Hunkemöller is a global retailer specialising in lingerie, nightwear and sportswear products. Founded in 1886 in Amsterdam, it is today a brand with more than 800 stores in 19 countries, mostly in Europe. Till recently, it had been primarily sourcing synthetic materials, but is now increasing its share of natural fibres. Cotton is the dominant nature fibre for Hunkemöller. In 2021, about 70% of the material sourced was cotton.
Rebecka Sancho, Head of Sustainability at Hunkemöller, says that because the share of cotton has increased and because of the inherent controversies when it comes to cotton, Hunkemoller has ensured that all suppliers lived up to its code of conduct. The company also has a materials policy which refers to environmental compliance, human rights and also the processes that must be followed by suppliers (like certifications). Every year the company carries out a risk assessment project. “Last year, we did a survey with all suppliers so as to better understand their cotton sourcing. Working directly with suppliers is the key to our due diligence. By creating and maintaining a good relationship, we can work together and build a better programme.”
In 2021, the company updated its approach to supply chain mapping. Now, there is in place a new system that gains more information even before a product is produced. Explains Sancho: “If you find a risk after something has been made, then your hands are tied and you can’t do much else than just prevent it from happening in the future. But now, when we know things beforehand, we can take decisions before materials and components go into the products. The ideal (situation) is to have a future with a range of approved lower tiers that our suppliers can source from. Unfortunately, it is very difficult, however, to go as far as to the farms, and more so during the pandemic.”
Due diligence, says Sancho, is a challenge for brands. There are reasons for this.
First, there is a widespread lack of understanding about the cotton supply chain and how cotton is indeed traded—how cotton is sorted by quality, sold as a commodity, and harvested seasonally. “We are also then quite likely to miss the risk—the risk is much more complicated than just the country of origin which we often focus on.”
Elaborates Sancho: “We talk about the ‘complicated’ supply chain. I would say that our supply chain today will not be the same tomorrow. Cotton in one product from one supplier differs per week, per month, per year; and for lower tiers, the lower you go the less impact we often have. We can’t do much because it is more brands in those factories and then we also need a collaboration. I also put the cultural context as one of the challenges. If governments and countries are not enforcing their own laws, it will be very difficult for us to do something. Yes, that should not be the reason not to do anything or take any action. A ban, which many of us carry out, never solves any problem and I even think that sometimes it even creates a bigger problem which is related to corruption. We also need to understand that there is not one solution. We all work differently, and we need different types of support with different measures for different brands, different retailers for different suppliers, and also in different countries. No one solution can fit all. Plus, the costs are also high.”
The insights that Sancho has gained at Hunkemöller enables her to offer advice to others.
“Any brand that’s trying to do this—to base your work on the OECD due diligence guidelines—should know your risks, have strong policies, and build implementations for great impact from the risk and opportunities that you have identified. Map your supply chain before production.”
Knowledge is key. “Gain better understanding of the cotton supply chain, and also get better understanding of your supply chain by simply asking your suppliers (about details), having conversations, creating surveys, implementing a project, and visiting your lower tiers to see things for yourself. To get successful outcomes, you need to include your supplier in your digital dance. There is no point working top down; it is always preferable to work bottom up. Related to this is also understanding your role as someone who can educate, guide and support suppliers rather than someone going there and telling them what’s wrong.”
One needs to go beyond the scope of the direct supply chain. Points out Sancho: “The risk is broader than your scope, and needs to be dealt with on a larger scale with bigger structures. Therefore, do find others to collaborate with or the risk will still remain.”
No one does enough, but everyone needs to start doing what they can: combine smaller pro-active preventative measurements with bigger changes in your due diligence. Moreover, finding non-compliance or a risk often means that one has done a good job and not the other way round.
The last word from Sancho: “Don’t punish your suppliers for being honest. Embrace the fact that the supplier is honest and find a way to deal with the risk. Provide support as necessary and implement preventative measurements together.