Sustainable Impact Partnership Programme (SIPP)
During 2015, we started the implementation of our new supplier sustainability assessment programme SIPP (Sustainable Impact Partnership Programme). With this, we assess all our suppliers' factories on a three levelled approach:
Level 1: Compliance with fundamental requirements (such as legal requirements, the ILO core conventions and other requirements similar to our previous Code of Conduct).
Level 2: Existence and quality of management systems and setting of own sustainability performance goals. Management Systems help to sustain compliance and establishes a fundamental ground for leading practices and reaching aspirational goals.
Level 3: Setting of and performance against aspirational targets based on defined KPIs such as energy reduction or community impacts. We combine our suppliers’ performance against these three levels in our new Sustainability Index, which during 2016 will fully replace our current Code of Conduct Index (ICoC).
This new assessment method is based on the Higg Index, and some complementary questions and KPIs developed by H&M. The Higg Index is a holistic measurement standard with the aim of creating alignment, greater transparency and better sustainability performance across the apparel and footwear industry. It is developed by a broad range of brands (including us), suppliers, NGOs, academia and many more through the Sustainable Apparel Coalition (SAC).