The Otto Group has been aware of its responsibility in global textile production for a long time now. Back in the 1980s and 1990s, we made voluntary commitments to help improve social and environmental standards in production countries and make sure that conditions along the supply chain were safe and fair. Through training measures and workshops, we have taken a stance on topics such as fair wages, occupational safety, child-free production and environmental protection with our suppliers in the production countries. Long before the German Supply Chain Act even existed, we repeatedly checked the effectiveness of these measures with our suppliers and adjusted them where necessary.
In the meantime, the whole issue, which actually has something to do with pure humanity, has now also reached European legislators. I think this is a positive development. That is why I also support the current European initiative – the so-called Supply Chain Due Diligence Act – which will lead to a uniform minimum standard across Europe. Production and trade will no longer be below this standard.
As a retail and service group of companies, we naturally also offer items from other retailers on our platforms. Our expectations regarding social and environmental standards are set out in our “Business Partner Declaration on Sustainability”, which our platform retailers must sign. Responsibility for compliance with the standards then lies with them. But if we notice that something is wrong, we address it very specifically and initiate appropriate measures.
However, everyone needs to know that, despite all the rules and measures, there is never a 100% guarantee of compliance. Still, the issue of social and environmental standards is now on many people's minds. Together we can achieve a lot here. This makes continuous dialog, monitoring, and a willingness to improve as well as a change in shopping behavior all the more important.
Companies must make their supply chains traceable, ensure fair working conditions and use resources efficiently. Products should be durable, repairable and recyclable – in the sense of a genuine circular economy. This is because the circular economy, alongside rigorous climate protection, is the only plausible answer to how our economic model can function within planetary boundaries, without jeopardizing the stability of ecosystems and preserving the basis of human life.
Apart from adherence to defined environmental and social standards among the suppliers, more attention should be paid to supporting countries in enforcing their national laws. People in production countries must be enabled to develop through the trade with us. Climate protection, fair dealings with employees and development policy measures which help people to help themselves − all of these must be placed at the centre.
Last but not least, it is important to provide consumers with clear information to enable them to make sustainable purchasing decisions.
Sustainability and a corresponding range of products require joint efforts from many players. We need commitment both from industry as well as politics, and from the media as well as from consumers themselves. Each and every individual and every company has to ask themselves what they can contribute to support responsible actions and sustainable production. Consumers are increasingly making purchasing decisions based on their own values. The sixth Otto Group Trend Study has shown that ethical consumption continues to be mainstream and remains solid despite some difficult conditions at present. This trend can certainly also be explained by the expansion of the product range in recent years, with products declared and sustainable are now available in different price ranges. However, the study also showed that consumers are demanding decisive action and concrete measures from companies – otherwise they are going to lose their trust. The greater awareness people have of those problems that need to be solved, the more pressure there is on companies and on governments, because consumers are voters as well.