SUPPLY CHAIN

Every day, we are working to get that one step closer to full circularity. For us, simply aiming that our activities don’t harm the environment is not enough. We actively make a positive contribution to the preservation and protection of an environment for the common good.

As far as possible, the raw materials we use are returned to the production process after the product's life cycle or follow nature's material cycle. Our ambition is to be a very healthy company economically.

Economic success and growth enhance our development opportunities and the chance to strengthen the impact of our environmental and social commitment. However, sustainable profitability comes before the ambition for growth. We see entrepreneurial success as a springboard to do even more good in the future.

We operate in various markets around the world. Value creation takes place where it makes the most sense ecologically and economically. We aim to ensure that working conditions along the entire value chain are safe, healthy and fair.

We contribute to the common good and enrich life in the urban area and in our field of activity. We also benefit personally from our commitment. In this way, we draw energy and satisfaction from the thought of making a positive difference.

Compliance with our ethical framework and the Code of Conduct derived from it applies equally to all sites. Transparency is the top priority. Potential for improvement is openly communicated and spurs us on to constantly question the status quo.

Our producer selection process includes, among other things, criteria such as the responsible use of materials and energy, fair and social working conditions, and employee training programs. This process also specifies that we have an internal agreement with the Sustainability & Compliance Officer before deciding to cooperate with a partner.

Through our Code of Conduct and continuous dialogue with suppliers, we address our requirements for sustainable procurement and promote them on an ongoing basis. Furthermore, all our producers are located within a radius of 2,500 km from Zurich, allowing us to keep transport distances to a minimum.

As an example of social commitment in the supply chain, we have a limited number of products (0,5 %) produced by «Nähwerk», a work integration service organized by the city of Zurich for socially disadvantaged people.

For some years now, we have been exchanging ideas with our production partners regarding the benefits and importance of renewable energy sources in the supply chain. Furthermore, we discuss the concrete composition of our CO₂ footprint together with our partners.

In 2022, to meet our sustainable sourcing requirements, we extended the scope of the Code of Conduct to include our agents and suppliers. All our producers had signed the Code of Conduct in 2021, but in 2022, this was followed by 100% of agents and 38% of suppliers.

To further increase transparency in the supply chain, we have developed a self-assessment questionnaire for our main producers, i.e., sewing plants. The self-assessment is part of the risk-analysis process with our producers to check compliance with the Code of Conduct and thus meet our duty of care.

• In the first step, all producers are classified according to the country in which they produce for shortcomings regarding child and forced labor as well as corruption.
• The second step is a formal commitment to the FREITAG Code of Conduct, which we achieved for all producers in 2021. Agreeing to and signing the joint Code of Conduct lays the foundation for further steps.
• The third step is a self-assessment process, which all our producers first underwent in 2022. The producers receive and complete a questionnaire, after which they discuss their answers in an online interview with FREITAG. In keeping with our partnership-based cooperation, this exchange is carried out in a spirit of trust. If data is missing, inconsistent or incomprehensible, we discuss the issue critically in the interview.
• For countries with a high risk of child labor*, the information from the self-assessment is checked during an on-site audit.

*Countries are considered high risk if their UNICEF child labor index score is above 3.