The State of Responsibility 2024 | Must Read “We do have a third party to verify the information, but these companies aren’t verifying if the information is correct – they’re simply verifying that the work we’re doing is correct,” Becker says. “The information is just flat-out not available, as those who are doing the work at the start of the supply chain don’t have the information, so it doesn’t matter how good the verification companies are.” Companies who responded “Other” reported that they’re either currently in the process or relying on vendor verification. One anonymous distributor said, “We only partner with well-known suppliers who have documentation on each product and their supply chain.” TABLE 4: Has your company adopted a code of conduct that reflects a commitment to responsible environmental, social and governance structures (such as the PPAI Code of Conduct)? Yes No Other PPAI 100 Distributors 85% 15% 0% Distributors $100M+ 89% 11% 0% Distributors $50M-$100M 82% 18% 0% Distributors $25M-$50M 89% 11% 0% Distributors $5M-$25M 72% 28% 0% Distributors $1M-$5M 75% 25% 0% Distributors Under $1M 50% 33% 17% Becker says that although Kotis Design follows a code of conduct and is doing the best it can, the company, like all distributors, is limited by what it can actually do in terms of ESG commitment. “The best thing we can do is to sell our clients products that they truly want,” Becker says. “By giving away 20 jackets that clients will wear versus 2,000 items that may be thrown away, we’re limiting the amount of waste. That’s something we can do that is tangible rather than getting data that is moderately accurate at best.” TABLE 5: Has your company engaged in audits in the environmental, social or governance realms, such as SMETA, BSCI, HIGG, EcoVadis or B Impact Assessment? Completed Audit Underway Beginning Shortly Not Yet PPAI 100 Distributors 42% 5% 15% 37% Distributors $100M+ 50% 11% 11% 28% Distributors $50M-$100M 64% 0% 18% 18% Distributors $25M-$50M 44% 0% 22% 33% Distributors $5M-$25M 28% 0% 12% 60% Distributors $1M-$5M 25% 13% 0% 63% Distributors Under $1M 9% 0% 4% 87% The difference between companies with under $1 million in revenue and those with $100 million or above is what stands out the most to Mary Glagola, chief administrative officer at Hanover, Maryland-based distributor JPB Partners. “Smaller firms, such as I, have a harder time finding resources to dedicate to some of these efforts while trying to stay afloat and compete against some of the larger firms, which puts us at a disadvantage,” Glagola says. TABLE 6: Does your company participate in a recycling program either through your local municipality or other third party (such as Terra Cycle)? Yes No Other PPAI 100 Distributors 83% 10% 7% Distributors $100M+ 94% 0% 6% Distributors $50M-$100M 73% 9% 18% Distributors $25M-$50M 89% 0% 11% Distributors $5M-$25M 76% 24% 0% Distributors $1M-$5M 75% 13% 13% Distributors Under $1M 67% 33% 0% “It’s often hard to give away items, as there is only so much these companies can take,” Becker says. “We also try and take old products and upcycle them by putting a new logo on them. However, it’s such a small fraction of the items we work with. I want to find a way to make a major difference, and unfortunately, this isn’t it.” PPAI • SEPTEMBER 2024 • 81
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