Expresso Performance Check 2016

Expresso performance check 2016

This report covers the period of April 2015 to March 2016. Expresso meets most of Fair Wear Foundation’s management system requirements. A total of 31% of Expresso’s FOB purchasing volume is sourced from suppliers where a business relationship existed for more than 5 years. This percentage, however, stood at 42% during the preceding financial year. Similarly, Expresso is an important buyer (leverage above 10%) for suppliers that account for 47% of Expresso’s total purchasing volume, while this percentage was significantly higher during the previous brand performance check (66%). At 73 out of 108 suppliers, Expresso sources less than 10% of the suppliers’ production capacity. This situation brings additional risks and responsibility to monitor and remediate working conditions at large numbers of small(er)suppliers.

Expresso’s main production countries are Turkey (34% of FOB), Macedonia (20%), China (17%), and Bulgaria (14%). Expresso has a relatively large and growing number of suppliers, about 108, including both main suppliers and subcontractors. Expresso’s sourcing model allows placing orders with (main) suppliers that are only responsible for a small part of the production process (such as sampling or cutting), with other production processes (sewing, printing, washing) being outsourced to a host of small subcontractors. In turn, this increases the risks of CoLP violations. When possible, Expresso is advised to consolidate its supplier base; thereby favouring suppliers that are effectively making improvements in working conditions. In this regard, Expresso is advised to develop a comprehensive sourcing strategy in which sustainability is integrated.

Expresso is making a serious effort to identify all production locations and include these in the monitoring system. Follow-up on CAPs is shared by all staff responsible for relations with both CMT and RMG suppliers. It should furthermore be noted that Expresso has implemented an evaluation tool, which is used by staff from different departments to assess suppliers on different aspects including social compliance.
During the previous reporting year, Expresso effectively encouraged eight suppliers, including subcontractors in Turkey, India and Tunesia to join the Workplace Education Programme. Expresso is encouraged to motivate more suppliers (and their subcontractors) in China and Turkey, but also in Tunesia and Macedonia, to join WEP trainings. Expresso is also encouraged to continue its effort towards payment of living wages at the supplier in Macedonia.

Expresso’s monitoring percentage during the reporting year stands at 61%, which is well below the 90% required for members in 3+ years of membership. During the preceding brand performance Expresso’s monitoring percentage also stood below 90%, but FWF used its discretionary power to keep Expresso in the ‘Good‘ category, expecting the monitoring percentage to increase to the required norm the year after. This has unfortunately not happened and with a monitoring percentage of 61% and a benchmark score of 62, FWF has placed Expresso in the ‘Needs Improvement’ category. FWF expects Expresso to raise its monitoring percentage to at least 80% during the next financial year and regain the ‘Good’ category.

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