Our Targets
Our sustainability targets help us track progress and drive continuous improvement. While we believe that achieving our targets will set us up for future success, we recognize that we cannot do this alone. By working closely with partners, suppliers, employees, and consumers, we aim to scale solutions and create meaningful impact.
Our Targets
Our sustainability targets help us track progress and drive continuous improvement. While we believe that achieving our targets will set us up for future success, we recognize that we cannot do this alone. By working closely with partners, suppliers, employees, and consumers, we aim to scale solutions and create meaningful impact.
Use the tabs below to explore our key targets and the latest progress across each of our focus areas. For a deeper dive, explore our Annual Report.
WORKERS IN SUPPLY CHAIN
Workers in our suppliers’ factories play a central role in our sustainability program. We recognize the importance of operating responsibly along the entire value chain by safeguarding the rights of the workers who manufacture our products. Our 2025 supply chain targets are focused on reducing risks, strengthening fair pay practices, and creating better opportunities for workers across our value chain.
SOCIAL IMPACT (S-KPI)
TARGET: BY 2025, TO HAVE 90% OF OUR STRATEGIC TIER 1 SUPPLIERS REACH A MINIMUM RATING OF 4S AND 100% OF THESE SUPPLIERS REACH A MINIMUM RATING OF 3S (ON A SCALE OF 1S TO 5S, WITH 5S BEING THE HIGHEST RATING).
- Progress: In 2024, almost 82% of our 99 key manufacturing facilities achieved a rating of 4S or better and 95% of Tier 1 strategic suppliers achieved 3S or better. The baseline year for comparison is 2022, when the S-KPI tool was launched.
- Context: The social key performance indicator (S-KPI) rating tool measures the accident rates, retention levels, or worker satisfaction and empowerment. The thresholds are set as follows: 1S: 0-29%; 2S: 30-59%; 3S: 60-79%; 4S: 80-89%; 5S: 90-100%.
FAIR WAGES
TARGET: TO SEE PROGRESSIVE IMPROVEMENTS ACROSS ALL FAIR COMPENSATION BENCHMARKS IN EACH OF OUR STRATEGIC TIER 1 SUPPLIERS BY 2025 (BASELINE 2020).
- Progress: 100% of factories within the data collection scope exceed their applicable 2023 minimum wage in all six countries assessed. 75% of factories exceed the applicable living wage benchmark in the four countries where this benchmark is available.
- Context: We are committed to progressive improvement in compensation across our strategic Tier 1 suppliers in 2025. This ambition is intended to advance positive impacts and opportunities for workers in our supply chain by providing a decent standard of living that is considered acceptable by society at its current level of economic development. We are actively monitoring fair wage benchmarks and our suppliers’ performance against these.
*For our wage assessments exercise, we use the FLA Fair Compensation formula: (Basic Contracted Wage + Incentives + Cash Benefits + In-Kind Benefits) – [Taxes and legal deductions], it excludes overtime pay.
GENDER EQUALITY & EQUAL PAY FOR EQUAL WORK
TARGET: ALL KEY TIER 1 SUPPLIERS WILL HAVE SECURED GENDER WAGE PARITY FOR WORKERS BY 2025.
- Progress: We have focused our actions on capacity building so suppliers can improve wage management systems that ensures equal pay for equal work. In 2024, we launched a joint initiative to develop an e-learning program aimed at raising awareness and knowledge around gender pay parity.
- Context: Aligned with core labor standards, which call for equal pay for equal work, we adopted the target that every strategic supplier will have secured gender wage parity for workers in 2025 Since the setting of the target, due to technical challenges and data privacy restrictions in obtaining comprehensive sex-disaggregated wage data from our supplier factories, we have focused our actions in support of this target on capacity building and supporting suppliers’ understanding and ability to improve wage management systems that ensure equal pay for equal work.
For more information on our approach and actions, visit our Workers in Supply Chain page.