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.

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.

Adidas' response:

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. Yes
   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. No
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. No, we have and will not request any price concessions.
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? We monitored this through worker interviews, as well as meetings and discussions with factory management and worker representatives.

a.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.

Regarding questions i – iv, we have not initiated the above, but we have in place a vendor financing system, which our suppliers are aware of, and can access if needed. Through this mechanism suppliers can request earlier payment terms and other financial support.

-  N/A - No Air Freight imposed or required.

1. 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. -
   a. 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.

Yes, our payment terms and commitments remain unchanged.

No orders have been transferred in response to the crisis. We were impacted for one month only and given our very low order volumes in the country the backlog can be managed.

1. 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?

As part of our regular monitoring program, we engage with worker representatives. Given the seriousness of the issues in Bangladesh, we also conducted onsite interviews to hear first-hand the workers concerns regarding their physical and mental wellbeing and safety.

To further support the workers wellbeing, we have discussed with our partners the need to:

1. Increase worker outreach to gauge satisfaction levels and take targeted action to address specific worker concerns or needs.
2. Follow government guidelines during periods of factory closures, to ensure the protection of salary payments.

Feel free to provide any further comments.

adidas is a founding member of the Fair Labor Association (FLA). During this transition phase for Bangladesh, we have aligned our approach to the guidance developed by FLA, in concert with other MSIs. See https://www.fairlabor.org/wp-content/uploads/2024/08/Joint-statement-for-responsible-business-conduct-in-Bangladesh_final-v3.pdf