Gildan has published an annual Corporate Citizenship Report covering the Company’s initiatives since 2004. Due to the large quantity of information and in order to offer readers a friendlier and dynamic format, in 2011 we migrated all of the information to this new dedicated website.
For social and environmental responsibility professionals, the information in this website has been structured “In Accordance” with the GRI G4 Guidelines- Comprehensive option. Gildan submitted its reporting for 2015 to the Global Reporting Initiative and in order to ensure that the G4 Guidelines-based report, General Standard Disclosure G4-17 to G4-27 were correctly located in both the Content Index and in the text of the final report. We have also included material indicators from the pilot of the Apparel and Footwear Sector Supplement.
The GRI G4 Content Index will help you navigate through the different guidelines. The GRI guidelines, developed by a wide range of international stakeholders, have been adopted to enhance the quality, credibility and comparability of the information we report. These guidelines were applied in the collection and interpretation of all data presented within the report and provide a widely-accepted, credible framework for reporting on the economic, environmental and social performance of an organization, irrespective of size, sector or location.
This website’s information focuses on Gildan’s 2015 calendar year. It is important to note that compared to previous reporting years, in 2015, Gildan changed its reporting year from a fiscal year to a calendar year. In order to account for that change, numerical data reported for previous years have been recalculated based on a calendar year basis for better comparability. That being said, events who took place from October 2014 to December 2015 are still mentioned in the narrative, as they had not been previously publicly reported.
The website discloses information on issues pertaining to Gildan owned locations in North America, Central America, the Caribbean Basin and Asia, and any significant impact resulting from operations therein. Information about our third party manufacturing contractors and raw material suppliers has also been included when available. Unless otherwise specified, data concerning our third party manufacturers covers contractor facilities approved for production at the end of the reporting period. When deemed relevant, we have included data from earlier years which is clearly indicated as such when applicable. This website contains information on topics and matters that reflect the organization’s sustainability programs and initiatives with regard to corporate governance, people’s well-being, community engagement, environmental protection and product sustainability. We report on these initiatives as we believe they are material to the apparel industry as well as of interest to our main stakeholder groups, more specifically our employees, shareholders, customers, business partners, governments, local authorities, civil society organizations and the communities within which we operate.
Information pertaining to the Gildan Apparel Canada (formerly Doris Inc.) facility, which was acquired on July 17, 2014, has been included in our 2015 data. Information pertaining to Comfort Colors, which was acquired on March 2, 2015, has not been included but will be included in our next reporting year. Please note that the Comfort Color owned and operated facility production represents approximately 2.5% of Gildan’s total owned and operated facilities’ production.
Data collected and compiled within this report is the result of a collaborative effort by Gildan staff throughout the Company’s many locations with a variety of measurement techniques having been adopted.
Gildan's baseline year for the purpose of our target reporting is 2010. In 2012, Gildan established reduction targets for its owned sites for energy consumption, greenhouse gas emissions, water consumption as well as waste sent to landfill. As part of this exercise, Gildan partnered with a third party consultant in order to review reporting from previous years in terms of the indicators linked to reduction targets to account for the Company’s recent acquisitions.
Accordingly, the baseline year of 2010 has been adjusted and reports from subsequent years will be updated when a significant cumulative change in the baseline year metrics is triggered. The following conditions will trigger an adjustment if a significant change is identified:
1. A structural change of Gildan’s organizational boundaries (i.e. merger, acquisition, or divestiture);
2. A change in calculation methodologies or emission factors;
3. Additional or new data or methodology are available on source data that was not previously available; or
4. A significant error or a number of cumulative errors in the inventory are discovered. “Significant” is typically defined as a cumulative change (+/-) of five percent (5%) or larger in total base year figures.
As of 2015, operational data related to the acquired New Buffalo Shirt Factory facility in Honduras as well as the Gildan Apparel Canada facility have been integrated to the 2010 baseline. Data related to the Las Americas (San Pedro de Macori) sewing facility in the Dominican Republic have not been integrated to the 2010 baseline as these operations are considered as organic growth, and not acquisitions. Similarly, the Rio Nance 1 textile facility in Honduras, which restarted production in 2014 after a shut down for refurbishment, has also not been integrated into the 2010 baseline calculation.
Additionally, based on availability and quality of data in the baseline year for water and waste streams, representative data points from the New Buffalo Shirt Factory and Gildan Apparel Canada facilities have been back-cast into 2010 in order to re-establish the baseline.
Finally, the Salisbury 1 and 2 yarn spinning facilities in the United States have not been included in the figures reported. As 2015 marked the end of our 5-year reduction targets, the addition of the Salisbury yarn spinning facilities in 2015 was significantly skewing the data. The reason for this is that the Salisbury production can’t be added to the total of kg of products produced since those kg are already accounted for at our textile cutting operations. However, please note that these facilities will be included in the calculation of our 2015-2020 reduction targets.
When errors from previous reporting years have been identified, they have been corrected and validated with our third party consultant to align the calculation methodology across all years in order to ensure an accurate comparison.
We are confident that the exercise we undertook to adjust our baseline year properly incorporated the recent acquisitions of the Company and will provide an accurate record in terms of our environmental target reporting, which we will continue to use for our future reporting.
Corporate Citizenship has undertaken limited assurance of consolidation systems and tests of reasonableness of selected environmental, health and safety performance data within Gildan’s Corporate Citizenship report for the year ended December 31, 2015, as disclosed on Gildan’s Corporate Citizenship website.
The environmental, health and safety data included in the assurance review included:
• Total annual energy usage and enery intensity
• Total water usage and water intensity
• Total waste
• Total effluent
• Total greenhouse gas (GHG) emissions – scope 1 and 2 and GHG emissions intensity
• Total inorganic air emissions
• Total refrigerants
• Lost-time injury frequency rate
• Number of severe incidents (severity rate)
The assurance statement includes a declaration of independence. The assurances statement is based on the internationally recognized ISAE 3000 standard. The assurance statement clearly states the scope of the assurance and the performance data reviewed.
Gildan considers materiality to represent a topic which has high importance to stakeholders and high impact on the business. In 2014, Gildan conducted its first formal, company-wide external stakeholder assessment and materiality analysis to identify topics most relevant to Gildan and to better inform its sustainability strategy.
Gildan worked with a third party to help facilitate an independent assessment of the process. The materiality assessment included a five-step process with input from internal and external stakeholders:
1. Analyze available documentation and conduct senior leadership interviews:
The first step included a review of documentation available, such as internal business documents, Gildan’s past life-cycle assessment results as well as research on current and emerging trends to extract topics that were relevant to Gildan’s business, considering issues both within and outside Gildan’s direct control.
Senior leaders from Gildan’s different business functions and brands were interviewed in order to gain a better understanding of trends, opportunities, and challenges across the business. Topics emphasized or mentioned across multiple interviews have been classified into four different areas: opportunities, challenges, industry trends and external factors.
2. Creating a gross list of potential categories and emerging issues relevant to the apparel sector and the business:
Resulting from the aforementioned step 1, a gross list of topics were identified and sorted per business relevant topics. These areas included:
• Employees: manufacturing
• Employees: corporate functions
• Corporate governance and risks
The list of topics included under each of the broader aforementioned business relevant topics were used to facilitate the discussion around how the Company should prioritize these topics based on their impact on the business and importance to stakeholders.
3. Assess stakeholder priorities:
To determine the importance of each topic to stakeholders, a stakeholder assessment was conducted. As a first step, we developed a list of stakeholders across Gildan’s main stakeholder groups and we evaluated each stakeholder groups’ influence over Gildan and interest in Gildan in order to build a stakeholder map.
Gildan stakeholder group surveyed included:
• Community investment and development non-profits
• B2B customers
• Labour rights and human rights non-profits
• Manufacturing contractors
• Raw material suppliers
• Governmental representatives
• Corporate Social Responsibility analysts and rating organizations
• Trade associations
Using our list of topics we conducted a stakeholder survey and asked more than 100 stakeholders to rate the importance of each topic on a scale of “least important” to “most important”. The topics rated by the stakeholder in the survey were weighted by degree of influence and mapped on the y axis of the materiality matrix outlined below.
4. Define materiality for Gildan:
To further define what materiality means to Gildan, we organized a workshop to set the thresholds for when a topic has a high impact on Gildan. The workshop included representatives from across the business and different operations. Passing any of these thresholds would mean the topic had a high impact on the business. The thresholds were defined as follows:
• A topic has a high impact on revenue generation if it generates:
o 5% change in Gildan’s market share
o Impact on Gildan’s position in the United States market
o Impact on Gildan’s expansion in Asia and/or Central and South America
o Impact on compliance with major customers standards
• A topic has a high impact on costs if it generates:
o 1% change in operating expenses
• A topic has a high impact on employees if it generates:
o Impact on talent attraction and retention of Honduras-based employees
• Materiality Matrix: The workshop participants mapped the topics to the materiality matrix. Please click here to see the materiality matrix.
PRIORITIES AND MATERIAL TOPICS GRI G4 MATERIAL ASPECT BOUNDARY Child Labour Child Labour Within and Outside Corruption Anti-corruption Within and Outside Employee Compensation N/A Within and Outside Employee Health and Safety Occupational Health and Safety Within and Outside
Employee Training and Skills
Training and Education Within Fair Wage N/A Within and Outside Product Quality N/A Within and Outside Product Safety Customer Health and Safety Within and Outside Wastewater Discharge Effluents and Waste Within and Outside
As indicated in the matrix, employee health and safety, employee training and skills, fair wage and employee compensation are material topics based on their relevance to our manufacturing employees.
Employee compensation, fair wage and product quality are additional material aspects identified during the materiality exercise not included in the GRI. They have been added to the GRI G4 Content Index in the section Additional Material Aspects.
In addition, although the wastewater topic is included in GRI’s Effluents and waste aspect, please note that since only the wastewater portion was material to Gildan, we have either partially or not at all reported on the other indicators listed under that GRI aspect Effluents and Waste aspect.
Gildan’s Disclosure Committee has reviewed all material information contained herein in order to ensure our stakeholders are provided with a proper representation of our performance for the 2015 year.
Should you have any questions and/or comments about this website or our responsible practices in general, please contact us at firstname.lastname@example.org.
The precautionary principle is defined in Article 15 of the Rio Declaration of the United Nations Conference on Environment and development (1992) as a principle to be used where there are threats of serious or irreversible damage to human safety or environmental degradation. It should be applied as a preventive measure in order to reduce the environmental impact of products and ensure consumers are protected against possible harm.
At Gildan, we implement preventive measures which ensure human safety and environmental protection, such as: