Lojas Renner S.A.

Responsible supply

Lojas Renner S.A. has its suppliers as partners to generate value based on respect for the environment, human and labor rights.

We have already reached our public commitment of having 100% of the national and international resale chain with socio-environmental certification, adopting widely legitimized best practices.

We believe that together we can develop a quality supply chain and achieve sustainable growth.

Socio-Environmental Trajectory

All our partners (resale suppliers, administrative and sellers) undergo social and environmental evaluations. Lojas Renner S.A. has its own team of technical auditors. And besides a conformity assessment, we provide development subsidies to our chain through our performance in the field and through our qualification programs and tools. Check out some milestones in our trajectory:

2015

2017

2018

2019

2020

2021

2022

• Structuring of the Compliance Sector at RENNER
• ABVTEX Certification

• Environmental diagnosis of the supply network

• Start of Compliance Program in Asia
• Environmental Responsibility Audits
• Diagnosis for the Higg Protocol Index
• Toxicity Commitment Terms
• Use of BI and other management tools

• Inclusion of mandatory environmental requirements
• Inclusion of the Chemical Management Block
• Inclusion of environmental requirements in ABVTEX
• Verification audits based on the Higg Index Protocol
• Third Algorithm

• Evolution of the environmental theme
• Process Robustness and Environmental Audits
• Remote and equivalence audits

• Ecosystem Vision
• Classification methodology review
• Compliance Acceleration Program
• Renner Algorithm Creation
• Corporate Digital Cycle
• Evaluation supported by data science

• Amplify the impact of our connections, building with our suppliers and partners the answers to the industry’s challenge
• New cycle of sustainability

What do we do?

• We continuously monitor the social and environmental responsibility of suppliers and their contractors

• We closely manage Resale and Administrative suppliers

• We have technical teams dedicated to monitoring and supporting our supply chain

• We provide access to the Renner University to our suppliers

• We launched the Compliance Acceleration Program (CAP) in 2021

Some numbers:

• More than 3,500 evaluations in the companies of our chain per year

• We buy from 13 different countries, with 70% of the production volume coming from Brazil

• In Brazil, we buy from 17 Federal Units (16 states and the Federal District)

• More than 300 companies trained by the Productive Chaining Program

• 54.5 hours of training at Universidade Renner

GET TO KNOW SOME OF OUR MATERIALS:

Code of Conduct for Suppliers

National and International Audit Checklist

Resale Suppliers Guide

PGRS Primer

We monitor our supply chain and are signatories to ABVTEX and the Social & Labor Convergence Program (SLCP) of the Sustainable Apparel Coalition (SAC).

Our national and international Compliance Program goes through a third-party validation process, which attests that the initiative is aligned with the best management practices in the chain and mitigates socio-environmental risks, ensuring the certification of our suppliers.

We help develop partner companies of our suppliers. Since 2017, we have trained more than 300 micro and small businesses.

In partnership with Sebrae (Brazilian Micro and Small Business Support Service), we have promoted the program that has four phases: sensitization, diagnosis, training, and consulting.

Responsible network

The Responsible Network Program is a corporate qualification initiative for suppliers of Lojas Renner S.A. It was created in 2022, from the expansion of the Cleaner Production 4.0 Program, which was focused on the environmental pilar.

The purpose of the Responsible Network is to bring knowledge applied to ESG concepts to the supply chain. The goal
is to instruct and instrument, in a permanent way, the entire chain.

We have 27 Lojas Renner S.A. employees dedicated to the program and we have already accumulated 54.5 hours of specific content aimed at our value chain.

We also make available an Environmental Management system for monitoring and reporting data on water, energy, chemicals, waste, and emissions.

CHECK OUT THE ENVIRONMENTAL PILAR HIGHLIGHTS WE'VE WORKED ON SINCE 2017:

• We stimulate environmental management for the productive chain of our suppliers. We seek to stimulate eco-efficiency in
their production processes and the improvement of environmental performance.

• In addition to eco-efficiency support, we assess compliance and environmental management in the audits of 100% of our national and international Resale Suppliers. We have our own evaluation checklist, based on the Sustainable Apparel Coalition’s Higg Index standard.

Water

Our water footprint management work has already saved 300 million liters of water in 2021 in jeans production.

All suppliers in the certified jeans chain must report the consumption data of each piece. In 2021, 40% of the jeans delivered to Renner were classified as low water consumption, in the stages of confection and finishing. This process is evaluated by our Compliance team, in an hydraulic audit, where we audit the physical installation of hydrometers and data report in the environmental management tool.

All compliance monitoring initiatives are critical for our supply chain to comply with labor laws, including rights related to fair wage compensation.

We follow the methodology established by the Inter-union Department of Statistics and Socioeconomic Studies (DIEESE) on what is considered a living wage (minimum necessary). In 2021, we achieved living wage monitoring in 100% of Renner’s national Resale Supplier chain (tier 1) and its contractors (tier 2). The review process continues to be updated as part of routine audits.

Learn more

Homem e mulher conversam em um ambiente de depósito de loja

Responsible Purchasing

We have a close management of suppliers, with technical teams dedicated to monitoring and supporting our supply chain, divided into two groups: Administrative Supplier Management and Resale Compliance Management (dedicated to resale suppliers, those who manufacture the products sold in all companies of the ecosystem and the marketplace suppliers).

Before contracting, 100% of the suppliers that serve our companies in the fashion segment in Brazil, including the marketplace sellers, go through homologation. In addition, we rely on consistent monitoring processes, seeking alignment with our values and policies.

Digital traceability

We have our own digital traceability program using blockchain, which allows us to know exactly where our products were produced, where they went, what attributes they have, and consequently to measure, more accurately, the impact of our production. The traceability program focuses on connecting our suppliers and other companies in the production chain, as well as involving institutions and associations with the aim of creating an increasingly collaborative fashion ecosystem.

Since 2021, we are part of the SouABR Program – Responsible Brazilian Cotton, in partnership with the Brazilian Association of Cotton Producers (Abrapa).

The Program is the first large-scale traceability initiative of the textile chain in Brazil using blockchain technology and allows the cotton used in the garments to be traced back to its origin property. The ABR certification analyzes 178 items, such as prohibition of child labor, analogous to slavery or in degrading conditions, safety, occupational health, environmental performance, and good practices.