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.

Next' 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.

a. 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.

Next has taken the decision to be flexible for a period of time, until the industry in Bangladesh stabilises.

1. 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.

Our position remains unchanged - we do not intend to seek price concessions from our Bangladesh suppliers or take advantage of the situation on the ground.

1. 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?

Our directly employed team in Bangladesh has monitored wage payments. Salaries for the month of July have been paid on time and in full, which was verified by our teams. August salaries are not yet due to be paid but again, our team in Bangladesh will monitor and verify these payments.

Our position on payments to suppliers remains unchanged. As signatories to the Prompt Payment Code we continue to pay on time and in full in line with our Terms & Conditions.

1. 1. 1. Accelerated payment on orders recently delivered, in transit, or in production? Y/N NO
      2. Improved payment terms on new orders? Y/N NO
      3. Provided low-interest or no-interest financing to suppliers? Y/N NO
      4. Provided direct financial assistance to suppliers? Y/N NO
      5. Covered the cost of air shipments? Y/N NO
2. 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.

Bangladesh continues to be our largest sourcing country. Our commercial teams work closely with our suppliers to ensure order stability in line with business needs.

1. 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? YES
   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. NO
2. 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?

Our team of in-house auditors continue to deliver our audit programme in Bangladesh, covering the ten principle standards of our Code of Practice including the health, safety and wellbeing of workers in our factories. If any issues are identified, our team can offer support and guidance on how to resolve them in an effective and timely manner.