Slavery and human trafficking statement 2016/17
This statement is made pursuant to section 54 of the Modern Slavery Act 2015 and sets out the measures that Amer Sports Corporation and its affiliates (“Amer Sports”) have taken and are continuing to take to ensure that modern slavery or human trafficking is not taking place within our business or supply chains.
Amer Sports has a zero tolerance approach to any form of modern slavery. We are committed to acting ethically and with integrity and transparency in all business dealings and implementing effective systems and controls to safeguard against any form of modern slavery taking place within the business or our supply chains.
Our business
Amer Sports is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The Company’s technically advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group’s business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports Corporation’s shares are listed on the Nasdaq Helsinki stock exchange (AMEAS).
Amer Sports’ offering of sports equipment, apparel, footwear, and accessories covers a wide range of sports, including: running, hiking, tennis, badminton, golf, American football, baseball, basketball, alpine skiing, cross-country skiing, fitness training, cycling, and diving.
Amer Sports sells its products to trade customers (including sporting goods chains, specialty retailers, mass merchants, fitness clubs and distributors) and directly to consumers through brand stores, factory outlets, and e-commerce. In December 2017, Amer Sports sales network covered 35 countries.
Our suppliers
Our technically advanced products are generally produced by reputable manufacturing partners which are strong in both technical background/equipment and financial position. Our suppliers are managed under a single global operations function, which includes integrated and shared platforms of manufacturing, supply chain and sourcing practices. In December 2017, the number of external finished goods suppliers was approximately 200.
Our policies
We operate a number of internal policies to ensure that we are conducting business in an ethical and transparent manner. The following Amer Sports Group-wide policies prohibit slavery and human trafficking:
Code of Conduct
The Amer Sports Code of Conduct defines the major principles of the Company’s business conduct, based on its values. The content of the Code of Conduct focuses on the promises to consumers, shareholders and business partners and refers to International Labour Organization (ILO) standards and the United Nations’ Universal Declaration on Human Rights.
Ethical Policy
The Amer Sports Ethical Policy sets out the core values of the sourcing operations. The Company expects its suppliers to operate according to the principles in its Ethical Policy. Amer Sports expects its sourcing partners to respect human rights in the spirit of internationally recognized social and ethical standards, including the International Labour Organization (ILO) Standards and the United Nations’ Universal Declaration on Human Rights. The Ethical Policy is available in 24 languages.
The ethical standards contained in the policy are also used as one of the aspects in selecting and retaining suppliers. The Ethical Policy requires suppliers to further monitor the ethical performance of their suppliers and contractors and be prepared to take immediate and thorough steps in cases of questionable ethical performance.
Risk management in relation to slavery and human trafficking
Amer Sports sources a significant proportion of its products from suppliers located throughout Asia, which exposes the Company to the political, economic, and regulatory conditions in that area as well to a variety of local business and labor practice issues. Of Amer Sports’ total production value, approximately 64% is outsourced.
Amer Sports is committed to socially responsible sourcing practices. Amer Sports shares with its suppliers a commitment to treat employees with respect and dignity by adhering to the local labor laws and regulations relevant to business.
Since 2008, we have launched a third party audit program to monitor our suppliers to which extent they fulfil the requirements on the Ethical Policy and collaborate with them for continuous improvements. This program ensures that manufacturing facilities do not have modern slavery practices, employees (including migrant employees) are properly compensated, and work is performed in a safe working environment without exposure to health hazards. Amer Sports provides details about the key efforts in the supply chain compliance program on its Corporate Responsibility Reports which can be found on www.amersports.com/responsibility/reports/.
We also commission financial background checks if the financial health of a partner is questioned.
Our Ethical Policy forms part of our contract with all suppliers and they are required to confirm that no part of their business operations contradicts this policy. Modern slavery or human trafficking is one of key focus areas. Whenever performance gaps are identified in an audit, we work with suppliers to remediate the issue at the best interest of workers until the issue is solved. We hold the right to terminate the business relationship with a supplier if there is a violation to this or any other critical issue.
Effectiveness in ensuring that slavery and human trafficking is not taking place
The Amer Sports Corporate Social Responsibility (CSR) team regularly monitors public sources and internal reporting channels of any reports related to modern slavery practices in our business and supply chain. Supplier CSR audit scores and number of critical issues (related to forced labour but also others) are part of suppliers’ scorecard to be reviewed every month under the Amer Sports global sourcing function.
Training
Amer Sports provides on-line training to its own employees on the essentials of the Code of Conduct.
Amer Sports CSR team managing the supply chain audit program is trained on international social standards (e.g. SA8000). The team also joined workshops focusing on modern slavery and human trafficking organized by NGOs to better understand the practices and the necessary knowledge to manage the risks. The CSR team also provides orientation trainings to procurement/buying teams on CSR program implementation including modern slavery/human trafficking topics. In addition, Amer Sports CSR team hosts trainings every year to suppliers in different ways including face to face conference and phone call. The trainings build their understanding of the Amer Sports ethical policy and audit requirements including the forced labour and human trafficking.
Amer Sports will continue to review and update the policies and procedures periodically as required to ensure employees in the Amer Sports supply chain are protected from mistreatment including forced labour and human trafficking.
Approval for this statement
This statement was approved by the Board of Directors of Amer Sports Corporation on 12 December 2017.
HEIKKI TAKALA
President and CEO
Amer Sports Corporation