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XTM’s Supply Chain & Social Responsibility Policy

The XTM Supply Chain & Social Responsibility Policy aims to improve both our social and environmental impact in the independent factories and communities in which we do business with throughout the world. At XTM we value, support and encourage ethical labour practices and safe working conditions through our supply chain.

XTM is committed to assuring that the partners with whom we do business share in these same values. Our policy applies to all facilities that produce goods for XTM.

XTM recognises that there are different legal and cultural environments in which factories operate throughout the world. Due to this the XTM Supply Chain & Social Responsibility Policy (SCSRP) outlines the basic requirements that all factories must adhere to in order to do business with XTM.

Thus, it is also the responsibility of all XTM business partners, suppliers, agents and designated 3rd parties to act in accordance with the XTM Supply Chain & Social Responsibility Policy.

The XTM SCSRP uses a number of internationally recognised standards to ensure all factories used meet ethical standards. We ensure that an approved Code of Conduct is posted in all major workplaces and translates into the language(s) of the employees.

The XTM SCSRP Code of Conduct outlines standards in the following 11 areas:

  • Freedom of Association and Collective Bargaining
  • Fair Remuneration
  • Occupational Health and Safety
  • Special Protection for Young Workers
  • No Forced or Bonded Labour
  • Ethical Business Behaviour
  • No Discrimination
  • Decent Working Hours
  • No Child Labour
  • No Precarious Employment
  • Protection of the Environment

Due to XTM being a seasonal business, our main production is placed in the factories off-season and produced prior to the Chinese New Year. This helps to keep the factories operational and save workers from unemployment, however as many factories close for around 4 – 6 weeks for the Chinese New Year holidays there is some overtime required leading up to the holiday. We believe at XTM that as long as the workers agree and are getting compensated for overtime at 150% for normal days overtime and 200% for weekend overtime, we believe that is acceptable and is in line with how our industry works.

Social Responsibility Audit Policy

Every factory, which takes part in the manufacture of a XTM branded product and or OEM product will be monitored under the XTM Supply Chain & Social Responsibility Policy.

This comprises of all finished goods factories. It is XTM’s commitment to ensuring all partners / suppliers of XTM adhere to the XTM Supply Chain & Social Responsibility Policy.

XTM monitors the production line by conducting 3rd party audits as well as factory visits conducted by XTM production management employees. These will be conducted regularly with suppliers.

XTM is committed to ensuring all of its factories meet the XTM Supply Chain & Social Responsibility Policy and will work hand in hand to ensure the best working conditions for all parties involved. XTM plan to have all factories audited and meeting the XTM SCSRP passing score of SILVER (Good).

All audits conducted by 3rd Party Auditors or XTM employees will be completed within one business day. At the end of the day the factory manager will be verbally advised of the status. For any suppliers which receive a rating of BRONZE (Acceptable / to be improved) or a lower passing grade will be followed up by XTM with a Corrective Action Plan (CAP).

The CAP will be finalised and sent to the factory within 10 business days of the audit being complete. The factory manager will then proceed to fill out and sign the CAP and proceed with issue correction. Once all issues are corrected the factory is required to provide XTM with photographs and documentation presenting that the issues have been corrected accordingly.

XTM does not tolerate or accept any forms of violations or bribery to this policy.

XTM reserves the right to cease all communication and current production orders if there is a lack of cooperation from the partner / supplier towards the Supply Chain and Social Responsibility Policy.

XTM Supply Chain & Social Responsibility Audit Ratings:

Rating Status Follow-up Audit
GOLD Outstanding 36 Months
SILVER Good 24 Months
BRONZE Acceptable / to be improved 12 Months
RED Insufficient Within 6 Months
BLACK Unacceptable Cease production

Rating Details:

GOLD = Outstanding

  • Demonstrates outstanding practices
  • No area audited requiring improvement
  • The factory has no serious health, safety or labour issues
  • Re-audit will be conducted after 36 months of the original audit

SILVER = Good

  • Demonstrates good practices
  • No area audited requiring improvement
  • The factory has no serious health, safety or labour issues
  • Staff wishing to work overtime receive the approved XTM SRSCP rate, as mentioned above
  • Re-audit will be conducted after 24 months of the original audit

BRONZE = Acceptable / to be improved

  • Minor system failures, making progress
  • The factory has minor health, safety or labour issues
  • Re-audit will be conducted within 12 months of the original audit.
  • The factory is authorised to produce XTM products while adhering to and completing the Corrective Action Plan (CAP)
  • Once the CAP has been corrected to XTM’s satisfaction the status of the factory will be increased to “Accepted”

RED = Insufficient

  • The factory does not comply with the XTM Supply Chain & Social Responsibility Policy.
  • Areas audited require immediate improvement
  • The factory has health, safety or labour issues
  • Re-audit will be conducted within 6 months of the original audit
  • A Corrective Action Plan (CAP) will be sent to the factory within 10 days of the audit.
  • If the factory does not improve to a Bronze grade within 6 months of the original audit the factory will be deemed unacceptable to produce XTM products

BLACK = Unacceptable

  • The factory does not comply with the XTM Supply Chain & Social Responsibility Policy.
  • The factory is deemed unacceptable for production
  • XTM will terminate all current relationship and orders with the factory.

Our strengths at XTM lie in our researching, designing, testing, marketing and selling of XTM gear. Like a lot of clothing companies, we do not make our own products, nor do we own the factories that do. We pay companies that have the technical skills and equipment to produce the fabrics and do the cutting and sewing of all products. In doing this XTM is faced with special challenges, as we feel responsible for any work involved in the process of producing all XTM products.

XTM currently produces its products in China, Taiwan, and Korea and has no intention to move or source products from other countries. XTM has a strong team of long-term suppliers, which have grown along with our business and together we support one another.

As well as our Supply Chain & Social Responsibility Policy we also have an Environmental Commitment purposefully investing in the places where most of our carbon emissions from our production are made. Currently we have 2 projects running which combined are creating 370 short-term jobs and 30 long-term positions. You can find out more about our Environmental Commitment here.

Our efforts at XTM are not only within the walls of the company, but include the people in which we impact all over the world. We strive not only to have all our factories comply with our Supply Chain & Social Responsibility Policy, but to also have a positive impact on everyone around us.