker communication and resource access
- Workforce Development: Continued efforts to empower women workers, who make-up approximately 70-75% of our manufacturing workforce
Goal
Improve the well-being of at least 1 million workers within our global value chain by 2030
2024 PROGRESS
>303.628
workers positively impacted since 2021
70-75% of the workforce are women, so it’s important for us to continue to focus on that demographic and provide them the right skills to move up in their careers, such as how to better manage their finances.”
David Chan, Senior Manager, Corporate Social Responsibility and Traceability
Planet Water Foundation
Building on our commitment to strengthening communities where we operate, we expanded our support of the Planet Water Foundation in 2024. Our participation sponsored three new AquaTower water filtration systems, completing two projects in India and one in Vietnam. Each installation was coupled with Planet Water’s Water-Health and Hygiene education programs. These systems will provide clean water access to approximately 5,400 children and community members across all three locations.
