Kmart Group acknowledges its responsibility to respect human rights and promote environmental sustainability within its supply chains. During the year, Target and Kmart continued their efforts to strengthen the Kmart Group Ethical Sourcing Program. Achievements this year included:
completing a comprehensive modern slavery risk review across the Kmart Group’s supply chains and operations. This review sets out a one-year road map to address gaps identified in the current risk management approach;
continued participation in the International Labour Organization and the International Finance Corporation (ILO/IFC) Better Work Programme to improve working conditions in apparel supplier factories in participating countries. By the end of the 2019 financial year, Kmart had enrolled all 57 eligible factories with the Better Work Programme, while Target had enrolled 55 out of 60 eligible factories; and
continued participation in the Action, Collaboration, Transformation (ACT) initiative, a global collaboration to achieve living wages in the garment and textile industry. During the year, ACT publicly released its global purchasing practice commitments after three years of review and consultation. Implementation of these commitments will be Kmart Group’s main contribution to ACT moving forward.
The complexity and depth of the Kmart and Target supply chains remains a key challenge for Kmart Group’s Ethical Sourcing Program and wider sustainability efforts. This will be addressed with a new focus on improving traceability of tier two and tier three factories (particularly for clothing, bedding and towel ranges) in the next three years.