CARE FOR PEOPLE
LTP Group operates in a labour-intensive industry that is under constant pressure due to operating in low-cost countries. As a responsible company, LTP Group prioritises the well-being of the workers. Labour rights All full-time production workers at LTP Group are represented by a work council or union. LTP Group strongly believe in the freedom of association for all employees, and support collective bargaining. While all other sites have established work councils or unions, the Mexico site is still in the process of setting one up due to the size of the team. Responsible business At times, there will be incidents in the operations or supply chain that might not comply with the LTP Group standards of integrity. Through the whistleblower system LTP Group ensure the employees can securely and confidentially report potential misconduct. In 2022, there was one case reported through the whistleblowing system. The case related to business integrity, including conflict of interests, anti-bribery, and corruption. It is essential for LTP Group that anyone who reports misconduct feels completely safe raising any concerns, thus the whistleblower system is hosted by an external provider. We provided training to workers at all our sites to encourage them to report any issues through the form. To increase awareness, trust and understanding of the whistleblower system a campaign will be conducted in 2023. The garment division has achieved its target of having 100% of sewing partners sign the Code of Conduct and Ethics.
To ensure future compliance, the CoC is incorporated as a standard in the revised standard contract. Additionally, an assessment and score of a total of 66% of our sewing partners were conducted, and this process will continue in 2023 to ensure that all partners meet the standards. Health & Safety All workers have received training according to local health and safety regulations. In 2022, LTP Group made an investment in a new online Environmental Management System. The system is designed to improve the ability to collect data on near misses and other incidents across all 12 factories. Although the system was not fully implemented in 2022, the work is diligently continued and expected concluded in the second half of 2023. No fatal accidents were reported in any of our factories in 2022. Some accidents were reported, the majority of which were related to sewing operations. Every accident is taken seriously and LTP Group are committed to continuously improving health and safety procedures to prevent future incidents. Fair wages and benefits LTP group pays 100% of workers at or above the minimum wage in their respective countries. In 2021, LTP Group initiated a living wage analysis as part of the 2025 strategy, reflecting the commitment to fair compensation for our workers. Living wage is defined as the compensation workers receive to support themselves and their families in the local area where they live. LTP Group recognises the importance of providing fair wages to its employees and has developed
a tool to accurately capture living wage data. To establish a baseline for living wages, a representative group of hourly paid workers from each factory was surveyed to obtain information on their household budgets. The survey results were then assessed and used as the basis for determining the living wage for each factory. As of 2022, 66% of all hourly paid workers are receiving a wage that meets or exceeds the living wage baseline established through our survey tool. It is anticipated the share may decrease in 2023 due to inflation rates outpacing salary increases. Diversity and equality LTP Group believes a diverse team will be an advantage, and the composition from managers to executive management and Board of Directors are measured. The Board of Directors comprises 17% female and 83% male, changed from 20% and 80% relatively in 2021. The target is to comply to a minimum of 33% females in 2025. The gender composition of the senior management, defined as Group Executive Management, Chief Commercial Officers and the Managing Director level, is unchanged from last year, characterized by overrepresentation of the female gender, 55%, i.e., male gender represent 45%. When measuring the proportion of women across the locations in management levels, the development compared to previous years varies. End of 2022 the diversity in next management were 55% female and 45% male. LTP Group will continue to work towards equal gender representation.
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