In developing sustainable sourcing, we focus on the manufacturing of our private label products as well as direct imports from high-risk countries. In these product categories, we have the best opportunities to influence.

We assure the sustainability of our products and operations by visiting factories ourselves and by only purchasing products from factories where a third party has conducted a BSCI audit or equivalent and inspected the working conditions and the fulfilment of employee rights. During our own factory visits, we check the working conditions, product quality and production capacity as well as the factory’s management capacity.

During 2024, Tokmanni Group’s sustainable sourcing practices were integrated into Dollarstore’s operations, and this work will continue in 2025.

In Tokmanni Group’s general terms on purchasing, the requirements of responsible sourcing are defined on a general level.

In our general terms of purchasing, we require suppliers to

1. Comply with applicable international sanctions and act in compliance with anti-money laundering regulations and anti-bribery policies. 

2. Comply to the amfori BSCI Code of Conduct principles by signing the amfori BSCI Code of Conduct and to carry out self-evaluations and audits according to amfori code of conduct.

• If the product is manufactured in a high-risk country, we require a factory audit. Approved audit systems for high-risk country factories are amfori BSCI, SA8000, and on a case-by-case basis ICTI, SMETA (4-pillar) and BRCGS.
• For certain raw materials, we also require raw material certification. These raw materials, such as cotton, have significant environmental and human rights risks in their production. Approved raw material certifications are for example GOTS, OCS, Better Cotton, Fair Trade, RSPO, MSC, FSC, PEFC.

3. If requested, the Supplier agrees to supply their carbon footprint information (CO2 emissions) and information about the other environmental impacts of their actions.

• In accordance with the guidelines of BSCI, Tokmanni Group has zero tolerance for the following issues: child labour, bonded and forced labour, inhumane treatment, occupational health and safety and unethical behaviour, e.g. an attempt to bribe auditors or falsify information about the supply chain. If such cases occur, Tokmanni Group will freeze the purchases immediately and contact the supplier for further investigation of the problems. After further investigation, each case and the continuation of cooperation with the factory will be evaluated separately.

• In the amfori BSCI system, zero tolerance problems are dealt together with all amfori members using the factory, and amfori coordinates this process. Zero tolerance problems are very rare in the factories we use. The most common grievances detected by audits and self-inspections were related to overtime, pay and minor deficiencies in compliance with safety instructions.

• Tokmanni Group allows suppliers to use subcontracting, but the subcontracting factories must also be BSCI audited and approved by Tokmanni Group. All factories and subcontractors and their changes must be approved by Tokmanni Group in advance.

Audits to all factories in high-risk countries 

We strive to ensure that 100 % of factories’ BSCI audits are valid both at the time of purchase of a specific product and at the time of production with an overall grade of C or better. Sometimes the audit of the factory has not been renewed in time, and thus, 100% coverage is difficult to achieve in practice.

Amfori BSCI is an international system that reviews and audits the realisation of employee rights, the quality of working conditions, and safety issues at factories. In the BSCI audit, several things are assessed in accordance with amfori BSCI Code of Conduct and System Manual, for example fair remuneration, overtime, occupational health and safety, use of forced or child labour and the right of employees to join a trade union. Amfori BSCI audit results are assessed on a five-step scale, using the grades A, B, C, D or E.

Most of our partner factories received a C (acceptable) overall grade. This is not an average number of the 13 performance areas, rather, scoring a D (insufficient) in two and A (very good) or B (good) in rest will bring down the overall grade to a C.

The most common issues found in amfori BCSI audits in the factories we use are generally related to management systems and working times. If the result is a D or a C with significant shortcomings, a corrective action plan with clear timeline is requested from the factories. If the result is D or E (unacceptable), the factory cannot be used until the issues have been solved.  

SA8000-audited factories automatically receive a good overall assessment using the amfori BSCI system. Based on case-by-case judgement, the SMETA audits, the toy business’ ICTI Care audits and BRCGS audits for groceries can also be accepted.

In addition to the amfori BSCI audits, we carry out our own factory inspections. All new suppliers are evaluated before the start of cooperation or in the initial phase, and at the same time the need for a factory inspection is evaluated.

 

Living wage

We respect and demand that our partners respect human rights. We promote human rights, adequate living wages, and appropriate and safe working conditions in our supply chain through dialogue, audits and training.

Living wage is one of the issues that comes up in human rights assessments. We are committed to promoting a living wage for employees in our supply chains. Our products are subcontracted and we do not own factories. Because we do not pay wages in the supply chain ourselves, we cannot influence living wages alone.

Both the amfori BSCI Code of Conduct and our Supplier Code of Conduct contain the principle of fair remuneration, which enables the employee and his family to earn a reasonable living sufficient to meet basic needs. However, local statutory minimum wages or wages under collective agreements are not always sufficient to achieve this goal. We ask about salaries through both our own and BSCI audits and thus stimulate constructive dialogue on the subject at factories. The amfori BSCI audit includes a Fair Remuneration Scan, where workforce’s decent standard of living is calculated. Anker-methodology is normally used.

We also strive to promote living wages together with others, as this can only be resolved through long-term commitment and close cooperation with global and local stakeholders. Key stakeholders include other companies, legislators, local trade unions and other employee representatives. We are a member of amfori BSCI and support their initiatives that aim to achieve living wage in supply chains.

One channel for living on a wage in high-risk countries would be freedom of association and collective bargaining. Raising the national minimum wage would effectively promote living wages.