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COMPARISON TOOL

Lindt 32/100

(SWX:LISN) 18 of 38 (2018)

Chocoladefabriken Lindt & Sprungli AG (Lindt), a Switzerland-based company that produces and sells chocolate products, ranks 18th out of 38 companies, disclosing about the same amount of information on its forced labor policies and practices as its peers. The company's score is based on its stronger performance on the themes of commitment and governance, purchasing practices, and monitoring. However, it has no disclosure available on the theme of recruitment. Notably, the company discloses a Farming Program, through which it engages with and trains cocoa farmers in its supply chains and pays a price premium to improve the farming practices and livelihood of farmers. The company is encouraged to improve its performance and disclosure on the themes of recruitment, worker voice, and remedy.

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32 /100

2018 Ranking: 18 of 38

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32

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

2018

32

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 23 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

This theme evaluates a company's commitment to addressing forced labor, whether it discloses supply chain standards, and to what extent it has management processes and board oversight, training programs, and engagement with stakeholders on forced labor in place.

OVERALL 56
INDICATORS
Commitment
100
Supply Chain Standards
80
Management and Accountability
25
Training
75
Stakeholder Engagement
0

Traceability and Risk Assessment

This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information (such as supplier names or sourcing countries) and assesses and discloses forced labor risks across its supply chains.

OVERALL 31
Traceability
12.5
Risk Assessment
50

Purchasing Practices

This theme assesses to what extent a company adopts responsible purchasing practices (such as providing price premiums and procurement incentives) and integrates supply chain standards into supplier selection and supplier contracts, and whether it cascades them down the supply chain.

OVERALL 40
Purchasing Practices
60
Supplier Selection
0
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
100

Recruitment

This theme measures a company's approach to reducing the risk of exploitation of supply chain workers by recruitment agencies, eliminating workers' payment of fees during recruitment processes throughout its supply chains, and protecting the rights of migrant workers.

OVERALL 0
Recruitment Approach
0
Recruitment Fees
0
Monitoring and Ethical Recruitment
0
Migrant Worker Rights
0

Worker Voice

This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.

OVERALL 25
INDICATORS
Communication of Policies
100
Worker Voice
0
Freedom of Association
0
Grievance Mechanism
0

Monitoring

This theme evaluates a company's process for auditing suppliers (including whether audits include non-scheduled visits, review relevant documents such as wage slips or contracts, interview workers, and audit lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.

OVERALL 45
Auditing Process
80
Audit Disclosure
10

Remedy

This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains that occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.

OVERALL 25
Corrective Action Plans
50
Remedy Programs and Response to Allegations
0

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