H&M has a dedicated team working on sustainability and compliance in our supply chain based in Phnom Penh. We regularly visit the factories we work with (at least twice a year), and monitor compliance, development and improvements over time. In addition to our own monitoring program we work closely together with ILO’s Better Factories Cambodia-program whose monitoring reports we regularly internalize into our own reports and are used as a basis for identifying action plans of improvement for the factories that we work with. We believe that an efficient and effective way of securing sustainable positive development and good labour conditions is to work towards well-functioning industrial relations in all the markets where we operate. This is why in Cambodia we are together with the ILO implementing a project to improve industrial relations there. This project aims at raising the abilities to negotiate working conditions and obligations on both factory, industrial and national levels. By the end of 2016 all our strategic suppliers will be enrolled in this project. We have engaged in constructive dialogue with both Zhongyin management and CCAWDU on the concerns raised there recently, and the parties have recently reached an agreement on these issues. ...