Tag: Ethical Sourcing

  • Shahi KPD is one of the first mills to achieve YESS Foundational Level Conformance.

    Shahi KPD is one of the first mills to achieve YESS Foundational Level Conformance.

    Responsible sourcing has been the cornerstone of our operations at Shahi. Our Knits Processing Division (KPD) has been a pioneer in this field, achieving several firsts. In 2023, we became the first Indian mill to undergo the Yarn Ethically & Sustainably Sourced (YESS) Assessment, managed by Responsible Sourcing Network (RSN). This year, the Knits Processing Division is the first Indian mill to meet the foundational level requirements of the YESS Program, which includes the posting of its first publicly available Due Diligence Report. The Knits Processing Division has set a new standard for sustainable practices. 

    We’ve made substantial progress in the past year, especially refining our supply chain risk assessment systems. The learnings from our pilot informed our approach to emerging legislation around the world, from the Uyghur Forced Labor Prevention Act (UFLPA) to the Corporate Sustainability Due Diligence Directive (CSDDD) and other new regulations from the European Union.

    Role of Manufacturers in Due Diligence

    Sourcing raw materials like cotton presents unique challenges due to the complex global supply chain used by the Fashion Industry. Understanding the underlying processes is essential for supply chain members to ensure transparency, improve policies, and implement effective solutions. With guidance from the YESS team, the Knits Processing Division has made significant strides in achieving these goals. 

    Our progress in mitigating risks

    In the one year since you last heard from us, we have:

    • Refreshed our KYC (Know Your Supplier) requirements, which have been a strong support for getting first-hand information about our vendors. 
    • Built our Responsible Sourcing Policy to align with OECD guidelines and responsible ethics in procuring our raw materials (or cotton inputs).
    • Implemented a thorough supplier vetting approach, ensuring that our suppliers uphold the same values and moral standards that we follow. 
    • Strengthened our two-way communication tools with our supply chain members to foster better communication and understanding.
    • Formalized and trained all our sourcing and due diligence teams to align as closely as possible with global standards. 
    • Redefined our responsible sourcing methodology by introducing cross-functional teams from sustainability, compliance, procurement, and production. 

    These actions have mitigated our exposure to several risks and enabled us to have a stronger partnership with our suppliers.

    Improving our Due Diligence

    Michael Baldino-Kelly, Director of Program Development who leads the YESS initiative, stated,

    “I really want to commend the team at Shahi for all the hard work and effort they’ve put in to meet the YESS requirements to reach the Foundational Level of conformance. It shows Shahi’s foresight in getting into a new initiative as it grows, as well as demonstrated leadership in the due diligence space to be one of the first two mills globally to achieve this status.”  

    As we enter the next year of this journey, we aim to expand these initiatives. We’re dedicated to exceeding expectations. We follow not only UFLPA requirements but also the broader European Union regulations on sustainability, ethical sourcing, and due diligence.

    In the years ahead, we’ll continue to improve our grievance redressal mechanisms, make our reporting more transparent, track cotton from field to finished product, and work more closely with our suppliers. Our goal is to ensure ethical sourcing practices throughout our entire process and address any potential risks.

  • Shahi Exports Becomes the First Indian Mill to Undergo a YESS Assessment

    Shahi Exports Becomes the First Indian Mill to Undergo a YESS Assessment

    New Delhi, 24 May, 2023: Responsible Sourcing Network and Shahi Exports announce their collaboration in promoting due diligence towards ethical cotton sourcing practices in the garment industry. The partnership aims to build a transparent and forced labor-free supply chain for cotton as countries across the world move to strengthen due diligence and sourcing standards.

    YESS: Yarn Ethically & Sustainably Sourced is an initiative by Responsible Sourcing Network that dedicated several years to developing rigorous due diligence standards to achieve a forced labor-free cotton supply chain for the garment and textile industry. 

    The YESS standards were officially presented in India on May 2, 2023 at a workshop in Bengaluru, Karnataka, attended by multiple industry members. The workshop highlighted the significance of due diligence in building an ethical supply chain for cotton sourcing and furthering the goal of preventing forced labor. 

    “This joint effort represents a significant milestone in the pursuit of responsible and transparent cotton supply chains. As we expand conducting assessments in India later this year, we invite industry members to join this collective advancement and have their mills trained and assessed,” said Patricia Jurewicz, CEO of Responsible Sourcing Network.

    Shahi Mill and Spinning Facility at Shivamogga underwent India's first YESS assessment
    Shahi Mill and Spinning Facility at Shivamogga underwent India's first YESS assessment

    Following the workshop, YESS conducted its initial independent assessments in India at Shahi Exports’ knitting and spinning facilities in Shivamogga. The YESS program assesses management systems and inventory controls of mills to identify, assess, and mitigate the risks of forced labor based on the Organisation for Economic Co-operation and Development (OECD) due diligence framework. In 2022, Shahi was one of the seven global suppliers that piloted the YESS Standards and has now become the first mill in India to take the lead in implementing robust due diligence measures. 

    “As India’s largest apparel manufacturer and exporter, Shahi is committed to producing goods using ethical, fair, and sustainable practices. We are thrilled to embark on this journey and align ourselves with global standards of due diligence. We recognize that efforts towards traceability require industry collaboration, and we are confident that YESS will provide valuable support in achieving this goal.” stated Anant Ahuja, Head of Organizational Development at Shahi Exports. 

    While already operating with firm checkpoints for cotton sourcing, the YESS assessment provided additional insights that enabled Shahi to further strengthen its management processes in response to evolving legislation and growing consumer demand on traceability against forced labor.

    Spinners and textile mills play a critical role in facilitating visibility and due diligence in the complex cotton-sourcing landscape as gatekeepers. YESS recognizes the position they hold and values their partnership in connecting the industry agenda across the global supply chain.