EMPTY STATE
COMPARISON TOOL

FEMSA 7/100

(BMV:FEMSA UBD) 34 of 38 (2018)

Fomento Economico Mexicano S.A.B de C.V. (FEMSA), the largest franchise bottler of Coca-Cola, ranks 34th out of 38 companies, and discloses significantly less information on its forced labor policies and practices than its peers. Since 2016, the company disclosed that it requires suppliers to implement corrective action plans where supplier do not meet its standards and has corrective action plan processes in place for non-compliant suppliers. However, while the company previously disclosed the number of suppliers audited on labor and human rights, it now states these are undertaken only "when needed". The company's score is based on the disclosure it has available on the themes of commitment and governance, traceability and risk assessment, monitoring, and remedy. The company has an opportunity to improve its performance and disclosure on the themes of purchasing practices, recruitment, and worker voice.

DOWNLOAD SCORECARD

7 /100

2018 Ranking: 34 of 38

HOW DO THEY COMPARE?

The comparison tool allows companies’ results to be easily compared. Up to three companies can be selected and compared against each other as shown below.

You have selected a maximum of 3 data points to compare. Remove one data point to add a new one.

loading...

7

Fomento Económico Mexicano (FEMSA) was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 34th out of 38 companies. FEMSA maintained its score of 7/100 in 2018. However, since 2016 the company has disclosed that it requires its suppliers to implement corrective action plans if they do not meet its standards and has corrective action plan processes in place for non-compliant suppliers. However, while the company previously disclosed the number of suppliers audited on labor and human rights, it now states these are undertaken only "when needed."

2016 BENCHMARK

7

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

2016

7

Fomento Económico Mexicano (FEMSA) was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 34th out of 38 companies. FEMSA maintained its score of 7/100 in 2018. However, since 2016 the company has disclosed that it requires its suppliers to implement corrective action plans if they do not meet its standards and has corrective action plan processes in place for non-compliant suppliers. However, while the company previously disclosed the number of suppliers audited on labor and human rights, it now states these are undertaken only "when needed."

2016BENCHMARK

2018

7

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 18
INDICATORS
Commitment
50
Supply Chain Standards
40
Management and Accountability
0
Training
0
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 6
Traceability
12.5
Risk Assessment
0

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 0
Purchasing Practices
0
Supplier Selection
0
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
0

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 0
INDICATORS
Communication of Policies
0
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 5
Auditing Process
10
Audit Disclosure
0

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 19
Corrective Action Plans
37.5
Remedy Programs and Response to Allegations
0

Access Benchmark Data

Access the underlying data and non-scored information in a spreadsheet for ease of comparison or download all the scorecards.

DOWNLOAD