ESG & SUPPLY CHAIN ACT REPORT 2024

To download the full report, click here 

ABOUT THIS REPORT

This report has been prepared as part of the formal reporting requirements under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (also known as “Supply Chain Act”) This Annual Report outlines RUDSAK’s strategy performance, progress, and commitments during the fiscal year 2024 that ends in February to May 2025. As an iconic Canadian outerwear and fashion brand, RUDSAK aligns with responsible and sustainability standards across our business and global supply chain. Following report provides clear overview of Rudsak ongoing and looking forward projections in efforts to enhance due diligence and ensure alignment and transparency in supply chain practices. If you have any questions, please reach out to us at socialimpact@rudsak.com

ESG & SUPPLY CHAIN ACT REPORT 2024 

Evik Asatoorian, an entrepreneur with a discerning eye for aesthetics, embarked on his journey in the world of fashion as a teenager. Driven by passion, he founded a family enterprise specializing in fine leather garments. In 1994, inspired by the ambition to craft his own label, he launched RUDSAK — the iconic Canadian house for which he continues to oversee artistic direction today. His unwavering dedication to designing timeless, audacious silhouettes has propelled RUDSAK onto the international stage.

NOTE FROM CEO

“I’ve been designing collections for over thirty years,
and I still feel the same excitement today as I did at
the start. What sets us apart is our ability to bring
a fresh touch each season, all while preserving
our signature rebellious spirit.”

– EVIK ASATOORIAN

OUR HISTORY

Founded in 1994 in a brick building at the heart of Montreal’s Garment District, RUDSAK quickly became Canada’s benchmark for luxury outerwear—celebrated for its craftsmanship, refined finishes, and distinctive fabrics. Today, a passionate team of designers and technical experts carries forward the brand’s legacy, drawing on three decades of mastery. Season after season, they translate RUDSAK’s DNA into collections that marry sophistication, elegance, and high-performance functionality.

OUR IDENTITY

For us, true luxury lies in the ability to express oneself without limits. We create collections that invite each individual to embrace their authentic nature—through exceptional leathers, high-performance technical fabrics, and distinctive designs. 

CLEAR ESG & SUSTAINABILITY COMMITMENTS

The brand has implemented concrete initiatives in responsible sourcing,
recycled materials, and carbon-neutral shipping—aligning with investor
interest in forward-thinking Québec businesses.

SUPPLY CHAIN PROFILE

OVERVIEW

In 2024, the company continues to prioritize partnerships that uphold high standards
of labor rights, product quality, and sustainable manufacturing practices. RUDSAK sources finished goods and raw materials from a strategically selected network of suppliers across Asia.

Key sourcing countries include:

● China – Apparel, outerwear, footwear, fabrics, trims
● India – Specialty fabrics, artisan work, leathers, accessories

All factories are required to meet RUDSAK’s Code of Conduct and comply with applicable local laws and international labor standards.

SUPPLIER ONBOARDING & RISK MANAGEMENT

SUPPLIER APPROVAL PROCESS INCLUDES:

● Signed Code of Conduct agreement
● Pre-approval social and technical audit (via QIMA or accredited third party)
● Verification of environmental permits and chemical management systems
● Evaluation of traceability practices and raw material sourcing

2025 HIGHLIGHTS:

● 28+ factory audits conducted through QIMA, including unannounced
follow-ups
● 100% Tier 1 factories evaluated for labor practices
● Expansion of traceability efforts into Tier 2 (materials, mills, dye houses)
● Over 300 quality inspections performed

ETHICAL OMNICHANNEL INTEGRATION WITH SHOPIFY POS

The adoption of BOPIS ( Buy online, Pick up in-store) supports reduced last-mile emission
and promotes in-store engagement. Integration of CRM tools ensures responsible
data use and enhances personalized service in line with privacy best practices

RUDSAK has experienced significant acceleration in e-commerce sales, driven by strategic digital investments, enhanced customer experience, and a curated omnichannel approach
that meets the evolving needs of today’s consumer.

TRUSTED PARTNERSHIPS

A.N. DERINGER – CTPAT-CERTIFIED & TOP 100 2024 3PL PROVIDER
We are proud to continue our long-standing relationship with A.N. Deringer, a U.S.-based
logistics provider that upholds the highest security and compliance standards. As a
CTPAT-certified (Customs – Trade Partnership Against Terrorism), holders of U.S. bonded
licence, a non-vessel operating common carrier (NVOCC). They are also certified as an
ocean transportation intermediary by the Federal Maritime Commission (FMC), an IATA
licensed cargo agent, and have a CBP National Permit for remote location filing (RLF),
Deringer plays a crucial role in supporting our cross-border operations standards for supply chain security. In 2024, A.N. Deringer was recognized as one of the 100 Best 3PL Providers in the United States, reinforcing our confidence in their operational excellence and ethical logistics practices. Their commitment to transparency and security helps us reduce risk and maintain trust across our North American supply chain.

QIMA – GLOBAL QUALITY ASSURANCE & ETHICAL AUDITING
RUDSAK also collaborates with QIMA, a globally recognized leader in quality control,
ethical sourcing, and compliance auditing. QIMA’s extensive network of inspection
and auditing offices enables us to monitor factory standards and environmental
compliance across Asia, Europe, and the Americas.

Through this partnership, we ensure: 

● Regular factory audits for labor and workplace conditions
● Product testing to comply with international safety standards
● Environmental and social risk assessments in high-volume production zones

At RUDSAK, our Environmental, Social, and Governance (ESG) strategy extends beyond internal operations—it is deeply embedded in the partnerships we choose. In 2024, we
continued to strengthen our global supply chain through strategic collaboration with certified, socially responsible, and high-performance logistics and quality control providers.

IVY LEAGUE COLLABORATION

Where Style Meets Substance — A Collaboration Rooted in Ethics and Excellence. 

In 2025, RUDSAK is proud to unveil a meaningful collaboration with the Harvard University,
representing one of the most iconic names in higher education and global leadership.
This exclusive capsule blends RUDSAK’s signature outerwear craftsmanship with the timeless prestige of the Ivy League, creating pieces that speak to both intellectual heritage and modern sustainability.

KEY HIGHLIGHTS OF THE COLLABORATION:

● Designed for Thought Leaders: Outerwear inspired by academic culture, made for changemakers and forward-thinkers.
● Ethically Grounded: Harvard University is Fair Labor Association (FLA) certified, aligning with RUDSAK’s own commitment to ethical supply chains and responsible sourcing.
● Sustainability-Focused: The collection is 100% fur-free, manufactured with verified partners under strict ESG standards including factory audits, traceability, and fair labor practices.
● Limited Edition: Available exclusively at the Harvard Coop and online.

ETHICAL & SUSTAINABLE PRACTICES

WARRANTY & CIRCULAR DESIGN:

At RUDSAK, sustainability is embedded in our product lifecycle. We offer a warranty
program on outerwear styles and on clothing items, reflecting our commitment to quality
and long-term value. In cases where a warranty claim requires jacket replacement,
we ensure the original item is not discarded, but instead responsibly managed. Depending
on its condition, the jacket is either donated to approved organizations or deconstructed
and reprocessed in our in-house production facility into a new item or accessory — giving
it a second life and minimizing textile waste. Our ethical practices are woven into every stage of our product lifecycle—from thoughtful design to end-of-life solutions.

IN-HOUSE UPCYCLING:

Our production team actively reuses materials from damaged or unsellable pieces to create limited-edition items, unique accessories, or trim components, supporting a low-waste and circular approach to fashion.

SUSTAINABLE RETAIL EXPERIENCE:

RUDSAK collaborates with Nespresso to enhance the in-store experience, creating a welcoming and refined atmosphere where customers can enjoy premium coffee while exploring our collections. As part of this partnership, used Nespresso capsules are responsibly recycled, contributing to a circular economy. Through innovative reuse, many beautiful and sustainable pieces are created from recycled capsules, reinforcing both
brands’ commitment to environmental responsibility and thoughtful design.

SUPPLIER OVERSIGHT & SOCIAL RESPONSIBILITY: 

All our manufacturing partners are required to meet RUDSAK’s ethical sourcing standards. We conduct regular third-party factory audits and work closely with partners like QIMA
to monitor and improve working conditions and environmental compliance across our supply chain.

AUDITS

QIMA RUDSAK

QIMA’s global presence and multi-sector expertise empower Rudsak to maintain a consistently responsible and traceable supply chain—ensuring our products align
with both regulatory requirements and consumer expectations for ethical manufacturing.
Audit results have shown areas for improvement, especially in minor compliance indicators. Rudsak has made arrangements with Qima experts to revisit factories and provide guidance, training and expertise. Proactive follow-up approach ensures that improvements are not only recommended, but also implemented within a defined time frame. These efforts help keep forced labor and related risk indicators at a low-risk level, as minor issues are promptly resolved through coaching, verification visits, and support programs.

KPI UPDATES
JUNE 2024 - MAY 2025

RUDSAK QIMA AUDIT OVERVIEW

In 2024, RUDSAK conducted 28 independent factory audits through QIMA across our international supplier base. These audits evaluated working conditions, labor practices,
environmental compliance, and health and safety standards. The findings directly support our supplier improvement programs and responsible sourcing initiatives.
This level of oversight is essential to ensuring that our production partners meet or exceed RUDSAK’s code of conduct and ESG expectations.

KPI UPDATES 2025

FORCED LABOUR, CHILD LABOUR RISKS & REMEDIATION MEASURES

RUDSAK adheres to international standards such as the UN Guiding Principles on Business
and Human Rights, and is developing a formal Human Rights Policy. Our Supplier Code of
Conduct strictly prohibits any form of forced, bonded, or child labour, and we require all
partners to sign and comply with these standards. We are actively improving supplier mapping and traceability beyond Tier 1 production to assess deeper-tier risks, particularly in high-risk countries or raw material sourcing areas. This allows us to make informed decisions and prioritize responsible sourcing. In the event that minor issues are identified, we work collaboratively with our suppliers to implement corrective action plans. We provide guidance, training, and follow-up support to ensure improvements are made and maintained. Our goal is to address potential risks before they escalate and keep all operations at low risk for forced labour indicators.

At RUDSAK, we maintain detailed Standard Operating Procedures (SOPs) that govern our internal operations, logistics, and quality assurance processes. These guidelines are strictly internal documents and are not made publicly available, as they include proprietary processes and personal information related to our team members and designated operational contacts. These SOPs serve as critical tools for ensuring consistency, accountability, and compliance across departments, while also protecting sensitive information and the integrity of our operations. RUDSAK is dedicated to evolving its practices continuously to meet the highest standards in ethical manufacturing and human rights protection. We believe fashion must not come at the cost of dignity or safety.

TRAINING & ASSESSING EFFECTIVENESS

In 2024, RUDSAK reaffirmed its commitment to ethical labor practices by renewing and
strengthening all training manuals related to child labour prevention and compliance.
These updated materials align with international labour standards

The updated training resources were rolled out across RUDSAK’s supply chain, including
internal teams, production facilities, and third-party partners. Key focus areas included:
● Understanding legal and ethical obligations regarding child labour
● Recognizing red flags and reporting mechanisms
● Supplier accountability and documentation standards
● Preventive measures for recruitment and age verification

To ensure these materials were not only distributed but effectively understood and
applied, RUDSAK conducted a structured effectiveness assessment. This included:

● Knowledge checks and confirmation of comprehension by all relevant staff
● On-site evaluations and spot interviews during supplier audits
● Feedback collection from factory managers and compliance officers
● Verification that all suppliers signed acknowledgment forms

The results of this assessment indicated a marked improvement in awareness and
operational safeguards throughout the supply chain. Additionally, RUDSAK
continues to collaborate with its audit partner, QIMA, to monitor and evaluate the
ongoing implementation of child labour policies through regular inspections and
corrective action tracking.
This initiative forms part of RUDSAK’s broader ESG strategy and demonstrates our
proactive role in promoting safe, fair, and lawful working conditions across all levels
of our operations.

FUTURE COMMITMENTS

1.ENHANCED SUPPLY CHAIN TRANSPARENCY

● Expand supply chain mapping beyond Tier 1 to include raw material sources
and subcontracted production units.
● Implement a digital tracking system for supplier documentation and due
diligence audits.

As RUDSAK continues to grow as a responsible fashion brand, our commitment to environmental, social, and governance (ESG) priorities remains stronger than ever. Looking ahead to 2025, we have outlined the following goals to deepen our impact and ensure compliance with evolving global standards, including Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211):

2. STRENGTHENED MONITORING & AUDITING

● Conduct a minimum of 35 third-party factory audits with a focus on social
compliance and labor rights.
● Include child labour and forced labour risk assessments as a mandatory part of
supplier onboarding and annual renewals.

3. POLICY DEVELOPMENT & PUBLIC REPORTING

● Publish a comprehensive Human Rights Policy aligned with the UN Guiding Principles
on Business and Human Rights.
● Release our first official Child Labour Prevention Statement in accordance with
Bill S-211 by May 31, 2026.

4. TRAINING & CAPACITY BUILDING

● Deliver mandatory annual ESG and child labour training to all internal
employees and strategic suppliers.
● Launch a supplier education program focused on ethical recruitment
practices and age verification standards.

As RUDSAK continues to grow as a responsible fashion brand, our commitment to environmental, social, and governance (ESG) priorities remains stronger than ever. Looking ahead to 2025, we have outlined the following goals to deepen our impact and ensure compliance with evolving global standards, including Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211):

5. PRODUCT & MATERIAL SUSTAINABILITY

● Increase the use of recycled, repurposed, and responsibly sourced materials across
all categories.
● Continue in-house upcycling of warranty returns and damaged goods into new
accessories and limited-edition products.

6. COLLABORATION & INDUSTRY ENGAGEMENT

● Join relevant multi-stakeholder initiatives (MSIs) or working groups focused on
ethical trade and sustainability in the fashion industry.
● Explore partnerships with organizations focused on remediation and child
protection in high-risk regions.

CONCLUSION & ATTESTATION

In closing, the 2024 RUDSAK ESG and Child Labour Report reflects our ongoing commitment to ethical business conduct, human rights protection, and sustainable operations across our global supply chain. Through renewed training, enhanced supplier oversight, and continuous collaboration with independent audit partners, RUDSAK has taken concrete steps to prevent and address risks related to child labour and forced labour.
We recognize the responsibility we hold as a fashion brand and corporate citizen. Upholding dignity, fairness, and transparency is fundamental to how we design, produce, and deliver our collections. We remain dedicated to advancing our ESG strategy and improving our practices year over year. I hereby attest that the information contained in this report has been prepared in good faith, in accordance with applicable standards and regulatory expectations, and to the best of our knowledge, is true, accurate, and complete as of the date of publication.

Approved and Attested by:
Evik Asatoorian
Chief Executive Officer, RUDSAK Inc.