French luxury fashion house Chloé has announced that it will develop the industry’s first social impact measurement tool and hopes it can be adopted by the entire fashion industry.
The tool aims to help brands measure, evaluate and visualize their social impact. This is to address the fact that while there are many tools for measuring the environmental impact of fashion, there is no equivalent for calculating the social impact across the entire value chain.
The brand, which is owned by Compagnie Financière Richemont, said the social impact measurement, or social performance and leverage (SP&L) tool, will be an open-source methodology that can be used across the fashion industry, as soon as she’s done. The company hopes the tool will provide guidance on sourcing strategy and product design.
The project, which began 18 months ago, reflects the brand’s policies and long-term commitment to empowering women, eliminating gender inequalities and promoting inclusivity to create products that have a positive impact on people.
Chloé is collaborating with the Institut Français de la Mode and the Conservatoire National des Arts et Métiers on the industry’s first social impact measurement tool
The tool builds on the environmental impact report that Chloé released in July 2021 and will similarly mobilize social audits by integrating risk analysis and identifying potential positive impacts across the value chain. The company added that holistic assessment of social and environmental impacts will become the cornerstone of its sustainability strategy.
SP&L is an industry-academic collaboration between Chloé, the Institut Français de la Mode and the Conservatoire National des Arts et Métiers (Department of Prospective Studies and Sustainable Development). The tool’s metrics are based on reports on sustainable value creation published by the World Economic Forum and the International Business Council.
The tool, which is already in an advanced stage of development, aims to ensure working conditions sustain positive social practices across six indicators: gender equality, living wage, diversity and inclusion, training, well-being and job quality. The system will also allow brands to visualize their impact on the people who work directly on their products, from sourcing of materials to delivery to the boutiques, including workers employed at the Maison’s suppliers, as well as the own employees.
Chloé explained that the elements of the “job quality” indicator were defined based on the work of French economist Philippe Aghion, son of the house’s founder Gaby Aghion. These include, but are not limited to, seniority, salary development, promotion, turnover and the use of soft skills such as active listening, coordination, responsibility and group work.
The methodology is currently being reviewed by auditing firm PricewaterhouseCoopers, Chloé added, ahead of an industry-wide consultation process later this year, with select brands taking part in pilot projects to test the methodology and update it as necessary. The company hopes that the finished SP&L tool can be released in 2023.
This translated article originally appeared on FashionUnited.uk.