New Wave Group AB Hållbarhetsredovisning_2017_SV_HQ[1] | Page 20

SOURCING AND PRODUCTION How a product has been produced and under what social circumstances is an important matter. New Wave Groups strives to improve working conditions in the global supply chain. The number of third party social audited factories increases every year. Most of our products are produced by specialized and external suppliers. However, we also have some in-house production units. This you can read more about under the section In-house Production on page 25. LOCAL REPRESENTATION Our own four buying offices China, India, Vietnam and Bangladesh are an important part of our social and environmental respon- sibility program. The biggest strength of New Wave Group is that we have our own CSR personnel dedicated to visit, support and train our suppliers in sustainability questions. We offer more than audits. We offer an extended hand, which enables us to have a sincere communication and face challenges together. HUMAN RIGHTS AND WORKING CONDITIONS We are aware of the responsibility that comes with sourcing goods in countries with different legal standards and labor conditions. Many challenges in developing countries can be related to poverty and lack of welfare systems. Through regular visits and communication, we always aim to have an open dialogue with our suppliers and discover potential issues in time. The visits are not only made by our CSR employees, but also by merchandisers and quality controllers. This means that we have many people who are constantly visiting the factories. Having good suppliers is key for our business and we depend on their business operations as much as they depend on ours. Hence, we care about the situation on the factory floor and that the suppliers are treating their workers with respect and according to law. That is a win situation for everybody. NEW WAVE GROUP’S PRODUCTION IN THE WORLD DIVIDED BY NUMBER OF FACTORIES In 2017, New Wave Group had production in 35 countries and 484 factories. The majority of the factories are located in China. Based on purchasing volume, about 72 % of the Group’s total purchases are made through the buying offices in china, Bangladesh, Vietnam and India. 436 factories (90 %) are located in so-called risk countries according to amforu BSCI’s definition: Bangladesh, Bosnia and Herzegovina, Bulgaria, Cambodia, China, India, Jordan, Malaysia, Mexico, Pakistan, Peru, Philippines, Romania, Sri Lanka, South Korea, Taiwan , Thailand, Turkey and Vietnam. Based on purchasing volume, approximately 77 % of the Group’s purchases in risk countries are made through the buying offices. China 69% Pakistan 3% Taiwan 1% Vietnam 5% India 3% Thailand 1% Bangladesh 3% Turkey 2% USA 1% Portugal 3% Poland 2% Slovenia 1% Other 6% 20