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1)Discuss recruiting today via social tools. Are you pro or
against social tools recruitment?
again share an experience or research the web.
2) Share an example of IT Ethics? (Maybe an experience you
had or something you read or something you saw in a movie)
3) Porter's value chain represents the flow of goods, services,
and data in an organization. Apply Porter's model to a case or
business to explain the following:
- inbound logistics
- operations
- outbound logistics
- marketing and sales
- services
If one of your colleagues did not explain something correctly,
feel free to correct them. Or share your own point of view.
4) Explain the importance of a project charter, defining a clear
project scope, WBS, etc... and what is scope creep and is it
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5) What is ERP and what is it used for?
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6) discuss the importance of data visualization. How do you
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7) Discuss how does the search engine work. Give an example.
8) Discuss how can search engines can affect a business in its
success or failure.
9) Explain the difference between Web directories crawler
search engines, and hybrid search engines.
and why do you think search engines important for businesses
today?
10)
Do you think social media eliminate the need for a face-to-face
meeting?
How can companies utilize social media collaboration tools to
become more competitive
Responsibility
Reflections
Our responsibility journey
2012–17
2
About Burberry
1 Burberry: Protect. Explore. Inspire.
Our responsibility journey
2 Reflecting on the last five years
3 Key milestones
5 Making a difference along our value chain
7 Delivering our strategy
8 How our stakeholders have shaped our journey
Ethical trading
11 A programme with breadth and depth
12 Human rights
Environmental sustainability
15 Environmental innovation at our sites
16 Resource efficiency in manufacturing
17 Sustainable raw materials
Community investment
21 Targeting our impact
Progress against targets
24 Performance overview
Table of
Contents
We were founded in 1856 by 21-year-old dressmaker
Thomas Burberry and are guided by three core
values – Protect, Explore, Inspire. These values
influence not only what we do, but crucially also
how we do it:
– Protecting people and our planet.
– Exploring more sustainable ways of working.
– Inspiring a connected and compassionate culture.
From the cotton fields of Peru to the cashmere
goat herds of Mongolia – the materials that make up
our garments come from diverse and often remote
regions, where fragile ecosystems and subsistence
farmers coexist day by day. As a global brand,
we take our responsibilities to people and the
environment very seriously.
Burberry:
Protect. Explore.
Inspire.
At Burberry, we are proud of our heritage while at the same
time embracing
a more sustainable future. A future that brings lasting value not
only to those
who enjoy our products, but also to those who supply and make
them,
and the environments and communities that those people depend
on.
WHO ARE WE?
Burberry is a global luxury brand with a British heritage of over
160 years. We are headquartered in London and listed
as a FTSE100 company on the London Stock Exchange
(BRBY.L). We design, develop, make and sell products under
the Burberry brand, including menswear, womenswear,
childrenswear, beauty and accessories.
Many of our products are made in Europe, with Italy being the
largest individual sourcing country. The iconic Heritage
Trench Coat is manufactured in Yorkshire, England, and most
of our cashmere scarves are made in Scotland.
About Burberry
Over
10,000
employees globally
Over
30
countries of operation
409
retail locations (including
mainline and concession stores)
Americas
£681M
Mainline stores: 74
Concession stores: 8
EMEIA
£991M
Mainline stores: 73
Concession stores: 57
Asia Pacific
£1,069M
Mainline stores: 62
Concession stores: 135
Moreover, we are committed to creating and
supporting multi-stakeholder initiatives that drive
positive systemic change and protect the resources
we all depend on.
ABOUT THIS REPORT
This report provides a summary of our responsibility
journey from 2012 to 2017. It tells the story of how,
five years ago, we set out to meet key environmental
targets, expand our ethical trading programme and
grow our global community investment activities.
It reflects on what we have achieved and learned
along the way, which has informed the development
of our responsibility strategy for the next five years.
Retail/wholesale revenue by destination
1
Reflecting
on the last five
years
BUILDING ON STRONG FOUNDATIONS
We started our responsibility journey with the
establishment of our ethical trade programme in
2004, followed by our community investment and
environmental programmes a few years later. When
we developed our first five-year responsibility goals
in 2012, our initial priority was to raise awareness
of the importance of responsibility for long-term
business success and generate engagement across
our global teams. We also began embedding our
goals into core business strategy, with individual
teams starting to own relevant targets and
delivering measurable progress.
Equally as important as internal engagement is
collaboration with our supply chain partners. We
source raw materials and finished goods globally
and are committed to doing so in a way that builds
mutual responsibility and shared value. Over the last
five years, we have focused on developing strong
partnerships to address the most material social
and environmental impacts in our supply chain
and support factories in building their own capacity
while promoting responsibility further down their
own supply chain.
Our Responsible Business Principles have been
and remain a fundamental tool for communicating
our standards, expectations and commitments and
driving improvement. Our performance against
2016/17 targets is summarised at the end of
this report.
PLANNING FOR THE FUTURE
As a global company strongly rooted in a local
heritage, we have long embraced both tradition
and change. Burberry today is a global business,
operating in a wide range of countries and with
consumers in both physical stores and online.
Reflecting both structural and operational changes,
our responsibility strategy continues to evolve,
shaped by our own experiences as well as expert
insight from the many organisations and businesses
with whom we have built trusted relationships
over the years. Furthermore, our programmes are
influenced by global developments and initiatives,
including for example the launch in 2015 of the
United Nations 2030 Sustainable
Development Goals.
As we look ahead, we know there will be ongoing
challenges, including finding the best ways to
measure long-term impacts, while continuing to
monitor short-term outcomes; ensuring that our
teams have ownership of their targets, while offering
the support they need to meet them; and setting
a best practice path globally, while tailoring our
approach to local needs and contexts.
Our responsibility journey so far has focused on three areas that
span our value chain:
ethical trading – promoting fair and responsible employment
practices;
environmental sustainability – reducing our footprint; and
community investment
– contributing to the communities where we live and work.
These were the pillars
of our responsibility strategy until now and form the chapters of
this report.
Our responsibility journey
Building on a strong platform developed over
10 years, in 2017 we will launch a new strategy to
take us to 2022: bringing together our ethical trading,
environmental and community programmes and
partnering with leading organisations to deliver
positive long-term impact.
2
https://www.burberryplc.com/en/responsibility/policies-and-
action-plan.html
key
milestones
We established our global Ethical Trading team in 2004, our
Community Investment team
in 2008 and our Environmental Sustainability team in 2009. Our
responsibility journey has
been defined by close collaboration with a global community of
sustainability organisations.
Some of the first industry initiatives we joined included the
Ethical Trading Initiative (ETI)
and Leather Working Group in 2010. Since then, key milestones
include:
Our responsibility journey
2011
Environmental baseline assessment completed.
Responsible Sourcing Principles rolled out to all key supply
chain tanneries.
Multi-year scholarship fund launched with the Royal College of
Art.
Employee volunteering programme expanded globally.
2012
Environmental impact reduction programme launched,
including five-year public targets.
Chicago flagship store awarded sustainable building
certification (LEED Silver rating),
the first of our stores in the Americas and the first retailer in
Chicago to achieve this.
Youth employability programmes launched by the Burberry
Foundation in London,
New York and Hong Kong.
2013
Vendor Ownership programme launched to support capacity
building
in the supply chain.
Sustainable cotton farmer training programme started in Peru.
Burberry Impact Advisory Committee established, comprising
external expert
stakeholders from leading NGOs and academia.
3
Our responsibility journey
2014
First human rights impact assessment completed and action plan
in place.
Adopted the latest Manufacturing Restricted Substances List
(MRSL).
London headquarter expansion awarded sustainable building
certificate
(BREEAM ‘Excellent’ rating).
2015
First luxury retailer and manufacturer accredited as a UK Living
Wage employer.
Ethical trading programme expanded to include beauty and raw
material suppliers.
Launched Burberry Apprentices programme.
Joined the Better Cotton Initiative.
Founding partner of the Sustainable Fibre Alliance.
Included in the Dow Jones Sustainability Index for the first
time.
2016
Energy and water reduction programme in the supply chain
assured
by Natural Resources Defence Council.
Principal Partner of the Living Wage Foundation.
Sector leading score for water management in CDP’s annual
assessment.
Recognised as a Leader in the Ethical Trading Initiative’s 2016
annual assessment.
Industry leader in the Dow Jones Sustainability Index in the
‘Textiles, Apparel & Luxury Goods’ sector.
Gold distinction in the RobecoSAM Sustainability Yearbook.
2017
Completion of first five-year responsibility strategy.
Launch of new five-year strategy for 2017-2022.
4
Delivering
our strategy
Delivering our five-year strategy has meant building an internal
culture that emphasises
our values and empowers people to take ownership. Robust and
clear lines of governance
have been fundamental to achieving this.
RESPONSIBILITY GOVERNANCE
Our Chief People and Corporate Affairs Officer is
responsible for all internal people matters as well
as health and safety, ethical trading, community
investment and environmental sustainability, and
regularly reports on these topics to the Group Risk
Committee and the Board.
With the launch of our first five-year strategy in 2012,
we added a Responsibility Working Group to this
structure, made up of senior representatives from
across our business. This has been instrumental
in embedding targets and delivering improvement
programmes over the last five years.
RESPONSIBILITY CULTURE
We have expanded our Responsibility teams
globally and they are now active in London, Hong
Kong, Florence and Tokyo. These teams focus on
mobilising and supporting our global network of
employees and business partners to successfully
deliver our targets.
We have also started embedding responsibility
targets into teams’ performance objectives.
This has been key in accelerating improvements,
demonstrated by our Architecture team taking
ownership of the sustainability agenda and achieving
their target (30% of construction waste to be
recycled from all major projects by 2017) a
year ahead of plan.
Our people are our most important asset and in
an ever-changing environment we are focused on
preserving and nurturing our unique and authentic
culture, with a global team mindset, a pioneering
spirit and a strong commitment to responsibility at
the heart of it. With over 10,000 employees in over
30 countries, we leverage our digital strength to
connect teams globally, facilitate continuous dialogue
and inspire environmental and social action across
the business. We also use Burberry Chat, our internal
social media platform, to invite teams to generate
and share new ideas and celebrate success stories.
Our responsibility journey
5
How our
stakeholders have
shaped our journey
Our responsibility journey has been shaped by the many
individuals, organisations and business
partners that are affected by or have an interest in how we
operate. We actively seek out other
organisations who share our commitment to responsibility to
create open collaborations within
and beyond our sector and help create positive system change.
We interact with our customers in our stores and
through a variety of digital channels and platforms.
We monitor contacts with our Customer Services
teams, including the quantity and type of queries we
receive in relation to our responsibility programmes.
Areas of customer interest include, but are not
limited to, animal welfare, charitable commitments,
ethical sourcing and environmental sustainability.
We regularly review customer feedback in these
areas and it informs our programme development
and communications plans.
We work with our supply chain partners all
over the world, taking a collaborative approach to
address shared sustainability challenges. Johnstons
of Elgin are one of our most strategic partners and
have been making Burberry cashmere products for
over 100 years. Building on our shared history and
values, in 2015 we joined forces and contributed to
the establishment of the Sustainable Fibre Alliance,
a UK-based charity working with key stakeholders to
drive sustainable cashmere production in Mongolia,
restoring grasslands, promoting animal welfare and
improving the livelihoods of herders and
their families.
In 2013, we set up the Burberry Impact Advisory
Committee, comprising external experts. They play
the role of ‘critical friends’, joining the Burberry
Responsibility team four times a year to hear
progress updates, comment on draft strategies
and generally challenge and support the team.
In July 2015, we convened a large group of external
stakeholders, including experts from academia,
NGOs and businesses from a variety of industries,
to build external understanding of Burberry’s
sustainability work, share plans, invite stakeholders’
input and leverage their collective knowledge and
experience in shaping our journey ahead. Stakeholder
feedback has subsequently informed our approach
to manufacturing excellence, impact reduction,
community engagement, and measurement
and reporting.
BURBERRY IMPACT ADVISORY COMMITTEE
– A COLLECTIVE COMMENT ON PROGRESS
AND CHALLENGES:
“Environmental degradation, pollution, labour
exploitation and in-work poverty are not rare
exceptions – they are systemic challenges and all
businesses need to be aware of the important role
they need to play in providing solutions and
delivering the ambition of the UN Global Goals.
As members of Burberry’s Impact Advisory
Committee, we have witnessed a significant
evolution in how Burberry approaches corporate
responsibility, with environmental and social issues
becoming embedded in the business to an unusual
degree. As advisors, we have been encouraged by
the way in which this has occurred, with a steadily
growing level of buy-in from the senior leadership
team to the factory floor.The company’s
responsibility programmes so far provide a robust
platform for the next phase of its journey, which we
hope will propel the business into a clear leadership
position in sustainability in the global apparel
industry, based on a smart combination of its brand
reach and commercial leverage.
Burberry also recognises increasing stakeholder
expectations of transparency and has made clear its
commitment via this first public report.
We welcome the window on progress that this
represents and the internal reflections it will
prompt to identify gaps and improve performance.
We now look forward to them accelerating their
work so we see more positive change for the people
involved directly or indirectly in the making of
Burberry products, from Yorkshire to Tuscany,
Mongolia and beyond, and to challenging the
company to go even further in the future.”
Mark Sumner, Lecturer in Sustainability, Retail & Fashion,
University of Leeds
Sally Uren, Chief Executive, Forum for the Future
Rachel Wilshaw, Ethical Trade Manager, Oxfam GB
Our responsibility journey
6
Making a
difference along
our value chain
RAW MATERIAL SOURCING
Promoting sustainable practices
at farm level.
RAW MATERIAL PROCESSING
Promoting sustainable practices
in tanneries and mills.
MANUFACTURING
Promoting sustainable practices
and worker welfare in factories.
OPERATIONS
Operating and building responsibly.
UK
Living wage accredited
employer
Energy and water reduction
Green building certifications
Textile recycling
PERU
Sustainable cotton programme
USA
Green building certifications
Our responsibility journey
7
Building on our journey so far, the scale of our responsibility
initiatives today reflects the global
nature of our supply chain. We work with our teams, suppliers
and external partners worldwide
to tackle diverse social and environmental challenges relating to
product manufacturing
as well as the sourcing and processing of raw materials.
CHINA
Energy and water reduction
Environmentally certified
tanneries
Worker health prorgramme
Worker hotlines
ITALY
Energy and water reduction
Environmentally certified
tanneries
Textile recycling
INDIA
Artisan empowerment
Worker health programme
THAILAND
Energy and water reduction
MONGOLIA
Sustainable cashmere programme
EUROPE AND NORWAY
Fur traceability programme
GERMANY
Environmentally certified tanneries
SPAIN
Environmentally
certified tanneries
Our responsibility journey
8
Ethical
trading
9
Ethical
trading
With our ethical trading work evolving year-on-year, we have
become increasingly
aware that meaningful and lasting impact cannot be achieved by
auditing alone.
We have therefore gradually shifted our focus from supply
chain audits to more in-depth
training and engagement activities, empowering our partners to
take ownership of
sustainability challenges and promote responsibility further
down the supply chain.
HIGHLIGHTS SINCE 2012
2,744
supply chain audits
and assessments completed
65%
increase in supply chain training
and engagement activities since 2013
Significant positive shift in ethical trading
performance by our apparel and non-apparel
partners and greater vendor ownership of
sustainability challenges.
First luxury manufacturer and retailer to be
accredited as a UK Living Wage employer
in 2014, becoming a Principal Partner of
the Global Living Wage Initiative in 2015.
WHAT WE HAVE LEARNED
– A collaborative, capacity-building approach
with suppliers and stakeholders is more
effective than a compliance-driven approach,
as it drives longer-term change.
– Conducting our own audits, as opposed
to using third parties, allows for more direct
insights and creates stronger engagement.
– While consistent global standards are
fundamental to success, the ways in which
these are implemented should be tailored
to different cultures.
– A sustainable supply chain requires auditing,
engagement and interventions far beyond
finished goods factories, all the way to
raw materials suppliers.
2016/17
2015/16
2014/15
2013/14
234
217
205
142
Number of training and engagement activities
in the supply chain
10
A programme
with breadth
and depth
After expanding in 2015 to cover key raw materials and beauty
suppliers, today our ethical
trading programme is more comprehensive than ever. It covers
all our finished goods’ vendors
and sub-contractors and focuses on creating enduring value
through improved production
processes, workplace conditions and employment practices.
Ethical trading
Our trading activities are guided by our Responsible
Business Principles, which include our Ethical
Trading Code of Conduct and Responsible Sourcing
Policy. Whenever we look to work with a new supply
chain partner or material, we have procedures and
processes in place to assess potential risks and
evaluate new partners or materials against consistent
ethical trading standards and responsible
sourcing criteria.
We carry out announced and unannounced audits
of our supply chain partners and work with them
to identify areas for improvement, implement
new initiatives and monitor progress – to ensure
compliance with local and international labour
and environmental laws as well as Burberry’s
Responsible Business Principles. While audits
are mostly conducted by our Responsibility team,
targets for the implementation of ethical trading
standards and responsible sourcing criteria sit
with relevant Supply Chain and Sourcing teams.
BUILDING CAPACITY WITHIN
OUR SUPPLY CHAIN
We are committed to fostering a culture of ownership
across our supply chain that will drive positive
change beyond our audit programme. Since 2012,
we have seen a positive shift in ethical trading
performance among our apparel and non-apparel
partners and are therefore increasingly focusing
on capacity-building initiatives to complement our
ongoing audit programme. Examples include:
2012: Workers’ access to remedy
To ensure appropriate access to grievance
mechanisms, in 2012 we set ourselves a target of
introducing a confidential, NGO-run hotline in 100%
of finished goods factories with regular production in
China. This target has been achieved and today over
27,000 workers have access to confidential support.
This includes factories of our licensees in the country.
2013: Vendor ownership programme
We developed this in collaboration with our strategic
Italian vendors, to build their ability to manage working
conditions at their sub-contractors and introduce
their own ethical trading monitoring programmes.
2013: Factory improvement programmes
Our Responsibility team in Hong Kong works closely
with vendors across Asia to conduct a thorough
analysis of working hours, retention, wages etc.
and drive improvements in productivity, efficiency,
employment practices and working conditions.
2014: Skills enhancement and preservation
We rely on and are passionate about championing
crafts and craftsmanship. In 2014, we partnered
with key industry peers and expert organisations to
pioneer an innovative programme in India to support
and enhance artisanal embroidery skills and ensure
workers are recognised and rewarded for them.
2015: Workers’ welfare and health programmes
We have partnered with Business for Social
Responsibility’s HERproject and local specialist
academic institutions, including the medical faculty
at Sun Yat-sen University, to implement tailored
welfare and health programmes in several supply
chain factories across Asia.
“The Vendor Ownership Programme has had but
positive impacts, starting from the strengthening of
our management systems to higher consciousness
and better understanding of the risks in the supply
chain as well as how we can mitigate them through
the audits. This is a benefit to not only us but also
our entire supply chain. Our initial fear to do all
this by ourselves was immediately overcome, thanks
to the continuous support provided by the Burberry
Responsibility team.”
Feedback from an Italian vendor involved in Burberry’s
Vendor Ownership programme, launched in Italy in 2013
11
Human rights
We are committed to respecting human rights in our supply
chain and advancing the global
agenda. In 2014, we worked with specialists to conduct a human
rights impact assessment
along our value chain and develop a Human Rights Policy.
Since then we have
partnered with a range of stakeholders to embed and promote
global standards.
Our impact assessment in 2014 confirmed many
priority areas we were already working on, such as
labour rights in our supply chain, but also identified
potential risk areas we had not prioritised before.
We introduced mitigation actions accordingly and
reviewed our initial assessment in 2016 to capture
any new or emerging risks. Mitigation actions arising
from this second assessment have been reviewed
by Ergon, a specialist consultancy in this field, and
discussed with Oxfam, a globally renowned aid
and development charity.
Our Human Rights Policy aligns with the UN Guiding
Principles on Business and Human Rights,
International Bill of Human Rights and the Core
Conventions of the International Labour
Organization. We are also a signatory of the UN
Global Compact and a member
of the Ethical Trading Initiative.
Both of our impact assessments highlighted our
responsibilities towards four key stakeholder groups:
our people, workers in our supply chain, our
customers and our communities.
Our employees – In 2015, we became the
first luxury retailer and manufacturer to achieve
accreditation as a UK Living Wage Employer.
Continuing our support for the Living Wage
Foundation, in 2016 we joined the steering group
of the Global Living Wage Initiative, to discuss
harnessing the increasing interest in order to address
in-work poverty across all sectors and multiple
geographies, as part of a unified, global approach
with multi-stakeholder participation.
Workers in our supply chain – Our Responsible
Business Principles, which all Burberry suppliers
must commit to, include our Ethical Trading Code of
Conduct, as well as policies around migrant workers
and home working. The 2014 human rights impact
assessment highlighted worker health in leather
tanneries and worker welfare in construction as key
areas to prioritise. We have since been working on
several initiatives to raise internal awareness and
work with supply chain partners to protect workers’
rights in these areas.
Our customers – We interact with our customers
both in our stores and through our digital platforms.
We have assessed potential impacts of our products
and services on customers’ human rights and
developed policies and mechanisms to address
these. Burberry employees globally are trained to
protect customer safety and welfare in relation to
product and their store experience.
Our communities – We are committed to respecting
the human rights of the communities around our
stores and offices and along our global supply
chain. We have a mechanism for local community
stakeholders to provide any feedback relating to our
operations or activities, so that we may address and
remedy these as appropriate and in a timely manner.
In 2015, we convened a human rights training event
in London, for our own employees as well as peers
from 12 other brands, designed to explore complex
human rights challenges in the supply chain.
In response to Section 54 of the Modern Slavery Act,
in 2015 we produced our first Modern Slavery
Statement. It was recognised in October 2015 within
the top five companies in Business and Human
Rights Resource Centre’s analysis of the FTSE100’s
disclosure under the Act.
Ethical trading
12
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action-plan.html
https://www.burberryplc.com/en/responsibility/policies-and-
action-plan.html
Environmental
sustainability
13
Environmental
sustainability
We are committed to reducing both our direct and indirect
environmental footprint and
therefore our contribution to climate change. In 2012, following
an independent baseline
assessment, we set out to improve energy, water and waste
management at our own offices,
stores, manufacturing and distribution sites, as well as across
our supply chain.
HIGHLIGHTS SINCE 2012
77%
of leather used in our accessories today
comes from certified tanneries
33%
of energy saved at our five key distribution
centres (normalised)
18%
reduction in water use at key mills
(normalised)
Banned the use of per- and polyfluorinated
compounds (PFCs) from our supply chain.
WHAT WE HAVE LEARNED
– To create long-term, sustainable change we
need to take a holistic approach, addressing
environmental, social and economic challenges,
collectively.
– Introducing environmental targets into individuals’
objectives has been a key driver in achieving
positive results and embedding environmental
responsibility into our ways of working.
– Moving from micro-solutions to system change
requires genuine collaboration across brands,
industries, manufacturers, NGOs and
governmental organisations.
14
Environmental
innovation at
our sites
In the past five years, we have steadily optimised how we use
energy and resources across our sites.
We have also made strides in sourcing renewable energy and
transforming garment waste back into
useful products. Progress has been made possible by engaging
our teams in owning and driving
environmental targets across the business.
Environmental sustainability
ENERGY AND CARBON
Energy used in our stores represents approximately
75% of our direct (scope 1 and 2) greenhouse gas
emissions. Since 2012, we have therefore focused
on increasing our stores’ energy efficiency and
renewable energy use. By 2014 all Burberry new
builds and full store retrofits included low-energy
LED lighting as standard and we have surpassed our
target of 75% LED coverage in new concept stores,
achieving over 95%. In addition, we have rolled out
real-time energy monitoring systems in selected
stores, introduced maintenance controls and
have started adding energy KPIs to retail teams’
objectives and performance reviews.
RENEWABLE ENERGY
All our offices, stores, warehouses and internal
manufacturing sites in the UK and Italy, as well as
25 office and retail locations in the Americas, are
powered by renewable energy. This includes solar
panels installed at our UK head office, US
distribution centre and flagship stores in Beverly Hills
and San Francisco, which generate over 1 million
kWh of solar energy a year. With access to
renewable energy proving a challenge in some
locations, we will continue to use our leverage to
encourage energy providers to meet our demand for
renewable energy across our locations worldwide.
TRANSPORT
Our carbon emissions have increased by 10% per
unit since 2012. Despite this result we have made
good progress to address the carbon emissions
associated with the movement of products by
implementing a box consolidation project. However,
business changes to delivery times and transport
routes have mitigated any positive results from the
box consolidation work. We will continue to target
volume reduction opportunities, review transport
modes and increase our efforts to engage transport
carriers on sustainability.
WASTE AND RECYCLING
Over the past five years, we have significantly
increased our efforts to reduce, reuse and recycle
our waste. For example, we set ourselves a target
of recycling 30% of construction waste from all our
major building projects by 2017. We hit this target
a year ahead of time and now divert 87% of
construction waste away from landfill. We attribute
this primarily to the proactive role played by our
construction teams and their contractors and we
will look to replicate this strong internal engagement
with other teams.
At our head office in London, 100% of food waste is
sent to an anaerobic digester where it is turned into
bio-fertiliser or biogas for the energy grid.
TIMBER
At the end of our five-year strategy, we can
report that over 83% of wood used in our furniture,
flooring and in-store fixtures is certified to come from
responsibly managed forests. Furthermore, all the
paper used in our retail packaging comes from
certified sources and the baseboards are made
from 100% post-consumer waste.
SUSTAINABLE BUILDING CERTIFICATIONS
We have achieved BREEAM, LEED, G-SEED or
equivalent green building standards for all our
new-builds since 2012.
15
Environmental sustainability
Resource
efficiency in
manufacturing
We extend our resource efficiency principles to our supply
chain, working
with business partners to minimise the use of energy, water,
chemicals
and raw materials and reduce their environmental impacts.
As a business, we identify and review our key supply
chain partners on a regular basis, considering criteria
such as volume, value, unique capabilities,
investment in research and development and
transparency, as well as their commitment to
Burberry’s social and environmental standards.
Starting with key partners, over the past five years
we have rolled out an energy and water reduction
programme to 27 suppliers.
ENERGY AND WATER
Working in partnership with environmental
organisations has been fundamental in driving
improvements across our supply chain. For example,
in 2015 we engaged key supply chain partners in
using the Sustainable Apparel Coalition’s Higg Index
to assess and benchmark their energy and
water consumption.
115 suppliers have trialled the Higg Index, with
20 going on to participate in an impact reduction
programme based on the Natural Resource Defence
Council’s ‘Clean By Design’ principles.
Most of our water footprint relates to raw material
production and processing, including washing and
dyeing. We are using World Wildlife Fund’s Water
Risk mapping tool to identify suppliers in water-
stressed areas and the Aqueduct Water Risk Atlas to
understand potential future strains on water
resources and risks in our supply chain.
CHEMICALS
In 2012, we set out to eliminate the use of chemicals
that may have a negative environmental impact,
beyond legal limits. In line with this, in 2015 we
adopted the latest Manufacturing Restricted
Substances List (MRSL), released by the Zero
Discharge of Hazardous Chemicals group, with
an addendum banning the use of PFCs.
We have set clear standards and guidelines for
our supply chain partners and continue to provide
training and support to help with the process of
elimination. For example, we have created an MRSL
Implementation Framework to help our partners
implement and assess chemical management
progress internally and with their upstream
supply chain.
We have created a community of chemical managers
across our supply chain to share best practice.
We carry out testing of effluent, product, raw
materials and chemical formulations and have
recently worked with an external platform provider
to develop a chemical inventory tool, which will host
chemical formulation data and enable our supply
chain partners to effectively manage their
chemical usage.
We provide regular, public updates on our chemical
work, including substitutions and testing results,
to share insights and experience in this field and
support other industry partners in their efforts.
Further details are available at www.burberryplc.com.
WASTE
We are committed to generating less waste.
When waste does occur, and reuse is not possible,
we look to partner with innovative organisations that
can repurpose it. In the UK, we work with Avena
Environmental and John Cotton Group to recycle
damaged garments into insulation materials. In Italy,
we are partnering with Resmal and Greenline
to recycle pre-consumer textile waste into
re-engineered Re.Verso™ yarns and
automotive insulation materials.
In 2016/17, 44 of our Italian supply chain partners
have recycled over 46 tonnes of textile waste.
16
Sustainable
raw materials
As part of an independent baseline assessment in 2012, we
identified that over
half of our environmental impacts arise during raw material
production.
Consequently, we set several public targets to reduce our
impacts throughout
the supply chain, starting with our key materials – cotton,
cashmere and leather.
Environmental sustainability
COTTON
Cotton has always been a key raw material for
Burberry, but its production and global demand have
substantially changed since we first manufactured
gabardine. Today, conventional cotton farming can
have significant environmental and social impacts,
which we are committed to address to secure a
sustainable cotton supply chain for the future. Our
work with CottonConnect in Peru is one example of
how we work with specialists to drive improvements.
COTTON FARMER SUPPORT
PROGRAMME IN PERU
In 2013, we started working on these issues in
Peru, where we have been sourcing cotton for over
30 years. In partnership with our local supplier and
CottonConnect (an organisation specialising in
promoting sustainable cotton farming), we
introduced a three-year farmers’ training programme
to encourage and support Peruvian farmers to adopt
more sustainable practices. Now, at the end of the
programme, farmers are reporting a 14% yield
increase, 69% chemical pesticide decrease, 73%
increase in natural fertiliser use and 100% increase
in use of protective equipment, as well as a 2%
decrease in both input costs and irrigation usage
(compared to a group of control farmers who have
been monitored by the same CottonConnect team
for consistency).
After year 1 After year 2 After year 3
Chemical pesticide use -63% -68% -69%
Yield -3% 16% 14%
Profit -3% 19% 18%
Use of PPE* 0% 2% 100%
* Personal Protective Equipment
(Percentages compared to a control group of farmers
not involved in the programme)
“With training and support, we have managed to
achieve a great cotton season. Thanks to the timely
implementation of pheromone traps we have
managed to monitor and control a very dangerous
pest and our cotton looks incredibly healthy and
white as a result. I haven’t seen such a white
colour in cotton for years
in the region.”
Feedback from a farmer involved in the Burberry
and CottonConnect farmers’ training programme
in Cura Mori District, Piura, Peru
17
Environmental sustainability
CASHMERE
A major production centre of global cashmere supply
is the Mongolian Steppe, where changing climatic
conditions and an increasing global demand for
cashmere is putting pressure on an already fragile
ecosystem. In 2015, we became a founding partner
of the Sustainable Fibre Alliance (SFA), a UK-based
NGO working with key stakeholders in Mongolia to
improve the sustainability of cashmere production in
the region. The SFA has piloted Animal Welfare and
Land Management Codes of Practice during 2016/17
in Mongolia and work is underway with communities
on the ground to monitor vegetation cover, biomass,
biodiversity, soil moisture and texture across 35
winter camps, and we are now exploring the
possibility of remote sensing for
continuous monitoring.
LEATHER
Observing that the production of our leather
accessories accounted for more than 10% of our
total greenhouse gas emissions, in 2012, we set out
to address energy, water and chemical consumption
within our leather supply chain. Today, 77% of
leather used in our accessories comes from
tanneries certified by either the Leather Working
Group, the Institute of Quality Certification for the
Leather Sector or the ISO 14001 environmental
management standard. In addition, as part of our
tannery improvement programme, we have engaged
directly with three tanneries in Europe and Asia to
improve their environmental and social performance.
Beyond tanneries, we have begun working with
several key organisations in Italy to engage industry
stakeholders, improve the traceability of leather and
actively address impacts and responsibilities, while
at the same time investigating alternative routes for
the end of life of both finished and semi-
finished leather.
PACKAGING
In 2012 we started work to ensure 100% of
point-of-sale packaging is sustainably sourced
(where available). Today, 100% of paper and
baseboard used in our mainline and concession
retail packaging comes from certified sources.
Furthermore, all baseboard and ribbon are made
of 100% recycled materials.
RESPONSIBLE SOURCING
Our Responsible Sourcing Policy is communicated
to all supply chain partners and reflects our
commitment to preserving natural resources,
ensuring animal welfare and protecting people
and communities.
Exotic skins – We work with key stakeholders to
promote the conservation of biodiversity and the
sustainable use of sensitive raw materials, such as
exotic skins, by the fashion industry. We support
industry efforts to make value chains more
transparent and increase traceability of materials
from their origin. We have a dedicated expert
customs team responsible for managing compliance
with CITES.
Down – The Responsible Down Standard, developed
by Textile Exchange in 2014, sets strict criteria to
ensure bird welfare from hatching to slaughter.
We work with supply chain partners to complete
an annual self-declaration of humane practices
and to increase the percentage of certified down
in our products.
Fur – The fur we use in our products is only sourced
from regulated farms in the EU and Norway and we
have a well-established fur traceability programme.
We have undertaken extensive work with our peers
and other stakeholders to help promote third-party
certification of European fur farms. We have also
engaged agricultural husbandry and welfare experts
to support the development of species specific
welfare protocols. We are a founding member of the
BSR coordinated Fur Luxury Industry Roundtable,
working with key industry stakeholders to further
enhance welfare standards and traceability
systems in the fur value chain.
Wool – We work closely with Textile Exchange,
our peers and the wool industry to promote the
Responsible Wool Standard, which recognises
best practices of wool growers both in relation to
sheep welfare and environmental management. The
standard ensures that wool comes from responsibly
treated sheep and from farms with a progressive
approach to land management.
18
Community
investment
19
Community
investment
Since 2010, we have been donating 1% of Group adjusted profit
before tax to charitable causes,
with a particular focus on youth charities that nurture emerging
creative talent. Empowering
employees worldwide to support the neighbourhoods where they
live and work has been
fundamental in how we target and maximise social value.
HIGHLIGHTS SINCE 2012
£22.3m
donated to charitable causes
44,000
working hours dedicated by our employees to
impactful community projects
15,000
garments donated to disadvantaged young
people enrolled in employability programmes
WHAT WE HAVE LEARNED
– Community needs and solutions vary from
place to place, calling for a focused but
flexible approach.
– Employee engagement is key to success,
from understanding local community needs
to implementing solutions and sharing
impact stories.
– Measuring real impact is complicated but critical
– it helps us understand our target beneficiaries
and where we can make the greatest difference,
as well as the success measures we need to
track progress.
– Corporate philanthropy has changed over five
years. There is a need to ensure strategic
positioning of community investments to
maximise impact.
20
Targeting
our impact
Our focus on employability and youth over the last five years
stems from our long-standing passion
to nurture the creative talent of the future. Most of our
charitable efforts have therefore been
dedicated to inspiring and supporting young people to achieve
their potential, through financial
support, employee time and in-kind donations.
Community investment
INVESTING IN CREATIVE TALENT
OF THE FUTURE
Each year we donate 1% of Group adjusted
profit before tax to charitable causes worldwide,
including disaster relief, sponsorships, scholarships
and charity events. A large proportion is channelled
through the Burberry Foundation, which over
the past five years so far has focused on youth
employability and creativity. Since its launch in
2008 the Foundation has supported over 40 youth
charities, directly and indirectly impacting the lives
of over 150,000 young people around the world.
Charity partners over the last five years have
included: City Year, IntoUniversity and The Prince’s
Trust in the UK; Brooklyn Community Services,
Future Now, Good Shepherd Services and the Robin
Hood Foundation in the USA; and Changing Young
Lives Foundation and Junior Achievement in China.
From 2012 to 2016, the Foundation ran its own
employability programme, giving young people from
disadvantaged backgrounds the opportunity to work
with Burberry for six to eight weeks and develop key
workplace skills and enhance their creative thinking
and problem-solving through work experience and
one-on-one mentoring with our teams. Nearly 500
young people took part in the programme over the
four years. Building on this experience and the
success of this programme, in September 2015 we
launched our Apprenticeship Programme, offering
young people the opportunity to join Burberry on
a year-long development programme.
BURBERRY APPRENTICES
In 1856, Thomas Burberry, an idealistic 21-year-old former
apprentice, created an enduring legacy that continues to
drive innovation in design manufacturing, technology and
retail. We aim to perpetuate this spirit and facilitate the
development of coming generations of young talent,
innovators and craftspeople.
Our ambition is to provide exciting new opportunities for the
growing number of underemployed young people, to help
them develop key skills, confidence and experience required
to build careers in the creative industries and beyond.
We believe this new generation of creative talent will enrich
our business and culture whilst helping to safeguard the
future of our wider industry.
The first cohort of Burberry apprentices graduated in
September 2016, with 90% of participants completing the
programme and benefiting from development opportunities
in traditional craftsmanship, luxury retailing and business
operations. We are now preparing to enrol our 130th person
onto an apprenticeship qualification.
“I believe that I have improved in a lot of my
personal skills such as my confidence and
communication. This has helped me grow as an
individual and has helped me reach for success for
the future.”
Burberry Apprentice, on the programme from
September 2015 to September 2016
21
GIVING OUR TIME
Our employee volunteering programme has grown
significantly over the years. The initiative started
in 2011, offering employees in London, New York
and Hong Kong the opportunity to get involved
with Burberry Foundation partners and support
Foundation-sponsored programmes in those cities.
Today the programme is more flexible and enables
employees worldwide to support local charities of
their choice.
Thanks to increased local ownership, participation
in the programme trebled by 2016, when nearly 30%
of employees in over 70 cities dedicated over 12,000
hours to community projects and
fundraising initiatives.
Today, employees worldwide are offered up to
three working days a year to volunteer. Activities
range from career inspiration events, employability
workshops and long-term mentoring programmes,
to charity events and community revitalisation
projects. In addition to benefiting communities,
we believe that employee volunteering strengthens
teams, enhances workplace skills, builds community
connection and contributes to employee
motivation and personal fulfilment.
GIVING IN KIND
Our in-kind donations range from one-off gifts of
non-trademark fabric and materials to assist young
people on creative courses, to donations of smart
business clothing to support vulnerable people
enrolled in employability programmes and preparing
for interviews. Since 2008, we have donated nearly
15,000 items of smart business clothing to charities
in London, New York and Hong Kong, to enhance
their employability programmes and help provide
their clients with an extra boost of confidence as
they work hard to change their lives around.
Community investment
22
Progress
against targets
23
PERFORMANCE
OVERVIEW
PRODUCT
2017 Targets 2016/17 Progress Results
Cotton
Improve the
environmental and
social impacts of how
we source cotton.
Burberry started procuring Better Cotton through the Better
Cotton Initiative (BCI).
The BCI trains farmers to use water efficiently, care for the
health of the soil and natural
habitats, reduce use of the most impactful chemicals
and promote decent work.
In Peru, a three-year farmers’ training programme came to
completion in March 2017,
with farmers reporting a 14% increase in yields and lower
environmental impacts,
such as a 69% reduction in chemical pesticide use. Farmers also
reported a
reduction in irrigation, as their practices are becoming more
water efficient.
ACHIEVED^*
Cashmere
Improve the
environmental and
social impacts of how
we source cashmere.
Burberry is a founding member of the Sustainable Fibre
Alliance (SFA), a UK-based
NGO working in Mongolia to restore grassland, promote animal
welfare and work
towards a decent living for cashmere goat herders. The SFA has
piloted Animal Welfare
and Land Management Codes of Practice during 2016/17 and
work is underway
to monitor vegetation cover, biomass, biodiversity, soil
moisture and texture across
35 winter camps.
ACHIEVED*
Leather
Reduce the
environmental impact
of leather.
Burberry is working with its accessories supply chain to
increase the proportion
of leather originating from tanneries with Leather Working
Group Certification or
approved alternative certifications. Burberry has also worked to
improve water,
energy and chemical consumption and improve leather
traceability to slaughter
house and farm level.
In 2016/17, 77% (in m²) of leather used in accessories was
sourced from tanners
certified by either the Leather Working Group, the Institute of
Quality Certification
for the Leather Sector or the ISO 14001 environmental
management standard.
ACHIEVED^*
PVC
Reduce the
environmental impact
of PVC.
Burberry has eliminated phthalates from all the PVC that it
uses. The use of PVC
within the business has significantly declined, to the extent that
the largest accessories
category (by volume) no longer contains any PVC articles.
Burberry continues to
research alternatives to PVC in key lines and is working with
major suppliers as well
as the wider industry to develop alternative materials that have
a markedly reduced
impact on the environment whilst retaining their performance
and quality criteria.
NOT ACHIEVED
Chemical use in
manufacturing:
Eliminate chemicals
from use that have
a negative impact
on the environment,
beyond legal limits.
Burberry continues its efforts to eliminate chemicals in the
supply chain through a
wide range of activities including regular testing of effluent,
products and raw materials,
and publicly reports on progress. The Company has also worked
closely with its supply
chain partners to create a community of chemical managers to
share knowledge and
assist in upskilling others in the supply chain. In addition,
Burberry has been active in
the research and analysis of new alternatives, as well as piloting
the testing of new
chemical formulations and making substitutions.
ACHIEVED^*
Packaging:
100% of point of
sale packaging to be
sustainably sourced
(where available)
100% of paper and baseboard used in Burberry’s mainline and
concession retail
packaging comes from certified sources. Furthermore, all
baseboard and ribbon
are made of 100% recycled materials.
ACHIEVED^
Performance against our 2017 targets is outlined below. Whilst
some targets have not been fully
achieved, key successes and learnings from the past five years
have proven invaluable in shaping
our ambitions going forward. Our new strategy for 2022 is
focusing on addressing the most
material issues, transforming internal governance, developing
innovative partnerships and
demonstrating real impacts on workers, communities and the
environment. Further details
will be available at www.burberryplc.com in June 2017.
24
http://www.burberryplc.com/en/responsibility/policies-and-
action-plan.html#tabbedcontentitem_0
PERFORMANCE
OVERVIEW
PROCESS
2017 Targets 2016/17 Progress Results
Internal
manufacturing
Reduce the energy use
from Burberry’s two
UK manufacturing
sites by 25%**.
Burberry owned manufacturing sites in Yorkshire UK have
faced several challenges
in achieving energy saving targets. Challenges have included,
for example, building
infrastructure limitations, the influence of weather and
fluctuating production volumes.
This combination of factors has resulted in only a 15% energy
reduction at Burberry
Mill and a 7% increase at Burberry’s factory in Castleford.
NOT
ACHIEVED*
Suppliers
Work with key
suppliers to assist
them in reducing
their energy use
by up to 20%**
Working in partnership with the Natural Resource Defence
Council (NRDC),
Burberry increased its efforts to reduce energy and water use in
the supply chain,
by implementing an NRDC assured programme at 9 key water
consuming facilities,
and an adapted programme at a further 10 key facilities that do
not rely as heavily on
water. This programme is delivered by Burberry team members
directly and is modelled
on the NRDC ‘Clean By Design’ programme, which aims to
identify simple ways to
reduce pollution and cut water, chemical, and energy use whilst
saving money.
In 2016/17, over 40 site visits allowed Burberry’s team to
deliver technical support to
19 facilities and support their efforts on these ambitious targets.
Moderate progress
was achieved against the energy target, with a 5% reduction in
energy use at
19 facilities, whilst significant progress was realised against the
water target,
with an 18% reduction in water use across 9 facilities.
NOT
ACHIEVED^*
Mills
Work with key mills
to assist them to
reduce their water
consumption
by up to 20%**.
The Company has streamlined its efforts to reduce energy and
water use in the supply
chain to achieve maximum impact. This combined approach is
described in more detail
above, as part of the ‘Suppliers’ target. While the water target
of 20% reduction has not
been fully achieved, significant progress has been made in this
area, with an 18%
reduction in water use across 9 key facilities.
NOT
ACHIEVED^*
Transport:
Reduce carbon
emissions from the
transport of Burberry
products by 10%**.
Burberry’s carbon emissions have increased by 10% per unit.
Despite this result,
Burberry has made progress in addressing the carbon emissions
associated with
the movement of products by implementing a box consolidation
project. However,
business changes to delivery times and therefore transport
routes have mitigated
any positive results of the box consolidation project. In the
coming year, Burberry
will continue to target volume reduction opportunities, review
transport modes
and increase its efforts to engage transport carriers on
sustainability.
NOT
ACHIEVED^
Distribution centres:
Reduce energy use
in Burberry’s five key
third-party distribution
centres by 10%**.
As well as achieving a normalised reduction of 33% against
base years (these vary,
depending on opening dates of distribution centres), Burberry’s
five key distribution
centres have accomplished an absolute reduction of 11% against
last year. This is
mainly due to energy efficiency measures, including the
implementation of LED lighting
and light motion sensors, and the fantastic engagement of onsite
teams.
ACHIEVED*
Key:
Target achieved.
Target nearly achieved (good progress made).
Target not achieved (disappointing progress made,
but important lessons learnt).
Progress against targets
^ Selected information denoted by this symbol has
received limited assurance by Ernst & Young LLP.
* Carried forward with increased ambition in new
strategy. Other targets have been incorporated into
the Company’s way of working.
** When normalised by a relevant productivity factor.
25
PERFORMANCE
OVERVIEW
PROPERTY
2017 Targets 2016/17 Progress Results
Energy consumption:
Reduce Burberry
controlled store and
office energy usage by
up to 15%**.
Overall, a 5% reduction was achieved across stores and offices.
This does not meet
targets set in 2012, but increased efforts are planned in this area
for the future, in
recognition of limited performance so far. Digital monitoring
equipment and in-store
energy audits have enabled Burberry to identify and implement
several in-store
energy-saving opportunities during 2016/17. At its London
headquarters, the Company
has achieved a 14% reduction in absolute energy usage against
its base year of 2012.
Please see Burberry’s 2016/17 Annual Report (page 51) for
more details on energy use
and CO
2
e emissions during 2016/17.
NOT
ACHIEVED^*
Sustainable
consumables:
60% of office
consumables to be
sustainably sourced
(where available).
Whilst office consumables represent a very small proportion of
Burberry’s
environmental impacts, the Company is committed to driving
employee engagement
and improvements in corporate offices globally. In 2016/17,
48% of all office
consumables in corporate offices globally were sustainably
sourced. Given that the
scope of this target was increased half way through the five-
year period and the
relatively limited availability of recognised sustainable sources
in some high-volume
categories, this progress is significant, with half of Burberry’s
suppliers providing 100%
sustainably sourced products.
NOT ACHIEVED
Renewable energy:
All Burberry controlled
stores and offices to
be powered either by
on-site or green tariff
renewable energy
(where available).
Burberry increased procurement of renewable energy across
operational sites including
retail, offices, warehouses and internal manufacturing. Overall,
electricity covering
53% of global square footage is either generated on site or
comes from renewable
sources. This includes energy generated by solar panels
installed at its UK head
office, US distribution centre and flagship stores in Beverly
Hills and Rodeo Drive,
which provide over 1 million kWh of clean energy a year.
Burberry faces a challenge in procuring renewable energy, with
a proportion of sites
in locations where there are no renewable alternatives available,
despite significant
investigation. The remaining sites, with renewable alternatives
available but not
adopted yet, have been delayed largely due to existing
contractual terms that are
yet to expire.
NOT
ACHIEVED^*
Build certification:
All new builds to be
sustainable build
certified.
This target has been achieved, with all recent and planned new
builds already certified
or awaiting confirmation of certification.
ACHIEVED
Construction
materials:
30% of wood, by
spend, is either
recycled materials or
sourced from certified
supply chains.
In 2016/17, over 80% of the wood used in Burberry’s furniture,
flooring and in-store
fixtures came from certified, responsibly-managed forests.
Crucially, Construction
teams have engaged with wood suppliers to ensure their full
understanding of and
engagement with this important work, and they consider
suppliers’ ability to meet
these requirements as part of their overall performance
evaluation.
ACHIEVED
Construction waste:
30% of construction
waste to be recycled
for global major
projects.
In partnership with its contractors, Burberry has gone above and
beyond its initial
target, reaching an 87% waste recycling rate across all major
construction projects
for the last two years.
ACHIEVED
LED lighting:
75% of lighting to be
LED or energy efficient
in new concept stores.
Burberry has surpassed this target, reaching over 95% LED
lighting fixtures in all new
builds and full store refurbishments over two years ago.
ACHIEVED
Progress against targets
26
https://www.burberryplc.com/content/dam/burberry/corporate/In
vestors/Results_Reports/2017/AnnualReport/Burberry_AR_2016
-17.pdf
ETHICAL TRADING PROGRAMME
Focus area 2016/17 Progress
Auditing tier 1, tier 2
and selected tier 3
suppliers
Burberry’s Ethical Trading Programme comprises announced
and unannounced audits, monitoring and
improvement programmes. With the programme evolving year-
on-year, the Company has focused on how
it can make the most meaningful, positive impacts on the lives
of people throughout its supply chain, rather
than increasing the number of audits. Auditing remains,
however, an important tool to help Burberry and its
manufacturers identify areas in need of improvement.
2016/17
2015/16
2014/15
477^
548
541
477
Number of audits and assessments
Building capacity of
workers and
management in the
supply chain
Burberry has continued to build and enhance supply chain
partnerships to drive positive, long-lasting
change. Improvement programmes have been implemented
across its supply chain to support factories
in building stronger human resource management systems;
reducing working hours; sustaining and
enhancing unique knowledge, skills and expertise; and
providing access to confidential grievance
mechanisms.
2016/17
2015/16
2014/15
234^
217
205
234
Number of training and engagement activities
Driving performance
improvements at
finished goods’
manufacturers
Results of the 2016/17 audits show an overall positive shift in
ethical trading performance by the
Company’s apparel and non-apparel partners. New
manufacturers who did not meet key requirements
as outlined in Burberry’s Ethical Trading Code of Conduct were
not accepted into the Company’s supply
chain, others were found to meet key requirements but were
asked to implement further improvements.
Ready to Wear, Accessories and Shoe Supply Chain^
Rejected Acceptable with improvements Satisfactory
2015/16 (second half)
2016/17 (first half)
1000 10 20 30 40 50 60 70 80 90
2016/17 (second half)
External assurance of corporate responsibility disclosures
Burberry appointed Ernst & Young LLP to provide limited
external assurance over reported performance against selected
environmental targets, and selected 2016/17 environmental and
ethical trading performance data. The statements and data that
formed part of the review are denoted with a ^ on pages 24 to
27. The full independent assurance statement and Burberry’s
basis
of reporting are available at www.burberryplc.com.
Contacts
Email: [email protected]
Email: [email protected]
PERFORMANCE
OVERVIEW
27
28
Running head: BURBERRY LEADERSHIP ETC… 1
BURBERRY LEADERSHIP ETC… 12Burberry Leadership
Missteps and the Course to Get Right
Ashley (add last name)
Abstract
[The abstract should be one paragraph of between 150 and 250
words. It is not indented. Section titles, such as the word
Abstract above, are not considered headings so they don’t use
bold heading format. Instead, use the Section Title style. This
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don’t have to add page breaks. Note that all of the styles for
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Keywords [Click here to add keywords.]
Table of Contents
Contents
Abstract 2
Burberry Leadership Missteps and the Course to Get Right 5
Problem Statement 5
[Heading 2] 5
[Heading 3]. 5
Concept 6
[Heading 2] 6
[Heading 3]. 7
Analysis 7
[Heading 2] 7
[Heading 3]. 8
Recommendations 8
[Heading 2] 8
[Heading 3]. 9
Evaluation 9
[Heading 2] 9
[Heading 3]. 9
Learning 10
[Heading 2] 10
[Heading 3]. 10
References 12
Footnotes 13
Tables 14
Figures title: 15
Burberry Leadership Missteps and the Course to Get Right
[The body of your paper uses a half-inch first line indent and is
double-spaced. APA style provides for up to five heading
levels, shown in the paragraphs that follow. Note that the word
Introduction should not be used as an initial heading, as it’s
assumed that your paper begins with an introduction.]Problem
Statement
A brief statement of a specific management related problem in a
particular organization. Identify the cost, financial and others,
of the organization not solving this problem. This is the most
important and most difficult section of the paper and provides a
foundation for the balance of the paper. Create a compelling
argument on behalf of your view of the problem. Conclude this
section with a clear question that you wish to answer through
this paper. Write this question in the form of an open-ended
question rather than one that can be answered with a yes or no.
How well you answer this question becomes a key criterion for
evaluating each of the next three sections.
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].Concept
Description of a concept chosen from the required readings
(course text book) and how you expect this concept to help you
successfully complete this analysis. Include a statement about
why you believe this concept will help you answer your
question. Present your concept in a form that will be useful in
framing the analysis. (Do not present all you know about the
concept. Demonstrate your knowledge of the concept and its
elements by the effective way you present how you will use the
concept to answer your question). Reflect in this section as to
how this concept will provide a more useful view of the
problem by pondering: What questions do you want to ask using
the concepts which will help you answer your question? This is
the section where journal articles can help you better understand
your chosen concept and/or how to use them for analysis.
Consider this section as your plan of action – what steps will
you take to complete your analysis? This is not the section to
provide descriptive information about your organization.
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].Analysis
Systematically ask the concept-framed question developed in
the previous section to learn what is being done well and what
could be improved. Answer your questions and draw
conclusions from your answers. Do not introduce additional
concepts in this section. If an additional concept is valuable,
integrate it in a revised concept section. End this section with a
list of conclusions you have drawn from your analysis.
Collectively, these conclusions should directly answer your
open-ended question and provide a foundation for your specific,
actionable recommendations. In summary, this analysis section
should be an execution of your plan developed in your concept
section.
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].Recommendations
From what you have learned in your analysis, make
recommendations for specific action that would improve the
handling of the situation. These should address the problem
presented in the first section. A definite thread should be seen
from the question to the concept to the analysis to your
recommendations. They should be readily identifiable, not
buried in the midst of paragraphs. Remember, as a manager, you
are expected to be able to understand situations and determine
specific action to take. This is where you demonstrate you can
identify specific, actionable recommendations. The work in the
paper, to this point, should have created a compelling argument
on behalf of your recommendations.
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].Evaluation
The fifth section of this paper is the opportunity for you to
review your problem-solving process. In what ways did you find
your definition of the problem useful in solving it? What were
the strength and weaknesses of your choice of concepts? How
well were you able to use an integration of the two chosen
concepts to frame your analysis? How might you have
integrated them differently? Is there another concept or two that
might have been equally or more useful? Which ones and why?
In what ways were you able to draw new conclusions about the
problem through using this process?
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].Learning
The final section to this paper is not a typical conclusion. Do
not summarize your paper. That is not necessary. Write a brief
statement about what you learned about leadership from
completing this assignment.
[Heading 2]1
[To add a table of contents (TOC), apply the appropriate
heading style to just the heading text at the start of a paragraph
and it will show up in your TOC. To do this, select the text for
your heading. Then, on the Home tab, in the Styles gallery,
click the style you need.][Heading 3].
[Include a period at the end of a run-in heading. Note that you
can include consecutive paragraphs with their own headings,
where appropriate.][Heading 4].
[When using headings, don’t skip levels. If you need a heading
3, 4, or 5 with no text following it before the next heading, just
add a period at the end of the heading and then start a new
paragraph for the subheading and its text.] (Last Name,
Year)[Heading 5].
[Like all sections of your paper, references start on their own
page. The references page that follows is created using the
Citations & Bibliography feature, available on the References
tab. This feature includes a style option that formats your
references for APA 6th Edition. You can also use this feature
to add in-text citations that are linked to your source, such as
those shown at the end of this paragraph and the preceding
paragraph. To customize a citation, right-click it and then click
Edit Citation.]
References
Last Name, F. M. (Year). Article Title. Journal Title, Pages
From - To.
Last Name, F. M. (Year). Book Title. City Name: Publisher
Name.

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1)Discuss recruiting today via social tools. Are you pro or agains.docx

  • 1. 1)Discuss recruiting today via social tools. Are you pro or against social tools recruitment? again share an experience or research the web. 2) Share an example of IT Ethics? (Maybe an experience you had or something you read or something you saw in a movie) 3) Porter's value chain represents the flow of goods, services, and data in an organization. Apply Porter's model to a case or business to explain the following: - inbound logistics - operations - outbound logistics - marketing and sales - services If one of your colleagues did not explain something correctly, feel free to correct them. Or share your own point of view. 4) Explain the importance of a project charter, defining a clear project scope, WBS, etc... and what is scope creep and is it helpful or not to a project? 5) What is ERP and what is it used for? Discuss the rules and how to achieve success. Also, share success or failure stories (research the web). 6) discuss the importance of data visualization. How do you think it changed the way we do things today. Research the web and find some of the updated stories to share with your colleagues. 7) Discuss how does the search engine work. Give an example. 8) Discuss how can search engines can affect a business in its success or failure.
  • 2. 9) Explain the difference between Web directories crawler search engines, and hybrid search engines. and why do you think search engines important for businesses today? 10) Do you think social media eliminate the need for a face-to-face meeting? How can companies utilize social media collaboration tools to become more competitive Responsibility Reflections Our responsibility journey 2012–17 2 About Burberry 1 Burberry: Protect. Explore. Inspire. Our responsibility journey 2 Reflecting on the last five years 3 Key milestones
  • 3. 5 Making a difference along our value chain 7 Delivering our strategy 8 How our stakeholders have shaped our journey Ethical trading 11 A programme with breadth and depth 12 Human rights Environmental sustainability 15 Environmental innovation at our sites 16 Resource efficiency in manufacturing 17 Sustainable raw materials Community investment 21 Targeting our impact Progress against targets 24 Performance overview Table of Contents We were founded in 1856 by 21-year-old dressmaker Thomas Burberry and are guided by three core values – Protect, Explore, Inspire. These values
  • 4. influence not only what we do, but crucially also how we do it: – Protecting people and our planet. – Exploring more sustainable ways of working. – Inspiring a connected and compassionate culture. From the cotton fields of Peru to the cashmere goat herds of Mongolia – the materials that make up our garments come from diverse and often remote regions, where fragile ecosystems and subsistence farmers coexist day by day. As a global brand, we take our responsibilities to people and the environment very seriously. Burberry: Protect. Explore. Inspire. At Burberry, we are proud of our heritage while at the same time embracing a more sustainable future. A future that brings lasting value not only to those who enjoy our products, but also to those who supply and make them, and the environments and communities that those people depend on. WHO ARE WE? Burberry is a global luxury brand with a British heritage of over 160 years. We are headquartered in London and listed as a FTSE100 company on the London Stock Exchange (BRBY.L). We design, develop, make and sell products under
  • 5. the Burberry brand, including menswear, womenswear, childrenswear, beauty and accessories. Many of our products are made in Europe, with Italy being the largest individual sourcing country. The iconic Heritage Trench Coat is manufactured in Yorkshire, England, and most of our cashmere scarves are made in Scotland. About Burberry Over 10,000 employees globally Over 30 countries of operation 409 retail locations (including mainline and concession stores) Americas £681M Mainline stores: 74 Concession stores: 8 EMEIA £991M Mainline stores: 73
  • 6. Concession stores: 57 Asia Pacific £1,069M Mainline stores: 62 Concession stores: 135 Moreover, we are committed to creating and supporting multi-stakeholder initiatives that drive positive systemic change and protect the resources we all depend on. ABOUT THIS REPORT This report provides a summary of our responsibility journey from 2012 to 2017. It tells the story of how, five years ago, we set out to meet key environmental targets, expand our ethical trading programme and grow our global community investment activities. It reflects on what we have achieved and learned along the way, which has informed the development of our responsibility strategy for the next five years. Retail/wholesale revenue by destination 1 Reflecting on the last five years
  • 7. BUILDING ON STRONG FOUNDATIONS We started our responsibility journey with the establishment of our ethical trade programme in 2004, followed by our community investment and environmental programmes a few years later. When we developed our first five-year responsibility goals in 2012, our initial priority was to raise awareness of the importance of responsibility for long-term business success and generate engagement across our global teams. We also began embedding our goals into core business strategy, with individual teams starting to own relevant targets and delivering measurable progress. Equally as important as internal engagement is collaboration with our supply chain partners. We source raw materials and finished goods globally and are committed to doing so in a way that builds mutual responsibility and shared value. Over the last five years, we have focused on developing strong partnerships to address the most material social and environmental impacts in our supply chain and support factories in building their own capacity while promoting responsibility further down their own supply chain. Our Responsible Business Principles have been and remain a fundamental tool for communicating our standards, expectations and commitments and driving improvement. Our performance against 2016/17 targets is summarised at the end of this report. PLANNING FOR THE FUTURE
  • 8. As a global company strongly rooted in a local heritage, we have long embraced both tradition and change. Burberry today is a global business, operating in a wide range of countries and with consumers in both physical stores and online. Reflecting both structural and operational changes, our responsibility strategy continues to evolve, shaped by our own experiences as well as expert insight from the many organisations and businesses with whom we have built trusted relationships over the years. Furthermore, our programmes are influenced by global developments and initiatives, including for example the launch in 2015 of the United Nations 2030 Sustainable Development Goals. As we look ahead, we know there will be ongoing challenges, including finding the best ways to measure long-term impacts, while continuing to monitor short-term outcomes; ensuring that our teams have ownership of their targets, while offering the support they need to meet them; and setting a best practice path globally, while tailoring our approach to local needs and contexts. Our responsibility journey so far has focused on three areas that span our value chain: ethical trading – promoting fair and responsible employment practices; environmental sustainability – reducing our footprint; and community investment – contributing to the communities where we live and work. These were the pillars
  • 9. of our responsibility strategy until now and form the chapters of this report. Our responsibility journey Building on a strong platform developed over 10 years, in 2017 we will launch a new strategy to take us to 2022: bringing together our ethical trading, environmental and community programmes and partnering with leading organisations to deliver positive long-term impact. 2 https://www.burberryplc.com/en/responsibility/policies-and- action-plan.html key milestones We established our global Ethical Trading team in 2004, our Community Investment team in 2008 and our Environmental Sustainability team in 2009. Our responsibility journey has been defined by close collaboration with a global community of sustainability organisations. Some of the first industry initiatives we joined included the Ethical Trading Initiative (ETI) and Leather Working Group in 2010. Since then, key milestones include: Our responsibility journey
  • 10. 2011 Environmental baseline assessment completed. Responsible Sourcing Principles rolled out to all key supply chain tanneries. Multi-year scholarship fund launched with the Royal College of Art. Employee volunteering programme expanded globally. 2012 Environmental impact reduction programme launched, including five-year public targets. Chicago flagship store awarded sustainable building certification (LEED Silver rating), the first of our stores in the Americas and the first retailer in Chicago to achieve this. Youth employability programmes launched by the Burberry Foundation in London, New York and Hong Kong. 2013 Vendor Ownership programme launched to support capacity building in the supply chain. Sustainable cotton farmer training programme started in Peru. Burberry Impact Advisory Committee established, comprising external expert
  • 11. stakeholders from leading NGOs and academia. 3 Our responsibility journey 2014 First human rights impact assessment completed and action plan in place. Adopted the latest Manufacturing Restricted Substances List (MRSL). London headquarter expansion awarded sustainable building certificate (BREEAM ‘Excellent’ rating). 2015 First luxury retailer and manufacturer accredited as a UK Living Wage employer. Ethical trading programme expanded to include beauty and raw material suppliers. Launched Burberry Apprentices programme. Joined the Better Cotton Initiative. Founding partner of the Sustainable Fibre Alliance. Included in the Dow Jones Sustainability Index for the first time.
  • 12. 2016 Energy and water reduction programme in the supply chain assured by Natural Resources Defence Council. Principal Partner of the Living Wage Foundation. Sector leading score for water management in CDP’s annual assessment. Recognised as a Leader in the Ethical Trading Initiative’s 2016 annual assessment. Industry leader in the Dow Jones Sustainability Index in the ‘Textiles, Apparel & Luxury Goods’ sector. Gold distinction in the RobecoSAM Sustainability Yearbook. 2017 Completion of first five-year responsibility strategy. Launch of new five-year strategy for 2017-2022. 4 Delivering our strategy Delivering our five-year strategy has meant building an internal culture that emphasises our values and empowers people to take ownership. Robust and clear lines of governance
  • 13. have been fundamental to achieving this. RESPONSIBILITY GOVERNANCE Our Chief People and Corporate Affairs Officer is responsible for all internal people matters as well as health and safety, ethical trading, community investment and environmental sustainability, and regularly reports on these topics to the Group Risk Committee and the Board. With the launch of our first five-year strategy in 2012, we added a Responsibility Working Group to this structure, made up of senior representatives from across our business. This has been instrumental in embedding targets and delivering improvement programmes over the last five years. RESPONSIBILITY CULTURE We have expanded our Responsibility teams globally and they are now active in London, Hong Kong, Florence and Tokyo. These teams focus on mobilising and supporting our global network of employees and business partners to successfully deliver our targets. We have also started embedding responsibility targets into teams’ performance objectives. This has been key in accelerating improvements, demonstrated by our Architecture team taking ownership of the sustainability agenda and achieving their target (30% of construction waste to be recycled from all major projects by 2017) a year ahead of plan.
  • 14. Our people are our most important asset and in an ever-changing environment we are focused on preserving and nurturing our unique and authentic culture, with a global team mindset, a pioneering spirit and a strong commitment to responsibility at the heart of it. With over 10,000 employees in over 30 countries, we leverage our digital strength to connect teams globally, facilitate continuous dialogue and inspire environmental and social action across the business. We also use Burberry Chat, our internal social media platform, to invite teams to generate and share new ideas and celebrate success stories. Our responsibility journey 5 How our stakeholders have shaped our journey Our responsibility journey has been shaped by the many individuals, organisations and business partners that are affected by or have an interest in how we operate. We actively seek out other organisations who share our commitment to responsibility to create open collaborations within and beyond our sector and help create positive system change. We interact with our customers in our stores and through a variety of digital channels and platforms. We monitor contacts with our Customer Services
  • 15. teams, including the quantity and type of queries we receive in relation to our responsibility programmes. Areas of customer interest include, but are not limited to, animal welfare, charitable commitments, ethical sourcing and environmental sustainability. We regularly review customer feedback in these areas and it informs our programme development and communications plans. We work with our supply chain partners all over the world, taking a collaborative approach to address shared sustainability challenges. Johnstons of Elgin are one of our most strategic partners and have been making Burberry cashmere products for over 100 years. Building on our shared history and values, in 2015 we joined forces and contributed to the establishment of the Sustainable Fibre Alliance, a UK-based charity working with key stakeholders to drive sustainable cashmere production in Mongolia, restoring grasslands, promoting animal welfare and improving the livelihoods of herders and their families. In 2013, we set up the Burberry Impact Advisory Committee, comprising external experts. They play the role of ‘critical friends’, joining the Burberry Responsibility team four times a year to hear progress updates, comment on draft strategies and generally challenge and support the team. In July 2015, we convened a large group of external stakeholders, including experts from academia, NGOs and businesses from a variety of industries, to build external understanding of Burberry’s sustainability work, share plans, invite stakeholders’ input and leverage their collective knowledge and
  • 16. experience in shaping our journey ahead. Stakeholder feedback has subsequently informed our approach to manufacturing excellence, impact reduction, community engagement, and measurement and reporting. BURBERRY IMPACT ADVISORY COMMITTEE – A COLLECTIVE COMMENT ON PROGRESS AND CHALLENGES: “Environmental degradation, pollution, labour exploitation and in-work poverty are not rare exceptions – they are systemic challenges and all businesses need to be aware of the important role they need to play in providing solutions and delivering the ambition of the UN Global Goals. As members of Burberry’s Impact Advisory Committee, we have witnessed a significant evolution in how Burberry approaches corporate responsibility, with environmental and social issues becoming embedded in the business to an unusual degree. As advisors, we have been encouraged by the way in which this has occurred, with a steadily growing level of buy-in from the senior leadership team to the factory floor.The company’s responsibility programmes so far provide a robust platform for the next phase of its journey, which we hope will propel the business into a clear leadership position in sustainability in the global apparel industry, based on a smart combination of its brand reach and commercial leverage. Burberry also recognises increasing stakeholder expectations of transparency and has made clear its commitment via this first public report. We welcome the window on progress that this represents and the internal reflections it will
  • 17. prompt to identify gaps and improve performance. We now look forward to them accelerating their work so we see more positive change for the people involved directly or indirectly in the making of Burberry products, from Yorkshire to Tuscany, Mongolia and beyond, and to challenging the company to go even further in the future.” Mark Sumner, Lecturer in Sustainability, Retail & Fashion, University of Leeds Sally Uren, Chief Executive, Forum for the Future Rachel Wilshaw, Ethical Trade Manager, Oxfam GB Our responsibility journey 6 Making a difference along our value chain RAW MATERIAL SOURCING Promoting sustainable practices at farm level. RAW MATERIAL PROCESSING Promoting sustainable practices in tanneries and mills. MANUFACTURING Promoting sustainable practices
  • 18. and worker welfare in factories. OPERATIONS Operating and building responsibly. UK Living wage accredited employer Energy and water reduction Green building certifications Textile recycling PERU Sustainable cotton programme USA Green building certifications Our responsibility journey 7 Building on our journey so far, the scale of our responsibility initiatives today reflects the global nature of our supply chain. We work with our teams, suppliers and external partners worldwide
  • 19. to tackle diverse social and environmental challenges relating to product manufacturing as well as the sourcing and processing of raw materials. CHINA Energy and water reduction Environmentally certified tanneries Worker health prorgramme Worker hotlines ITALY Energy and water reduction Environmentally certified tanneries Textile recycling INDIA Artisan empowerment Worker health programme THAILAND Energy and water reduction MONGOLIA
  • 20. Sustainable cashmere programme EUROPE AND NORWAY Fur traceability programme GERMANY Environmentally certified tanneries SPAIN Environmentally certified tanneries Our responsibility journey 8 Ethical trading 9 Ethical trading With our ethical trading work evolving year-on-year, we have become increasingly aware that meaningful and lasting impact cannot be achieved by auditing alone.
  • 21. We have therefore gradually shifted our focus from supply chain audits to more in-depth training and engagement activities, empowering our partners to take ownership of sustainability challenges and promote responsibility further down the supply chain. HIGHLIGHTS SINCE 2012 2,744 supply chain audits and assessments completed 65% increase in supply chain training and engagement activities since 2013 Significant positive shift in ethical trading performance by our apparel and non-apparel partners and greater vendor ownership of sustainability challenges. First luxury manufacturer and retailer to be accredited as a UK Living Wage employer in 2014, becoming a Principal Partner of the Global Living Wage Initiative in 2015. WHAT WE HAVE LEARNED – A collaborative, capacity-building approach with suppliers and stakeholders is more effective than a compliance-driven approach, as it drives longer-term change. – Conducting our own audits, as opposed to using third parties, allows for more direct
  • 22. insights and creates stronger engagement. – While consistent global standards are fundamental to success, the ways in which these are implemented should be tailored to different cultures. – A sustainable supply chain requires auditing, engagement and interventions far beyond finished goods factories, all the way to raw materials suppliers. 2016/17 2015/16 2014/15 2013/14 234 217 205 142 Number of training and engagement activities in the supply chain 10 A programme
  • 23. with breadth and depth After expanding in 2015 to cover key raw materials and beauty suppliers, today our ethical trading programme is more comprehensive than ever. It covers all our finished goods’ vendors and sub-contractors and focuses on creating enduring value through improved production processes, workplace conditions and employment practices. Ethical trading Our trading activities are guided by our Responsible Business Principles, which include our Ethical Trading Code of Conduct and Responsible Sourcing Policy. Whenever we look to work with a new supply chain partner or material, we have procedures and processes in place to assess potential risks and evaluate new partners or materials against consistent ethical trading standards and responsible sourcing criteria. We carry out announced and unannounced audits of our supply chain partners and work with them to identify areas for improvement, implement new initiatives and monitor progress – to ensure compliance with local and international labour and environmental laws as well as Burberry’s Responsible Business Principles. While audits are mostly conducted by our Responsibility team, targets for the implementation of ethical trading standards and responsible sourcing criteria sit with relevant Supply Chain and Sourcing teams.
  • 24. BUILDING CAPACITY WITHIN OUR SUPPLY CHAIN We are committed to fostering a culture of ownership across our supply chain that will drive positive change beyond our audit programme. Since 2012, we have seen a positive shift in ethical trading performance among our apparel and non-apparel partners and are therefore increasingly focusing on capacity-building initiatives to complement our ongoing audit programme. Examples include: 2012: Workers’ access to remedy To ensure appropriate access to grievance mechanisms, in 2012 we set ourselves a target of introducing a confidential, NGO-run hotline in 100% of finished goods factories with regular production in China. This target has been achieved and today over 27,000 workers have access to confidential support. This includes factories of our licensees in the country. 2013: Vendor ownership programme We developed this in collaboration with our strategic Italian vendors, to build their ability to manage working conditions at their sub-contractors and introduce their own ethical trading monitoring programmes. 2013: Factory improvement programmes Our Responsibility team in Hong Kong works closely with vendors across Asia to conduct a thorough analysis of working hours, retention, wages etc. and drive improvements in productivity, efficiency, employment practices and working conditions. 2014: Skills enhancement and preservation We rely on and are passionate about championing
  • 25. crafts and craftsmanship. In 2014, we partnered with key industry peers and expert organisations to pioneer an innovative programme in India to support and enhance artisanal embroidery skills and ensure workers are recognised and rewarded for them. 2015: Workers’ welfare and health programmes We have partnered with Business for Social Responsibility’s HERproject and local specialist academic institutions, including the medical faculty at Sun Yat-sen University, to implement tailored welfare and health programmes in several supply chain factories across Asia. “The Vendor Ownership Programme has had but positive impacts, starting from the strengthening of our management systems to higher consciousness and better understanding of the risks in the supply chain as well as how we can mitigate them through the audits. This is a benefit to not only us but also our entire supply chain. Our initial fear to do all this by ourselves was immediately overcome, thanks to the continuous support provided by the Burberry Responsibility team.” Feedback from an Italian vendor involved in Burberry’s Vendor Ownership programme, launched in Italy in 2013 11 Human rights We are committed to respecting human rights in our supply chain and advancing the global
  • 26. agenda. In 2014, we worked with specialists to conduct a human rights impact assessment along our value chain and develop a Human Rights Policy. Since then we have partnered with a range of stakeholders to embed and promote global standards. Our impact assessment in 2014 confirmed many priority areas we were already working on, such as labour rights in our supply chain, but also identified potential risk areas we had not prioritised before. We introduced mitigation actions accordingly and reviewed our initial assessment in 2016 to capture any new or emerging risks. Mitigation actions arising from this second assessment have been reviewed by Ergon, a specialist consultancy in this field, and discussed with Oxfam, a globally renowned aid and development charity. Our Human Rights Policy aligns with the UN Guiding Principles on Business and Human Rights, International Bill of Human Rights and the Core Conventions of the International Labour Organization. We are also a signatory of the UN Global Compact and a member of the Ethical Trading Initiative. Both of our impact assessments highlighted our responsibilities towards four key stakeholder groups: our people, workers in our supply chain, our customers and our communities. Our employees – In 2015, we became the first luxury retailer and manufacturer to achieve accreditation as a UK Living Wage Employer.
  • 27. Continuing our support for the Living Wage Foundation, in 2016 we joined the steering group of the Global Living Wage Initiative, to discuss harnessing the increasing interest in order to address in-work poverty across all sectors and multiple geographies, as part of a unified, global approach with multi-stakeholder participation. Workers in our supply chain – Our Responsible Business Principles, which all Burberry suppliers must commit to, include our Ethical Trading Code of Conduct, as well as policies around migrant workers and home working. The 2014 human rights impact assessment highlighted worker health in leather tanneries and worker welfare in construction as key areas to prioritise. We have since been working on several initiatives to raise internal awareness and work with supply chain partners to protect workers’ rights in these areas. Our customers – We interact with our customers both in our stores and through our digital platforms. We have assessed potential impacts of our products and services on customers’ human rights and developed policies and mechanisms to address these. Burberry employees globally are trained to protect customer safety and welfare in relation to product and their store experience. Our communities – We are committed to respecting the human rights of the communities around our stores and offices and along our global supply chain. We have a mechanism for local community stakeholders to provide any feedback relating to our operations or activities, so that we may address and remedy these as appropriate and in a timely manner.
  • 28. In 2015, we convened a human rights training event in London, for our own employees as well as peers from 12 other brands, designed to explore complex human rights challenges in the supply chain. In response to Section 54 of the Modern Slavery Act, in 2015 we produced our first Modern Slavery Statement. It was recognised in October 2015 within the top five companies in Business and Human Rights Resource Centre’s analysis of the FTSE100’s disclosure under the Act. Ethical trading 12 https://www.burberryplc.com/en/responsibility/policies-and- action-plan.html https://www.burberryplc.com/en/responsibility/policies-and- action-plan.html Environmental sustainability 13 Environmental sustainability We are committed to reducing both our direct and indirect environmental footprint and therefore our contribution to climate change. In 2012, following
  • 29. an independent baseline assessment, we set out to improve energy, water and waste management at our own offices, stores, manufacturing and distribution sites, as well as across our supply chain. HIGHLIGHTS SINCE 2012 77% of leather used in our accessories today comes from certified tanneries 33% of energy saved at our five key distribution centres (normalised) 18% reduction in water use at key mills (normalised) Banned the use of per- and polyfluorinated compounds (PFCs) from our supply chain. WHAT WE HAVE LEARNED – To create long-term, sustainable change we need to take a holistic approach, addressing environmental, social and economic challenges, collectively. – Introducing environmental targets into individuals’ objectives has been a key driver in achieving positive results and embedding environmental responsibility into our ways of working.
  • 30. – Moving from micro-solutions to system change requires genuine collaboration across brands, industries, manufacturers, NGOs and governmental organisations. 14 Environmental innovation at our sites In the past five years, we have steadily optimised how we use energy and resources across our sites. We have also made strides in sourcing renewable energy and transforming garment waste back into useful products. Progress has been made possible by engaging our teams in owning and driving environmental targets across the business. Environmental sustainability ENERGY AND CARBON Energy used in our stores represents approximately 75% of our direct (scope 1 and 2) greenhouse gas emissions. Since 2012, we have therefore focused on increasing our stores’ energy efficiency and renewable energy use. By 2014 all Burberry new builds and full store retrofits included low-energy LED lighting as standard and we have surpassed our target of 75% LED coverage in new concept stores, achieving over 95%. In addition, we have rolled out
  • 31. real-time energy monitoring systems in selected stores, introduced maintenance controls and have started adding energy KPIs to retail teams’ objectives and performance reviews. RENEWABLE ENERGY All our offices, stores, warehouses and internal manufacturing sites in the UK and Italy, as well as 25 office and retail locations in the Americas, are powered by renewable energy. This includes solar panels installed at our UK head office, US distribution centre and flagship stores in Beverly Hills and San Francisco, which generate over 1 million kWh of solar energy a year. With access to renewable energy proving a challenge in some locations, we will continue to use our leverage to encourage energy providers to meet our demand for renewable energy across our locations worldwide. TRANSPORT Our carbon emissions have increased by 10% per unit since 2012. Despite this result we have made good progress to address the carbon emissions associated with the movement of products by implementing a box consolidation project. However, business changes to delivery times and transport routes have mitigated any positive results from the box consolidation work. We will continue to target volume reduction opportunities, review transport modes and increase our efforts to engage transport carriers on sustainability. WASTE AND RECYCLING
  • 32. Over the past five years, we have significantly increased our efforts to reduce, reuse and recycle our waste. For example, we set ourselves a target of recycling 30% of construction waste from all our major building projects by 2017. We hit this target a year ahead of time and now divert 87% of construction waste away from landfill. We attribute this primarily to the proactive role played by our construction teams and their contractors and we will look to replicate this strong internal engagement with other teams. At our head office in London, 100% of food waste is sent to an anaerobic digester where it is turned into bio-fertiliser or biogas for the energy grid. TIMBER At the end of our five-year strategy, we can report that over 83% of wood used in our furniture, flooring and in-store fixtures is certified to come from responsibly managed forests. Furthermore, all the paper used in our retail packaging comes from certified sources and the baseboards are made from 100% post-consumer waste. SUSTAINABLE BUILDING CERTIFICATIONS We have achieved BREEAM, LEED, G-SEED or equivalent green building standards for all our new-builds since 2012. 15
  • 33. Environmental sustainability Resource efficiency in manufacturing We extend our resource efficiency principles to our supply chain, working with business partners to minimise the use of energy, water, chemicals and raw materials and reduce their environmental impacts. As a business, we identify and review our key supply chain partners on a regular basis, considering criteria such as volume, value, unique capabilities, investment in research and development and transparency, as well as their commitment to Burberry’s social and environmental standards. Starting with key partners, over the past five years we have rolled out an energy and water reduction programme to 27 suppliers. ENERGY AND WATER Working in partnership with environmental organisations has been fundamental in driving improvements across our supply chain. For example, in 2015 we engaged key supply chain partners in using the Sustainable Apparel Coalition’s Higg Index to assess and benchmark their energy and water consumption. 115 suppliers have trialled the Higg Index, with 20 going on to participate in an impact reduction programme based on the Natural Resource Defence
  • 34. Council’s ‘Clean By Design’ principles. Most of our water footprint relates to raw material production and processing, including washing and dyeing. We are using World Wildlife Fund’s Water Risk mapping tool to identify suppliers in water- stressed areas and the Aqueduct Water Risk Atlas to understand potential future strains on water resources and risks in our supply chain. CHEMICALS In 2012, we set out to eliminate the use of chemicals that may have a negative environmental impact, beyond legal limits. In line with this, in 2015 we adopted the latest Manufacturing Restricted Substances List (MRSL), released by the Zero Discharge of Hazardous Chemicals group, with an addendum banning the use of PFCs. We have set clear standards and guidelines for our supply chain partners and continue to provide training and support to help with the process of elimination. For example, we have created an MRSL Implementation Framework to help our partners implement and assess chemical management progress internally and with their upstream supply chain. We have created a community of chemical managers across our supply chain to share best practice. We carry out testing of effluent, product, raw materials and chemical formulations and have recently worked with an external platform provider to develop a chemical inventory tool, which will host
  • 35. chemical formulation data and enable our supply chain partners to effectively manage their chemical usage. We provide regular, public updates on our chemical work, including substitutions and testing results, to share insights and experience in this field and support other industry partners in their efforts. Further details are available at www.burberryplc.com. WASTE We are committed to generating less waste. When waste does occur, and reuse is not possible, we look to partner with innovative organisations that can repurpose it. In the UK, we work with Avena Environmental and John Cotton Group to recycle damaged garments into insulation materials. In Italy, we are partnering with Resmal and Greenline to recycle pre-consumer textile waste into re-engineered Re.Verso™ yarns and automotive insulation materials. In 2016/17, 44 of our Italian supply chain partners have recycled over 46 tonnes of textile waste. 16 Sustainable raw materials As part of an independent baseline assessment in 2012, we identified that over half of our environmental impacts arise during raw material
  • 36. production. Consequently, we set several public targets to reduce our impacts throughout the supply chain, starting with our key materials – cotton, cashmere and leather. Environmental sustainability COTTON Cotton has always been a key raw material for Burberry, but its production and global demand have substantially changed since we first manufactured gabardine. Today, conventional cotton farming can have significant environmental and social impacts, which we are committed to address to secure a sustainable cotton supply chain for the future. Our work with CottonConnect in Peru is one example of how we work with specialists to drive improvements. COTTON FARMER SUPPORT PROGRAMME IN PERU In 2013, we started working on these issues in Peru, where we have been sourcing cotton for over 30 years. In partnership with our local supplier and CottonConnect (an organisation specialising in promoting sustainable cotton farming), we introduced a three-year farmers’ training programme to encourage and support Peruvian farmers to adopt more sustainable practices. Now, at the end of the programme, farmers are reporting a 14% yield increase, 69% chemical pesticide decrease, 73% increase in natural fertiliser use and 100% increase in use of protective equipment, as well as a 2%
  • 37. decrease in both input costs and irrigation usage (compared to a group of control farmers who have been monitored by the same CottonConnect team for consistency). After year 1 After year 2 After year 3 Chemical pesticide use -63% -68% -69% Yield -3% 16% 14% Profit -3% 19% 18% Use of PPE* 0% 2% 100% * Personal Protective Equipment (Percentages compared to a control group of farmers not involved in the programme) “With training and support, we have managed to achieve a great cotton season. Thanks to the timely implementation of pheromone traps we have managed to monitor and control a very dangerous pest and our cotton looks incredibly healthy and white as a result. I haven’t seen such a white colour in cotton for years in the region.” Feedback from a farmer involved in the Burberry and CottonConnect farmers’ training programme in Cura Mori District, Piura, Peru 17 Environmental sustainability CASHMERE
  • 38. A major production centre of global cashmere supply is the Mongolian Steppe, where changing climatic conditions and an increasing global demand for cashmere is putting pressure on an already fragile ecosystem. In 2015, we became a founding partner of the Sustainable Fibre Alliance (SFA), a UK-based NGO working with key stakeholders in Mongolia to improve the sustainability of cashmere production in the region. The SFA has piloted Animal Welfare and Land Management Codes of Practice during 2016/17 in Mongolia and work is underway with communities on the ground to monitor vegetation cover, biomass, biodiversity, soil moisture and texture across 35 winter camps, and we are now exploring the possibility of remote sensing for continuous monitoring. LEATHER Observing that the production of our leather accessories accounted for more than 10% of our total greenhouse gas emissions, in 2012, we set out to address energy, water and chemical consumption within our leather supply chain. Today, 77% of leather used in our accessories comes from tanneries certified by either the Leather Working Group, the Institute of Quality Certification for the Leather Sector or the ISO 14001 environmental management standard. In addition, as part of our tannery improvement programme, we have engaged directly with three tanneries in Europe and Asia to improve their environmental and social performance. Beyond tanneries, we have begun working with several key organisations in Italy to engage industry stakeholders, improve the traceability of leather and
  • 39. actively address impacts and responsibilities, while at the same time investigating alternative routes for the end of life of both finished and semi- finished leather. PACKAGING In 2012 we started work to ensure 100% of point-of-sale packaging is sustainably sourced (where available). Today, 100% of paper and baseboard used in our mainline and concession retail packaging comes from certified sources. Furthermore, all baseboard and ribbon are made of 100% recycled materials. RESPONSIBLE SOURCING Our Responsible Sourcing Policy is communicated to all supply chain partners and reflects our commitment to preserving natural resources, ensuring animal welfare and protecting people and communities. Exotic skins – We work with key stakeholders to promote the conservation of biodiversity and the sustainable use of sensitive raw materials, such as exotic skins, by the fashion industry. We support industry efforts to make value chains more transparent and increase traceability of materials from their origin. We have a dedicated expert customs team responsible for managing compliance with CITES. Down – The Responsible Down Standard, developed by Textile Exchange in 2014, sets strict criteria to ensure bird welfare from hatching to slaughter.
  • 40. We work with supply chain partners to complete an annual self-declaration of humane practices and to increase the percentage of certified down in our products. Fur – The fur we use in our products is only sourced from regulated farms in the EU and Norway and we have a well-established fur traceability programme. We have undertaken extensive work with our peers and other stakeholders to help promote third-party certification of European fur farms. We have also engaged agricultural husbandry and welfare experts to support the development of species specific welfare protocols. We are a founding member of the BSR coordinated Fur Luxury Industry Roundtable, working with key industry stakeholders to further enhance welfare standards and traceability systems in the fur value chain. Wool – We work closely with Textile Exchange, our peers and the wool industry to promote the Responsible Wool Standard, which recognises best practices of wool growers both in relation to sheep welfare and environmental management. The standard ensures that wool comes from responsibly treated sheep and from farms with a progressive approach to land management. 18 Community investment 19
  • 41. Community investment Since 2010, we have been donating 1% of Group adjusted profit before tax to charitable causes, with a particular focus on youth charities that nurture emerging creative talent. Empowering employees worldwide to support the neighbourhoods where they live and work has been fundamental in how we target and maximise social value. HIGHLIGHTS SINCE 2012 £22.3m donated to charitable causes 44,000 working hours dedicated by our employees to impactful community projects 15,000 garments donated to disadvantaged young people enrolled in employability programmes WHAT WE HAVE LEARNED – Community needs and solutions vary from place to place, calling for a focused but flexible approach. – Employee engagement is key to success, from understanding local community needs
  • 42. to implementing solutions and sharing impact stories. – Measuring real impact is complicated but critical – it helps us understand our target beneficiaries and where we can make the greatest difference, as well as the success measures we need to track progress. – Corporate philanthropy has changed over five years. There is a need to ensure strategic positioning of community investments to maximise impact. 20 Targeting our impact Our focus on employability and youth over the last five years stems from our long-standing passion to nurture the creative talent of the future. Most of our charitable efforts have therefore been dedicated to inspiring and supporting young people to achieve their potential, through financial support, employee time and in-kind donations. Community investment INVESTING IN CREATIVE TALENT OF THE FUTURE Each year we donate 1% of Group adjusted
  • 43. profit before tax to charitable causes worldwide, including disaster relief, sponsorships, scholarships and charity events. A large proportion is channelled through the Burberry Foundation, which over the past five years so far has focused on youth employability and creativity. Since its launch in 2008 the Foundation has supported over 40 youth charities, directly and indirectly impacting the lives of over 150,000 young people around the world. Charity partners over the last five years have included: City Year, IntoUniversity and The Prince’s Trust in the UK; Brooklyn Community Services, Future Now, Good Shepherd Services and the Robin Hood Foundation in the USA; and Changing Young Lives Foundation and Junior Achievement in China. From 2012 to 2016, the Foundation ran its own employability programme, giving young people from disadvantaged backgrounds the opportunity to work with Burberry for six to eight weeks and develop key workplace skills and enhance their creative thinking and problem-solving through work experience and one-on-one mentoring with our teams. Nearly 500 young people took part in the programme over the four years. Building on this experience and the success of this programme, in September 2015 we launched our Apprenticeship Programme, offering young people the opportunity to join Burberry on a year-long development programme. BURBERRY APPRENTICES In 1856, Thomas Burberry, an idealistic 21-year-old former apprentice, created an enduring legacy that continues to drive innovation in design manufacturing, technology and
  • 44. retail. We aim to perpetuate this spirit and facilitate the development of coming generations of young talent, innovators and craftspeople. Our ambition is to provide exciting new opportunities for the growing number of underemployed young people, to help them develop key skills, confidence and experience required to build careers in the creative industries and beyond. We believe this new generation of creative talent will enrich our business and culture whilst helping to safeguard the future of our wider industry. The first cohort of Burberry apprentices graduated in September 2016, with 90% of participants completing the programme and benefiting from development opportunities in traditional craftsmanship, luxury retailing and business operations. We are now preparing to enrol our 130th person onto an apprenticeship qualification. “I believe that I have improved in a lot of my personal skills such as my confidence and communication. This has helped me grow as an individual and has helped me reach for success for the future.” Burberry Apprentice, on the programme from September 2015 to September 2016 21 GIVING OUR TIME Our employee volunteering programme has grown significantly over the years. The initiative started
  • 45. in 2011, offering employees in London, New York and Hong Kong the opportunity to get involved with Burberry Foundation partners and support Foundation-sponsored programmes in those cities. Today the programme is more flexible and enables employees worldwide to support local charities of their choice. Thanks to increased local ownership, participation in the programme trebled by 2016, when nearly 30% of employees in over 70 cities dedicated over 12,000 hours to community projects and fundraising initiatives. Today, employees worldwide are offered up to three working days a year to volunteer. Activities range from career inspiration events, employability workshops and long-term mentoring programmes, to charity events and community revitalisation projects. In addition to benefiting communities, we believe that employee volunteering strengthens teams, enhances workplace skills, builds community connection and contributes to employee motivation and personal fulfilment. GIVING IN KIND Our in-kind donations range from one-off gifts of non-trademark fabric and materials to assist young people on creative courses, to donations of smart business clothing to support vulnerable people enrolled in employability programmes and preparing for interviews. Since 2008, we have donated nearly 15,000 items of smart business clothing to charities in London, New York and Hong Kong, to enhance their employability programmes and help provide
  • 46. their clients with an extra boost of confidence as they work hard to change their lives around. Community investment 22 Progress against targets 23 PERFORMANCE OVERVIEW PRODUCT 2017 Targets 2016/17 Progress Results Cotton Improve the environmental and social impacts of how we source cotton. Burberry started procuring Better Cotton through the Better Cotton Initiative (BCI). The BCI trains farmers to use water efficiently, care for the health of the soil and natural habitats, reduce use of the most impactful chemicals and promote decent work. In Peru, a three-year farmers’ training programme came to
  • 47. completion in March 2017, with farmers reporting a 14% increase in yields and lower environmental impacts, such as a 69% reduction in chemical pesticide use. Farmers also reported a reduction in irrigation, as their practices are becoming more water efficient. ACHIEVED^* Cashmere Improve the environmental and social impacts of how we source cashmere. Burberry is a founding member of the Sustainable Fibre Alliance (SFA), a UK-based NGO working in Mongolia to restore grassland, promote animal welfare and work towards a decent living for cashmere goat herders. The SFA has piloted Animal Welfare and Land Management Codes of Practice during 2016/17 and work is underway to monitor vegetation cover, biomass, biodiversity, soil moisture and texture across 35 winter camps. ACHIEVED* Leather Reduce the environmental impact of leather. Burberry is working with its accessories supply chain to
  • 48. increase the proportion of leather originating from tanneries with Leather Working Group Certification or approved alternative certifications. Burberry has also worked to improve water, energy and chemical consumption and improve leather traceability to slaughter house and farm level. In 2016/17, 77% (in m²) of leather used in accessories was sourced from tanners certified by either the Leather Working Group, the Institute of Quality Certification for the Leather Sector or the ISO 14001 environmental management standard. ACHIEVED^* PVC Reduce the environmental impact of PVC. Burberry has eliminated phthalates from all the PVC that it uses. The use of PVC within the business has significantly declined, to the extent that the largest accessories category (by volume) no longer contains any PVC articles. Burberry continues to research alternatives to PVC in key lines and is working with major suppliers as well as the wider industry to develop alternative materials that have a markedly reduced impact on the environment whilst retaining their performance and quality criteria. NOT ACHIEVED
  • 49. Chemical use in manufacturing: Eliminate chemicals from use that have a negative impact on the environment, beyond legal limits. Burberry continues its efforts to eliminate chemicals in the supply chain through a wide range of activities including regular testing of effluent, products and raw materials, and publicly reports on progress. The Company has also worked closely with its supply chain partners to create a community of chemical managers to share knowledge and assist in upskilling others in the supply chain. In addition, Burberry has been active in the research and analysis of new alternatives, as well as piloting the testing of new chemical formulations and making substitutions. ACHIEVED^* Packaging: 100% of point of sale packaging to be sustainably sourced (where available) 100% of paper and baseboard used in Burberry’s mainline and concession retail packaging comes from certified sources. Furthermore, all baseboard and ribbon are made of 100% recycled materials.
  • 50. ACHIEVED^ Performance against our 2017 targets is outlined below. Whilst some targets have not been fully achieved, key successes and learnings from the past five years have proven invaluable in shaping our ambitions going forward. Our new strategy for 2022 is focusing on addressing the most material issues, transforming internal governance, developing innovative partnerships and demonstrating real impacts on workers, communities and the environment. Further details will be available at www.burberryplc.com in June 2017. 24 http://www.burberryplc.com/en/responsibility/policies-and- action-plan.html#tabbedcontentitem_0 PERFORMANCE OVERVIEW PROCESS 2017 Targets 2016/17 Progress Results Internal manufacturing Reduce the energy use from Burberry’s two UK manufacturing sites by 25%**.
  • 51. Burberry owned manufacturing sites in Yorkshire UK have faced several challenges in achieving energy saving targets. Challenges have included, for example, building infrastructure limitations, the influence of weather and fluctuating production volumes. This combination of factors has resulted in only a 15% energy reduction at Burberry Mill and a 7% increase at Burberry’s factory in Castleford. NOT ACHIEVED* Suppliers Work with key suppliers to assist them in reducing their energy use by up to 20%** Working in partnership with the Natural Resource Defence Council (NRDC), Burberry increased its efforts to reduce energy and water use in the supply chain, by implementing an NRDC assured programme at 9 key water consuming facilities, and an adapted programme at a further 10 key facilities that do not rely as heavily on water. This programme is delivered by Burberry team members directly and is modelled on the NRDC ‘Clean By Design’ programme, which aims to identify simple ways to reduce pollution and cut water, chemical, and energy use whilst saving money. In 2016/17, over 40 site visits allowed Burberry’s team to
  • 52. deliver technical support to 19 facilities and support their efforts on these ambitious targets. Moderate progress was achieved against the energy target, with a 5% reduction in energy use at 19 facilities, whilst significant progress was realised against the water target, with an 18% reduction in water use across 9 facilities. NOT ACHIEVED^* Mills Work with key mills to assist them to reduce their water consumption by up to 20%**. The Company has streamlined its efforts to reduce energy and water use in the supply chain to achieve maximum impact. This combined approach is described in more detail above, as part of the ‘Suppliers’ target. While the water target of 20% reduction has not been fully achieved, significant progress has been made in this area, with an 18% reduction in water use across 9 key facilities. NOT ACHIEVED^* Transport: Reduce carbon emissions from the transport of Burberry
  • 53. products by 10%**. Burberry’s carbon emissions have increased by 10% per unit. Despite this result, Burberry has made progress in addressing the carbon emissions associated with the movement of products by implementing a box consolidation project. However, business changes to delivery times and therefore transport routes have mitigated any positive results of the box consolidation project. In the coming year, Burberry will continue to target volume reduction opportunities, review transport modes and increase its efforts to engage transport carriers on sustainability. NOT ACHIEVED^ Distribution centres: Reduce energy use in Burberry’s five key third-party distribution centres by 10%**. As well as achieving a normalised reduction of 33% against base years (these vary, depending on opening dates of distribution centres), Burberry’s five key distribution centres have accomplished an absolute reduction of 11% against last year. This is mainly due to energy efficiency measures, including the implementation of LED lighting and light motion sensors, and the fantastic engagement of onsite teams.
  • 54. ACHIEVED* Key: Target achieved. Target nearly achieved (good progress made). Target not achieved (disappointing progress made, but important lessons learnt). Progress against targets ^ Selected information denoted by this symbol has received limited assurance by Ernst & Young LLP. * Carried forward with increased ambition in new strategy. Other targets have been incorporated into the Company’s way of working. ** When normalised by a relevant productivity factor. 25 PERFORMANCE OVERVIEW PROPERTY 2017 Targets 2016/17 Progress Results Energy consumption: Reduce Burberry
  • 55. controlled store and office energy usage by up to 15%**. Overall, a 5% reduction was achieved across stores and offices. This does not meet targets set in 2012, but increased efforts are planned in this area for the future, in recognition of limited performance so far. Digital monitoring equipment and in-store energy audits have enabled Burberry to identify and implement several in-store energy-saving opportunities during 2016/17. At its London headquarters, the Company has achieved a 14% reduction in absolute energy usage against its base year of 2012. Please see Burberry’s 2016/17 Annual Report (page 51) for more details on energy use and CO 2 e emissions during 2016/17. NOT ACHIEVED^* Sustainable consumables: 60% of office consumables to be sustainably sourced (where available). Whilst office consumables represent a very small proportion of Burberry’s environmental impacts, the Company is committed to driving
  • 56. employee engagement and improvements in corporate offices globally. In 2016/17, 48% of all office consumables in corporate offices globally were sustainably sourced. Given that the scope of this target was increased half way through the five- year period and the relatively limited availability of recognised sustainable sources in some high-volume categories, this progress is significant, with half of Burberry’s suppliers providing 100% sustainably sourced products. NOT ACHIEVED Renewable energy: All Burberry controlled stores and offices to be powered either by on-site or green tariff renewable energy (where available). Burberry increased procurement of renewable energy across operational sites including retail, offices, warehouses and internal manufacturing. Overall, electricity covering 53% of global square footage is either generated on site or comes from renewable sources. This includes energy generated by solar panels installed at its UK head office, US distribution centre and flagship stores in Beverly Hills and Rodeo Drive, which provide over 1 million kWh of clean energy a year. Burberry faces a challenge in procuring renewable energy, with a proportion of sites
  • 57. in locations where there are no renewable alternatives available, despite significant investigation. The remaining sites, with renewable alternatives available but not adopted yet, have been delayed largely due to existing contractual terms that are yet to expire. NOT ACHIEVED^* Build certification: All new builds to be sustainable build certified. This target has been achieved, with all recent and planned new builds already certified or awaiting confirmation of certification. ACHIEVED Construction materials: 30% of wood, by spend, is either recycled materials or sourced from certified supply chains. In 2016/17, over 80% of the wood used in Burberry’s furniture, flooring and in-store fixtures came from certified, responsibly-managed forests. Crucially, Construction teams have engaged with wood suppliers to ensure their full understanding of and
  • 58. engagement with this important work, and they consider suppliers’ ability to meet these requirements as part of their overall performance evaluation. ACHIEVED Construction waste: 30% of construction waste to be recycled for global major projects. In partnership with its contractors, Burberry has gone above and beyond its initial target, reaching an 87% waste recycling rate across all major construction projects for the last two years. ACHIEVED LED lighting: 75% of lighting to be LED or energy efficient in new concept stores. Burberry has surpassed this target, reaching over 95% LED lighting fixtures in all new builds and full store refurbishments over two years ago. ACHIEVED Progress against targets 26
  • 59. https://www.burberryplc.com/content/dam/burberry/corporate/In vestors/Results_Reports/2017/AnnualReport/Burberry_AR_2016 -17.pdf ETHICAL TRADING PROGRAMME Focus area 2016/17 Progress Auditing tier 1, tier 2 and selected tier 3 suppliers Burberry’s Ethical Trading Programme comprises announced and unannounced audits, monitoring and improvement programmes. With the programme evolving year- on-year, the Company has focused on how it can make the most meaningful, positive impacts on the lives of people throughout its supply chain, rather than increasing the number of audits. Auditing remains, however, an important tool to help Burberry and its manufacturers identify areas in need of improvement. 2016/17 2015/16 2014/15 477^ 548 541 477
  • 60. Number of audits and assessments Building capacity of workers and management in the supply chain Burberry has continued to build and enhance supply chain partnerships to drive positive, long-lasting change. Improvement programmes have been implemented across its supply chain to support factories in building stronger human resource management systems; reducing working hours; sustaining and enhancing unique knowledge, skills and expertise; and providing access to confidential grievance mechanisms. 2016/17 2015/16 2014/15 234^ 217 205 234 Number of training and engagement activities Driving performance improvements at finished goods’ manufacturers
  • 61. Results of the 2016/17 audits show an overall positive shift in ethical trading performance by the Company’s apparel and non-apparel partners. New manufacturers who did not meet key requirements as outlined in Burberry’s Ethical Trading Code of Conduct were not accepted into the Company’s supply chain, others were found to meet key requirements but were asked to implement further improvements. Ready to Wear, Accessories and Shoe Supply Chain^ Rejected Acceptable with improvements Satisfactory 2015/16 (second half) 2016/17 (first half) 1000 10 20 30 40 50 60 70 80 90 2016/17 (second half) External assurance of corporate responsibility disclosures Burberry appointed Ernst & Young LLP to provide limited external assurance over reported performance against selected environmental targets, and selected 2016/17 environmental and ethical trading performance data. The statements and data that formed part of the review are denoted with a ^ on pages 24 to 27. The full independent assurance statement and Burberry’s basis of reporting are available at www.burberryplc.com. Contacts Email: [email protected] Email: [email protected]
  • 62. PERFORMANCE OVERVIEW 27 28 Running head: BURBERRY LEADERSHIP ETC… 1 BURBERRY LEADERSHIP ETC… 12Burberry Leadership Missteps and the Course to Get Right Ashley (add last name) Abstract [The abstract should be one paragraph of between 150 and 250 words. It is not indented. Section titles, such as the word Abstract above, are not considered headings so they don’t use bold heading format. Instead, use the Section Title style. This style automatically starts your section on a new page, so you don’t have to add page breaks. Note that all of the styles for this template are available on the Home tab of the ribbon, in the Styles gallery.] Keywords [Click here to add keywords.] Table of Contents Contents Abstract 2 Burberry Leadership Missteps and the Course to Get Right 5 Problem Statement 5 [Heading 2] 5 [Heading 3]. 5 Concept 6 [Heading 2] 6
  • 63. [Heading 3]. 7 Analysis 7 [Heading 2] 7 [Heading 3]. 8 Recommendations 8 [Heading 2] 8 [Heading 3]. 9 Evaluation 9 [Heading 2] 9 [Heading 3]. 9 Learning 10 [Heading 2] 10 [Heading 3]. 10 References 12 Footnotes 13 Tables 14 Figures title: 15 Burberry Leadership Missteps and the Course to Get Right [The body of your paper uses a half-inch first line indent and is double-spaced. APA style provides for up to five heading levels, shown in the paragraphs that follow. Note that the word Introduction should not be used as an initial heading, as it’s assumed that your paper begins with an introduction.]Problem Statement A brief statement of a specific management related problem in a particular organization. Identify the cost, financial and others, of the organization not solving this problem. This is the most important and most difficult section of the paper and provides a foundation for the balance of the paper. Create a compelling argument on behalf of your view of the problem. Conclude this section with a clear question that you wish to answer through this paper. Write this question in the form of an open-ended question rather than one that can be answered with a yes or no. How well you answer this question becomes a key criterion for
  • 64. evaluating each of the next three sections. [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year)[Heading 5].Concept Description of a concept chosen from the required readings (course text book) and how you expect this concept to help you successfully complete this analysis. Include a statement about why you believe this concept will help you answer your question. Present your concept in a form that will be useful in framing the analysis. (Do not present all you know about the concept. Demonstrate your knowledge of the concept and its elements by the effective way you present how you will use the concept to answer your question). Reflect in this section as to how this concept will provide a more useful view of the problem by pondering: What questions do you want to ask using the concepts which will help you answer your question? This is the section where journal articles can help you better understand your chosen concept and/or how to use them for analysis. Consider this section as your plan of action – what steps will you take to complete your analysis? This is not the section to provide descriptive information about your organization. [Heading 2]1 [To add a table of contents (TOC), apply the appropriate
  • 65. heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year)[Heading 5].Analysis Systematically ask the concept-framed question developed in the previous section to learn what is being done well and what could be improved. Answer your questions and draw conclusions from your answers. Do not introduce additional concepts in this section. If an additional concept is valuable, integrate it in a revised concept section. End this section with a list of conclusions you have drawn from your analysis. Collectively, these conclusions should directly answer your open-ended question and provide a foundation for your specific, actionable recommendations. In summary, this analysis section should be an execution of your plan developed in your concept section. [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just
  • 66. add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year)[Heading 5].Recommendations From what you have learned in your analysis, make recommendations for specific action that would improve the handling of the situation. These should address the problem presented in the first section. A definite thread should be seen from the question to the concept to the analysis to your recommendations. They should be readily identifiable, not buried in the midst of paragraphs. Remember, as a manager, you are expected to be able to understand situations and determine specific action to take. This is where you demonstrate you can identify specific, actionable recommendations. The work in the paper, to this point, should have created a compelling argument on behalf of your recommendations. [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year)[Heading 5].Evaluation The fifth section of this paper is the opportunity for you to review your problem-solving process. In what ways did you find your definition of the problem useful in solving it? What were the strength and weaknesses of your choice of concepts? How well were you able to use an integration of the two chosen concepts to frame your analysis? How might you have
  • 67. integrated them differently? Is there another concept or two that might have been equally or more useful? Which ones and why? In what ways were you able to draw new conclusions about the problem through using this process? [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new paragraph for the subheading and its text.] (Last Name, Year)[Heading 5].Learning The final section to this paper is not a typical conclusion. Do not summarize your paper. That is not necessary. Write a brief statement about what you learned about leadership from completing this assignment. [Heading 2]1 [To add a table of contents (TOC), apply the appropriate heading style to just the heading text at the start of a paragraph and it will show up in your TOC. To do this, select the text for your heading. Then, on the Home tab, in the Styles gallery, click the style you need.][Heading 3]. [Include a period at the end of a run-in heading. Note that you can include consecutive paragraphs with their own headings, where appropriate.][Heading 4]. [When using headings, don’t skip levels. If you need a heading 3, 4, or 5 with no text following it before the next heading, just add a period at the end of the heading and then start a new
  • 68. paragraph for the subheading and its text.] (Last Name, Year)[Heading 5]. [Like all sections of your paper, references start on their own page. The references page that follows is created using the Citations & Bibliography feature, available on the References tab. This feature includes a style option that formats your references for APA 6th Edition. You can also use this feature to add in-text citations that are linked to your source, such as those shown at the end of this paragraph and the preceding paragraph. To customize a citation, right-click it and then click Edit Citation.] References Last Name, F. M. (Year). Article Title. Journal Title, Pages From - To. Last Name, F. M. (Year). Book Title. City Name: Publisher Name.