Burberry Chemical Management Report 2020
Burberry Chemical Management Report 2020
Burberry Chemical Management Report 2020
MANAGEMENT PROGRAMME
2020 UPDATE
REPORT BY PHIL PATTERSON, COLOUR
CONNECTIONS CONSULTANCY LTD
In order to complete this report, I was granted access to Burberry systems, databases,
teams and suppliers.
I conducted face to face interviews with team members from all key disciplines
in the London head office and in the regional office in Italy and these were supported
by detailed questionnaires.
I also interviewed key vendors and raw material suppliers one-on-one, both in an office
setting and during a factory assessment, and they were clearly able to speak openly
and honestly about their relationship with Burberry and the positive and negative
aspects of the chemical management programme and the approach adopted.
In nearly 25 years of managing restricted substances in brands and supply chains I have
almost always encountered a level of push back from commercial and creative disciplines
that undermines the efforts of chemical management teams to some extent.
At Burberry I experienced almost complete buy-in to the concept that all components
must meet the business standards and an acceptance that it was reasonable to demand
more stringent standards than required by law or by mainstream fashion brands.
Similarly, with vendors and raw material suppliers, there is an acceptance that what
Burberry is trying to achieve, and how they are trying to achieve it, is reasonable and
they are pleased to be part of it. Several commented to me that they believe Burberry
is ahead of the curve and working with them to these exacting standards future proofs
their business to some extent.
Most vendors and raw materials suppliers commented that they were very appreciative
of the fact that engagement with Burberry had improved their business but they would
struggle to assign adequate resources to have similar levels of engagement with other
brands.
In common with many wider sustainability initiatives, there is praise and criticism for
the Burberry Partner Progress Tool (PPT), which has been developed to measure supply
chain performance, with some calls for improvements to the scoring system. In my
experience, the assessment criteria of such schemes are usually sound but there are
always flaws with scoring systems, and they need constant review and refinement.
Ongoing, excellent performance rarely happens without being underpinned by robust
management systems but the balance of scoring between written management systems,
training and activities and resulting performance must be monitored.
Burberry has deliberately described the PPT as a ‘tool’ and, provided it is used in a
mature way to highlight opportunities to improve, rather than attaining the best score,
then it will be beneficial.
In my opinion Burberry is doing a very good job in terms of progressive chemical
management and this is only possible because they do a very good job in maintaining
a small, stable, transparent supply chain with whom they can communicate quickly,
clearly and easily. I can attest to the fact that the supply base is significantly more
consolidated than most clothing brands of a similar size.
Phil Patterson
3
02 FOREWORD
03 AUTHOR’S NOTE
05 BACKGROUND
10 IMPLEMENTATION OF STANDARDS
INTO THE BUYING PROCESS
12 BURBERRY REQUIREMENTS
19 INDUSTRY PARTICIPATION
19 MANUFACTURING RESTRICTED
SUBSTANCES LIST (MRSL)
24 STAKEHOLDER RESPONSES
32 APPENDICES
45 GLOSSARY
BACKGROUND
In 2014, Burberry made a commitment to eliminate chemicals that may have a negative
environmental impact used in the manufacture of clothing, footwear and accessories1.
Simultaneously, the business also committed to greater supply chain transparency and
to drive systemic change in the supply chain in order to achieve those goals.
Over the past six years Burberry has created, developed or adopted four key standards
which their partners are expected to meet on an ongoing basis – along with supporting
training programmes to eliminate chemicals of concern.
“BURBERRY’S COMMITMENT TO
MEET ITS OWN STANDARDS AND
POLICIES IS VERY EVIDENT”
1. T
he Product Restricted Substances List (PRSL) – provides maximum allowable
limits for the presence of chemicals which can be present in components in
finished products
2. T
he Manufacturing Restricted Substances List (MRSL) – Burberry adopted
the ZDHC MRSL with an addendum restricting the full list of Per- and Poly-
Fluorinated Chemicals. These limits are applicable for chemicals which can
be present in formulations
3. T
he ZDHC wastewater guidelines (ZDHC WWG) – The WWG has limits for
‘conventional parameters’ such as pH, Temperature, Biological Oxygen Demand
(BOD), Chemical Oxygen Demand (COD) and Total Suspended Solids (TSS)
among others, and a non-detection requirement also for all MRSL chemicals
4. B
urberry Partner Progress Tool (PPT) assesses in-factory equipment and
management systems for storage, dispensing and handling of chemicals, as well
as procuring compliant raw materials/chemicals, upstream supplier/sub-contractor
performance, and due diligence product testing.
This report considers the progress against these standards. It also considers how
Burberry is performing with respect to driving systemic change via a collaborative
approach. Interviews and questionnaire-based surveys have been conducted with
Burberry colleagues, suppliers and other key stakeholders to gauge satisfaction
with the Burberry approach and highlight opportunities for improvement.
*Note: All quotes in this report are taken from answers given in an anonymous survey that was shared with the Burberry Supply Chain
and other external stakeholders
1
https://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies_statements/Chemical_
Management/2014/burberry-commitment-on-chemical-management-in-manufacturing.pdf
Annually, there are several product collections and Burberry ensures details of
every component in every style is recorded on Product Lifecycle Management (PLM)
software – this includes all components including main materials, linings, and trims
(including textile, leather, metals and plastics).
With certain sustainability parameters it is not uncommon for companies to report
on selective progress and successes without putting them in the context of the wider
supply chain performance.
With a focus on only finished product compliance it is theoretically possible to focus
solely on the finished components and products but, when MRSL compliance (chemical
inventories in factories) and wastewater are considered, there is a requirement to
consider all manufacturing facilities' activities and their input management and output
compliance.
Burberry has a relatively small, relatively consolidated supply chain and very close,
direct working relationships with finished goods vendors2 and key raw material
suppliers3.
Burberry suppliers accounting for 93.5% of Burberry's annual production are actively
engaged with Burberry’s chemical management programme. The remaining suppliers,
who account for 6.5% of Burberry's annual production are managed directly or
indirectly by the Chemical Managers4 of raw material suppliers or finished goods
vendors. Burberry endeavours that Chemical Managers are trained by Burberry or
through third parties, such as the ZDHC Academy5.
2
Finished goods vendors considers Tier 1 facilities that produce finished product such as Apparel, Soft Accessories, Hard Accessories
and Footwear for Burberry
3
Raw material suppliers are suppliers who provide textile, leather and other materials such as polyurethane and may be a vertical
organisation that conducts wet processing in-house, or a company that subcontracts wet processing on their behalf
4
Chemical Manager refers to the person responsible for implementing chemical management in their own facility and upstream partner/
sub-contractor facilities and acts as the point of contact to Burberry
5
https://academy.roadmaptozero.com/
85 91%
OF BURBERRY'S
THE NUMBER OF
PRODUCTION IS FROM
RESPONDENTS
SUPPLIERS WITH
TO THE SURVEY
CHEMICAL TRAINING
2016 164
2016 THE YEAR THE NUMBER OF CHEMICAL
BURBERRY ELIMINATED MANAGEMENT ASSESSMENTS
SHORT CHAINED PFCS BURBERRY HAS PERFORMED
FROM PRODUCTION (2019 – 2020)
99.25% 1700
OF INDIVIDUAL BULK THE NUMBER OF CHEMICAL
TESTS WITH NO FORMULATIONS TESTED
CHEMICAL FAILURES** USING CHEMIQ
91% OF TIER 1
PRODUCERS HAVE
82% OF TIER 1
WORKED WITH
PRODUCERS HAVE 1 TIER 1 PRODUCER
BURBERRY SINCE
WORKED WITH HAS WORKED WITH
THE 2014 LAUNCH
BURBERRY FOR BURBERRY SINCE 1900
OF ITS CHEMICAL
OVER 10 YEARS
MANAGEMENT
PROGRAMME
Note: In this report progress is described in terms of numbers of finished goods vendors, raw material suppliers, or wet processors and
also in terms of ‘units’ supplied. This refers to stock units such as a pair of shoes, a coat etc. The figures would be different if reported
by value or by weight of materials.
This stable, small and consolidated supply chain is key to Burberry’s collaborative
approach to chemical management for a number of reasons:
– Direct relationships: It is possible to communicate standards and expectations
directly to those involved in the selection and use of chemicals and ensure
appropriate training is undertaken
– Stability: It is possible to work on longer term improvement initiatives by providing
confidence to suppliers that they will remain part of the Burberry supply chain
The ability to communicate directly, quickly, easily and effectively with partners has
enabled Burberry to explain not just what is required in terms of compliance but why
it is required, and how it may be achieved.
Via education and training, the intention has been to change the mind-set of supply
chain partners from doing what they are told to do, to doing what they know to be
the right thing to do.
“BURBERRY HAS
POSITIVELY STIMULATED
ITS SUPPLY CHAIN”
“BURBERRY CREATED AN
INTERNAL TEAM THAT HAS
SIGNIFICANT IMPACT ON
SUPPLIER SELECTION AND
BUSINESS STRATEGY”
EXTERNAL RESPONSE
Burberry normally nominates the raw materials with which finished goods must be
made and they will almost always be from established component suppliers who are
fully conversant with the standards and expectations related to chemical management.
Burberry is a design-led company but all components in samples and bulk production
must be compliant with the PRSL and all facilities must be compliant, or working towards
compliance with MRSL, ZDHC WWG and the Burberry Partner Progress Tool (PPT).
Where a vendor, raw material supplier or specific wet processing facility fails to meet
expectations and demonstrates a poor attitude to improvements or remediation the
chemical management team are empowered to work with sourcing and procurement
departments to take business decisions accordingly.
6
https://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies_statements/Policies/Up-
dated_Policies/RESPONSIBLE%20BUSINESS%20PRINCIPLES%20-%204.%20Burberry%20Partner%20Non-Compliance%
20Policy.pdf
7
https://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies_statements/Chemical_
Management/2019/Burberry%20Partner%20Progress%20Tool%20Use%20Guidance.pdf
8
https://www.burberryplc.com/en/responsibility/creating-tomorrows-heritage.html
95� 92�
OF UNITS COVERED
% OF UNITS COVERED
BY RAW MATERIAL
BY VENDORS WHO HAVE
SUPPLIERS WHO HAVE
COMPLETED ASSESSMENT
COMPLETED ASSESSMENT
% YET TO BE GRADED
%GREEN %AMBER %RED AGAINST LATEST PPT
CRITERIA*
SHOE VENDORS 59 15 16
HARD ACCESSORIES
88 8 4
VENDORS
RAW MATERIAL
59 16 6 19
SUPPLIERS
*Some facilities have not yet been graded at all and some were previously graded using an earlier version of the PPT with slightly
different criteria to the 2019 PPT.
9
These figures do not include assessments of vendors or raw material suppliers who have had more than one PPT assessment during
this period
10
Status as of March 20
11
https://www.afirm-group.com/wp-content/uploads/2020/03/2020_AFIRM_RSL_2020_0130_EN.pdf
AP 99.6%
APEO 98.2%
CHLOROBEZENES 96.5%
& TOLUENES
CHLOROPHENOL 98.4%
FORMALDEHYDE 99.9%
ORGANOTIN
97.2%
COMPOUNDS
PFCS 98.9%
PHTHALATES 98.0%
SCCPS 97.1%
EXTERNAL RESPONSE
EXTERNAL RESPONSE
12
https://mrsl.roadmaptozero.com/
13
https://s3.amazonaws.com/content.stockpr.com/vfcsustainability/files/pages/resources/
policies-standards/VF+CHEM-IQ+Method.pdf
14
https://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies_statements/
Chemical_Management/2014/JUN14%20burberry_water_testing_for_80_summary.pdf
15
https://www.burberryplc.com/content/dam/burberry/corporate/Responsibility/Responsibility_docs/Policies-and-Commitments-as-
sets/Effluent%20Testing%20Trend%20Analysis%20-%20Oct%20Apr%2019.pdf
% OF CONVENTIONAL PARAMETERS
WHICH MEET FOUNDATIONAL LIMITS IN 97.5%
DIRECT DISCHARGE FACILITIES
0 34 0
1 9 9
2 5 10
3 3 9
5 3 15
6 0 0
7 1 7
Each wastewater test checks on average for 191 specific chemicals in effluent before
it is treated and of the individual 10863 tests conducted on raw wastewater there have
been 62 analyte detections (~0.6% detection rate).
However, in 24 out of 58 raw wastewater samples tested (48%) there was at least one
listed chemical group detected. The WWG are guidelines so this does not represent
failure per se but suppliers are required to conduct investigations to find the source
of the chemical.
Burberry does not test for sludge at present but is closely monitoring ZDHC activities
and recommendations.
82% 77%
THINK BURBERRY REACTS
AGREE THAT BURBERRY
TO INDUSTRY ISSUES
ARE PROACTIVE LEADERS
QUICKLY AND CREDIBLY
72% 74%
AGREE CHEMICAL AGREE BURBERRY’S
MANAGEMENT IS EMBEDDED APPROACH IS MORE
IN BUYING PROCESSES COLLABORATIVE
AND WAYS OF WORKING THAN MOST BRANDS
94% 87%
AGREE THAT THE CHEMICAL AGREE THAT BURBERRY HAVE
MANAGEMENT POLICIES BEEN EFFECTIVE IN THE
AND STRATEGY IS CLEAR ELIMINATION OF CHEMICALS
92% 81%
AGREE BURBERRY HAS AGREE THAT THE
DRIVEN POSITIVE CHANGE PPT IS BENEFICIAL
Product and wastewater results clearly demonstrate that the elimination of chemicals
of concern is working, with detections and failures falling significantly. The ongoing
roll out of education programmes to vendors and raw material suppliers with a clearer
focus on managing chemical inputs throughout the supply base should see both
product failures16 and discharges to the environment continue to diminish in coming
years.
The roll out of the MRSL, Partner Progress Tool and Wastewater Guidelines are viewed
positively but there are some calls for greater clarity on how they are implemented.
Currently Burberry is being demanding and pragmatic – action plans are required
for non-compliances, but suspending business relationships will only be applied for
persistent offenders.
“BURBERRY RECOGNISED IT IS
NOT POSSIBLE TO DRIVE POSITIVE
CHANGE ALONE. IT HAS ALWAYS
COLLABORATED WITH OTHER
BRANDS AND SUPPLY CHAIN
PARTNERS, AND BECAUSE OF THIS,
BURBERRY PLAYED AN IMPORTANT
ROLE IN DRIVING POSITIVE CHANGE”
EXTERNAL RESPONSE
As with any fashion brand, the search for newness and the desire to place the very
best designs on sale requires research and development. Although new materials
are developed by existing supply chain partners, it is recognised that there are
opportunities to strengthen the chemical approval of new raw material suppliers
to the business.
The Burberry approach is respected and the latest version of the Partner Progress
Tool (PPT) is viewed positively. Currently Burberry gives Red-rated facilities the
opportunity to improve and sets 3 months for corrective actions to be put in place.
However, some stakeholders believe that orders should not be placed with ‘Red-rated’
16
Failures may increase if Burberry reduces maximum allowable limits
EXTERNAL RESPONSE
This report contains details about what Burberry has done, what it has achieved, how it
has achieved it and how it has laid out foundations for ongoing improvements.
It is not uncommon for brands to report what has been done and what has been achieved,
but it is very unusual to provide this information alongside full details of the supply chain
in order to demonstrate how far chemical management practices have been embedded in
vendor and raw material suppliers’ ways of working.
Not only does Burberry have clear, stringent chemical standards, they know they have
been clearly communicated with the raw materials suppliers and that raw materials
suppliers who produce the components for 91% of the units manufactured for Burberry
have undertaken formal chemical management training, 60% which has been performed
by accredited ZDHC trainers. The team knows that vendors who account for 98%
of units manufactured have dedicated chemical managers who are part of a supplier
community who share best practices across the Burberry supply chain.
One survey respondent commented that the Burberry chemical training session was “one
of the best I have ever attended”, but as Burberry transitions to more generic industry-
wide training, there are some calls for in-house specifics to continue to be covered.
Helping the Burberry chemical management team continuously improve their supply
chain implementation is the support from commercial colleagues who maintain a stable,
competent supply base that is fully conversant with the Burberry standards.
Members of the supply chain understand they are part of a select group and see
the benefits of consolidation for their own organisations. When asked about the
consolidated supply chain with low churn rate, respondents commented that they
understood the advantages in terms or easier communication and engagement.
The low levels of pre-assembly component failures of 0.7% and low levels of due
diligence failures of 4% indicate (considering that Burberry requirements are much
stricter than the industry standard) that progress is being made but there are ongoing
efforts to continuously improve supply chain knowledge through training.
Burberry standards are more stringent than industry norms but vendors and raw
materials suppliers know that they are really implemented and not just for show.
“Burberry’s commitment to meet its own standards is very evident” is a typical
response when asked about policing.
APEO AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
LOD ppm 1
AL ppm 10 6 3
AL Recycled 25
AL Kids Recycled 10
%detection 7 6 7 3 5 6 0 1 0 0
%fail 1 2 1 0 0 3 0 0 0 0
APEO AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
LOD ppm 3
AL ppm 100 50 25 15
AL Recycled 250
%detection 27 27 21 11 12 7 11 5 3 0
%fail 7 5 7 4 2 4 0 0 0 0
Clorobenzenes AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
AL ppm ND
% detection/fail 0 4 3 1 0 0 0 0
Clorophenols AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
% detection 48 31 23 28 40 45 10 6 6
% fail 37 14 11 13 20 20 2 6 3
PFC’s [C8 - Industry and Burberry Standard Not Detected – EU legislation comes into
force in July 2020, C6 - not routinely restricted, Burberry Standard – Not Detected]
C8 AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
AL ND
%detection/fail 18 18 4 5 0 3 0 4 0 9
C6 AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
AL μg/m2 2000 ND
%fail 18 18 4 5 0 3 0 4 0 9
SCCP's AW15 SS16 AW16 SS17 AW17 SS18 AW18 SS19 AW19 SS20
%detection 2 0 0 0 19 44 20 0 6
%fail 2 0 0 0 15 11 0 0 6
LOD ppm 5
AL ppm ND
AL Recycled 20
% detection 0 2
% fail 0 2
Chlorinated
SS18 AW18 SS19 AW19 SS20
Solvent
AL ppm ND
% detection/fail 22
LOD ppm 16
AL ppm 75
AL Kids ND
% detection 3 5
% fail 0 3
% detection 17 9 5 0 0
% fail 0 9 3 0 0
LOD ppm 10
% detection 9 14 8 0 0
% fail 9 0 0 0 0
20
AL ppm
5
Benzene
% detection 9
% fail 0
AW19, SS20 %
ANALYTES DETECTED
CHLOROBENZENES
7 195 3.5% 96.5%
& TOLUENES
SA A – D SD ?
0 20 40 60 80 100
The PPT scoring system gives a good Some concerns over the need to pay
reflection of a partner's ability to to join schemes to get good scores and
manage chemicals some calls for refinement
0 20 40 60 80 100
0 20 40 60 80 100
0 20 40 60 80 100
FROM YOUR POINT –Changed the mindset of the supply chain from doing what they are
OF VIEW, WHAT HAS
told to wanting to implement good practice and looking forward to
BEEN BURBERRY'S
MAIN ACHIEVEMENT/S? future requirements.
This groups includes (ex-colleagues, other brands, chemical companies, laboratories and
NGOs) and they have given their views based on what they know and their perceptions.
They may not be fully informed regarding specific standards and ways of working and
there is inevitably a greater % of “not sure” responses.
In total there were 20 responses to the questionnaire.
SA A – D SD ?
The chemical management policies The standards and policies are clear to
and overall strategy is clear the supply chain but not to the public
0 20 40 60 80 100
0 20 40 60 80 100
FROM YOUR POINT – Establishing strong relationships with production facilities and
OF VIEW, WHAT HAS driving cultural change throughout the supply base.
BEEN BURBERRY'S
MAIN ACHIEVEMENT/S? – Transparency and public reporting.
WHAT WOULD YOU – Demonstrate that Red facilities are being improved.
LIKE BURBERRY TO
CHANGE IN THE FUTURE? – Guarantee of business for the supply chain to ensure ongoing
engagement