Dutch Agreement on Sustainable Garments

and Textile
A broad coalition of industry organizations, trade unions, civil-society
organizations and the Dutch government presented an agreement on
international responsible business conduct in the garments and textile sector.

The agreement
On 9 March 2016, a broad coalition of industry organisations, trade unions, civil-society
organisations and the Dutch government presented an agreement on international responsible
business conduct in the garment and textile sector.
In this agreement, these parties combine forces in an effort to achieve practical improvements in
and ensure the sustainability of the international garment and textile supply chain. For example,
they want to address problems such as dangerous working conditions and environmental
pollution.

Why is an agreement necessary?

A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsible Business Conduct in the garments and
textile sector.

Businesses can find themselves in situations in textile-producing countries that leave much to be
desired in terms of human rights, worker health & safety, environmental protection and animal
rights. Many businesses and branches of industry are therefore emphasising International
Responsible Business Conduct (IRBC) and sustainable supply chain management. Society
expects this of them and they are obliged to do so under international guidelines and agreements
such as the United Nations Guiding Principles on Business and Human Rights, the OECDs
Guidelines for Multinational Enterprises, and the ILOs fundamental labour standards.

If a business finds itself involved in such situations or is at risk of becoming involved, it can try
to do something on its own and many businesses do but problems in emerging markets in the
developing world are often so complex that there is very little one business can achieve acting
alone. Governments may also have trouble eliminating or avoiding abuses. Broad cooperation is
therefore vital. Cooperation with other businesses and parties makes permanent solutions more
likely. That is why a broad coalition of partners have signed the Dutch Agreement on Sustainable
Garments and Textile. They include industry organisations VGT, Modint and INretail, trade
unions FNV and CNV, the National Government of the Netherlands, and NGOs Solidaridad,
UNICEF Netherlands, the India Committee of the Netherlands, the Stop Child Labour Coalition
and Four Paws Netherlands.

What does the agreement say?

A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsible Business Conduct in the garments and
textile sector.

The businesses and organisations that sign the agreement undertake to fight discrimination, child
labour and forced labour. They also undertake to support the right of negotiation by independent
trade unions, a living wage, and health and safety standards for workers. In addition, they will do
their best to reduce the negative impact of their activities on the environment, to prevent animal
abuse, to reduce the amount of water, energy and chemicals that they use, and to produce less
chemical waste and waste water. The aim is for at least 50% of the Dutch garment and textile
sector (calculated in terms of sales in the Netherlands) to support the agreement by 2018, and
80% by 2021.

What will businesses do?

A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsiblke Business Conduct in the garments and
textile sector.

The participating businesses will begin by investigating problems and risks across their entire
supply chain, making use of both existing and innovative new methods. They will also draft an
annual improvement plan with specific goals that they must have reached within manageable
periods of three and five years. For example, they might set themselves the goal of improving
worker pay by a minimum of x %, reducing and, if possible, abolishing child labour within x
years, and cutting emissions of hazardous waste materials by x %. Their own investigations
will reveal many points for improvement that they can then turn into specific plans.

What will parties do?

A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsible Businessw Conduct in the garments and
textile sector.

Joint improvement programmes will be developed to tackle problems that the businesses cannot
solve on their own. The trade unions and NGOs involved will support these programmes with
their expertise and networks. They will involve their local partners in implementing the
programmes. Where desirable, the Dutch government can make agreements with the authorities
in the production countries, for example about improving their health and safety inspectorates.
The Dutch government will also work with other countries that have comparable initiatives to
scale up the agreement to EU level, widening its impact.

The parties will issue a joint report on their activities and results every year. From the third year
onwards, each of the participating businesses will also publish its results separately.

How will this affect people in textile-

producing countries?
A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsible Business Conduct in the garments and
textile sector.

The businesses that support the agreement and purchase garments and textiles in source countries
will make an active effort to track down risks. If they find that their suppliers pose risks, they
will take steps to prevent such negative effects where possible and to eliminate or reduce them
where they already exist. They will do this in partnership with trade unions, NGOs and the
authorities. Local partners of Dutch trade unions and NGOs will also cooperate on improving the
situation locally. These efforts will therefore affect the workers in textile-producing businesses.
They will see their working conditions or wages improve, or notice an improvement in the way
their employer treats animals or the environment. If the businesss workers, the local unions or
NGO representatives believe that the agreement partners are not doing enough or are achieving
too little, they can lodge a complaint with an independent complaints committee.

How will this affect consumers in the

Netherlands?
A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Respoinsible Business Conduct in the garments and
textile sector.

Eventually, more and more garments and textiles will be produced under better and safer
conditions, and a growing number of shops will be able to meet the consumer demand for fair
and sustainable products. The agreement is not a seal of approval or proof of good conduct,
however. It consists of arrangements that are meant to lead to improvements in the longer term.
A simple signature will not magically produce those improvements.

The coalition of partners will report on their progress every year. From the third year of the
agreement onwards, each business will also report on its own efforts and achievements. The hope
is that consumers will take this information into account when choosing clothing brands and
labels or deciding where to make their purchases.

What is the SERs role in all this?

A broad coalition of industry organisations, trade unions, NGOs and the Dutch government have
concluded an agreement on International Responsible Business Conduct in the garments and
textile sector.

An independent secretariat the AGT Secretariat - managed by the SER will make a reasonable
and fair assessment as to whether the individual business plans are sound and ambitious enough
and whether the businesses involved have made a convincing case for their decisions and
choices. Where necessary, the AGT Secretariat will advise them. The secretariat will also seek
out common problems that businesses are having difficulty tackling on their own. Where
possible, collective projects will be set up with other parties to address these problems.

Which businesses support?

On 4 July 2016, approximately fifty businesses in the garments and textile sector signed to
declare their support the agreement. The number of signatories has grown since then. The aim is
for 80% of all garment and textile businesses in the Netherlands to have signed the agreement by
2021.

All signatories support the aims and arrangements set out in the agreement. Many of them were
already involved in initiatives to make the garment and textile supply chain more sustainable,
either on their own or in cooperation with others. Some had only recently got started, while
others had considerable experience. The agreement allows businesses to share what they have
learned with one another without encroaching on one anothers (competitive) preserve.

Due diligence is central to the agreement. As part of an annual cycle, these businesses identify
the biggest risks to sustainability and develop an action plan for tackling those risks. They also
share certain basic aggregate data, for example on production sites, with the public.