EMPTY STATE
COMPARISON TOOL

VF 64/100

(NYSE:VFC) 8 of 43 (2018)

VF Corp. (VF), a US-based company whose apparel and footwear brands include The North Face, Timberland, and Wrangler, ranks eighth out of 43 companies. It discloses more information on its forced labor policies and practices than its peers across all themes. Compared to 2016, the company improved its rank from 14th to eighth. Since 2016, the company has improved its performance and disclosure by working with the Mekong Club (an industry initiative focused on addressing modern slavery) to educate its suppliers' workers on the risks of partnering with brokers and to identify occurrences of modern slavery in its supply chains in Vietnam and China. Further, the company published a supplier list, undertook a human rights risk assessment and unannounced audits, and disclosed examples of remedy outcomes for its suppliers' workers. Notably, VF is among the companies achieving the highest score on the theme of Monitoring. The company is encouraged to strengthen its disclosure and practices on the themes of Commitment & Governance, Recruitment, and Worker Voice.

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64 /100

2018 Ranking: 8 of 43

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43

VF was evaluated both in 2016, when it ranked 14th out of 20 companies, and in 2018, when it ranked eighth out of 43 companies. Since 2016, the company has improved its performance and disclosure by publishing a supplier list, carrying out a human rights risk assessment and unannounced audits, and disclosing examples of remedy outcomes for its suppliers' workers. VF had the largest improvement of any Apparel and Footwear company assessed in both 2016 and 2018, increasing from a score of 43/100 to 64/100.

2016 BENCHMARK

64

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

43

VF was evaluated both in 2016, when it ranked 14th out of 20 companies, and in 2018, when it ranked eighth out of 43 companies. Since 2016, the company has improved its performance and disclosure by publishing a supplier list, carrying out a human rights risk assessment and unannounced audits, and disclosing examples of remedy outcomes for its suppliers' workers. VF had the largest improvement of any Apparel and Footwear company assessed in both 2016 and 2018, increasing from a score of 43/100 to 64/100.

2016BENCHMARK

2018

64

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 74
INDICATORS
Commitment
100
Supply Chain Standards
70
Management and Accountability
100
Training
50
Stakeholder Engagement
50

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 75
Traceability
75
Risk Assessment
75

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 63
Purchasing Practices
100
Supplier Selection
50
Integration into Supplier Contracts
50
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 19
Recruitment Approach
0
Recruitment Fees
0
Monitoring and Ethical Recruitment
0
Migrant Worker Rights
75

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 35
INDICATORS
Communication of Policies
75
Worker Voice
12.5
Freedom of Association
12.5
Grievance Mechanism
40

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 100
Auditing Process
100
Audit Disclosure
100

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 81
Corrective Action Plans
87.5
Remedy Programs and Response to Allegations
75

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