Takko Fashion: Statement on Business Engagement in Myanmar

Updated on 1 February 2026

As an international fashion company, we are aware of our responsibility towards all our stakeholders and actively promote compliance with standards of conduct as well as human and environmental rights throughout our entire supply chain. In the 2025/2026 financial year, we worked with suppliers and production facilities in 11 countries, one of which is Myanmar. When awarding production contracts in Myanmar, we naturally comply with all EU sanctions against the military junta. To the extent permitted, our suppliers place production orders with textile manufacturers in Myanmar that are independent of the military.

We deeply condemn the military violence against the people of Myanmar since the military coup in 2021. The violence must end and the democratic order in Myanmar must be restored.

Following extensive review, we are convinced that, through enhanced due diligence measures and our membership of EuroCham Myanmar and the MADE project (Multi-stakeholder Alliance for Decent Employment in the Myanmar Apparel Industry), we can continue our cooperation with suppliers in Myanmar responsibly and in accordance with the ILO Conventions, the UN Guiding Principles and the OECD Guidelines, despite the military junta and the resulting human rights and labour rights risks.  Below, we outline the measures and activities through which we fulfil our human rights due diligence obligations in Myanmar, thereby continuing to contribute to the preservation of jobs for many workers and to the long-term improvement of working conditions in the textile industry.

The production facilities with which we collaborate in Myanmar are located in the Yangon region, which is classified by the EXERA Vanguard Risk Score as one of the safer regions with a low conflict rate. The situation there currently allows us to continue fulfilling our due diligence obligations to maintain safe working conditions in the factories. However, we are closely monitoring developments in Myanmar and regularly assess whether we can fully meet our due diligence obligations towards workers in Myanmar.

Our local team of five staff members in Yangon keeps us regularly informed about the situation on the ground. We have also joined EuroCham Myanmar (European Chamber of Commerce). The Chamber focuses on representing the interests of its members vis-à-vis organisations in Myanmar, ASEAN and the EU, and on supporting European companies in their cooperation with business partners in Myanmar. Through EuroCham Myanmar, we receive daily live updates from Myanmar.

We have been working with production facilities in Myanmar since 2014. Currently, nine factories produce clothing for Takko Fashion. Our local team in Yangon is in close contact with factory management and regularly checks working conditions in the factories in Myanmar. Our CSR Procurement Compliance Team in Germany, in turn, is in direct contact with our colleagues on the ground and is regularly informed about the situation in the factories.

At all production sites in Myanmar, we carry out regular social audits by our own staff as well as third-party audits by TÜV Rheinland. These audits include both announced and unannounced audits. As part of our enhanced Human Rights Due Diligence (HRDD) measures to monitor working conditions at production sites in Myanmar, we have also decided to conduct previous factory visits as follow-up audits. The increased number of audits enables us to gather important information from the production sites and about local working conditions in even greater detail, thereby ensuring even greater transparency. Factory visits will also continue to be carried out on an ad hoc basis. In the 2025/2026 financial year, a total of 68 audits took place, of which 45 were carried out by us and 23 were external audits. In addition, sixteen factory visits took place. In addition to our CSR teams, our QC teams are also frequently present in the factories. In the period from February to mid-August alone, we have already carried out 690 inspections.

In addition to the Fair Wear Foundation’s complaints hotline for workers in factories in Myanmar, we also offer a whistleblowing system in Burmese via our website, through which employees can anonymously report information about potential abuses. We have not yet received any reports or complaints from Myanmar via the whistleblowing system. Six reports were received via the Fair Wear Foundation’s complaints system in the past financial year. Corrective measures for three reports have already been successfully completed and verified in audits; three further cases are currently under review. If deficiencies are identified during a factory visit, an audit or via the complaints hotlines , these are discussed with our business partners, corrective measures are developed and recorded in the “Corrective Action Plan”.  Our staff not only monitor progress but also support factory management in implementing the necessary measures to improve working conditions.

An additional audit of the production facilities is also carried out by the MADE project and ULULA Research. As part of the MADE project, of which we are a member and EuroCham Myanmar is a partner, the production facilities are assessed for compliance with social standards, working conditions, chemical management, energy and water consumption, and waste management, amongst other things. Together, we identify opportunities for improvement and support corrective measures to ensure compliance with international standards. MADE staff are in direct contact with all our production facilities in Myanmar. Ten assessments have already taken place at the production facilities with MADE and further assessments are planned.

We are also in regular contact with the MGMA (Myanmar Garment Manufacturers Association), an independent trade association for the garment sector in Myanmar, so that we can closely monitor the situation on the ground and take action where necessary.

Our CEO Martino Pessina and CPO Sebastian Weber last visited Myanmar in March 2025 to tour the production facilities and speak with local people. The visit and discussions with factory management and workers on the ground confirmed that remaining in the country is the right course of action for us, as it secures jobs and thus the financial livelihoods of many people in the textile sector. This was also confirmed by a study by Labour Solutions, which surveyed 100,000 employees in Myanmar’s textile industry and found that job security and the ability to continue supporting their families are what matter most to them (Labour Solutions, https://www.laborsolutions.tech/post/myanmar-garment-workers-want-to-be-heard).

As a member of the Fair Wear Foundation, we report to the FWF every four months in the Myanmar Progress Report on the current situation in our suppliers’ production facilities, as well as on measures and progress made to ensure our human rights due diligence.