Rosendahl Design Group A/S Annual Report 2023 • ESG Reporting Challenges in the Supply Chain We have learned, from the audit reports for suppliers in risk-classified countries, that the main challenges in our supply chain are Working time and Living wages. WORKING TIME The working time challenges are limited to Chinese suppliers. We know from fellow colleagues in the industry that this is a challenge for the whole industry. It is therefore one of the main focus areas moving forward to discuss the challenges with our Chinese suppliers to understand how this issue can be handled It has also been emphasized in the updated CoC distributed to all suppliers in the end of 2023. LIVING WAGE Previously the focus in audits as well as code of conduct has been on compliance with national minimum wages. As minimum wages are not always enough to uphold a decent living standard, the focus is now shifting to living wages. The Amfori BSCI CoC now enforces its focus by asking suppliers to calculate the living wages in their area of operation (with the help of a given methodology) and compare this with the wages paid by the company. We see a large variety in results, where in some areas the national minimum wage is far from the living wage in the same area, and other areas where the difference is not that big. Naturally we are not the only ones facing this challenge and therefore we engage in networks where this is discussed to find the best solution. Adding to the updated CoC we will develop a Living Wage policy during 2024, using this as a starting point for a closer dialogue with suppliers. Meanwhile we will continue the dialogue in the industry with the aim of finding a common approach to the topic. 42
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