Involvement with Haglöfs and Transa

Elaine, how many companies are involved in producing a hardshell jacket along the supply chain?
Elaine: A hardshell jacket is made from many different components that each have their own supply chain. We know which supplier produced or dyed the fabric, but there are still many other companies involved – from extracting crude oil for synthetic fabrics or extracting metal for zips and buttons. We cannot track these things and therefore cannot quantify how many companies are involved. 

How much influence does a big brand such as Haglöfs have on the supply chain?
E: If we account for 20 percent of a factory in Asia’s total order volume with our orders, we have enough influence that we are able to talk seriously about working conditions, energy consumption and other such things with those responsible there – something that we, of course, do in this case. However, there are also suppliers, particularly at the start of the supply chain, that are significantly bigger than Haglöfs itself. Our influence in these cases is very limited. That’s why it is important that we carefully consider which companies we commission and where in the supply chain our influence is the greatest.

Jenny, what role does a retailer like Transa have in the supply chain?
Jenny: We are the link between the customers and the manufacturers and we control what is on offer for our customers with our product range – in other words, we play a key role. We hear first hand from our customers in our stores what they want and, on the other side, pass information from manufacturers onto customers, for example on the issue of sustainability. This is a big challenge due to the complexity of the issue, and a lot of effort is required to ensure that all employees internally have the same knowledge base. What’s more, the product life cycle doesn’t end when it is sold. Areas such as repair and rental services would be almost impossible without the retail trade.

How does Transa know how sustainable a brand is?
J: To be part of our range, a brand has to meet Transa’s animal wellbeing, social and environmental standards. We send our suppliers a questionnaire that asks for plenty of figures and data when it comes to the issues of social sustainability, animal wellbeing and environment protection. We therefore know fairly accurately (at least in theory) in which areas brands are making efforts and where work perhaps still needs to be done. However, this survey process is very complex – for example, how do we deal with a brand not being able to or wanting to answer our questions? How often do we have to update the data to ensure that we don’t miss any important developments?

Can’t this information gathering process be simplified?
J: It would be a big advantage to everyone involved if there were a central database for this type of information, as we are currently noticing that things are changing so quickly that we are barely keeping up with them. Of course, it’s also a huge amount of work for the suppliers if each retailer has their own questionnaire.

E: I think that the issue of data collection will become increasingly important over the next few years. The EU will demand increasing amounts of information from companies about the impact of their products. The biggest challenge is that there is a lack of data for comparison across the entire industry. However, there are efforts, for example the Higg Index, to tackle this problem and provide more efficient methods of data collection and transfer.

Jenny, how do you deal with small brands that do not have the means to collect the figures you are requesting?
J: In this case, we enter into direct dialogue with them – of course, we don’t simply get rid of these brands from the range. Brands with small production quantities and greater product consistency often have exemplary transparency in their supply chain and are more than happy to pass this on. The challenge for the retailer is processing this transparency for the customers. The same applies to the big brands – if we see our standards are not being met, we follow up and demand improvements. However, if a brand is not prepared to change, they will have to be dropped from the Transa range as a consequence.

How can I as a customer recognise how serious a brand really is when it comes to sustainability?
E: As a matter of fact, it’s not easy – even I sometimes find it difficult. For brands it is very tempting to use simple phrases and labels and simply leave it at that. At the same time, serious efforts are often very complex and difficult to get across to the customer – good communication with customers is therefore very important in this case.

How can I as a customer recognise how serious a brand really is when it comes to sustainability?E: As a matter of fact, it’s not easy – even I sometimes find it difficult. For brands it is very tempting to use simple phrases and labels and simply leave it at that. At the same time, serious efforts are often very complex and difficult to get across to the customer – good communication with customers is therefore very important in this case. 

What is most important to you: social sustainability, animal wellbeing or environment protection?
J: These criteria cannot simply be pitted against each other – everyone has to decide for themselves which one they consider more important. Our task is to ensure that the products in our range meet our standards in all three areas and we have to provide all information the customers need to make a conscious purchasing decision. 

Which of these three areas is it most difficult to become more sustainable in?
E: Definitely the area of social sustainability – in other words, working conditions in the production facilities. Environment protection and animal wellbeing are ultimately a question of money: if a manufacturer really wants to, it can easily use more expensive fabric with the bluesign certification or high-quality, certified down. On the other hand, ensuring a living wage for a tailor in Vietnam is much more difficult, as more complex factors play a role here – for example, the local economic circumstances. The factory also has the aim of remaining competitive in the local market. Is there an employee representative? Do other brands with different priorities use the same factory? How visible are the wages in the total costs? Does the money I pay actually reach the tailor?

Why don’t you simply produce in Europe?
E: We manufacture several products in Portugal. I believe that the industry will increasingly return to Europe over the next few years – even if it is mainly back to Eastern Europe, where the wages are currently much lower. Producing products in Western Europe where the standards and wages are highest would increase production costs and therefore also the sales price to a level that very few consumers are willing to pay. For our 100-year anniversary in 2014, we manufactured a backpack, including the materials, entirely in Sweden. In order to cover the costs for this type of product, we had to sell it for around 500 euros – which is why we still have most of these backpacks in the warehouse today. 

What can I do as a customer?
J: You can inform yourself and consider what you actually really need from a product. Do you really need a highly functional hardshell jacket for an autumn walk, for example? You can also pay attention to ensuring that the products you buy are as durable as possible and as easy as possible to repair. Be aware of where your balance between ‘environmentally friendly’ and ‘performance’ is. Thanks to our innovative industry, there are already many products that combine both, meaning that sustainability efforts and functionality no longer need to run contrary to one another. The fact is that with your purchasing decision, you can affect what the companies produce and how, as well as which products we include in our range. 

What role do bluesign, Fair Wear Foundation and the like play in your work? 
E: These organisations are extremely valuable for me, particularly in terms of what they do behind the scenes, as they have a huge amount of specialist knowledge, know the local areas and give us the certainty that what we are buying meets our standards. They also enable us to communicate these standards to the consumer – but this is more of a ‘nice to have’. 
J: Of course, there’s nothing wrong with a label in principle and it gives the customers a certain guide. However, it is also worth taking a look at what the label stands for, which stages of the product life cycle it covers and whether the label only applies to this one product or the entire brand.

What do you want to happen in the future?
E: In certain circumstances, I work closely together with competitors and I hope that this collaboration will increase even further behind the scenes – particularly also with retail. After all, we are all part of the same supply chain.
J: We have to understand that the issue of sustainability should not be a competition, as our impact is the greatest when we all pull together.