Social Impact
Introduction
At GANNI, we approach our work on social impact through three key areas: Living Wages, Social Accountability, and Traceability & Transparency.
During 2024, our primary focus was to scale our Living Wage programme to further suppliers, while strengthening the tools we use to assess social accountability in the supply chain. In 2024, we made substantial progress towards our Living Wage goal with 64% of suppliers either paying a living wage or on GANNI’s living wage programme. We also onboarded new tools to support supply chain accountability and decision making for third-party audits, visits and social impact programmes. In addition, we continued our partnership with the UN Women Empowerment Principles and are publicly disclosing our gender statistics at GANNI HQ within this report. Moving into 2025, we’re confident that we will reach the goals of our GAMEPLAN 2.0 strategy.
Please find our policies on Code of Conduct, Involuntary Workers Policy, Migrant Workers Policy, Child Labor Policy, Code of Ethics, Bribery and anti-corruption, and Modern Slavery Statement.
Living Wage
A minimum wage is a legal requirement calculated based on the overall economic condition of the country; as part of our code of conduct, all of GANNI’s suppliers are obligated to pay the minimum wage. A living wage, on the other hand, refers to a wage level high enough to afford a basic but decent standard of living for the worker and their family. GANNI takes on the additional cost to ensure a living wage for workers, absorbing this expense ourselves rather than passing the responsibility onto our suppliers.
The Global Living Wage Coalition describes a living wage as the following: “The remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and their family.” Elements of a decent standard of living include food, water, housing, education, healthcare, transport, clothing and other essential needs, including provision for unexpected events.”
Even though living wages are not mandatory by law, ensuring that workers receive living wages is crucial to creating more responsible fashion supply chains, which is why we are committed to this work.
Why is paying a living wage such a complicated process?
Paying a living wage is complicated because we do not own our supply chain. Increasing our wages to a living wage standard involves multiple stakeholders and the sharing of otherwise classified information, which makes it immensely complex. In addition, we work in the business of fashion, which means changing trends and fabrications, and it is not always easy to forecast or predict the products that will be successful, therefore making it harder to forecast living wage payments. On top of that, the suppliers we work with are not necessarily asked to set the same objectives from the other fashion brands they work with, meaning that we have to work with suppliers to create a structure for paying a premium when producing GANNI products, which only covers a percentage of their total production volume in the factory.
How do we achieve a Living Wage?
Our approach follows two main pathways:
Wage Analysis & Monitoring
We conduct in-depth wage assessments at the factory level to understand current pay levels. For suppliers already paying above the living wage benchmark or those with collective bargaining agreements (CBAs), we closely monitor wages to ensure compliance with these agreements.
Establishing & Supporting Living Wages
GANNI partners with The WageIndicator Foundation to purchase living wage benchmark data. To ensure these benchmarks reflect real-world conditions, we collaborate with suppliers and worker committees, conducting on-the-ground cost of living surveys. This allows us to fine-tune our targets based on actual living conditions rather than just statistical estimates.
For suppliers whose wages fall below the living wage benchmark, we enroll them in our Living Wage Initiative. Through this programme, we provide an additional premium to help close the wage gap and support fair pay across our supply chain.
Ensure all Tier 1 suppliers to be included in the Living Wage initiative by 2025
In this year's report, we will provide an update on the Living Wage Programme as a whole, rather than on a country-by-country basis. Initially, our strategy focused on implementing living wages at the country level. However, upon reflection, this approach has proven less effective for several reasons:
- Regional Benchmarks: Living wage benchmarks are calculated regionally rather than nationally, and GANNI’s suppliers operate across multiple regions, even within the same country. This made scaling the programme at a country level challenging.
- Changing Supply Base: As a fashion brand, GANNI works with various materials and products, requiring specialised manufacturers. As a result, our supplier network evolves, making a country-specific approach impractical since the targets constantly shift.
We remain committed to ensuring that all contractual suppliers pay a living wage by 2025. However, we recognise that as our supply chain evolves, so will our strategy. This will be an ongoing initiative that GANNI must continuously adapt and operationalise.
Suppliers on the Living Wage Programme
Based on GANNI’s 2024 Supplier Data
Chart Key
On GANNIs Living Wage programme: 43%
Paying a Living Wage Premium: 20%
Pending Review/in discovery: 37%
20% of Suppliers in the Programme
Suppliers across Italy, Moldova, Portugal, and India are considered operationalised within the Living Wage Programme.
43% Paying a Living Wage
These suppliers either have collective bargaining agreements (CBAs) in place or already pay above the regional living wage benchmark.
37% Pending Review – Why?
This group includes suppliers who:
Were onboarded to GANNI as a new supplier in 2024 and/or are scheduled for assessment under the Living Wage Initiative.
When we classify a supplier as "pending review" in this context, it means we have confirmed they meet the legal minimum wage but have not yet conducted a wage analysis using WageIndicator data to determine whether they meet the living wage benchmark. In some cases, suppliers already meet the benchmark and do not need to be enrolled in the Living Wage Programme. If they do not, they are onboarded and follow the steps outlined earlier in this chapter.
We are confident that during 2025 we will be able to close the gap on the remaining 37% of suppliers pending review and ensure that contractual suppliers of GANNI are compliant with the living wage programme. It is important to note that past the GAMEPLAN 2.0 strategy, this work will be an ongoing ‘moving target’ as GANNI and its supply base evolves.
Social Accountability
By 2025, 100% of Tier 1 and subcontracted suppliers will be audited and continuously monitored
At GANNI, we do not own the supply chain or manufacturing facilities that produce our products. As a result, overseeing the daily operations of our global supply chain presents a unique challenge. We rely on in-person visits and third-party audits to ensure that the workers producing our garments are working in safe and ethical conditions.
While all of GANNI’s contractual suppliers have undergone third-party audits, we place particular emphasis on auditing and monitoring subcontractors further down the supply chain, where communication lines are less direct than with our primary suppliers.
Since 2020, we have been actively mapping and consolidating our supply chain, focusing on the tail-end suppliers. This strategy allows us to concentrate our efforts and increase our influence on suppliers. In 2024, we partnered with Fairly Made to digitise our supply chain traceability, enhancing our visibility. However, we acknowledge the challenge of incorporating additional intermediaries between GANNI and its supply chain partners, which can make us feel even more distanced from the process, so as a result, we made the decision to pause our collaboration with Fairly Made as our third-party traceability partner. Initially, we outsourced this process to automate what we had been doing manually. However, throughout the collaboration, we realised that in-house expertise allows for even greater traceability, something that technology, as it stands, hasn’t fully delivered yet for our fast-paced workflows. To ensure we stay true to our goals, we have hired a dedicated team member to oversee this critical process internally. We remain in close dialogue with Fairly Made and look forward to exploring future opportunities to work together again to further refining our approach to supply chain transparency.
We continue to work with The EiQ platform, a comprehensive tool for supply chain analytics. This platform allows us to assess risks geographically and at the product level throughout the supply chain. Our monitoring program will extend beyond Tier 1 contractual suppliers and subcontractors (Tier 1+). By utilising a centralised platform, we can effectively manage and track supplier labour practices and monitor progress toward continuous improvement.
Gender Equality, Diversity & Inclusion
GENDER HQ
As a women-led company, GANNI is deeply committed to promoting gender equality, diversity, and inclusion in the workplace. We proudly maintain a long-standing partnership with UN Women and are signatories of the UN Women's Empowerment Principles. As part of our commitment, GANNI publicly discloses our company’s gender composition annually, including details of board and management roles, with a comparative overview of previous years. We embrace this transparency, as it holds us accountable to the high standards we strive to uphold.
You can see our progress in the chart below.
Women 88%
Men 12%
Women 86%
Men 14%
MANAGEMENT
As a women-led company, GANNI is deeply committed to promoting gender equality, diversity, and inclusion in the workplace. We proudly maintain a long-standing partnership with UN Women and are signatories of the UN Women's Empowerment Principles. As part of our commitment, GANNI publicly discloses our company’s gender composition annually, including details of board and management roles, with a comparative overview of previous years. We embrace this transparency, as it holds us accountable to the high standards we strive to uphold.
You can see our progress in the chart below.
Women 87%
Men 13%
Women 83%
Men 17%
SENIOR MANAGEMENT
As a women-led company, GANNI is deeply committed to promoting gender equality, diversity, and inclusion in the workplace. We proudly maintain a long-standing partnership with UN Women and are signatories of the UN Women's Empowerment Principles. As part of our commitment, GANNI publicly discloses our company’s gender composition annually, including details of board and management roles, with a comparative overview of previous years. We embrace this transparency, as it holds us accountable to the high standards we strive to uphold.
You can see our progress in the chart below.
Women 91%
Men 9%
Women 73%
Men 27%
BOARD OF DIRECTORS
As a women-led company, GANNI is deeply committed to promoting gender equality, diversity, and inclusion in the workplace. We proudly maintain a long-standing partnership with UN Women and are signatories of the UN Women's Empowerment Principles. As part of our commitment, GANNI publicly discloses our company’s gender composition annually, including details of board and management roles, with a comparative overview of previous years. We embrace this transparency, as it holds us accountable to the high standards we strive to uphold.
You can see our progress in the chart below.
Women 67%
Men 33%
Women 50%
Men 50%
Traceability & Transparency
TIER 1: Contractual Suppliers
Contractual suppliers are suppliers that GANNI has a direct contractual relationship with, and that manufacture and assemble the final product.
TIER 1+: Subcontractors & Subsidiaries
It is a common practice for suppliers to outsource production to subcontractors due to production capacity or specific skill requirements. Subcontractors are not owned by the subcontracting facility. Subsidiaries on the other hand are separate and legally independent entities that are owned or controlled by the contractual supplier.
TIER 2: Material Suppliers
Tier 2 suppliers produce the materials used to manufacture and assemble the finished product. This involves processes such as weaving and knitting, and material printing, dyeing, and finishing.
TIER 3: Yarn Suppliers
Tier 3 suppliers transform raw material into yarn by undergoing spinning, dyeing at yarn stage, and other preparatory processes.
TIER 4: Raw Materials
Tier 4 corresponds to the raw material source, such as cotton and animal farms as well as man-made fibre producers.
TIER 1: Contractual Suppliers
Contractual suppliers are suppliers that GANNI has a direct contractual relationship with, and that manufacture and assemble the final product.
TIER 1+: Subcontractors & Subsidiaries
It is a common practice for suppliers to outsource production to subcontractors due to production capacity or specific skill requirements. Subcontractors are not owned by the subcontracting facility. Subsidiaries on the other hand are separate and legally independent entities that are owned or controlled by the contractual supplier.
TIER 2: Material Suppliers
Tier 2 suppliers produce the materials used to manufacture and assemble the finished product. This involves processes such as weaving and knitting, and material printing, dyeing, and finishing.
TIER 3: Yarn Suppliers
Tier 3 suppliers transform raw material into yarn by undergoing spinning, dyeing at yarn stage, and other preparatory processes.
TIER 4: Raw Materials
Tier 4 corresponds to the raw material source, such as cotton and animal farms as well as man-made fibre producers.
Products origins by tiers of suppliers
In this year's report, we wanted to give greater context to our Supply Chain Map. Instead of informing you where in the world our clothes are produced, we wanted to give insight into what products are created where. Scroll over the map to learn more.