Improving the sustainability of our products

In 2019 THOM developed a strategy to improve the sustainability of its products so as to encourage more responsible consumption and reduce its environmental footprint. This strategy is based on 4 pillars:

• Qualifying suppliers according to technical and environmental criteria ensuring their ability to manufacture responsible products via Supplier Audit Program.
• Defining technical specifications to ensure the strength and therefore the durability of products. For example: strength of chains and clasps, quality of setting, metal finish, etc. The rate of product returns due to quality issues is stable compared to FY21. The product return rate due to quality issues has improved to 4.75% by the end of 2023, compared to 4.91% by end of 2022.
• On-site quality control at the end of production. In FY22, 100% of production was subject to quality control by suppliers and approximately 5% of products were subject to additional inspections by THOM and its customers (this KPI was negatively impacted by the Covid environment. By the end of 2023, 8.5% of shipments were inspected at the supplier premises prior to shipment. Our target is to achieve an additional 5% of inspected shipments in FY24.
• Launched product improvement program in 2023 by focusing on the quality improvement of the top defective and top sales items on a quarterly basis. Regular in-depth analysis of defects or weaknesses observed in real-life situations by our teams and our customers, resulting in improved product quality.