Environmental Compliance
Findings
In 2011, 12 complete and 16 follow-up environmental audits were performed at all textile, hosiery and sewing, except for two sewing facilities which will be audited during the first quarter of fiscal year 2012. Most of the non-conformities were related to chemical management/spill control (52%), waste management (18%), and fuel management/spill control (15%). There were no major non-conformities.
In 2010, 14 complete and 14 follow-up environmental audits were performed at all Gildan textile, hosiery, sewing and dyeing/finishing facilities, during which time 103 non-conformities were discovered, 29% of which were moderate and 71% minor. The majority of the non-conformities were related to chemical management/spill control (25%), waste management (21%), and fuel management/spill control (15%). There were no major non-conformities.
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Fine
In 2011, Gildan received a fine of 101,000 Lempiras (approximately US$ 5,600) at one of its textile facilities in Honduras. This was due to the annual environmental monitoring reports which were not submitted to the Environmental Authorities (SERNA, Secretaria de Recursos Naturales y Ambiente) using the appropriate form. We had been using the previous version of the form, which contained fewer sections, as our legal representatives had not been informed by SERNA that the form we were using was incomplete. As a result, we challenged the fine, requesting additional time to adjust and re-submit the report. The report was re-submitted on June 28, 2011. We are currently reviewing the forms being utilized at all Gildan facilities in order to ensure that we are using the appropriate form.