EMPTY STATE
COMPARISON TOOL

Shenzhou International 3/100

(SEHK:2313) 38 of 43 (2018)

Shenzhou International Group Holdings Ltd. (Shenzhou International), a China-based manufacturer, processor of textiles, and supplier to companies such as Adidas, Fast Retailing, and Nike, ranks 38th out of 43 companies and discloses significantly less information on its forced labor policies and practices than its peers. Compared to 2016, the company has taken limited additional steps to strengthen its performance and disclosure. Since 2016, it has disclosed some information on its purchasing practices. The company's score is based on its limited disclosure on the themes of Commitment & Governance and Purchasing Practices. The company is encouraged to improve its performance and disclosure on the themes of Commitment & Governance, Traceability & Risk Assessment, and Monitoring.

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3 /100

2018 Ranking: 38 of 43

HOW DO THEY COMPARE?

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1

Shenzhou International was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 38th out of 43 companies. Since 2016, the company has taken limited additional steps to strengthen its performance and disclosure, such as disclosing some information on its purchasing practices.

2016 BENCHMARK

3

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

1

Shenzhou International was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 38th out of 43 companies. Since 2016, the company has taken limited additional steps to strengthen its performance and disclosure, such as disclosing some information on its purchasing practices.

2016BENCHMARK

2018

3

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 10
INDICATORS
Commitment
50
Supply Chain Standards
0
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 0
Traceability
0
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 10
Purchasing Practices
15
Supplier Selection
25
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 provide disclosure on the outcomes of supplier audits.

OVERALL 0
Auditing Process
0
Audit Disclosure
0

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

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