Benchmark Methodology
The KnowTheChain benchmarks evaluate corporate efforts to assess forced labor risks in their supply chains and publishes sector-specific benchmarks every two years. Companies are assessed using a methodology which is based on the UN Guiding Principles on Business and Human Rights and which covers themes such as recruitment and worker voice. In 2020/2021, our benchmarks will cover over 180 companies. This expanded list of companies will be benchmarked using an updated methodology for each sector.
Why Benchmarking?
KnowTheChain believes that benchmarks can play a powerful role in encouraging companies to uphold labor standards and protect workers’ rights, harnessing the competitive nature of markets to drive a “race to the top” by creating brand reward for leaders and brand risk for laggards. More importantly, they give companies and investors examples of good practices, the information necessary to understand performance, and a path forward.
2020/2021 Methodology
KnowTheChain focuses on assessing the largest companies (based on market capitalization) in high-risk sectors. KnowTheChain recognizes that within this group of companies, the smaller companies may not yet have the capacity or knowledge to engage with the full KnowTheChain methodology, in particular those based in regions where human rights norms have been slow to develop. Therefore, KnowTheChain has developed a subset of indicators, which it is using to assess the degree to which these companies are beginning to implement human rights due diligence and address forced labor risks in their supply chains. Should you be interested in translations of the KnowTheChain methodology in any additional language, please contact [email protected].
Information and Communication Technology
Food and Beverage
Apparel and Footwear
2018 Methodology
Information and Communication Technology
Food and Beverage
Apparel and Footwear
2016 Methodology
Information and Communication Technology
Food and Beverage
Apparel and Footwear
Changes to Methodology
Why does the methodology change?
The methodology is reviewed before every benchmark publication to align with evolving third-party benchmarks and standards and to include learnings from the previous benchmarks and feedback from other stakeholders. The methodology revision process includes sector-specific consultations with stakeholders from civil society, investors, and business.
The methodology is reviewed before every benchmark publication to align with evolving third-party benchmarks and standards and to include [earnings from the previous benchmarks and feedback from other stakeholders. The methodology revision process includes sector-specific consultations with stakeholders from civil society, investors, and business.
What changed?
In addition to indicator-specific changes based on emerging good practices and stakeholder feedback, KnowTheChain has strengthened its methodology in the following areas, which will continue to be a focus for improvement going forward:
- Focusing more strongly on corporate action below the first tier, as worker abuse occurs at all tiers and workers may be more vulnerable deeper down supply chains where companies tend to have less visibility
- Moving the emphasis beyond policies towards processes and practices, with a particular focus on better measuring corporate performance
- Incorporating third-party data, such as allegations from reputable news agencies and participation in relevant industry and multi-stakeholder initiatives, in addition to corporate disclosure.
