Due diligence.

Due diligence is an essential part of how we work with responsibility at Kentaur. It helps us identify, prevent, mitigate, and address potential social and environmental impacts related to our operations and supply chain.

Our due diligence work is guided by internationally recognised frameworks, 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 developed by the Agency for Business and Economic Development.

We apply a structured and risk-based approach to continuously assess potential risks connected to our products, sourcing practices, and the regions where our suppliers operate. This work covers both our own operations and our broader supply chain.

Because risks and operating conditions can evolve over time, our due diligence process is ongoing and regularly reviewed to ensure that we continue to identify and manage potential impacts responsibly.

How we work with due diligence

At Kentaur, our due diligence work is based on a risk-based approach. This means that we continuously identify, assess, and prioritise potential social and environmental risks connected to our business activities and supply chain.

Our risk assessments cover a range of topics, including human rights, labour rights, environmental impact, and anti-corruption. In total, we evaluate 18 different risk parameters to better understand where potential impacts may occur.

The assessment considers both the severity and likelihood of potential harm. Based on this analysis, we prioritise actions and follow-up activities where the risks are greatest. Our purchasing volume also plays a role when determining priorities within the supply chain.

The risk assessments are reviewed and updated regularly, with a minimum review cycle of once a year. This ensures that our due diligence work reflects changes in our operations, sourcing practices, and the regions where our suppliers operate.

Monitoring and follow-up

Identifying risks is only the first step. An important part of due diligence is monitoring working conditions and environmental practices across our supply chain.

We work closely with our suppliers through ongoing dialogue and follow-up to ensure that our requirements are understood and implemented in practice.

Independent third-party audits are used as an additional tool to monitor compliance with our standards. These include amfori BSCI audits and OEKO-TEX® STeP audits at our own and our suppliers’ production sites.

If deviations are identified, the supplier must implement a corrective action plan to address the issue. We follow up on these actions through continued dialogue to ensure that improvements are implemented.

Key focus areas in our risk assessments

Our due diligence work covers a range of social and environmental topics. Some areas require particular attention due to the characteristics of the textile industry and our supply chain.

Below are examples of topics that are currently a focus in our risk assessments and follow-up activities.

Grievance mechanism and remediation

Our due diligence work aims to identify and prevent potential harm before it develops into adverse impacts. However, if issues arise, it is important that they can be reported and addressed.

We encourage our suppliers and business partners to raise concerns through our supply chain grievance mechanism. This allows potential issues related to working conditions, environmental practices, or business conduct to be reported and assessed so that appropriate follow-up actions can be taken.

If necessary, remediation measures are implemented in dialogue with the supplier. This may include corrective action plans designed to address the identified issue and prevent similar situations in the future.

In addition, Kentaur operates a whistleblower scheme managed by the independent third party PwC. The scheme allows concerns to be reported confidentially and ensures that potential issues can be handled responsibly.

A detailed description of our grievance mechanism and remediation process is available in our Supply Chain Grievance Mechanism and Remediation Process, which is part of our Code of Ethics.