Due Diligence

At Kentaur, we take our commitment to corporate due diligence seriously. This critical process helps us identify, prevent, mitigate, and be accountable for potential and actual social and environmental impacts throughout our supply chain. 

Our approach to due diligence is shaped by internationally recognized guidelines, including the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, the Partnership for Sustainable Textiles, and the SME Compass by Agency for Business and Economic Development. We have crafted a systematic and structured approach that enables us to thoroughly analyze and manage risks in our supply chain. 

This work is vital as it covers both our internal operations and our broader supply chain. Since the landscape of risks can shift with the evolution of our business practices and operational context, our due diligence efforts are continuously active and adapting. 

In everything we do, we consider the social and environmental risks associated with our products, our business model, our sourcing practices, and the regions in which we operate. Adhering to our Responsible Sourcing Policy and guided by our Code of Ethics ensures that our actions are grounded in responsibility and transparency. 

Our risk management framework is dynamic and based on the severity and likelihood of potential harms reviewed and updated at least annually. This comprehensive evaluation covers a spectrum of concerns from human rights to labor rights, environmental impact, and anti-corruption, assessing 18 different parameters. We strategically prioritize our actions based on these risk assessments, and the scale of our purchasing decisions influences how we prioritize risks in our supply chain. 

This structured vigilance ensures we not only meet but exceed standards, demonstrating our unwavering commitment to ethical practices and the well-being of our global community. 

 

Risk Management  

Living wage 

The issue of living wages is a subject of ongoing debate within Kentaur, reflecting a persistent challenge in the textile sector. 

We risk contributing to socially negative impacts in our supply chain if the remuneration of the production employees is not equal to the wage needed for decent living in their specific region. 

At our own production sites, we have a wage system. It contains three wage levels that ensure that all employees’ competencies and efficiency get rewarded and that their remuneration reflects the value of their work.  

We use dialogue, third-party amfori BSCI audits, and OEKO-TEX® STeP audits for external monitoring of fair remuneration at our own- and suppliers' production sites.  

In case of deviations, the supplier must make a corrective action plan (CAP) to remediate the deviation. We follow up on the CAP through dialogue with the suppliers. 

In 2023, we made a corporate strategy to achieve living wages at production sites. We attended the 8th UN Global Compact European Business and Human Rights meeting. The main topic was living wages. We also applied to be part of the UN Global Compact Business and Human Rights Accelerator program that started in 2024. 

 

Environmental impact of input materials 

Our LCA studies and climate accounting display that the production of textile materials has a tremendous negative environmental impact. 

We do not know the specific environmental impact measured on materials and products in the development phase. This means that we cannot state for sure that we make the least impactful decisions when developing new products. 

Today, we have a tool that estimates global warming potential, water consumption, and land use on our materials and products. To enhance our efforts in preparing for the EU Product Environmental Footprint (PEF), we have found a partner who enables us to continuously measure the impact of all our products in a transparent, trustworthy, and straightforward manner. 

 

Supply chain grievance mechanism & remediation 

Our due diligence efforts intend to identify, prevent, and mitigate potential harm before turning into adverse impacts. 

Potentially, the risk of harm can become an actual impact. 

Via our business and purchasing mechanisms, we take responsibility for potential and actual social and environmental adverse impacts we might have caused or contributed to.  

We encourage our supply chain to notify us about eventual grievances through our supply chain grievance mechanism.  

A description of our grievance mechanism and remediation process can be found in our Supply Chain Grievance Mechanism and Remediation Process description. See our Code of Ethics. 

In 2023, we added a whistleblower scheme managed and operated by an independent third party, PWC. Read more on about the whistleblower scheme. 

With all our initiatives and projects, we strive to ensure that we always adhere to our due diligence. This way, both we as a company and you as a customer can always maintain a clear conscience. At work.