In the textile and apparel industry, the most significant environmental and social sustainability impacts arise from long and global supply chains. One of the key focus areas of our sustainability work is to identify impacts on the environment, people and the economy across our value chain, and to work in a systematic and goal-oriented manner to prevent, reduce and eliminate adverse impacts, while promoting positive impacts. Potential impacts and risks are monitored and managed as part of production management.
We operate in a global production environment where ensuring responsibility requires clear operating models, continuous monitoring and close cooperation with suppliers, factories and other stakeholders. More than 90% of all our products are manufactured outside the EU, primarily in China, where we have long-standing and close partnerships with our contract manufacturers. Ensuring responsible and transparent production is based on our own monitoring processes, close cooperation and dialogue with factories, and independent third-party assessments. Through these measures, we monitor working conditions and operational practices and promote continuous improvement together with our suppliers and manufacturing partners.
We publish annually a list of our contract manufacturers to increase transparency regarding who produces our products and where. Explore the list here.
Supply Chain Management
Our production-related requirements are based on the company’s responsibility guidelines and commitments (Supplier & Partner Code of Conduct and sustainability policies), which define the minimum requirements set for suppliers and production partners. These requirements cover, among other aspects, working conditions, occupational health and safety, wages, working hours, and environmental and chemical management practices. Compliance with these principles is monitored by both our internal auditors and external, independent auditors. Read more about our supplier and factory responsibility requirements and guidelines here.
Through our production and sourcing processes, we coordinate and oversee our supplier network, monitor production progress and quality, and manage and verify sustainability risks. Our production and sourcing team based in Finland is responsible for the governance, coordination and guidance of production and sourcing. Our own organisation located in Suzhou, China, employing over 300 professionals, implements operations locally.
The responsibilities of the team include supplier cooperation, production monitoring, quality control and testing, factory visits, and monitoring and assessing compliance with the principles of our Supplier & Partner Code of Conduct. Our organisation carefully selects factories and conducts on-site visits both at the start of production and throughout the season.
North Star Process – our Internal Supply Chain Management Process
The North Star process is the company’s internal production management and quality control process, which we use particularly to manage, monitor and assess production in China. Through this process, we oversee production progress and quality, evaluate factory performance, and collect factory-level data to increase supply chain transparency and support continuous development in cooperation with our partners.
The process complements third-party audits by providing multiple on-site assessments each year and more detailed insights into factory practices. We utilise the North Star process both for risk assessment and supplier development, and the information obtained helps guide production in line with our company principles.
As part of the North Star process, we conduct factory audits to assess compliance with the requirements and policies set for our suppliers and factories (Supplier & Partner Code of Conduct). Some of these audits are always conducted unannounced to ensure an up-to-date and realistic view of production conditions. The audits are documented, and any necessary corrective actions are implemented and monitored in cooperation with factories and suppliers.
Third-party Audits
In addition to our own North Star process, the responsibility of production is assessed through independent third-party audits, particularly in higher-risk production countries. Approved third-party audit schemes include amfori BSCI, SA8000, and Sedex/SMETA, with the majority of factories audited according to the amfori BSCI standard.
Audits assess, among other aspects, working conditions, working hours, wages, occupational health and safety, and management systems. We monitor audit results and utilise them, for example, in planning and tracking development measures. Any non-compliances or deficiencies identified are addressed through corrective actions implemented in cooperation with the factories.
Monitoring and Continuous Improvement
Through the North Star process and third-party audits, we identify the most material development areas and are able to focus our sustainability efforts effectively on areas with the greatest need for improvement. Audit results are used systematically as part of continuous supply chain monitoring and development.
Our goal is to support factories in strengthening responsible practices over the long term. We work closely with factories by providing support, guidance and follow-up to help them improve their own processes and make sustainable progress across different areas of responsibility.
We continuously develop our production-related processes and measures. We utilise information obtained from monitoring, audits and stakeholder dialogue to improve production processes and practices as part of sustainability management and reporting.
Read more about production and supply chain management in our Sustainability Review here.
Operations of our own Factory in China
Luhta Sportswear Company operates its own factory in Suzhou, China, established in 2006. The factory focuses on Rukka Motorsport riding suits and other GORE‑TEX products. Its operations include fabric inspection, cutting and laser cutting, embroidery, sewing, seam sealing, product labelling and packing.
The factory is also responsible for quality control and testing activities, such as waterproof testing, pattern and sample development, and providing technical support throughout different stages of production. The operations of our own factory are managed using the internal North Star production management and quality control process, through which we monitor product quality, working conditions and the implementation of environmental responsibility.
In addition, our internal EHS (Environment, Health and Safety) team within the China organisation is responsible for factory safety and environmental matters and their continuous improvement. Our factory has also been audited in accordance with the independent amfori BSCI system.
