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Primark 72/100

(LSE:ABF) 4 of 43 (2018)

Primark, a subsidiary retail group of Associated British Foods and the third-largest clothing retailer in the United Kingdom, ranks fourth 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 fifth to fourth. Since 2016, the company has improved its performance and disclosure by launching a mandatory supplier training on modern slavery, disclosing a supplier list, providing several examples of remedy outcomes (which include the reimbursement of recruitment fees), and providing details of how it supports ethical recruitment. Further, the company discloses it engaged its suppliers' workers in different sourcing countries, included second-tier suppliers in its audits, and increased its disclosure on audit outcomes. Notably, Primark is among the companies achieving the highest score on the theme of Commitment & Governance. 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 Recruitment, Worker Voice, and Remedy.

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72 /100

2018 Ranking: 4 of 43

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63

Primark was evaluated both in 2016, when it ranked fifth out of 20 companies, and in 2018, when it ranked fourth out of 43 companies. Primark has improved by nine points since 2016 to score 72/100. The company improved its performance and disclosure by launching a mandatory supplier training on modern slavery, disclosing a supplier list, providing several examples of remedy outcomes (which include the reimbursement of recruitment fees), and providing details of how it supports ethical recruitment.

2016 BENCHMARK

72

The average score for the sector was 37/100 compared to 49/100 in 2016. The number of companies assessed in 2018 increased from 20 to 43. Since 2016, the methodology has been strengthened, making it more difficult for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 49/100 to 56/100, which is significant given the changes to the methodology.

METHODOLOGY

2016

63

Primark was evaluated both in 2016, when it ranked fifth out of 20 companies, and in 2018, when it ranked fourth out of 43 companies. Primark has improved by nine points since 2016 to score 72/100. The company improved its performance and disclosure by launching a mandatory supplier training on modern slavery, disclosing a supplier list, providing several examples of remedy outcomes (which include the reimbursement of recruitment fees), and providing details of how it supports ethical recruitment.

2016BENCHMARK

2018

72

The average score for the sector was 37/100 compared to 49/100 in 2016. The number of companies assessed in 2018 increased from 20 to 43. Since 2016, the methodology has been strengthened, making it more difficult for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 49/100 to 56/100, which is significant 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 100
INDICATORS
Commitment
100
Supply Chain Standards
100
Management and Accountability
100
Training
100
Stakeholder Engagement
100

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 81
Traceability
62.5
Risk Assessment
100

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 81
Purchasing Practices
100
Supplier Selection
75
Integration into Supplier Contracts
100
Cascading Standards through the Supply Chain
50

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 28
Recruitment Approach
0
Recruitment Fees
25
Monitoring and Ethical Recruitment
50
Migrant Worker Rights
37.5

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 63
INDICATORS
Communication of Policies
100
Worker Voice
100
Freedom of Association
50
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 provide disclosure on the outcomes of supplier audits.

OVERALL 85
Auditing Process
90
Audit Disclosure
80

Remedy

This theme measures the extent to which a company has corrective action plans and 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 63
Corrective Action Plans
75
Remedy Programs and Response to Allegations
50

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