hessnatur meets most of FWFs management system requirements and goes beyond. The benchmarking score would lead to a leader status, were it not that the member company did not visit all suppliers in low risk countries. The total monitoring percentage therefore comes to 71%. This is below the 90% required of brands in 3+ years of membership. In light of the high benchmarking score, and the fulfillment of the other low risk monitoring requirements, FWF has awarded a good rating.
hessnatur has insight into production costs related to wages by estimating a cost breakdown including a factory margin. The purchasing department has an overview of minute prices that are required to enable payment of a legal minimum wage and living wage in specific countries. hessnatur embarked on a living wage project, but unfortunately the supplier discontinued. hessnatur is encouraged to select other suppliers for living wage projects aimed at raising the floor wage.
With more than 66% of their suppliers the company maintains a business relation of more than 5 years. hessnatur is sourcing in 28 countries. FWF suggests hessnatur to challenge the purchasing department by providing the department a shortlist of preferred countries. A policy should be developed that prescribes the visiting frequency of suppliers in low risk countries.
FWF recommends hessnatur to study why certain issues keep coming back in audit reports and complaints, and develop preventative steps for these structural problems. Where overtime is a recurring issue and hessnaturs leverage is low, FWF suggests hessnatur to cooperate with more clients to reduce excessive working hours for workers in these factories. Hessnatur could explore how production orders can be planned in such a way to not contribute to overtime.
In 2016, hessnatur had a monitoring threshold of 71% and a benchmarking score of 80, putting the company in the Good category.
To know more about the company, please go to hessnatur’s FWF page.Download