STTI - Sustainable Terms of Trade Initiative

📬 “$10 million remains unpaid since April 2020“– Those are not the purchase practices that we hope to see! 📉 A recent article by The Business Standard reported on a legal dispute between a group of Bangladeshi garment exporters, called the Debenhams Vendors Community and their shipping carrier Expo Freight Limited (EFL). The Debenhams Vendor Community claims that EFL owes them over $10 million in unpaid dues for clothes that they exported to Debenhams retailers in the UK. Debenhams had filed for bankruptcy back in April 2020 and initially owed their suppliers about $70 million. Since they paid around $60 million back, but $10 million is still outstanding to Bangladeshi suppliers. During a time when responsible purchasing practices are more crucial than ever, we at STTI are disappointed to see bills from over four years ago have yet to been paid. Suppliers that are part of STTI have formulated realistic responsible purchasing practices that were designed to avoid situations like this. Brands that implement, for example, standard payment timeframes, clear procedures on order modifications, and transparent forecasting have the power to keep all parties on the safe side. STTI is calling on the sector to educate themselves on how to apply commercial compliance and thus foster level-headed relationships within the industry. Our White Paper below offers straightforward recommendations to reach this common goal. If you would like to have a quick look at key recommendations, please check out the resource page on our website: https://lnkd.in/dZQQCuwg

📊 Survey Delivers Mixed Results on the implementation of the Supply Chain Act 📊      In August, the Chamber of Commerce and Industry (IHK) in Düsseldorf, Germany presented the results of their second survey, investigating the implementation of the German Supply Chain Act (LkSG). The LkSG aims to prevent human rights violations and environmental harm in companies with at least 1000 employees and their suppliers. The initial first survey revealed that not only large, but also many small and medium-sized companies perceived the LkSG as a burden.     One and a half years later, the second survey, which involved approximately 170 companies, reports on a similarly mixed picture. 🔍     Challenges/Key Findings:  Implementation Status: Over 2/3 of the surveyed companies feel like they have mostly fulfilled LkSG requirements  Compliance: Nearly 90% of the companies with under 1000 employees also aim to meet requirements, this is largely due to their consumer demands for more sustainable practices as well as preparation for the CSDDD  Burden Perceptions: Many companies view the LkSG as a bureaucratic burden, citing high costs and administrative challenges  Staffing Needs: Almost 50% of the larger companies had to create at least 2 additional full-time positions for managing LkSG implementation    While challenges in implementation dominate, many continue to see positive opportunities in the implementation of the LkSG. Here, the focus is on reputation and corporate values, as well as showing responsibility and managing suppliers more efficiently. 💡  To ease the implementation of the LkSG, there are continues efforts to simplify reporting, organize training and encourage collaboration among industry stakeholders.   An especially strong driver for this is the implementation of responsible purchasing practices. For concrete recommendations of those, check out our STTI Resources on: https://lnkd.in/gWkuuChB , where we introduce different measurements as well as training videos and other actionable steps!  For a more detailed assessment of the survey: https://lnkd.in/gZQVPt96

📢🎤 Cascale Annual Meeting in Munich 🎤 📢 This year's conference, themed “New Era of Unified Impact”, highlights a commitment to community, collaboration, and inclusion in the textile sector. It marks a turning point for the consumer goods industry, offering professional insights on addressing key challenges and creating a more equitable future through collective action and transparency.    On behalf of STTI, Abrar Sayem will be kicking off the event with a panel on "Embedding Responsible Purchasing Practices in a changing Regulatory Landscape". This discussion will address how businesses can be held accountable, while aligning commercial practices with evolving standards for responsible purchasing, as well as navigating the complexities of regulatory changes and their uneven effects along the supply chain. Altogether we are expecting this week to provide us with exclusive industry updates, insights on the latest advancements and interesting perspectives from the represented manufacturers, retailers, academics and so many more!     For more information, please check Cascale. #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Cascale #CascaleMunich #Munich #CascaleAM2024 #Cascale2024 #NewEraUnifiedImpact #CSDDD #CSRD #BGMEA #STTI #GIZ #Sustainability #SustainableSupplyChains #Legislation

🌍✨ ACT Accountability & Monitoring Report 2023 Summary ✨🌍 Proud to share key insights from the ACT (Action, Collaboration, Transformation) Accountability & Monitoring Report 2023, highlighting progress towards fair wages in garment, textile, and footwear industries. Key Findings Top Issues for Suppliers: Critical concerns include fair price negotiations, timely order placements, and transparent pricing quotations.  Brand and Supplier Feedback: Challenges persist in sample conversion and managing order changes post-placement, with notable disparities across countries. Progress on Commitments Commitment 1: Significant improvement in integrating wage costs into purchasing prices.  Commitment 2: Incremental progress in achieving fair payment terms.  Commitment 3: Stable efforts in planning and forecasting practices.  Commitment 4: Enhanced training effectiveness on responsible sourcing.  Commitment 5: Substantial advancement in implementing responsible exit strategies. Methodology Data Collection: Assessments via brand and supplier surveys and commitment reporting questionnaires.  Scoring System: Utilization of the RAG+ scale to quantify progress and deviations, highlighting areas of success and improvement.  The 2023 report underscores steady advancements in critical areas such as wage inclusion and responsible exits. However, it also identifies opportunities for focused improvements in order management and cost-sharing practices. Continuous dialogue and adaptation remain essential as we strive for sustained industry transformation. Together with our partners, we are committed to fostering transparency, fairness, and sustainability across global supply chains. Let's continue shaping a future where fairness and sustainability define industry standards. 🌱💼  #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #GlobalSupplyChains #CorporateResponsibility #ACT2023 #FairTrade #LivingWages

STTI is thrilled to invite you to a high-level event on Responsible Purchasing Practices (RPP) on September 9th, just before the official opening of the Cascale Annual Meeting in Munich. This event, hosted by The Industry We Want (TIWW) and the Initiative for Global Solidarity at Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH GmbH, funded by the Federal Ministry for Economic Cooperation and Development (BMZ), will focus on responsible purchasing practices, impactful due diligence, and the evolving legislative landscape on supply chain responsibility.   By bringing together key decision-makers and stakeholders from across the garment and footwear sector, we aim to deepen our understanding of how purchasing practices impact both environmental and social issues. This session will set the stage for the official meeting, starting at 1 PM, where industry leaders will gather to drive meaningful change in our global value chains.   Don’t miss this opportunity to engage with thought leaders and contribute to shaping a more equitable and sustainable future for our industry.   #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #DueDiligence #SustainableTrade #Cascale2024 #STTI #Sustainability #GlobalValueChain #TIWW #IGS #GIZ

🌿👗 Adapting to Evolving Consumer Trends: STTI's Insights on Sustainable Fashion 👗🌿 As consumer preferences shift towards sustainability, STTI is at the forefront of promoting responsible purchasing practices in the fashion industry. Key Insights: - Changing Preferences: Consumers increasingly prioritize sustainability in fashion choices, influencing purchasing behaviors. - STTI's Role: Advocating for fairer and more transparent supply chains to meet rising demand for ethical fashion. - Educational Initiatives: Empowering stakeholders with knowledge on sustainable practices and their impact. - Collaborative Efforts: Partnering with brands and retailers to integrate sustainability into their supply chain strategies. - Meeting Consumer Demands: By embracing sustainable fashion practices, STTI enables the industry to align with evolving consumer values, driving positive environmental and social impacts globally. #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #DueDiligence #SustainableFashion #ConsumerTrends #FashionIndustry #EthicalShopping

Purchasing practices need to change – what does the law have to say about it? 🧐 The recently published Responsible Contracting Project's policy brief highlights the significant implications of the EU Corporate Sustainability Due Diligence Directive (CSDDD) for commercial contracts. This directive requires buyers to adapt their contracts to meet new human rights and environmental due diligence (HREDD) obligations. To understand these legislative changes in detail, read the policy brief here: https://lnkd.in/dzVkJeCF For more in-depth information, join the official launch webinar on August 6th for “An Apparel Supplier's Guide 2.0: Key Sustainability Legislation in the EU, US, and UK”. This resource, commissioned by Crystal International Group Limited, Diamond Fabrics Limited (Sapphire Group), Lenzing Aktiengesellschaft, Pactics Group, Poeticgem Group, Shahi Exports Pvt. Ltd., Simple Approach, and Sourcery, is supported by Transformers Foundation and GIZ FABRIC. This guide is particularly valuable for suppliers to understand how evolving regulations impact their operations and responsibilities. The updated report includes revised fact sheets for the 12 legislative initiatives covered in the 2023 edition, along with three new fact sheets addressing additional legislative efforts. These updates provide an overview of the evolving legal landscape and offer valuable insights into the potential impacts on suppliers. No prior knowledge is needed to benefit from this report; it's designed to be accessible and informative. Webinar Details: Asia-Pacific: 6th August, 10am CEST  - Register here https://lnkd.in/dFvBJaXY North America & EU: 6th August, 4pm CEST  - Register here https://lnkd.in/dK3jhdSi #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #DueDiligence #CorporateResponsibility #LegislativeChanges #RCPPolicyBrief

💪 Enhancing Supply Chain Resilience in the Textile Industry: Insights from STTI In today's dynamic landscape, building resilient supply chains is crucial to navigating global disruptions. Here's how STTI is shaping perspectives in the textile industry: - Challenges Addressed:  STTI tackles supply chain vulnerabilities through proactive measures and collaborative solutions. - Adaptability:  Emphasizing the need for agile strategies to mitigate risks and ensure continuity in production and delivery. - Strategic Partnerships:  Facilitating industry-wide dialogues to strengthen supplier capabilities and promote sustainable practices. - Innovation:  Encouraging technological advancements and best practices to optimize supply chain efficiency. - Commitment to Resilience:  By fostering resilience and sustainability, STTI empowers stakeholders to thrive amidst uncertainty, driving positive change across the textile industry. #SupplyChainResilience #TextileIndustry #GlobalDisruptions #STTI #SustainableSupplyChains

🚀 Key Insights from “The Industry We Want Deep Dive on Purchasing Practices” Webinar! 🌍 The Industry We Want recently hosted a significant webinar focused on Responsible Purchasing Practices and their role in shaping sustainable supply chains.  The session, moderated by Karen Diaz, brought together a distinguished panel of experts who shared their insights on creating a more ethical and transparent industry. 🔹 Trust and Collaboration:@Haroon Shamsi emphasized growing trust between brands and suppliers, though SMEs face profit challenges.  🔹 Long-Term Planning: Lotta Amsén advocated for stable, long-term relationships and open costing in contracts to protect labor costs.  🔹 Improving Conditions: Pradeepan Ravi called for brands to change contracting practices to support better working conditions. The discussion also covered the Corporate Sustainability Due Diligence Directive (CSDDD), focusing on capacity building and collaboration across supply chains. 🌱 Let's drive change together for a more sustainable industry! 💪 #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #IndustryCollaboration #SustainableTrade #SupplyChain #IndustryWebina

Promoting responsible trading practices in global textile supply chains is crucial. Implementing directives against irresponsible practices can create a more equitable and sustainable future. Addressing power imbalances between buyers and suppliers can help mitigate human rights and environmental impacts. Expanding the UTP Directive to sectors with power asymmetries is key. Let's support efforts to foster responsibility and sustainability in the textile industry! 🌏👕 #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #TextileIndustry