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Article

8 Sep 2013

Author:
Ruth Sullivan, Financial Times (UK)

Fire risk is a burning supply-chain issue

A report by the Supplier Ethical Data Exchange shows that supply chains across a range of sectors in Europe have the highest level of factory fire risk, while Africa has the lowest...13.5 per cent of supply chains in Europe fail to comply with safety measures...At country level, Romania has the highest proportion of fire safety problems, followed by Portugal, the US, the Czech Republic and Italy...“Investors need to understand that such risks and hazards do not take place only in developing countries. They must take a proactive stance and engage with companies in all areas,” says Mark Robertson, a spokesman at Sedex...The garment trade has come under renewed scrutiny since the collapse of the Rana Plaza in Dhaka, which housed several low-cost clothing factories. The research, however, shows a range of sectors failing to meet fire safety standards. Manufacturing and pharmaceutical sectors had the highest level of fire risk globally...Since the [Rana Plaza] tragedy, investors have become more aware of such risks and are adding their weight...“We are engaging with the apparel brands and retailers we hold, as well as North American trade associations, to press them to join [the Accord on Fire and Building Safety in Bangladesh] as we believe it presents the best path towards meaningful sector reform,” Susana McDermott, a representative of the Interfaith Center on Corporate Responsibility [Refers to H&M, Tesco, Zara (part of Inditex)]