Thesis presentation vikas pisipati

Leather and Fur: Creating a Supplier Audit Framework for Luxury
Brands to Drive Value through Responsible Procurement

Researched by Vikas Pisipati
February 9, 2016

© Vikas Pisipati, 2016

Table of Contents:
2 V. Pisipati | Capstone Presentation | February 9, 2016
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research Objectives . . . . . . . . . . . . . . . . . . . . . . .
Leather Industry Overview . . . . . . . . . . . . . . . . . . .
Types of Leather . . . . . . . . . . . . . . . . . . . . . . . . .
Global Production Markets . . . . . . . . . . . . . . . . . .
Leather Production Process . . . . . . . . . . . . . . . . . .
Regulatory Environment . . . . . . . . . . . . . . . . . . . .
Primary Data . . . . . . . . . . . . . . . . . . . . . . . . . .
Critical Sourcing Objectives . . . . . . . . . . . . . . . . . .
Fur Industry Overview . . . . . . . . . . . . . . . . . . . . .
Types of Fur . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Production Markets . . . . . . . . . . . . . . . . . .
Fur Production Process . . . . . . . . . . . . . . . . . . . .
Regulatory Environment . . . . . . . . . . . . . . . . . . . .
Primary Data . . . . . . . . . . . . . . . . . . . . . . . . . .
Critical Sourcing Objectives . . . . . . . . . . . . . . . . . .
Supplier Audit Framework . . . . . . . . . . . . . . . . . . .
Farming Facility Audit . . . . . . . . . . . . . . . . . . . . .
Addendum: Cattle Farms . . . . . . . . . . . . . . . . . . .
Addendum: Ostrich Farms . . . . . . . . . . . . . . . . . . .
Addendum: Crocodile Farms . . . . . . . . . . . . . . . . .
Addendum: Python Farms . . . . . . . . . . . . . . . . . . .
Addendum: Mink Farms . . . . . . . . . . . . . . . . . . . .
Addendum: Fox Farms . . . . . . . . . . . . . . . . . . . . .
Leather Tannery Audit . . . . . . . . . . . . . . . . . . . . .
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . .
Works Cited . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Introduction:
•  Since the Paleolithic Era, man created clothing from hides
•  Furs were the initial invention, but leather was later
developed by scraping hair from the rawhide and curing it
with a form of fat to render it more resilient and pliable

•  Leather became used not only for clothing, but also for
shelter and tools
•  After development of early textiles, materials like cotton
and silk began to supplement fur and leather in clothing
•  Clothing soon became dominated by cloth fabrics,
relegating fur and leather to sumptuary goods in urban
societies worn by aristocracy and royalty to show wealth
•  In present times, leather and fur continue to be popular
materials used by many luxury fashion brands
•  Brands like Bottega Veneta, Hermès, and Louis Vuitton
are known for their high quality leather products
•  Brands including Chloé, Fendi, and Etro have launched
successful collections incorporating furs

•  Debates continue between animal rights activists citing inhumane industry practices while leather and fur experts
defend the controls maintained in the industry to protect animal welfare
•  The tanning of leather also has environmental consequences, which is opening a broader dialogue about
increasing regulations on tanneries and brands sourcing materials from these facilities
•  Regulations concerning animal welfare and environmental protections in fur and leather production fall on a
spectrum depending on the country in which a facility operates
•  In today’s luxury industry, consumers are more knowledgeable and sensitive to the materials and production
processes used in the goods they purchase
•  There is greater focus on sustainability and the welfare of animals, employees, and the community at large
•  Transparency is now critical to provide consumers with information to make informed purchase decisions
•  Luxury brands that source leather and fur materials from suppliers with sustainable, welfare-focused practices
are able to use this as a point of differentiation, building strong brand affinity among consumers who identify
with their transparent business practices and commitment to responsible sourcing
•  The challenge, however, is how to clearly define “responsible sourcing”
•  Luxury brands source leather and fur materials from a variety of suppliers, with the rawhides themselves
originating from farms and tanneries
•  Brands must ensure their suppliers follow best practices for maximizing animal welfare, ensuring employee
safety, and reducing environmental contamination
Introduction:

Objective 1:

•  To provide an introduction to the leather and fur industries from the perspective of production,
demand, and the existing regulatory environments.

Objective 2:

•  To propose Supplier Audit Framework that luxury brands can use to evaluate the degree to which
their suppliers are complying with industry-standard animal welfare policies and environmental
protections

•  It is not the intention of this project to suggest alternatives to leather and fur material
Supplier Audit Framework:
•  The Supplier Audit Framework is the primary output of this project and was designed based on
comprehensive primary and secondary research in addition to the author’s professional experience
in monitoring procurement practices in the context of compliance and ethics
•  This framework can be adopted by luxury brands, ensuring those who use leather and fur in their
products can ensure they are doing so in the most sustainable, ethical manner possible
Research Objectives:

Primary Data Resources:

Primary data was collected through a combination of interviews and correspondence with leather and
fur industry experts in the luxury sector as well as focus group discussions with luxury consumers.
•  Interview with Rafi Balouzian, founder and owner, CYDWOQ shoes
•  Correspondence with Nicolas Gand, Leather Materials Production Manager, Christian Dior Couture
•  Focus Group Discussion, five global participants, held in Shanghai
Secondary Resources:
•  Trade journals
•  Industry reports
•  Government data
•  International agreements
•  Online resources
•  Scientific publications
•  Legal publications
•  On-site observation
Research Methodology:
On-Site Consumer Observations and Research:
Los Angeles
Amsterdam
Lisbon
Sevilla
Stockholm
Brussels
Mumbai
Seoul
Tokyo
Shanghai

Leather Industry Overview:
•  Leather was among the first materials used by human beings as clothing
•  It was also used to make shelters during nomadic hunter-gatherer eras
•  Earliest examples of tanned leather date back to 1300 B.C. among Ancient
Egyptians, Roman, and Greek civilizations
•  Tanning was developed to improve rawhide durability and prevent rotting
•  Early tanning methods relied on natural materials like animal fats and bark
•  European civilizations also used smoking and volcanic ash in tanning
•  North Africa used urine and animal dung to soften and preserve hides
•  Calcium from rock quarries was use to make liming solutions to remove hair
from the rawhide, and is still used in modern processing
•  The global leather goods industry is valued at over $100B
•  Leather production is moving from Western Europe to Southeast Asia
•  50% of leather now comes from developing nations like China, Vietnam, India,
Bangladesh, and Indonesia
•  Luxury brands purchase leather directly from tanneries or via distribution
intermediaries
•  Luxury brands normally do not own their own leather tanning operations, with
the exception of Louis Vuitton
•  The world’s largest consumers of leather are China, the US, Italy, Germany,
France, Japan, and the United Kingdom.

Leather Industry Overview:
% of Global Leather Usage by Product Category (2014):

•  95% of cowhide comes directly from meat or dairy
processing facilities
•  Cowhide leather accounts for 65% of all leather
production
•  The five top global producers of cowhide are
China, Italy, India, Brazil, and Korea
•  Macro-trends that impact the beef industry have a
downstream impact on leather
•  Demand for leather is expected to increase in most
markets, especially in Asia and South America
•  Demand for beef is decreasing, which may
increase leather prices
Types of Leather:
Cowhide Leather:

•  Direct byproduct of the ostrich meat industry
•  70% of the world’s ostrich farms are located in South Africa
•  90% of South African ostrich rawhides are exported to other countries
•  Strong demand from the luxury sector since 1970’s
•  Stronger than cowhide and crocodile leathers
•  Popular for the crown-hide texture
•  Very expensive, since crown-hide is only one third of the total hide
Ostrich Leather:
V. Pisipati | Capstone Presentation | February 9, 2016 10

Crocodile Leather:
•  Direct byproduct of the meat industry
•  Many crocodile farms in the southern USA
•  Most popular exotic skin used in luxury goods
•  Extremely expensive due to limited supply and costs of
leather farming
•  Farming is the industry standard, as wild-catching
is considered inhumane
•  Crocodile farms breed within their own population
•  Crocodile ranches collect eggs from the wild
•  Open-Cycle v. Closed-Cycle farming facilities
•  “Back cut” is rough and durable
•  “Belly cut” is soft and smooth
Saltwater Crocodiles:
•  Farmed in Australia
•  Largest crocodile species
•  Used for larger items like luggage

Freshwater Crocodiles:
•  Farmed in N. Australia and New Guinea
•  Highest quality crocodile leather
•  Used in clothing and outerwear

American Alligators:
•  Farmed in the southern USA
•  $70 M industry in Louisiana
•  Comparable in size to crocodiles (16’)

Python Leather:
•  Produced by farms and wild-caught sources
•  Large, durable hides with unique patterns
•  Most common species are Burmese and reticulated pythons
•  Most python leather sold to luxury brands comes from farmed sources
•  The majority of farms are in Thailand, Vietnam, Laos, Malaysia and China
•  99% of Burmese python skins originate from farms
•  24% of reticulated python skins originate from farms
•  Self-Contained v. Satellite farming facilities
•  The full python is normally not utilized, leading to significant waste

Global Production Markets:
Africa:

•  Tanning industry is developed in North Africa
•  Morocco, Egypt, Tunisia, and Libya are hubs
•  North African leather is primarily used in footwear
•  Largest customers are France, Italy, and Germany
Asia:

•  Concentrated in China, India, and Pakistan.
•  China is the region’s largest player due to its ample
supply of raw materials and fashion / apparel factories
•  India is known for its high quality production
•  Pakistan is known for a lower quality, export-oriented
strategy using rawhides from sub-Saharan Africa.
•  All Asian countries are facing environmental pressures
Americas:
•  The US has a high-volume of in-process
rawhide exports that are refined into tanned
leather in other countries.
•  There is also US demand for leather in
automotive upholstery
•  In Latin America the tanning industry is
largest in Brazil, Argentina, and Mexico.
•  Mexico is a large export market with
customers in the US and Europe in fashion
and automotive industries
Europe:

•  Europe produces over 25% of global tanned leather
•  Italy is Europe’s largest producer; over 2,400 tanneries
•  Italian production accounts for over 65% of EU output
and 15% globally
•  Spain has over 255 tanneries
•  Portugal has 100 tanneries
•  Turkey has over 400 tanneries

Separating Liming Scraping Salt Curing Liming Unhairing
Rawhide
Extraction
Fat-Liquoring Tanning Dyeing Drying Drumming Trimming
Surface
Coating
Input:
Methane gas,
Dithiocarbamates
and fungicides

Input:
Milk of lime
Input:
Sodium
Chloride
Input:
Sodium sulfide,
cyanides
Input:
Lanolin,
acrylic wax
Input:
Water-based
dye pigment
Input:
Animal fats,
oils
Input:
Chromium
salts, sodium
bicarbonate
Input:
Sodium
Chloride,
Sulfuric Acid
Output:
Diluted
calcium oxide
Output:
Animal waste
(fat, tissue, hair)
Output:
Methane
emissions,
animal waste

Output:
Diluted
sodium
chloride
Output:
Diluted sodium
sulfides, cyanides,
animal waste
(oils, fat, hair)
Output:
Animal waste
(fat, tissue,
hair)
Output:
Animal waste
(hair)
Output:
Diluted
sodium
chloride and
sulfuric acid
Output:
Used
chromium
salt solution
Output:
Animal waste
(diluted animal
fats and oils)
Output:
Diluted
water-based
pigments
Output:
Used coating
(diluted oils
and wax)
Output:
Leather
trimmings
Finished
Leather
Pickling
Leather Production Process:

Tanning converts rawhide into a preserved material resistant
to decomposition

Tanning denatures the collagen proteins in rawhides, ensuring
that all hair, fat, muscle, and biomass is removed from the skin

Chrome Tanning:

•  Most common industry practice
•  Results in soft, pliable leathers
•  One-week lead-time
•  80% of the world’s leather is made using chrome tanning
•  Chromium sulfate and chromium salts penetrate the
rawhide to denature its collagen proteins.
•  Chrome-based tannins are carcinogenic and environmentally
hazardous if not disposed of through appropriate methods

Vegetable Tanning:

•  Uses tannins extracted from leaves and bark
•  Considered an eco-friendly alternative to chrome tanning
•  Tannins bind to the rawhide’s proteins as the rawhide soaks
in a vat of the tannin solution
•  Several week lead time
•  Results in hard, rigid leather
Leather Tanning:

Regulatory Environment: Leather Production & Trade
Industry Associations:
CITES:
Macro Environment:
•  European tanneries formed TANNET in 1998 to coordinate research and development
•  300 TANNET members across Europe and 100 proposals for research funding thus far
•  United States – US Hide, Skin, and Leather Association (USHSLA)
•  Ethiopia – Leather and Leather Products Institute
•  Pakistan – Leather Products Development Institute
•  Tunisia – Centre National de Cuir et de la Chaussure
•  Convention on International Trade in Endangered Species of Fauna and Flora (CITES)
•  Agreement between governments that controls the trade of certain species to maintain wild animal populations
•  181 signatory member states and covers over 35,000 animal species
•  Well enforced in developed nations but loosely enforced in developing countries
•  CITES has issued warnings about sourcing python rawhides from Asian countries due to the immature regulatory
frameworks on welfare and wildlife protection
•  Formal warnings against sourcing rawhides from Cambodia, Laos, Indonesia, and Malaysia
•  China, Thailand, and Vietnam use “inhumane” euthanasia techniques
•  Welfare and environmental local and national laws in place where a farm, tannery, or workshop is located
•  Welfare is strongly protected in US and Europe but is rudimentary in China and India
•  Environmental protections in tanneries are weak in developing countries, resulting in contamination hazards

•  Ensure the supplier demonstrates a commitment to safety, health, and environmental practices for
the protection of employees, animals, and surrounding communities impacted by farming and / or
tanning operations
•  Ensure farming operations are conducted in accordance with international best practices and
applicable national laws concerning animal welfare and employee safety
•  Ensure euthanasia is performed in strict accordance with industry best practices designed to
minimize distress to animals
•  Ensure waste products generated from farming and / or leather tanning are re-used to the largest
extent possible or disposed of using government-approved, environmentally-sound methods
Critical Sourcing Objectives:

North American Fur Trade:
Siberian Fur Trade:
Fur Industry Overview:
•  Fur is the oldest known form of clothing used my man
•  Global industry is valued at over $40B
•  The fur industry employs over one million people in 117,000 enterprises
•  Profoundly influenced Russian expansion into eastern territories
•  Began in the 17th century when Russia usurped Siberian
territories and traders began exploring new regions
•  Concentrated in Kamchatka, Yakutsk, and Okhotsk peninsulas
•  Existing demand boomed, leading to “fur fever” into Siberia,
similar to US “Gold Rush”
•  Furs were also traded with foreign merchants bringing precious
metals, weapons, and textiles into Russia
•  Sable was the most prized pelt, followed by martens, wolves,
foxes, bears, and otters
•  Prompted the first interactions between European explorers and native
populations in the 16th century
•  Fueled by demand for beaver and otter pelts in England
•  French colonists established the first exclusive trade corridor in Quebec
•  The Dutch took control of New York - area territories
•  Plymouth Colony exported beaver, South Carolina exported deerskins
•  Trapping shifted to farming in the 19th century

Fur Industry Overview:
•  Fur is experiencing a resurgence in luxury fashion after a decline in fur
consumerism prompted by animal rights campaigns in the 1980’s and 1990’s
•  More than 300 top fashion brands currently use fur in their collections
•  In 2014, 70% of New York Fashion Week and 60% of London Fashion Week
runway collections included fur garments
•  Designers like Michael Kors, Zac Posen, Jean Paul Gautier, and Jason Wu are all
incorporating fur into their fashion lines
•  Brands are targeting fur at younger consumers by using it in trimmings and
pairing it with other textiles, making it an all-season material
•  Even Dubai is seeing demand for fur, with over 400 stores carrying fur products
•  95% of fur sales are made in womenswear, but the fur category in menswear is
growing each year
•  The most popular fur items are coats, stoles, and hats, followed by fur-trimmed
accessories spanning outerwear, gloves, handbags, and footwear.
•  Species used for fur include mink, fox, sable, nutria, chinchilla, wolf, and beaver
•  Fur comes from farmed or wild-trapped animals; 85% of furs are from farms
•  Trapping takes place in late November when animals have their thickest coat
•  Fur is normally sold through a small network of auction houses across fur
producing global regions
•  Copenhagen Fur Center, Finnish Fur Sales, SAGA Furs, American Legend
Auctions, and Soyuzpushnina (Russia)

•  Popular for its density, luster, softness, and range of natural colors
•  Accounts for the majority of fur sold each year
•  Primarily farm-raised, the majority from Denmark
•  Other important mink producers are Canada, the US, and China.
•  White mink represents 25% of agricultural production in Nova Scotia
•  Black minks are becoming popular in Russia, South Korea, and China
•  The EU produces 63% of mink pelts worldwide
•  The US produces three million pelts per year in 31 states;
concentrated in Utah and Wisconsin
Types of Fur:
Mink and fox furs are the most common fur skins sold globally, and as such are the focus of the fur
component of this research study and the Supplier Audit Framework.
Mink:
Fox:
•  Finland produces 70% of global fox furs
•  Sold in red, silver, blue, white, and grey
•  Used in stoles, muffs, and trimmings
•  Red fox is the most common variety
•  Highest quality pelts come from North America
•  There are ten states in the US that farm foxes
•  Canada has nearly 120 farms

Global Production Markets:
United States:

•  Highest volume of wild fur trapping
with 150,000 licensed trappers
•  Farming is still the most
predominant method
•  Mink is the most farmed fur-
bearing animal followed by
chinchilla and fox
•  330 mink farms in 28 states
•  $90 million in annual output.
Canada:

•  90% of fur skins produced are sold to the US
•  40% of furskins are trapped from the wild
•  60% of furskins come from farms
European Union:

•  Over 6,000 registered fur farms
•  Denmark is world’s largest exporter
of mink furs; over 2,400 farms
•  Denmark accounts for 28% of global
fur production
•  Finland is the leading exporter of fox
fur skins; over 1,600 farms
•  Additional fur production in Sweden
and Baltic countries
Russia:

•  Lower-quality furs than EU, US, and Canada
•  Shrinking industry after fall of Soviet Union
•  20,000 fur processing and retail businesses
•  $2.5 billion per year industry
China:

•  Hong Kong accounts for 75% of global
finished goods exports
•  Mainland China is the fastest growing
fur production hub
•  High growth in Guangdong and Hubei
•  Lower-quality furs than other countries
•  Animal welfare challenges

Euthanasia Cleaning Skinning Fleshing Stretching Drying
Acid
Treatment
Pickling Conditioning Dyeing Dry Cleaning
Input:
Combing,
drying
Input:
Sawdust
Input:
Oils
Input:
Sulfuric acid,
hydrochloric
acid
Input:
Ammonia
alum
Input:
Saltwater
bath
Output:
Debris,
insects, dirt
Output:
Animal waste
(fat, tissue,
hair)
Output:
Animal waste
(fat, tissue,
hair)
Output:
Animal waste
(fat, tissue,
hair)
Output:
Diluted
ammonia
alum
Output:
Diluted sulfuric
acid, diluted
hydrochloric acid
Output:
Soiled
sawdust, hair
Finished
Fur Skin
Dressing
Fur Production Process:
Input:
Carbon
monoxide,
electricity
Input:
Airflow
[55°-60° F]
for 1 - 7 days
Input:
Natural or
chemical
dyes
Output:
Excess natural
or chemical
dyes
Output:
Animal waste
(feces, blood,
effluence)
Farming
Farming
* Byproducts:

•  Estimated at 647k tons / yr
•  Meat is used in pet foods
and fishing baits
•  Mink byproducts are used in
fertilizers and cosmetics

•  In Europe, a group of fur farmers formed the Fur Animal Welfare Research Committee to coordinate R&D efforts
•  The European Fur Breeders Association maintains a Code of Practices for the EU fur industry
•  These are suggestions rather than legislations, which are left to national governments.
•  Fox farming is illegal in the Netherlands, and mink farming will be phased out by 2024
•  Mink farming was banned in the UK in 2000, closing 11 farms in exchange for government compensation
Regulatory Environment: Fur Production & Trade
Global:
North America:
Europe:
China:
•  The US has the strongest animal welfare regulations
•  Trade organization Fur Commission USA invests half its budget into welfare R&D
•  The Truth in Fur Labeling Act requires fur product labeling to specify the species and origin
•  The US Fox Shippers Council maintains fox fur farming codes of practice
•  Fur Commission USA maintains mink fur farming codes of practice
•  Canada also has a strong regulatory environment due to its long history of fur trading
•  Unlike the US, Canada permits the use of fur skins from marine mammals (seals and walrus)
•  Animal welfare regulations are immature in China
•  2009 legislations introduced prohibitions against inhumane animal management practices
•  These legislations establish a baseline in animal welfare, but are not yet specific to species or industry
•  Fur farms are subject to any relevant national and local animal welfare and environmental regulations
•  The International Fur Trade Federation (IFTF) also establishes guidelines among member states
•  The IFTF has 35 members that have agreed to operate in accordance with its standards and practices
•  The global fur industry is moving to adopt standardized labeling conventions showing origin and species

•  Ensure the supplier demonstrates a commitment to safety, health, and environmental practices for
the protection of employees, animals, and surrounding communities impacted by farming and / or
fur skin processing operations
•  Ensure farming operations are conducted in accordance with international best practices and
applicable national laws concerning animal welfare and employee well-being
•  Ensure euthanasia is performed in strict accordance with industry best practices designed to
minimize distress to animals
•  Ensure waste products generated from farming and / or fur skin processing are re-used to the
largest extent possible or disposed of using government-approved, environmentally-sound methods
Critical Sourcing Objectives:

•  The Supplier Audit Program proposed in this section was developed based on comprehensive research of the
leather and fur industries including farming, euthanasia, and rawhide processing methods

•  There is currently no standardized audit program used among luxury brands to validate the business practices of
leather and fur suppliers. This Supplier Audit Framework aims to fill that industry gap.
•  The Supplier Audit Program is intended for use by luxury brands that are seeking to validate new or existing
suppliers of leather and / or fur materials based on their commitment to environmental protection, animal
welfare, labor practices, and numerous other criteria.
•  Suppliers are unlikely to show 100% compliance, but scores of over 60% compliance should be considered strong
and acceptable so long as egregious violations are not observed.
•  The Supplier Audit Framework consists of two primary audits:

1. Farming Facility Audit:

Intended for brands that want to validate a farming facility that raises animals for fur or leather. There is the
primary Farming Facility Audit, and then a series of addendums based on the specific animal(s) farmed.
Addendums: Cattle, Ostrich, Crocodiles, Pythons, Minks, and Foxes
2. Leather Tannery Audit:

Intended for brands that want to validate a facility whose primary function is tanning rawhides into leather.
Effective management of chemical and biological substances is critical to ensuring environmental and
workplace safety; this is the dimension is what the Leather Tannery Audit most closely evaluates. The Leather
Tannery Audit is not intended for use by brands validating fur skin suppliers.

Farming Facility Audit:
1. General Requirements:
A.  Employee wages are equal to or greater than the official local minimum wage.
B.  All employees, regardless of employment status, are 18 years of age or older.
C.  Information is maintained on all subcontractors and suppliers used by the facility.
D.  Protective clothing, earplugs, gloves, masks, respirators, and goggles are used when handling dangerous chemicals or equipment.
E.  Evacuation procedures are regularly practiced, including the evacuation of live animals.
F.  Dangerous areas are clearly marked using bright colors and obvious signage.

2. Animal Enclosures:
A.  Enclosures must remain locked with access restricted to authorized personnel only.
B.  Documentation of the size, age, and medical history of individuals housed in an enclosure must be posted at the enclosure entrance.
C.  Animal enclosures must provide shelter from the elements and temperature extremes.
D.  Outdoor enclosures must be at ground level or higher to avoid flooding from rainwater.
E.  Enclosure design must enable employees to clearly see animals before entering.
F.  All flooring, walls, and vents within enclosures must be made of materials that may be thoroughly cleaned with regular frequency.
G.  Bedding material must remain clean and dry, and be replaced when soiled or wet.
H.  A minimum of 8-hrs of natural or simulated sunlight with UV spectrum rays must be available in the enclosure each day.
I.  A period of low lighting must be provided to allow for normal rest-periods.
J.  Indoor animal enclosures must have a ventilation system separate from that of the larger facility housing the enclosure.
K.  Equipment used to maintain temperatures must be equipped with alarms in the event temperatures or humidity exceed the safe range.
L.  To prevent injury or burns, heating elements must be placed out of reach of animals.
M.  Electrical equipment, wires, and fuse boxes must be kept out of reach of animals.

3. Veterinary Health Management:
A.  A veterinary health plan (VHP) including nutrition plans, medical procedures, and disease containment must be developed.
B.  Animals must be regularly examined for signs of injury or illness. Veterinary care must be immediately provided as required.
C.  Only veterinarians or trained delegates may administer medication to animals.
D.  Any medications used on animals must be kept in a secure, locked space. Only authorized individuals may access these medications, and
must log their names against any medication removed from storage for use.
E.  Local wildlife and health authorities must be notified in the event communicable disease is observed within the animal population.
F.  Any unexplained animal deaths must be investigated through a post-mortem analysis.

Farming Facility Audit: (cont.)
4. Food & Water:
A.  Animals must have 24/7 access to clean drinking water.
B.  Emergency stores of water must be maintained for use in the event of plumbing failures.
C.  If pools are cleaned by a filtration system, the system must be out of reach of animals.
D.  Water must not be allowed to accumulate in enclosures or on the substrate.
E.  Animal food products must be stored under dry, hygienic conditions.
F.  Feed must be regularly tested for bacteria; feed becoming damp in storage is discarded.
G.  Feeding and watering equipment must be regularly cleaned with non-toxic products.

5. Transport of Animals:
A.  Anyone involved in the transport of animals must have documented trainings on animal handling techniques and emergency response.
B.  Electric prodding devices and sticks must not be used to move animals.
C.  Animals that are injured or ill may not be transported except to receive veterinary care.
D.  Transport crates must be escape-proof but allow for emergency access to handlers.
E.  Animal shipments must be unloaded immediately upon arrival at the destination.
F.  Any animal injuries or deaths during transport must be documented and investigated.

6. Maintenance & Hygiene:
A.  A preventative maintenance plan must be incorporated into training, ensuring regular inspections for defective equipment and fixtures.
B.  Defective equipment must be immediately removed from service.
C.  Documented procedures exist for disinfecting all pieces of equipment and cleaning blood and pathogenic material.
D.  Procedures for the safe disposal of pharmaceutical waste and syringes must be documented and followed.
E.  Enclosure substrates must be regularly cleaned or replaced.
F.  Feces must be removed from the enclosure daily or immediately from water sources.
G.  Locker rooms, showers, and bathrooms are available for employees and maintained in a hygienic condition.

7. Euthanasia Oversight:
A.  A facility must nominate an Animal Welfare Officer (AWO) to physically oversee and monitor the euthanasia process.
B.  All methods of euthanasia must be documented and available to relevant personnel.
C.  Only individuals trained in euthanasia techniques may administer euthanasia.
D.  Euthanasia must never be performed within view of other animals.
E.  Documentation must record each animal that is euthanized including age, sex, identification numbers or markings, and medical history.

1. Enclosure Design:
A.  Floors of enclosures must be covered in anti-slip material or have grooves ≥ 9mm deep
B.  All passageways and entryways must be wide enough for 2 cattle to pass side-by-side
C.  Cattle enclosures must provide shaded areas that are accessible to cattle at all times
D.  Bedding must be made of straw or wood shavings and maintained ≥ 50mm in depth
E.  Individual enclosures must provide a minimum area of 1.8m2 per individual
F.  Cattle must be kept in groups, with grouping based on age and size
G.  Enclosures must include access to daylight ≥ 100 lux in brightness
H.  Ventilation systems must maintain humidity levels in enclosures under 80%
I.  Dust particulate within cattle enclosures must be ≤ 10mg / m3, Ammonia particulate within cattle enclosures must be ≤ 25ppm
J.  Feeding troughs must provide each individual with 150mm - 200mm space to feed
K.  Cattle must have a minimum of 500mm of water trough space per individual; 4.5L of water per 50kg of bodyweight should be provided
L.  Cattle must not be allowed access to natural water sources

2. Wellbeing & Handling:
A.  Cattle must not be moved through dark or poorly lit areas due to their poor vision
B.  Only trained employees may mark cattle by tattooing, ear tags, freeze-branding, or electronic tracking implants
C.  Horn removal in aggressive animals may only be carried out by a veterinary surgeon
D.  Cattle must be checked twice per day for injuries and abnormal behavior

3. Transport:
A.  Cattle ramps in the facility must have anti-slip flooring and not exceed 20% incline
B.  In-transit periods must not exceed 8-hrs
C.  Cattle must have access to clean drinking water up to the time of loading
D.  Headroom in-transit must be a minimum of 20cm above the tallest animal's head
E.  The vehicle floor must be covered in anti-slip material

4. Euthanasia:
A.  Electric stunning and captive bolts are the only approved methods for cattle euthanasia
B.  For stunning, electrodes must be positioned on the brain and heart to deliver 1.2amps in current to induce cardiac arrest
C.  If captive bolts are used, they must be delivered directly into the brain (via the forehead) using a captive bolt gun
D.  Bleeding must begin within 60-sec of the stun / bolting via an incision to the jugular
Audit Addendum: Cattle Farms

A.  Ostrich enclosures must provide a minimum of 200m2 per individual with outdoor and indoor areas that enable birds to roam freely
B.  Primary ostrich enclosures must provide a "free-range" environment
C.  Electrified or barbwire fencing must not be used in ostrich enclosures
D.  Fencing must be visible to the ostriches and a minimum of 5ft. in height
E.  If wire fencing is used, it must be free of gaps large enough for an ostrich’s neck, feet, or feathers to become caught

2. Food & Water:
A.  Feeding troughs must provide each individual in the enclosure with 0.5m to feed
B.  Feed must be specially formulated for ostriches and administered twice daily

3. Wellbeing & Handling:
A.  Ostriches must always be handled by a minimum of 2 employees at once
B.  Only trained employees may mark ostriches using wing / neck tags or electronic tracking device implants
C.  Ostriches must not be held indoors for periods exceeding 24-hrs unless extreme weather poses a safety hazard
D.  Isolation pens must remain in view of the herd

4. Transport:
A.  Vehicle headroom must be a minimum of 20cm above the tallest animal's head
B.  Drivers must be trained on proper breaking and turning techniques; 2-legged animals have reduced balance
C.  Loading ramps must have sufficient treading to prevent ostriches from slipping and an incline less than 10%
D.  A minimum area of 1.5 - 2m per ostrich must be provided during transport
E.  In-transit periods (excluding loading and unloading) must not exceed 8-hrs
F.  Ostriches must have access to clean drinking water up to the time of loading
G.  Vehicle floors must be covered in bedding to prevent falls during transport
H.  If bird falls, it must be immediately lifted back to a standing position
I.  No more than 10 birds may be transported within one compartment
J.  In extreme heat, birds may be sprayed with water prior to loading

5. Euthanasia:
A.  Electric stunning delivered at 120 mA and 220 - 330 volts for 4 seconds is the only approved method of ostrich euthanasia
B.  Death is confirmed by the cessation of breathing, pulse, and eye movements
Audit Addendum: Ostrich Farms

A.  For each additional crocodile in the enclosure, the area must be expanded by 20%
B.  Enclosures must provide sufficient shaded areas for all crocodiles in the enclosure
C.  Ventilation systems must prevent excessive moisture accumulation to reduce the risk of skin infections and respiratory
D.  Regular observation must be undertaken to identify and mitigate aggressive behavior
E.  Enclosure walls must be rooted ≥ 20-in underground to prevent escape by burrowing
F.  A dry basking area with a temperature of 30°C - 33°C must be provided
G.  Enclosures must provide several microclimates via distributing heaters throughout
H.  Daytime temperatures must stay within a 25°C - 35°C range in all areas of the enclosure
I.  Water pools and containers in enclosures must be kept within a range of 26°C - 28°C
J.  New crocodiles must undergo a one-month quarantine before being introduced into a grouping

2. Food & Water:
A.  Crocodiles must receive a diet including a variety of raw fish and / or raw chicken meat
B.  Crocodiles must only be fed dead animals to prevent injury or contamination
C.  At least one pool must be ≥ twice the length of the largest crocodile in the enclosure
D.  The pool must be deep enough for the largest crocodile in the enclosure to submerge
E.  Pools must have smooth edges and surfaces to prevent injury

3. Transport:
A.  Crocodile handling by employees must be avoided or minimized for 24-hrs after feeding
B.  Crocodiles must have sufficient time to digest their most recent meal before transport and not be fed during transport
C.  Crocodiles must be placed in shallow water for ≥ 10-min to hydrate before transport
D.  Crocodiles must only be transported via temperature-controlled vehicles
E.  Transport enclosures must be outfitted with moist cloth material in the interior
F.  Containers must not be in direct sunlight or sit in water during transport

4. Euthanasia:
A.  Crocodiles must be restrained by the jaws and tail during euthanasia
B.  Euthanasia must aim to destroy the brain as quickly as possible to minimize distress
C.  The only approved methods of euthanasia are captive bolts or large-caliber rifle fired directly between the eyes
Audit Addendum: Crocodile Farms

A.  An enclosure housing a python up to 4m in length must be a minimum of 0.45Y (L) x 0.3Y (W) x 0.5Y (H) where Y = python length
B.  For each additional python in the enclosure, the area must be expanded by 20%
C.  Enclosures must be outfitted with shaded hiding places such as boxes or hollowed logs
D.  Enclosures must include a rough surface [ex. logs, rocks] to facilitate periodic shedding
E.  Pythons must have adequate periods of darkness to facilitate nocturnal behavior
F.  Ventilation systems must prevent excessive moisture accumulation to reduce the risk of skin infections and respiratory distress
G.  Enclosure walls must be rooted ≥ 20-in underground to prevent escape by burrowing
H.  New pythons must undergo a 12-month quarantine before being introduced into a grouping
I.  Enclosures must provide several microclimates via distributing heaters throughout
J.  Daytime temperatures must remain within a 25°C - 35°C range in all areas with humidity > 60%

2. Food & Water:
A.  Captive pythons must receive a diet including rodents, rabbits, and / or raw chicken
B.  Pythons must only be fed dead animals to prevent injury or contamination
C.  Pythons must be isolated during feeding times to avoid snakes ingesting one another
D.  Python handling by employees must be avoided or minimized for 24-hrs after feeding
3. Transport:
A.  Employees handling pythons must receive emergency training for bites and constriction
B.  Pythons must have sufficient time to digest their most recent meal before transport, and should not be fed during transport
C.  Pythons must be placed in shallow water for ≥ 10-min to hydrate before transport
D.  Pythons must only be transported via temperature-controlled vehicles
E.  Transport enclosures must be outfitted with moist cloth material in the interior and padded to minimize movement
F.  Enclosures must not be in direct sunlight or sit in water during transport

4. Euthanasia:
A.  Pythons must be restrained by ≥ 2 employees during euthanasia to restrict movement
B.  Python euthanasia must aim to destroy the brain as quickly as possible
C.  The only approved methods for euthanasia are the captive bolts or small firearms

Audit Addendum: Python Farms

Audit Addendum: Mink Farms
A.  Employees must be able to see inside nests to inspect the condition of mink
B.  Nest boxes must be provided for each individual mink in the enclosure
C.  Enclosures housing multiple minks must include enough hammocks or shelves to allow individuals to separate from one another
D.  If items are added to mink enclosures, they must remain in the enclosure through the full life of the minks in the enclosure so as
not to cause distress if removed
A.  Temperature must be maintained within a 55˚F to 80˚F range, either through natural ventilation or artificial climate control systems
B.  Enclosures must be considered biosecure areas, and any individuals entering enclosures must wear sterile clothing free of
contaminants from outside the facility
A.  Enclosure design must prevent entry by other animals including rodents and insects

2. Wellbeing and Handling:
A.  A mink’s full body must be supported and abdominal pressure avoided during handling
B.  New mink introduced to the herd must first be held in quarantine and treated for any communicable diseases and parasites before
introduction into the grouping

3. Transport:
A.  Transport crates must allow mink to sit, stand, and turn around comfortably, but not allow for excess movement during transport
B.  Transport crates must have fixtures for the provision of food and water
C.  Mink must only be transported via temperature-controlled vehicles
D.  Mink must be given sufficient time to fully hydrate before transport
E.  Mink must have access to water during transit if the in-transit period will be ≥ 24-hrs
F.  Mink must be given food during transit if the in-transit period will be ≥ 36-hrs
G.  Transport enclosures for female mink must be at minimum 15-in (L) x 7-in (W) x 7-in (H)
H.  Transport enclosures for male mink must be at minimum 15-in (L) x 8-in (W) x 8-in (H)

4. Euthanasia:
A.  Carbon monoxide asphyxiation is the only approved method for mink euthanasia
B.  Carbon monoxide must be administered within a controlled air chamber at a concentration of 4% or more to induce deep anesthesia
followed by asphyxiation.
C.  A 5-min observation period must take place following administration of euthanasia to confirm death. Death is confirmed by cessation
of breathing, pulse, and eye movement

Audit Addendum: Fox Farms
A.  Employees must be able to see inside nests to inspect the condition of foxes
B.  Foxes must always be housed separately to maintain their natural solitary nature
C.  Enclosures must be far enough away from each other to prevent contact between foxes
D.  Enclosures must be a minimum of 1.4m2 in size
E.  Temperature must be maintained within a 55˚F to 80˚F range, either through natural ventilation or artificial climate control
F.  Enclosures must not be housed in the same facility as any other type of animal
G.  Enclosure design must prevent entry by other animals including rodents and insects
H.  Enclosures must be considered biosecure areas, and any individuals entering enclosures must wear sterile clothing free of
contaminants from outside the facility
I.  New foxes introduced to the herd must first be held in quarantine for ≥ 21 days and treated for any communicable diseases and
parasites based on the established procedures in the Veterinary Health Plan

2. Transport:
A.  The full body of the fox must be supported during handling
B.  Foxes must be given sufficient time to fully hydrate before transport
C.  Foxes must have access to water during transport if the in-transit period is ≥ 4-hrs
D.  Foxes must be housed in individual crates during transport
E.  Transport crates must allow foxes to sit, stand, and turn around comfortably, but not allow for excess movement
F.  Transport crates must have fixtures for the provision of food and water.
G.  Transport crates must allow for waste removal, and be thoroughly cleaned before and after use. Procedures for waste removal
must be in place for in-transit periods ≥ 36-hrs
H.  Foxes must have sufficient time in their crates prior to transit to allow acclimatization
I.  Vehicles must have temperature controls in the cargo areas to maintain a safe temperature range for animals during transport
J.  Transport enclosures must be a minimum of 30-in (L) x 14-in (W) x 18-in (H), but not exceed these dimensions by ≥ 10%

3. Euthanasia:
A.  The direct handling of foxes by humans must be minimized prior to euthanasia
B.  Electrocution is the only approved method of fox euthanasia
C.  Electrocution must be delivered by 0.31 amperes of current for 4-sec, with 2 electrodes applied to either end of the body
D.  A 5-min observation period must take place following administration of euthanasia to confirm death. Death is confirmed by
cessation of breathing, pulse, and eye movement

Leather Tannery Audit:
1. General Requirements:
A.  Employee wages are equal to or greater than the official local minimum wage.
B.  All employees, regardless of employment status, are 18 years of age or older.
C.  Information is maintained on all subcontractors and suppliers used by the facility.
D.  Protective clothing, earplugs, gloves, respirators, and goggles are used when handling dangerous chemicals or equipment.
E.  Evacuation procedures are regularly practiced, including the evacuation of live animals.
F.  Dangerous areas are clearly marked using bright colors and obvious signage.

2. Environmental Policy Management:
A.  All inputs are identified including chemicals, raw materials, and energy requirements.
B.  All outputs are identified including chemicals, waste streams, and gas emissions.

3. Water Consumption:
A.  Overall water consumption is measured at the tanning facility and at a process level.
B.  Equipment is washed in batch format rather than individually using running water.
C.  Fatliquors, oil, and grease are recovered from wastewater during treatment.
D.  The facility has an on-site system to neutralize wastewater that contains chromium.
E.  The chemical content of water is measured and evaluated against thresholds.

4. Efficient Consumption of Energy:
A.  All energy sources are identified and their usage measured over time periods.
B.  Preference is given to energy sources that can be re-used in a closed loop (ex. steam).
C.  Energy use is measured against established KPI's.
D.  Hot water tanks are insulated to prevent heat loss.

5. Reducing Volatile Organic Compound (VOC) Emissions:
A.  Air within the facility is monitored for toxic gases, microbes, and harmful particulates.
B.  Gas and liquid pipes are outfitted with devices to prevent backflow contamination.
C.  A system to recover organic solvents from air emissions is in place; equipment is installed in air pipes to reduce VOC emissions
D.  Spray coating should be avoided to reduce particulate generation.
E.  The facility has a system for controlling dust emissions at a centralized and / or process level.
F.  Alert systems are in place for when environmental emissions thresholds are exceeded.

Leather Tannery Audit: (cont.)
6. Reducing Chromium Salt Usage:
A.  Gaseous and liquid chromium emissions are neutralized using sodium bases or other agents before entering waste treatment streams.
B.  Excess chromium is recovered from wastewater for re-use in the tanning process.
C.  Non-Chromium solutions are used as tanning agents. If so, what solutions?

7. Reducing Halogenic and High-Salt Dyes Usage:
A.  Low-salt dyes are used in place of high-salt dyestuffs.
B.  The use of powdered, dust-producing dyes is minimized or eliminated.
C.  The use of halogenic dyes is minimized or eliminated.
D.  pH is monitored during the dyeing process to maximize dye absorption, reducing waste.

8. Reducing Salt Usage:
A.  Hides are received at the facility as fresh rather than salt-cured.
B.  Salt is recovered from the pickling processes for re-use in the tanning process.
C.  Salt is recovered from wastewater for re-use in the tanning process.

9. Reducing Ammonia Usage:
A.  CO2 is used for de-liming processes in place of ammonium salts.
B.  Organic acids are used for de-liming processes.
C.  Measures to prevent the release of H2S are in place.

10. Chemical Storage and Spill Remediation:
A.  Material Safety Data Sheets are maintained for all chemical substances detailing storage requirements and handling instructions.
B.  Combustible chemicals are stored away from reactive chemicals in explosion-proof storage units away from emergency exit paths.
C.  All chemical waste streams are identified and waste storage containers provided.
D.  Eyewash and emergency shower facilities are available throughout any areas where chemical substances are used or stored.

11. Maintenance & Hygiene:
A.  A preventative maintenance plan must be incorporated into training, ensuring regular inspections for defective equipment and fixtures.
B.  Defective equipment must be immediately removed from service.
C.  Documented procedures exist for disinfecting all pieces of equipment including instructions for cleaning blood and pathogenic material.
D.  Locker rooms, showers, and bathrooms are available for employees and maintained in a hygienic condition with working fixtures

Conclusions:
•  Leather and fur each present challenges in ensuring that they are produced in a way that is ethical with regards to
animal and employee welfare in addition to being environmentally friendly
•  Luxury brands should utilize a Supplier Audit Framework like the one proposed in this research study to validate
their farm and tannery suppliers, and the suppliers of their existing vendor network
•  The Farming Facility Audit and corresponding animal-specific Addendums provide luxury brands with a standardized
method to evaluate the farming operations of current and potential leather and fur suppliers with regards to their
commitment animal welfare and responsible euthanasia practices
•  The Leather Tannery Audit, seeks to provide luxury brands with a standardized method to evaluate the tannery
operations of a current or potential leather supplier with regards to their commitment to good environmental
practices that actively reduce the use of harmful chemicals and economize energy and water inputs
•  Luxury brands should consider phasing out python leather unless a secondary market can be established for snake
meat among B2C or B2B customers.
•  The sourcing of python rawhides from China, Thailand, and Vietnam should also be avoided until their euthanasia
practices are approved by CITES.
•  Brands should invest greater funds into vegetable tanning research, researching ways to make the pliability of
vegetable tanned leather comparable to chrome tanned leather.
•  These research investments should be co-funded by both luxury brands and tanneries to maximize funding and
build support for the vegetable-tanning sector
Additional Recommendations:

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Brand Introduction:

•  The only handcrafted shoe company manufactured in the US
•  Premium brand specializing in leather footwear
•  Products are sold in over 230 retailers including monobrand stores in the US, Canada, and Israel, as well as multi-
brand retailers across Europe, Asia, Australia, and South Africa
•  Dates back to early 1900’s when Balouzian’s great-grandfather made custom shoes for high-profile customers in
Armenia and gained popularity
•  Balouzian learned about the shoe business and artisanal techniques of shoe production throughout his
childhood and accompanied his family on business trips to Europe and the US
•  Balouzian went on to receive a degree in architecture, later returning to the family’s shoe company to found the
CYDWOQ brand in Burbank (Los Angeles) in 1996

Examples of CYDWOQ F/W 2015 Collection:
Interview with Rafi Balouzian
Rafi Balouzian, Founder and Owner of CYDWOQ shoes based in Los Angeles, California

Sustainable Business Practices:

•  CYDWOQ differentiates itself through its commitment
to using only vegetable-tanned leather and
biodegradable, water-based adhesives.
•  The brand focuses on employee well-being,
eliminating carcinogenic chemical adhesives or
chrome-tanned leather commonly used in shoe
manufacturing
•  Vegetable tanned leather is sourced from suppliers in
Mexico and Italy, though much of the vegetable-
tanning itself takes place in India and Pakistan
•  The brand does not conduct regular visits to its
suppliers’ production facilities, but expressed a desire
to increase oversight and transparency throughout the
company value chain
•  Primary and secondary packaging is environmentally
friendly, consisting of 100% cotton bags and recycled
cardboard shoeboxes
•  $20 from every shoe is donated to charity
Interview with Rafi Balouzian

Correspondence with Nicolas Gand
Nicolas Gand, Luxury Fur and Leather Goods Industry Expert
Previous Positions:
Leather Goods Raw Materials Planner, Christian Dior Couture
Leather Goods Production Manager, Christian Dior Couture
Supply Chain Project Leader, Christian Dior Couture
Asia Logistics and Supply Chain Manager, Christian Dior Couture
1. Do luxury brands perform audits or use other methods to evaluate the environmental or employee welfare
practices of their leather suppliers?

•  Louis Vuitton is vertically integrated and owns its own leather factories presumably with an internal audit policy
•  Dior buys finished handbags from factories with their own leather suppliers, reducing audit oversight
•  Dior mandates but is unable to 100% enforce that its suppliers [and their suppliers] respect employment laws
•  The tight import controls within the EU add pressure to brands to have responsible sourcing networks
2. From which countries do luxury brands (ex. Dior) normally source their leathers materials?
•  Top brands source from within the EU (80% from Italy) to achieve a fast time-to-market
•  The remaining leather is sourced from Spain (10%), France (5%), and Switzerland (2%)
•  France produces high quality lambskin [and is also a large consumer of lamb meat]
•  High quality goatskin leather is produced in Africa, especially in Morocco
•  Mid-range brands mainly source from China but also from Turkey and Asia-Pacific countries


3. Are luxury brands willing to pay more for leathers that come from suppliers known for good environmental or
animal-treatment business practices, or is price and industry reputation the main driver for this decision?

•  For high volume sellers (ex. Dior calfskin bags) priority is given to quality rather than reputation
•  Better treatment of animals usually leads to better leather quality. For example, Switzerland, Peru, and
Argentina produce the best quality skins because they do not use barbed wire fencing
•  Awareness of CITES protocols is critical when sourcing exotic animal leathers and furs, above other criteria
•  Brands like Fendi balance these costs effectively; Fendi’s fur business is 20% of its turnover but 45% of profits
•  Animal rights movements have led luxury brands to be more vigilant in sourcing from reputable suppliers

4. What are your future predictions for the luxury leather goods sector from a business and consumer standpoint?

•  Chinese (45%) and Middle Eastern (20%) consumers represent 2/3 of the consumption for accessible luxury
(Gucci, Louis Vuitton) and also for top brands like Chanel, Dior, and Prada, and will continue growing
•  European clientele represented over 50% in the 1990’s, but now represent much less demand
Correspondence with Nicolas Gand

Participant 1:
Nationality: American
Gender: Female
Age: 29
Occupation: Marketing Manager
Participant 2:
Nationality: Estonian
Gender: Male
Age: 26
Occupation: Graduate Student
Participant 3:
Nationality: Dutch
Gender: Male
Age: 27
Occupation: Luxury Watch Specialist
Participant 4:
Nationality: Colombian
Gender: Female
Age: 24
Occupation: Textile Import Manager
Participant 5:
Nationality: Chinese
Gender: Female
Age: 28
Occupation:
Academic Marketing Manager
Focus Group Discussion:
Participant Criteria:
•  Purchase at least one luxury item every six months
•  Variety of countries and cultures
•  Variety of occupations
Objective: Gather primary data about the attitudes of luxury consumers towards leather and fur
goods and brand commitments to responsible business practices

1.  Which premium and luxury brands do you purchase at least once per year?
•  Ted Baker, Canada Goose, Coach, Louis Vuitton, Mont Blanc, Bottega Veneta, Dior Homme, Stella McCartney,
Burberry, Roberto Cavalli, Hermès, Chloé, Marni, Loro Piana, and Brunello Cucinelli.

2. What leather or fur products have you purchased in the past year?

•  Handbags, briefcases, laptop sleeves, phone cases, fur-lined jackets, wallets, coin purses, high heels, dress shoes
•  Mixture of personal purchases and gift purchases for family members and friends

3. How do you view leather and fur products with regards to animal welfare?

•  No negative views regarding the animal welfare considerations of leather production
•  All participants knew cowhide leather is a byproduct of the beef industry
•  Two participants knew that ostriches and crocodiles are also commonly raised for meat, but did not know that
there was a direct correlation between these industries and ostrich or crocodile rawhide production
•  Participants all knew that fur farming takes place, but participants only knew about mink, foxes, and chinchilla
•  Three participants expressed concerns over the treatment of animals in the fur industry
•  One of the aforementioned participants will not buy any fur products, while the other two rarely buy fur products

4. How do you view leather and fur products with regards to the environmental impact of their production?

•  Participants did not indicate knowledge of leather tanning processes or environmental outputs of fur production
•  Participants said environmental concerns did not influence their purchasing decisions for leather and fur products

5. How much do you know about the leather tanning process?
•  Participants did not indicate awareness of how the leather tanning process is performed
•  Three participants knew that tanning involves fats and oils of some kind
•  All participants indicated knowledge of the types of animal hides used for leather, and mentioned the four types
covered in this research study: cowhide, ostrich, crocodile, and python
•  Participants also mentioned suede, shearling, stingray leather, sheepskin, and synthetic leathers made from PVC
6. How much do you know about the fur skin production process?

•  Participants indicated moderate awareness of how fur skins are produced
•  All participants knew that fur farms were common in Europe and the United States
•  Participants were not aware of recent growth in Chinese fur farming
•  The participants did not know that wild trapping continues to be practiced in the fur industry.
•  Participants were all aware that fur is processed via cleaning, drying, and conditioning, but did not have more
detailed understanding of the process minutia
•  All participants indicated awareness of animal welfare considerations in the fur industry
•  Two participants cited videos issued by People for the Ethical Treatment of Animals (PETA) showing inhumane
skinning and handling processes in Chinese fur farms
•  Two participants cited articles they had read from sources including Business of Fashion and The Washington Post
•  The remaining participants did not have specific examples of welfare issues, but knew that fur is considered
a controversial material


7. Are you more inclined to purchase leather or fur products that provide welfare or environmental guarantees?
•  One participant indicated a preference for brands that provide guarantees about animal welfare
•  The same participant refuses to buy any fur products and prefers Stella McCartney because of the designer’s
avoidance of fur and innovative use of synthetic faux-fur materials
•  The remaining participants said that explicit guarantees regarding animal welfare did not impact their decision to
buy products utilizing fur materials, since they were not aware of luxury brands that made any such claims
•  No participants seek out leather or fur products from brands with commitments to welfare and the environment
•  Three participants indicated a preference for brands that use the words “local source” and “sustainable,”
assuming that welfare and environmental commitments fall into these designations

8. Would you be more inclined to buy fur products from brands that prove their ability to meet industry-
standard animal welfare and environmental protection guidelines?
•  Four participants indicated that if a luxury brand they currently consume provided more information about its fur
and leather production, they might be more inclined to purchase products from that brand compared to less-
transparent luxury brands
•  Participants indicated that this information would influence their purchasing decision but aesthetics would still be
the primary motivation when buying a leather or fur product
•  One participant indicated that his / her fur and leather consumption would remain unchanged based on greater
transparency by one brand versus another
•  The spectrum of knowledge among the participants about the leather and fur production process is representative
of consumers gradually becoming more aware of how the luxury products they consume are manufactured

•  Made from the underside of leather that has been
cut into thinner layers
•  Lower quality surface grain, often made into
suede with fibers remaining on the leather
•  Leather with a new grain applied to the surface
•  Utilizes damaged rawhide to correct imperfections
•  Commonly used for leather goods dyed unnatural colors
•  Thinner than full-grain leather
•  More malleable for use in apparel and accessories.
•  The surface is sanded and coated
•  Does not age or ware well
•  Cheaper and more moisture resistant
•  Unprocessed, natural aesthetic.
•  Tanned leather that has not been buffed or
sanded to change its natural grain
•  More durable than processed leathers
•  Develops a “patina” as it ages
•  Used in premium and luxury accessories
and menswear products
Full Grain Leather:
Top Grain Leather:
Corrected Grain Leather:
Split Leather:
Types of Leather:
Cowhide Leather:

Other Types of Fur:
Rabbit:
Beaver:
Sable:
Marten:
•  Produced in a variety of natural colors
•  Lowest-cost fur product
•  Widely available but less durable than other furs
•  Primarily raised for meat
•  Angora rabbit fur is the most popular type due to its
length and durability
•  Native to North America
•  Furs similar to foxes, but related to sable
•  Hair is long and silky
•  Produced in several natural color variations
•  Most expensive type of fur
•  Nicknamed the “Golden Fleece” for its high price
•  Produced exclusively in Siberia’s Ural Mountains
•  Lightweight, silky texture with warmth and durability
•  First fur-bearing species hunted in Siberia
•  Fueled the Siberian fur trade
•  Long and shiny
•  Used in stoles, muffs, hats, and jacket trimmings
•  Fueled the North American fur trade
•  Commonly found in Canada and Northeastern USA

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