Blockchain start-up Retraced was founded with the aim of making global production processes more transparent, also for the textile and clothing industry. The company recently shared the highlights of the year 2022, including closing the second round of funding and raising €6.5 million, winning three awards, growing the team and using the platform in more than 80 countries worldwide. Not bad for a company that is only in its fourth year of existence.
And that’s just looking at the achievements on the business side. However, looking at the efforts during the year for its clients, Retraced calculated that 13,700 human rights risks were mitigated and 4,050 environmental risks.
“By growing our global network of brands and suppliers, we are able to increase our impact on fashion supply chains and the people and environment within and around them. At the same time, we help our customers become more efficient and support them to comply with all supply chain regulations,” said Lukas Pünder, co-founder and CEO of Retraced, in a press release.
FashionUnited wanted to know more about those impressive risk mitigation figures and contacted Retraced. The German-based company explained that mitigating risk is part of its popular Risk Assessment feature, which automatically provides clients with a comprehensive overview of global gross risk factors based on OECD classifications and numerous indices and databases such as ITUC, GRI, GSI.
Gross risk score by country assesses ESG parameters
It assigns a “gross risk score” to each country in the world for the three categories of Environment, Social and Governance. Customers can check this score per country where they do business based on their supplier network, which is mapped through Retraced.
“The first step of risk mitigation is automatic – our system looks at the evidence documentation that brands and suppliers have already added to their Retraced profile to see how far they have mitigated global risk in their supplier network,” explained Retraced in an e-mail. email to FashionUnited.
“The next step will enable prioritization – brands can see which areas need improvement and/or need documentation of their network to help reduce risk. For example, there are some countries that have a high risk of child labour. However, a brand on Retraced can see what that gross risk is, and see which suppliers in that country have evidence of addressing those specific child labor risks. For those suppliers who don’t have it, the brand can follow up,” Retraced added.
“The next step of risk mitigation is therefore manual – our client brands prioritize and follow up with their supplier network, implement corrective actions where necessary, and most importantly, collect and provide relevant evidence documentation to address the risks identified in their initial automated assessment. Reduce. concludes Retraced.
Progress is a journey
Despite the achievements – including ranking as Germany’s best start-up to work for and winning the GEC Textile Award 2022, the German Award for Environmental Economics NRW 2022, the Innovations for Tomorrow Award from Hess Natur and the Oracle Global Leaders Champion award for Retired CTO Peter Merkert – there is still much to do in an increasingly challenging environment.
“We continue to make production processes more transparent so that our partners can mitigate risk and prioritize next steps. However, the fashion industry’s global supply chains are incredibly complex and there is still a lot of work to be done. This slow progress can be frustrating, which is why it’s important to realize that progress is a journey,” warns Retraced.
Blockchain start-up Retraced calculated that by 2022, 13,700 human rights risks and 4,050 environmental risks would be mitigated by using its platform.