Compliance and Transparency | Avery Dennison | Sustainability

Compliance and Transparency

Our policies and practices help ensure legal and regulatory compliance and transparency in the areas of human rights, labor, and the environment in our supply chain. We also offer products and services that help customers and the end-users of our products comply with applicable laws and regulations as well.

compliance and transparency

Ensuring Social Compliance
We are committed to upholding human and labor rights and to the transparency of labor practices in our facilities and across our supply chain. Our commitment starts by reporting information transparently. We also regularly perform audits of our subcontractors to ensure that they are complying with applicable regulations and our high expectations.

Our RBIS business conducted 802 social compliance audits of its facilities between 2016 and 2018. RBIS is also a participating manufacturer in Better Work, a partnership between the UN’s International Labour Organization and the International Finance Corporation, a member of the World Bank Group. Better Work brings together diverse groups—governments, global brands, factory owners, and unions and workers—to improve working conditions in the garment industry and make the sector more competitive.

Reducing Harm From Chemicals
We want the materials in our products to have as little negative effect as possible on people and the planet, now and in the future. Since 2015, we have maintained an enterprise-wide restricted substance list (RSL) to guide us in the transition to chemicals with fewer environmental and health impacts. The first phase of our program focused on avoiding the use of RSL chemicals as we design new products. We are evaluating the use of these chemicals in our legacy products to consider better alternatives that are technically and economically feasible. Our RBIS business has maintained a restricted substances program since 2007 to continuously align with regulations and consumer demands in the apparel industry. RBIS’ RSL is currently in its seventh version.

In compiling our business-unit and enterprise-wide RSLs, we assess our products against a broad number of global regulations, such as European REACH, Restriction of Hazardous Substances, Waste Electrical and Electronic Equipment (WEEE), the U.S. Toxic Substances Control Act, and hundreds of other regulations enforced by the U.S. Consumer Product Safety Commission and the U.S. Food and Drug Administration, along with similar regulatory agencies in other countries where we do business. For the chemicals with the highest environmental and health impacts, these RSLs extend the requirements globally even where they are not legally required. Our RBIS business’ RSL goes even further by considering if chemicals used in the apparel and footwear industries are safe to use and sustainable.

Helping Customers Navigate an Increasingly Regulatory World
The first step to corporate sustainability is compliance with regulations governing health, safety, and environmental impact. But ever-increasing government regulation of products and raw materials has become a strategic issue for many businesses. For many of our customers, meeting regulations is a necessary aspect of doing business with which they need assistance to manage.

Driven by our commitment to both sustainability and customer service, our LGM business created its Complete Compliance program. This industry-leading service offers our customers unparalleled speed and support in navigating the regulatory maze. The program helps customers ensure compliance and stay up-to-date on regulatory developments through LinkedIn and Twitter feeds, “Hot Topics” columns in customer newsletters, self-service features on our website, and direct help from our compliance experts. The Complete Compliance Portal allows customers to download customized self-service compliance statements showing that our products and materials comply with applicable regulations, enabling them to get their statements in a fraction of the turnaround time typical in our industry. In 2018, the system generated over 10,000 statements for over 800 customers in North America and Europe, helping them demonstrate compliance—and get to market faster.

Ensuring Supplier Compliance
As part of the Sustainability Procurement Program launched by our LGM and IHM businesses in 2016, we regularly assess key suppliers to ensure they’re complying with applicable regulations. With our partner, EcoVadis, LGM and IHM review suppliers representing over 80% of our direct spend on materials. EcoVadis audits a company’s environmental practices, fair business practices, working conditions, supply chain, and regulatory compliance. Supplier audit scores and corrective actions are made available in EcoVadis’ online system for any competitor or customer who requests the information.