Northampton, MA
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August 10, 2022 11:35 AM Eastern Daylight Time
We are working with our suppliers to integrate environmentally sustainable practices throughout our supply chain and are committed to increasing the use of environmentally preferred materials and manufacturing processes throughout our company.
All our suppliers are required to comply with our Supplier Code of Conduct (SCOC), which includes expectations on environmental and social issues. Tapestry monitors suppliers’ adherence to local rules and regulations through a combination of regular social compliance audits, corrective action plan management and biennial topic-specific training.
To track, manage and reduce environmental impacts across our supply chain, we joined the Sustainable Apparel Coalition (SAC) in FY2020 and requested over 100 of our raw material suppliers to complete the SAC’s Higg Facility Environmental Module (Higg FEM). Suppliers are asked to report to 7 sections (Environmental Management System (EMS), Energy & Greenhouse Gas Emissions,
Air Emissions, Water, Wastewater, Waste and Chemicals). They achieve Levels 0-3 based on the quality of disclosure that they provide and their level of management of the sections. The Higg FEM is not a pass/fail assessment. Rather, it is designed to drive improvements to sustainability management practices and identify opportunities to improve sustainability performance over time. Of the 90 suppliers that completed the Higg FEM, 651 have had their responses verified by third- party agencies and more continue to complete verification.
Please see the table below for data regarding supplier ratings and the relevant topic sections of the report for additional supply chain information.
SECTION OF HIGG FEM
RATING LEVELS AND CRITERIA FOR LEVEL SCORING
AVERAGE SECTION SCORES FOR VERIFIED TAPESTRY SUPPLIER FACILITIES
Energy & GHG
Level 1:
Identify and disclose all energy sources, energy use, unit of measure, and tracking methods
Level 2 (must meet all requirements for Level 1):
Establish baselines for energy use
Understand processes and operations which consume the most energy
Set targets for improving energy use or GHG emissions
Develop an implementation plan to improve energy use or GHG emissions
Compare against its baseline year-over-year
Level 3 (must meet all requirements for Level 1 and Level 2):
Calculate and disclose annual Scope 3 GHG emissions
74
Water
Level 1:
Identify and track the facility’s water sources, quantities and unit of measure
Level 2 (must meet all requirements for Level 1):
Set a normalized baseline for water use
Identify processes which require the most water use
Establish normalized targets for annualized water reduction
Develop an action plan to achieve these targets
Show water reductions against a baseline year-over-year
Level 3 (must meet all requirements for Level 1 and Level 2):
Implement a water balance or other analysis to evaluate traceability of water intake vs. usage and output
63
Wastewater
Level 1:
Track the facility’s wastewater volume
Provide name and contact information of off-site wastewater treatment plant
Establish emergency plans related to wastewater
Proper disposal of hazardous and non-hazardous sludge
Treat septic wastewater before discharge
Level 2 (must meet all requirements included in Level 1):
Disclose any alignment with verified wastewater standards (Zero Discharge of Hazardous
Chemicals (ZDHC), Business for Social Responsibility, etc.)
Request wastewater quality test from the off-site wastewater treatment plant
Level 3 (must meet all requirements for Level 1 and Level 2):
Have a closed-loop reuse and/or recycle process for wastewater
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Waste
Level 1:
Identify hazardous and non-hazardous waste streams and identify where the facility generates
on-site waste, the type and quantity of waste
Identify how waste is managed and disposed of
Segregate all waste streams and store hazardous and non-hazardous waste separately, in well-
marked and designated waste storage areas
Avoid open burning and dumping on-site
Train all employees involved with hazardous waste handling
Level 2 (must meet all requirements included in Level 1):
Set a baseline for solid waste and waste disposal methods
Set formal targets to reduce waste quantity and improve waste disposal methods
Establish an implementation plan to reduce waste quantity and improve waste disposal methods
Reduce waste quantity or improve waste disposal methods compared to an established baseline
Level 3 (must meet all requirements for Level 1 and Level 2):
Validate final disposal and treatment of all hazardous waste
Divert at least 90% of all discarded materials from landfills, incinerators and the environment
Upcycle some waste and/or insert it into a circular economy system
30
Chemicals
Level 1:
Keep a full chemical inventory list including the supplier’s name
Have safety data sheets (SDS) available to all employees
Train all employees in case of hazards/risk and train employees in Manufacturing Restricted
Substance List (MRSL) and Restricted Substances List (RSL)
Establish proper emergency plans in case of hazards/risk
Provide appropriate and operable safety equipment to employees
Have visible and proper hazard signage
Requirements on chemicals purchased in compliance with RSLs
Establish an environmental and occupational health and safety program
Provide well-marked, designated chemical storage areas
Document processes to identify, monitor and verify compliance with all RSL/MRSLs
Visibility into traceability of chemicals from manufacturing process into inventory
Level 2 (must meet all requirements included in Level 1):
Establish an implementation plan to improve chemical management
Establish an implementation plan to reduce use of hazardous chemicals beyond regulations or
MRSL/RSLs
Source from approved/preferred chemical positive lists beyond regulations or MRSL/RSLs
Level 3 (must meet all requirements for Level 1 and Level 2):
Collaborate with brands and/or chemical suppliers for chemical alternatives
Contribute to chemical analysis against human and environmental hazards
Contribute to a Life Cycle Assessment (LCA) for chemical alternatives
Ability to trade chemicals from product lot number to chemical lot number
Set a documented Quality Assurance (QA) program including performance of chemicals
Ensure contractors and/or subcontractors source from approved/preferred chemical lists
22
Air Emissions
Level 1:
Identify an inventory of all sources of on-site emissions
Ability to track and measure all sources of production air emissions and have an abatement plan
in place
If refrigerants are in use and if there are any leaks, have an established action plan to improve
Install operating control devices for all operating emission sources and production process
sources and ensure they are being managed and that there is an abatement plan in place
Level 2 (must meet all requirements included in Level 1):
Go beyond permit requirements for nitrous oxide and sulphur oxide
Level 3 (must meet all requirements for Level 1 and Level 2):
Establish a strategic plan to upgrade equipment and to reduce and/or eliminate air emissions and improve indoor air quality
28
Environmental Management System (EMS)
Level 1:
Identify EMS responsible staff
Establish EMS strategy that guides long-term decision making
Ability to identify significant environmental impacts of the facility
Establish a program or system to review and monitor environmental permit statuses and renew
dates
Monitor local laws, regulations and standards
Establish a process and schedule to maintain all equipment
Level 2 (must meet all requirements included in Level 1):
Review of the environmental management strategy by top management at least annually
Staff includes competent technicians, training and engagement of EMS to all workers
Level 3 (must meet all requirements for Level 1 and Level 2):
Promote awareness of environmental strategies to all employees
Engage and monitor subcontractors on EMS using the Higg Index
Engage with local organizations and stakeholders in environmental improvement
Engage and monitor upstream suppliers on EMS using the Higg Index
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Our Leather Working Group (LWG) suppliers must already meet a certain set of environmental and social requirements. They individually provide us with their responses regarding waste, water, energy, wastewater and chemical management. Accordingly, for those suppliers, we did not ask them to submit data to the Higg FEM. As indicated throughout the report, we have aggregated the data we received from LWG-audited tanneries with the data we received from our suppliers through the Higg FEM to present a comprehensive overview of the environmental impacts of our supply chain.