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2018 Apparel & Footwear

Lululemon Athletica Inc. (NasdaqGS:LULU)

Lululemon Athletica Inc. (Lululemon), an athletic clothing products company based in Canada, ranks second out of 43 companies, disclosing more information on its forced labor policies and practices than its peers across all themes. Compared to 2016, the company improved its rank from third to second in the benchmark. The improvements included disclosing the outcomes of risk assessments, strengthening its foreign migrant worker standard, engaging with suppliers on migrant worker rights topics, and disclosing examples of remedy provided to workers. Lululemon further adopted several practices among its second-tier suppliers, including supplier training, supplier agreements to cascade standards, supplier monitoring, and disclosure of audit outcomes. Lululemon also developed a grievance mechanism and demonstrated that workers in the first and second tier of its supply chains use it. Notably, the company achieves the highest score on the theme of Recruitment and is among the highest scoring companies on the theme of Purchasing Practices; it has strong, forward-looking commitments in place. Additional steps the company could take to address forced labor risks in its supply chains include strengthening its disclosure and practices on the themes of Commitment & Governance, Worker Voice, and Remedy.

Quartiles

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89

OUT OF 100

2018

  • Commitment and Governance

    91

  • Traceability and Risk Assessment

    94

  • Purchasing Practices

    100

  • Recruitment

    94

  • Worker Voice

    70

  • Monitoring

    90

  • Remedy

    88