BHRRC sent a short survey aimed at understanding in detail the engagement apparel brands have had with their suppliers amidst the continued disruption of the garment industry in Bangladesh caused by the gas crisis and quota reform protests in 2024.

ASDA's response:

We asked brands to respond to the following questions regarding their suppliers in light of the ongoing gas crisis and protests that began in May 2024.

1. Have you, as a matter of policy, directed your sourcing team to forgive any delivery delays resulting from the disruption to the garment industry and suspend the imposition of penalties until the region has recovered? If yes, please include details. If no, please explain why this decision was made.
   1. Has your company imposed any penalty on a supplier in the region as a result of delayed delivery? If yes, please share details on any penalties imposed and the circumstances for such penalties. ASDA RESPONSE: No Penalties. We continue to work with our suppliers to understand how we can support them and their workers.
2. Have you, as a matter of policy, directed your sourcing team not to seek price concessions from suppliers in the affected region on both new and current orders? Please share details on specific actions and measures taken. ASDA RESPONSE: No price concessions have been requested for orders placed during this period
3. How has your company monitored the payment of worker wages in supplying factories and ensured that wages have been paid on time and in full during July-August? ASDA RESPONSE We are part of several Multi-Stakeholder Initiatives which are providing information on the current situation and challenges faced by workers and suppliers. We have been connecting with suppliers to ensure workers’ wages are being paid in full and on time in-line with our Standards for Suppliers.
   1. Regarding worker wages, has your company provided any of the following forms of assistance or improved payment terms to suppliers in the region in order to help them continue business operations and ensure workers’ July-August wages are paid in full? Please share any details.
      1. Accelerated payment on orders recently delivered, in transit, or in production? ASDA RESPONSE Y/N -Yes, we offer supply chain finance option
      2. Improved payment terms on new orders? ASDA RESPONSE Y/N- No we offer standard payment terms and support supplier through above financing process where required.
      3. Provided low-interest or no-interest financing to suppliers? ASDA RESPONSE Y/N – please see answer above for supply chain financing support offered
      4. Provided direct financial assistance to suppliers? ASDA RESPONSE Y/N- No
      5. Covered the cost of air shipments? ASDA RESPONSE Y/N No specific airfreight required as a result of the Bangladesh disruption
4. How are you ensuring order stability at the suppliers you source from, to ensure suppliers can maintain business operations and maintain jobs for workers, including confirming future orders and prices with factories? Please share details.
   1. Have you committed to receiving and paying for all orders placed with suppliers before and during the crises the industry has faced since May 2024. Please share details. ASDA RESPONSE We continue to engage with our suppliers during this period and our colleagues within Head Office and in-country are leading these discussions. Through this dialogue any shipment extensions would be agreed.
   2. Have you transferred orders from your suppliers in Bangladesh to suppliers in other apparel-producing countries in response to the crises? Please share further details on why this decision was made. ASDA RESPONSE At this time, no orders have been transferred. Bangladesh is a key sourcing market for Asda, and we remain committed to our suppliers and their workers.
5. What steps are you taking in collaboration with trade union and worker representatives at supplier factories to ensure the physical and mental wellbeing and safety of your workers? How do you plan to support your suppliers and workers long-term? ASDA RESPONSE We continue to visit factories and engage with suppliers directly and via our sourcing office in country. All workers within our supply chain have access to our Ethics Hotline should they wish to raise a concern. Through our memberships we are engaging with Multi-Stakeholder Initiatives and Non-Governmental Organisations to understand more on how we can support suppliers and workers whilst ensuring we have the most up to date information on events. Bangladesh is a key sourcing market for Asda, and we have established and long-term relationships, through dialogue, engagement and working collaboratively we will continue to support suppliers and their workers.

Feel free to provide any further comments.

Bangladesh is a key sourcing market for Asda, and we work closely with in-country colleagues, trade associations, multi-stakeholder initiatives (MSI) and our suppliers to understand the impacts of the events outlined within your correspondence.

In the period from May 2024 onwards we been working closely with our suppliers and collaborating with Non-Governmental Organisations (NGOs) to understand more about the situation. We have continued to engage with our suppliers around incidents, worked with them to better understand their impacts and ultimately ensure workers, their pay, benefits and working conditions are protected. This engagement is on-going and covers the full extent of impacts to understand how best Asda can support the operation of their business and where assistance for suppliers or workers might be required.

Asda understands the impact our business decisions, such as purchasing practices, can have across our global supply chains at all levels, and we take this responsibility very seriously. We are working with our Sourcing colleagues closely and have communicated and provided guidance on Asda’s expectations around how we operate in dynamic situations such as these in-line with best practice and the United Nations Guiding Principles on Business and Human Rights.

Our commitment to our suppliers and the organisations we work with in Bangladesh is very important to Asda and our ability to ensure the dignity of the people who make the products we sell. We have made long-term commitments to both suppliers and the market and invested in establishing productive, progressive, and stable supplier relationships. Alongside this we are working with MSIs, NGOs and Trade associations to inform our Saliency worker, respond to specific incidents and allegations and ensure that fair and progressive working conditions are present in Bangladesh