KnowTheChain: Ranking companies' efforts to address forced labour in their supply chains
KnowTheChain is a resource for businesses and investors who need to understand and address forced labor risks within their supply chains.
In 2020/2021 KnowTheChain will be becnhmarking 180 companies in three sectors.
A cross-sector findings report published in 2019 compares findings across the three sectors, in particular on recruitment, worker voice, lower tier due diligence, and performance of Asia based companies. It also includes an appendix with good practice examples for each sector and each indicator of the benchmark methodology.
In 2018 KnowTheChain benchmarked over 120 global companies across the three sectors.
- 2018 Information & Communications Technology: Compare actions from companies such Apple, Amazon, and Broadcom (Read the findings report)
- 2018 Food & Beverage: Compare actions from companies such as Unilever, Wilmar, and Walmart (read the findings report)
- 2018 Apparel & Footwear: Compare actions from companies such as Adidas and Puma, LVMH and Kering, Amazon and Walmart (Read the findings report)
In 2017, KnowTheChain undertook an analysis across the three sectors, reviewed its benchmark methodology, and evaluated to what extent companies address forced labor risks specifically in sugarcane and leather supply chains.
In 2016, KnowTheChain has ranked 60 of the largest global companies in three high risks sectors on their efforts to address forced labor and human trafficking risks in their supply chains. Each sector benchmark includes individual company scorecards, a findings report and resource and action guide for the sector:
- 2016 Information & Communications Technology: Explore actions from Apple, Canon or Foxconn (Findings report, Company scorecards, Action and Resource Guide)
- 2016 Food & Beverage: Explore actions from Coca-Cola, Kellogg or Wilmar (Findings report, Company scorecards, Action and Resource Guide)
- 2016 Apparel & Footwear: Explore actions from Gap, Primark or Prada (Findings report, Company scorecards, Action and Resource Guide)
For more information, contact Felicitas Weber at [email protected].
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KnowTheChain: 2019 cross-sector report highlights progress and gaps in the fight against forced labour
"Three Sectors, Three Years Later: Progress and Gaps in the Fight Against Forced Labour"
In 2016, KnowTheChain evaluated 60 companies in three high-risk sectors—information and communications technology (ICT), food and beverage, and apparel and footwear—on their efforts to address forced labor in their supply chains. In 2018, this effort was repeated and expanded to 119 companies.
KnowTheChain views its role as both providing an evidence-based barometer for assessing corporate practice and as a resource to companies and investors for improved policy and action to address forced labor risks in global supply chains. This report presents findings from KnowTheChain's benchmarks on the progress in corporate efforts to address forced labor in high-risk sectors...and the most severe gaps in action that persist....Section 4 of this report offers recommendations for companies in any sector...The accompanying Excel tool in Appendix 1 offers guidance on how to get started...
KnowTheChain has identified areas where progress has been made but also where corporate practice continues to fall short on addressing forced labor:
• Companies take little action to address exploitative recruitment practices...
• Companies show limited efforts to support and enable supply chain workers to exercise their rights...
• Buyers score higher than their suppliers, even though most buyers require their suppliers to cascade their standards to the next tier...
• Companies based in Asia score lower than those based in Europe and North America across sectors and themes.
「了解供应链」把自己的角色定为既是评估企业实践的循证晴雨表，又是公司与投资者应对供应链中强迫劳动问题的资源库。本报告呈现了「了解供应链」基准评估的一些发现，包括涉及高危行业的企业在处理强迫劳 动问题上取得的进展，及存在的最大不足和问题…报告的第 4 章为各个行业的公司提供了一些建议… 附录 1 中 Excel 工具用于指导如何启动相关领域的工作…
「了解供應鏈」把自己的角色定為既是評估企業實踐的循證晴雨表，又是公司與投資者應對供應鏈中強迫勞動問題的資源庫。本報告呈現了「了解供應鏈」基準評估的一些發現，包括涉及高危行業的企業在處理強迫勞動問題上取得的進展，及存在的最大不足和問題…報告的第4 章為各個行業的公司提供了一些建議… 附錄1 中Excel 工具用於指導如何啟動相關領域的工作…
Investors Commend Top Apparel & Footwear Companies in 2018 KnowtheChain Benchmarking Report on Efforts to Eradicate Forced Labor in Supply Chains
Author: Julie Wokaty, Interfaith Center on Corporate Responsibility
28 Janurary, 2019
The Interfaith Center on Corporate Responsibility, The Church Investors Group, Ecumenical Council for Corporate Responsibility, and Shareholder Association for Research and Education (SHARE), commend Adidas AG, Lululemon Athletica Inc., Gap Inc., Primark Limited (Associated British Foods Group), Industria de Diseño Textil S.A. and PVH Corp. for their leadership in protecting workers in the apparel and footwear supply chain from forced labor and human trafficking. [The] organizations collectively represent institutional investors with over $450 billion in assets under management.
…KnowTheChain has been publishing benchmarking reports since 2016 across various sectors, assessing companies’ actions to eradicate forced labor from their supply chains based on corporate disclosures.
...As we celebrate US National Slavery and Human Trafficking Prevention Month, [the organisations] recognize these leading companies for receiving the highest scores in the 2018 KnowTheChain Apparel & Footwear Benchmark Findings Report and for their efforts to eradicate forced labor in their supply chains...Letters of commendation were sent by [the investors] to these top scoring companies for exhibiting best practices…[The investors] will be writing to the companies that scored poorly in this Report urging them to adopt these practices.
KnowTheChain: Ranking of 43 apparel and footwear on efforts to address forced labour in supply chains
KnowTheChain ranked the top 43 global apparel and footwear companies on how they address forced labour risks in their supply chains. Adidas (92/100) remains the top-scoring company in the benchmark, while Lululemon (89/100) overtook Gap Inc. (75/100) to secure second place. The average benchmark score was low, at 37 out of 100 possible points...
KnowTheChain: Ranking of 38 food and beverage companies on efforts to address forced labour in supply chains
KnowTheChain ranked the top 38 global food and beverage companies on how they address forced labour risks in their supply chains. Unilever remains the top-scoring company (69/100), while Kellogg (66/100) overtook both Coca-Cola (62/100) and Nestlé (58/100) to secure the second-highest score. The average benchmark score was 30 out of 100 possible points...
- Related stories: KnowTheChain: Ranking companies' efforts to address forced labour in their supply chains
- Related in-depth areas: KnowTheChain - Food and beverage company disclosure Modern slavery
KnowTheChain ranked the top 40 global ICT companies—with a combined market capitalization of $4.7 trillion—on how they address forced labor in their supply chains. Intel, the leader of the benchmark, overtook both Apple and HP since 2016. The average benchmark score was 32 out of 100 possible points, with Intel scoring highest (75/100) and Largan Precision scoring lowest (0/100)...
- Related stories: KnowTheChain: Ranking companies' efforts to address forced labour in their supply chains
- Related in-depth areas: KnowTheChain - ICT company disclosure Modern slavery
To mark the third anniversary of the passage of the UK Modern Slavery Act in March 2018, KnowTheChain preport - "Eradicating forced labor in electronics: What do company statements under the UK Modern Slavery Act tell us?" - analysed to what extent the ICT sector is aware of and responding to the UK Modern Slavery Act, the most far-reaching global legislation on forced labour and human trafficking currently in effect.
We identified 102 ICT companies from Asia, Europe, and the United States required to report under the Modern Slavery Act. Most of them were aware of their obligation under this legislation and had published a statement; we reached out to 23 of those companies that had not published a statement.* Eight companies published a statement following our outreach.**
However, compliance with the minimum requirements of the legislation was low. We believe only 18% of the statements (14 out of 79) analysed are compliant with the three minimum requirements of the Act (board approval, director signature, link on homepage). Further, a majority of the companies assessed did not address forced labour risks specific to ICT, even though exploitation of migrant workers through recruitment agencies are well documented in the sector.
Below is a list of ICT companies which the Business & Human Rights Resource Centre believes are required to report under UK Modern Slavery Act, but have not yet published a statement:
- Axis (Sweden)
- Broadcom (USA/Singapore)
- Delta Electronics (Taiwan)
- Hirose Electric (Japan)
- Hangzhou Hikvision Digital Technology (China)***
- Fanuc Corporation (Japan)
- MediaTek Inc (Taiwan)
- Seagate Technology (USA)
- SK Hynix (South Korea)
- Stanley Electric Co Ltd (Japan)
* A few companies pointed us to statements published on less obvious places on their websites (i.e., not on the homepage, on in sections such as sustainability or supply chain responsibility). One company responded noting they believe they are not required to report under the legislation.
** One additional company included a reference to the UK Modern Slavery Act and subsequent actions taken on their website.
***Hikvision have shared a confidential draft commitment with us, which includes a reference to their support of the UK Modern Slavery Act. This document is not yet publicly available.
KnowTheChain announced the names of the 125 companies with combined assets under management of over USD 6.6 trillion it will be benchmarking in 2018 on their efforts to address forced labour in their supply chains. KnowTheChain will cover global companies across three sectors: Information Communication & Technology (ICT), Food & Beverage, and Apparel & Footwear. Companies include US retail giants Amazon and Walmart, the French luxury brands LVMH and Hermès, the Asian mega suppliers Li & Fung and Yue Yuen, and the Australian food retailers Woolworths and Wesfarmers/Coles.
KnowTheChain has also published its revised methodology for the ICT sector. The revised methodology includes feedback from stakeholders including previously benchmarked companies, the investor community, and civil society organizations. KnowTheChain intends to update the methodology after each benchmarking series to account for the evolving nature of the field. Changes to the 2018 methodology include the inclusion of forced labour allegations, a stronger focus on corporate action below the first tier of supply chains, and alignment of the worker voices and recruitment themes with leading practices in the field.
Further, KnowTheChain announced it will be joining forces with the Thomson Reuters Foundation to increase the number of companies to be benchmarked over the next three years. Through this partnership these benchmarking efforts will become the KnowTheChain – Stop Slavery Index.
Food and beverage companies face the risk of forced labor in countries where they obtain sugarcane but most fall short in efforts to tackle the problem that threatens millions of workers, according to a study [by KnowTheChain (KTC)]...Sugarcane...can be found in a list of household foods and beverages...and is often harvested by rural migrant workers with machetes who work long hours for low wages in hazardous conditions...
The companies studied were Coca-Cola Co., Fomento Economico Mexicano S.A.B de C.V (FEMSA), Monster Beverage Corp., PepsiCo Inc., The Hershey Co., Mondelēz International Inc., Nestlé S.A., Archer Daniels Midland Co., Associated British Foods plc plc (ABF) and Wilmar International Ltd. PepsiCo, Coca-Cola, Nestlé and ABF were the only four companies to undertake forced labor risk assessments of sugarcane supply chains in specific countries, the study said.