Last year Kathmandu Holdings completed the stringent certification process and joined 3300 other companies across 150 industries and more than 70 countries in the Certified B Corporations (B Corps) movement. Kathmandu was the largest Australasian retailer to achieve B Corp certification and must re-certify every three years to maintain the status.
The B Corps implement the Global Reporting Initiative, an independent standards organisation founded in Boston in 1997 that helps businesses, governments and others understand and communicate their impacts on issues such as climate change, human rights, governance and social wellbeing. About 75 per cent of the Global Fortune 250 companies are now applying the reporting framework.
Kathmandu has also signed up with Washington-based Fair Labor Organisation, which creates solutions to abusive labour practices by offering tools and resources to companies, and delivering training to factory workers and management to create greater accountability and transparency.
Reuben Casey, chief executive of the Kathmandu retail chain, says "we've been working hard at bringing to life the sustainable stories around our business. It's an ongoing journey and gaining the B Corp and Fair Labor Association accreditations has raised the bar of achievement.
"We collaborate with outdoor companies around the world, and this has resulted in a leadership position not by design but with a need to do the right thing. It's absolutely the right way to do business," he said.
"We are now going down the route of integrating our sustainability report with our financial results — that's where reporting is heading overseas." Kathmandu is looking at sustainability key performance indicators for senior group leaders.
Casey says modern slavery is a big issue in the apparel chain supply and "we are doing our best to make sure this doesn't impact on the people making Kathmandu gear." In its Sustainability Report, Kathmandu said nearly 80 per cent of its suppliers are in China and because of the communist government, individual worker rights including freedom of association and collective bargaining are inevitably at risk.
"Every one of our 99 factories has to enter into an agreement with Kathmandu, which includes signing and agreeing to abide by and be assessed against our (ethical) code of conduct and terms of trade documents," the report said.
"We have also implemented a mandatory child labour and forced labour policy company-wide."
Kathmandu has organised a WeChat channel for factory workers to make any grievance claims directly to the company. Casey says this helps strengthen the auditing process with suppliers as audits can be manipulated.
Casey says using 100 per cent sustainable cotton has added "a little bit of cost" to the products but Kathmandu hasn't put its prices up. "We can hold on to our pricing by getting efficiency through our supply chain and making other smart choices."
Some of the Kathmandu group's achievements, as listed in the report, are:
● For Kathmandu, 40 million bottles worth of fresh water saved by moving to solution-dyed fabrics between 2017-20.
● 30 million plus plastic bottles recycled between 2015-20.
● First solar panel store in the Melbourne suburb of Blackburn.
● Obtained rainbow tick certification in NZ for embracing diversity and inclusion.
● For Rip Curl, scored B+ in ethical fashion reporting two years running.
●Introduced recycled paper swing tags on products.
● On Planet Day, staff at the Torquay HQ work with local environmental groups to improve the Victorian surf coast area, and other staff clean up beaches in California, Hawaii and Brazil.
● For Oboz, planted 3.3 million trees over the past 12 years.
● Improved gender diversity with 41 per cent female representation.
Casey says there's no resistance in the company about the sustainability approach.
"In fact, our culture is very strong and we attract people for the reason that they want to work for a sustainable brand."
