Supply Chain Management

New partners run through a standardized, multi-stage process before they are added to the HUGO BOSS supplier portfolio. Potential partners must approve contracts regarding the general purchasing and production conditions. Among other elements, this includes a self-commitment to the HUGO BOSS Supplier Code of Conduct  and the Restricted Substances List as well as the Manufacturing Restricted Substances List (MRSL) of the Zero Discharge of Hazardous Chemicals (ZDHC). It is also necessary to successfully complete an online training course on the topics of social responsibility and the environment – including chemical management.

Only those suppliers who pass the three-stage selection process are included in the supplier portfolio. In addition to formal recognition of the Supplier Code of Conduct, this includes the submission of valid certificates and the submission of a self-assessment.

As part of the self-assessment, compliance with the social and environmental requirements specified by HUGO BOSS is checked for all suppliers (finished goods and fabric and trimmings suppliers).

Depending on the results, a social audit may be carried out at the supplier before entering into an active business relationship. This self-assessment is obtained from suppliers on an annual basis and is used for ongoing risk management. In addition, HUGO BOSS conducts social audits that are planned on the basis of suspected or existing risks (risk-based audit planning).

Desk or on-site assessments are based on the HUGO BOSS social audit program considering the various requirements from ILO Convention and UN Guiding Principles, as well as legal requirements such as the German Supply Chain Due Diligence Act.  We acknowledge the following standards and certificates: SMETA, Amfori BSCI, SLCP, FLA, FairWearand SA8000.

We also check our environmental requirements with our suppliers through audits. That means that suppliers that use certain environmentally impactful processes need to have environmental audits to verify that their performance meets HUGO BOSS’ general environmental requirements. These audits cover issues such as energy and pollutants.

Each audit is followed by an extensive report. Detailed information about the requirements, along with training courses, help the suppliers comply with the standards.

HUGO BOSS also places value in ongoing dialog, for example, through events such as the Supplier Days, which HUGO BOSS holds in a variety of locations each year. The aim of the Supplier Days is to notify partners about important targets and measures at HUGO BOSS, promote common developments in the supply chain, and strengthen the partnership through interaction. In addition, external speakers share their expertise on relevant current topics, such as digitalization, to inspire the participants to evolve. Insights from this dialog are incorporated directly into the sustainability strategy.

The Supplier Council also provides a platform for exchange. It is a selected group of suppliers who exchange ideas on specific topics. They meet under the leadership of the COO of HUGO BOSS and discuss opportunities and challenges together. The aim is to understand the needs of suppliers even better and to drive future developments forward together.

If violations of the Supplier Code of Conduct are discovered, corrective action plans are developed together with the supplier to rectify the situation. Their implementation is reviewed and documented in risk based audit cycles (see our supplier factsheet for more information). If no improvement has been made, HUGO BOSS will ultimately end the partnership with the supplier in the framework of a responsible termination as a last resort.

At HUGO BOSS, we place great value on long-term partnerships. Nevertheless, in exceptional cases and for various reasons, it may happen that a business relationship with a supplier has to be terminated. In this case, it is important for us to proceed in a responsible manner. The supplier should have sufficient time to build up a new customer base. To this end, order volumes are reduced over time so that the supplier can gradually acquire orders from other customers that will fully utilize their capacity. For a detailed overview of possible reasons for terminating a business relationship and the factors to be considered, see our factsheet on responsible exit.

HUGO BOSS joined the FLA in 2014 to promote and protect employee rights and to advance improvements to working conditions. The HUGO BOSS Social Compliance Module was fully accredited for the first time in 2018 (more information here) and will now be assessed regularly. The implementation of the Social Compliance Module is continuously monitored by independent assessments conducted by the FLA at selected HUGO BOSS suppliers and the results are published on the FLA website.

HUGO BOSS became a member of the Partnership for Sustainable Textiles in 2015. The initiative, whose members cover nearly half of the German textiles market, aims to improve the social, environmental, and economic conditions in global textiles production together. HUGO BOSS, for example, is active in working groups on the topics of living wage, complaint mechanism and gender equity.

From 2019 on, HUGO BOSS was involved in the Living Wages Initiative as part of the Partnership for Sustainable Textiles. Over the last years, the members have worked in collaboration with Action Collaboration Transformation (ACT) to improve their purchasing practices so that suppliers have greater scope for wage increases. Based on a survey which was conducted internally and with our suppliers, we developed a target and action plan.

Starting from September 2021, HUGO BOSS has joined the follow-up initiative Living Wage Lab of the Partnership for Sustainable Textiles. Participating members are currently collaborating to develop an individual strategy for living wages and, wherever possible, to realize scalable solutions for wage increase at the supplier-level. To this end, we collect wage data from our finished goods suppliers in particular and analyze any wage gaps, among other things. Based on the recorded wage gaps, targeted pilot projects are implemented to gradually improve the wage situation. This is done in collaboration with a wide range of stakeholders, such as national and international NGOs, civil society organizations, trade unions or local legislators. The project's action plan is based on our strategy and the local situation and includes efficiency programs, training, responsible purchasing practices, social dialog and collective bargaining.

HUGO BOSS is a member of the International Accord for Health and Safety in the Textile and Garment Industry. The International Accord represents an independent, legally binding agreement between brands and trade unions working for higher health and safety standards, support for workers' rights and increased transparency in the global apparel industry by monitoring and training workers on workspace safety. Following its initiation in Bangladesh, HUGO BOSS has also joined the Pakistan Accord. The overarching program is now titled the International Accord and plans to expand to further locations. We have renewed in 2023 the Bangladesh Accord.  

In Bangladesh, gender-based violence such as discrimination or involuntary dependence on men is the reality for many women working in textile factories. It is important for us to take responsibility and empower these women in our supply chain. Therefore, HUGO BOSS founded a Women’s Café in 2022, in partnership with the organization Phulki. It offers female workers in the factories in our supply chain a safe space to talk about their everyday problems. At the same time, the café is a space for education and mutual motivation. Here, the women do not only have the opportunity to exchange ideas, they also are able to attend various training courses on sexual and reproductive health and rights (SRHR) or menstrual hygiene. They learn about topics such as health, safety and personal and employment rights —  in relation to their professional as well as their personal lives. They also have access to childcare for a small fee. To keep improving the project we gather periodically feedback from the workers.