Ensure that the Owner of Versace, Michael Kors and Jimmy Choo Improves its Supply Chains

We wanted Capri Holdings Limited (the owner of Versace, Michael Kors and Jimmy Choo) to report on how effectively it traces its supply chains and averts risks so investors can assess whether the Company is adequately protecting its workers. Tulipshare successfully reached an agreement with Capri Holdings Limited in 2023 that resulted in enhanced human rights-related disclosures and the company’s endorsement of a supply chain transparency pledge.

Ensure that the Owner of Versace, Michael Kors and Jimmy Choo Improves its Supply Chains

We wanted Capri Holdings Limited (the owner of Versace, Michael Kors and Jimmy Choo) to report on how effectively it traces its supply chains and averts risks so investors can assess whether the Company is adequately protecting its workers. Tulipshare successfully reached an agreement with Capri Holdings Limited in 2023 that resulted in enhanced human rights-related disclosures and the company’s endorsement of a supply chain transparency pledge.

The Latest: Tulipshare reached a successful withdrawal agreement with Capri Holdings Limited in April 2023. We are pleased to share that Capri Holdings actively engaged with Tulipshare and enhanced their human rights-related disclosures as a result.

The Latest: Tulipshare reached a successful withdrawal agreement with Capri Holdings Limited in April 2023. We are pleased to share that Capri Holdings actively engaged with Tulipshare and enhanced their human rights-related disclosures as a result.

Key Achievements of the Withdrawal Agreement:

  • The company agreed to revise and publish its Code of Conduct for Business Partners and its Human Rights Statement to include enhanced, human rights-related disclosures, including those with respect to its policies regarding freedom of association and collective bargaining.

  • The company agreed to sign the Transparency Pledge by Clean Clothes Campaign, and committed to publish its known manufacturing sites.

  • The company agreed to continue to disclose regions of its subsidiaries’ direct suppliers in tiers 1 and 2 of the Company’s supply chain.

  • The company committed to make good faith efforts to respect workers' rights in all tiers of its supply chain, engage in responsible purchasing practices, and request information from suppliers and conduct audits to ensure compliance with these human rights commitments.


    The company also agreed to meet with Tulipshare to provide an update on its progress in these commitments.

Why It's Important:

Capri Holdings (Capri) lags in transparency disclosures and remediation procedures when compared to peers. Companies that do not adequately mitigate human rights violations in their supply chains are exposing themselves and their investors to material financial risk.

Unlike Capri, competitor Burberry discloses information on its tracing of raw materials, the percentage of its first-tier and raw material suppliers covered by collective bargaining agreements, strengthened migrant worker policies and a wellbeing tool that engages workers.

While Capri has an audit program covering issues including wage, hour and labour laws and health, safety and environmental regulation, the Company does not mention anything about ensuring its manufacturers have an age verification process. In fact, Corporate Human Rights Benchmark scores Capri with zeros on each of the six indicators regarding human rights due diligence.

Further, Capri does not provide a supplier list or data on purchasing practices, data on improvements of freedom of association and remediation procedures for supply chain workers in high-risk sourcing areas such as China. The Company also does not disclose the steps it has taken to address the risks of alleged Uyghur forced labour across its supply chain tiers.

Capri’s Code of Conduct for Business Partners states its own operation and business partners should respect the legal rights of employees to freely and without harassment participate in worker organisations, shall not use any form of slave, forced, prison, or child labour, and disallow any form of discrimination. Nonetheless, there is no evidence to respect the right to collective bargaining and Capri also does not mention the International Labour Organisation Declaration, including in its own operations.

Capri states that it has a “responsibility to those who work with us” and that “the success of our company is directly linked to the sustainability of the world around us.” Shareholders agree and encourage the Company to take steps to ensure workers in its supply chains are aware of their rights and are able to exercise their rights of freedom of association and collective bargaining.

Failure to adopt and implement policies that mitigate these exposures may subject Capri and its investors to significant systemic and company specific risks.

AGM RESULTS

A successful withdrawal agreement was reached regarding enhanced human rights-related disclosures.

RECORD DATE

The record date pertains to the date by which investors must hold their shares in a company in order to participate in the company’s AGM.

Voting at the AGM

If you hold Capri Holdings stock before the next AGM record date, you will be eligible to vote at the next AGM and receive an email from us closer to the deadline.

how activism Investment works

how activism Investment works

What is shareholder activism?

Shareholder activism is when shareholders use their influence as owners of a company to effectuate change within the organisation.

What is Tulipshare?

Tulipshare is an sustainable investment fund and shareholder advocacy group on a mission to help investors push for stronger environmental and social commitments, using corporate governance to create a positive impact and ensure the companies we invest our money in are being responsibly managed by accountable leadership.

How does Tulipshare improve sustainability through investing?

Tulipshare addresses issues pertaining to climate change, human rights, racial and gender equity, political spending and operational transparency within some of America’s biggest publicly traded companies - issues that if left unaddressed could expose a company and its investors to significant legal, reputational and financial risks.

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The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not provide personalised investment recommendations or endorse any particular trading strategy. Any decision to engage in trading activities is solely at your own risk. You are responsible for conducting your own research and making informed investment decisions.

Tulipshare Ltd. Registered Office: 64 Nile Street, International House, London N1 7SR. | Registered in England & Wales. Company No: 12870288.
Your privacy is important to us. Please read our Privacy Policy to understand how we collect, use and share information about you.

No Investment Advice:
The information provided on this website is for informational purposes only and should not be considered as investment advice. We do not provide personalised investment recommendations or endorse any particular trading strategy. Any decision to engage in trading activities is solely at your own risk. You are responsible for conducting your own research and making informed investment decisions.