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How sustainable is Billabong ?

Billabong & sustainability


Billabong

5 out of 16

Sustainability summary

Brand owner: Billabong International Ltd.
Head office: Burleigh Heads, Queensland, Australia
Sector: Surf, beach & swimwear
Categories : Male, Female, Kids
Free Tags: Billabong, Bags, Caps, Shirts, Pullover, Jackets, Dress

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Billabong sustainability score report

Last edited: 17 May 2013 by Mario
Last reviewed: 17 May 2013 by Mario

Questions about Climate Change/ Carbon Emissions

1 out of 4
1. Is there a policy for the brand to minimize, reduce or compensate carbon emissions? Billabong has an annual carbon inventory (see 'Carbon Footprint'). Source
2. Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2) and has the brand already reduced or compensated 10% of these emissions in the last 5 years? Billabong has published its carbon footprint for its global operations (Scopes 1 & 2). However, numbers show an increase of a footprint by 61% for 2010-2011 (see 'Comparisons to prior year'). Source
3. Has the brand (company) set a target to reduce its absolute ‘own operations’ carbon emissions by at least 20% within the next 5 years? In 2010 Billabong has set a target to reduce carbon emissions by 15% by 2017 (see 'Carbon reduction target'). It is about 2% per year and much less than the target of 20% reduction in 5 years. Source
4. Does the brand (company) also have a policy to reduce/compensate carbon emissions generated from the product supply chain that is beyond own operations (Scope 3)? Although Billabong says that it "continues to build its understanding of its impact on the environment and is pursuing a range of initiatives designed to reduce its overall carbon footprint”, to get a ‘yes’ Billabong needs to be more specific (see 'Comparisons to prior year'). Source

Questions about Environmental Policy

0 out of 4
1. Does the brand (company) use environmentally 'preferred' raw materials for more than 5% of its volume? Although Billabong does use organically grown cotton and recycled polyester, they do not state the numbers used in terms of percentage of the total volume (see 'Sustainable Products'). Source
2. Does the brand (company) use environmentally 'preferred' raw materials for more than 10% of its volume? See remark for environmental policy question 1. Source
3. Does the brand (company) use environmentally 'preferred' raw materials for more than 25% of its volume? See remark for environmental policy question 1. Source
4. Does the brand (company) have an environmental policy related to the ‘wet processes’ within the production cycle, like bleaching and dying of fabrics? Some information given about chemical and water use, but very minimal (see 'Sustainable Products'). Source

Questions about Labour Conditions/ Fair Trade

4 out of 8
1. Does the brand (company) have a supplier Code of Conduct (CoC) which includes the following standards: No forced or slave labor, no child labor, no discrimination of any kind and a safe and hygienic workplace? Billabong follows the SA8000 standards (see 'Why adopt a standard'). For Code of Conduct (CoC) SA8000, see source links to questions 2&3 below. In this CoC, all these standards are mentioned (see page 5-7). Source
2. Does this CoC include at least two of the following workers rights: 1. to have a formally registered employment relationship 2. to have a maximum working week of 48 hours with voluntary and paid overtime of 12 hours maximum 3. to have a sufficient living wage? 1. Not mentioned; 2. Maximum workweek of 48 hours, overtime is generally voluntary; 3. Yes, commitment to implement payment of living wages (see page 7). Source
3. Does this Code of Conduct include the right for workers to form and join trade unions and bargain collectively; and in those situations where these rights are restricted under law, the right to facilitate parallel means of independent and free association and bargaining? This right is mentioned, with reference to parallel means for the situation of law restrictions (see page 6/7). Source
4. Does the brand (company) have a published list of direct suppliers, that have collectively contributed to more than 90% of the purchase volume? No list found on Billabong website, although Billabong does mention some countries. Source
5. Is the brand (company) a member of a collective initiative that aims to improve labor conditions, or does the brand (company) purchase its supplies from accredited factories with improved labor conditions? Billabong refers to the certification scheme SA8000, but not clear what percentage of factories/ annual volume is certified (see ‘Why adopt a standard?’). Source
6. Do independent civil society organizations like NGO's and labor unions have a decisive voice in this collective initiative or in these certification schemes? Billabong refers to the certification scheme SA8000 that is acknowlegded for this question, but not clear what percentage of factories/ annual volume is certified (see ‘Why adopt a standard?’). Source
7. Does the brand (company) annually report on the results of its labor conditions policy? Good description of audit process, corrective actions, etc. is given. However, Billabong could be more clear on the number and location of factories covered by the performed audits. Source
8. Has the brand’s labor conditions policy resulted in a ‘compliance level’ of at least 30% of the purchase volume, or a ‘monitored level' of at least 80%? 26 factories are SA8000 certified (out of more than 400, so only 6,5%). Further, Billabong reports that 339 factories out of 400 have been monitored. However, the audits are carried out by companies auditors (see 'Auditing of the supply chain'). Source