Link to business goals:
Link to business principles:
moreBe committedDo things our own wayKeep it simple
Link to principal risks:
Brand damage; regulatory, environmental and compliance
We do not manufacture the vast majority of the products that we sell, so we need to maintain relationships with suppliers and manufacturers worldwide who can meet our high standards. They must demonstrate that they operate in accordance with recognised standards that uphold human rights and safety, prohibit modern slavery and promote sustainable sourcing.
- Dunelm quality, ethical sourcing and audit standards were extended to all Worldstores, Kiddicare and Achica own branded products
- Dunelm audits independently verified by third party (Bureau Veritas)
- Started work to consolidate our supply base towards fewer, larger factories with better compliance
- Training provided to all UK manufacturers of own brand products, to raise awareness of modern slavery and how to improve procedures to reduce the risk within the supplier's supply chain
Fair and consistent – One of our business principles is to deal with suppliers in an open and honest way. We require all of our suppliers to sign our standard terms and conditions in advance of commencing trade, and we have signed up to the Prompt Payment Code. The number of days' purchases outstanding for payment at 30 June 2018 was 31 days (2017: 38 days).
Human rights –Effective management of human rights throughout our supply chain is built into our product procurement procedures. Suppliers of our own branded products are asked to sign our Code of Conduct, based on the Ethical Trading Initiative ('ETI') base code, with a strengthened section on slavery. This requires that suppliers provide a clean and safe work environment, workers must be treated with respect and earn a reasonable wage, and relevant local laws and regulations must be met. Our policy is available at corporate.dunelm.com.
All suppliers of Dunelm branded products must have a satisfactory audit in place which is no more than two years old, and a valid building and fire safety certificate. During 2017/18 we rolled this requirement out to the suppliers of our Worldstores, Kiddicare and Achica branded products. Supplier branded products are not subject to audits but suppliers sign our Code of Conduct (or equivalent) and an assessment is made of their standards and capability.
Our in-house technology team has extensive experience of working with factories to improve quality and ethical standards. Our Far East sourcing partners monitor standards and work to improve them on our behalf. Where non-compliance is discovered we work with a supplier to help them achieve compliance, usually within six months. Critical non-conformances such as use of child labour, working against choice/slavery or absence of valid Building or Fire Certificates are escalated immediately, and supplies cease until the issue has been resolved. Ultimately, if progress is inadequate, we will cease to trade with the supplier.
Modern slavery – In 2016 we assessed our own facilities and supply base (products and services) for modern slavery risk and have required the major providers to sign our Code of Conduct. Our audits of suppliers of our Dunelm branded products also covers modern slavery. Our statement made pursuant to the Modern Slavery Act 2015, which contains further information, is available at corporate.dunelm.com.
Provenance – We are raising the provenance requirements for our products, with particular emphasis on timber sourcing, cotton, animal welfare and feathers and down. This is to ensure that we meet relevant regulatory, social, environmental and best practice requirements. Our policies in this area are available at corporate.dunelm.com. We are also reviewing our use of single use plastics in product packaging and in our Pausa coffee shops, and are looking for suitable alternatives which will allow us to remove them completely or move to a more environmentally friendly material.
Measuring our impact
- Percentage of factory base for own brand products with audit no more than two years old: 82%
- Percentage of green or amber audits: 80%
What's next for 2018/19
- All UK manufacturers of own branded products to complete a comprehensive modern slavery risk assessment, with a FastForward audit for higher risk sites
- Risk assessment of Pausa direct suppliers to be made, and programme of audits to be devised if required
- Implement "Preferred employment agency" list for all UK sites, and ensure appropriate contracts are in place to ensure that all regulatory matters are covered, including modern slavery risk
- All Dorma branded textiles to be made from sustainable cotton (Jan 2019)
- Supply chain for all Dunelm branded timber products to be verified independently, to ensure compliance with regulatory requirements as to legal and sustainable sourcing