EMPTY STATE
COMPARISON TOOL

Danone 28/100

(EPA:BN) 12 of 20 (2016)

Danone S.A. (Danone) provides below average disclosure of policies and programs aimed at managing forced labor and human trafficking risks in its supply chain, ranking twelfth on the benchmark overall. The company discloses strong practices in the areas of supplier selection and corrective action plans. To improve its disclosure and performance, Danone is encouraged to disclose a clear managerial structure to ensure accountability for supply chain policies and standards relevant to forced labor and human trafficking. Danone also has an opportunity to improve its disclosure in the areas of recruitment and worker voice.

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28 /100

2016 Ranking: 12 of 20

HOW DO THEY COMPARE?

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28

Danone was evaluated both in 2016, when it ranked 12th out of 20 companies, and in 2018, when it ranked 11th out of 38 companies. Compared to 2016, the company improved its score by ten points, increasing from 28/100 to 38/100 in 2018. This is because the company discloses stakeholder engagement on forced labor, a forced labor risk assessment and some outcomes, a supplier code which prohibits worker-paid recruitment fees. Further, it started to require suppliers to cascade the standard, and expanded its grievance mechanism to include human rights-related grievances.

METHODOLOGY

38

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.

2018 BENCHMARK

2016

28

Danone was evaluated both in 2016, when it ranked 12th out of 20 companies, and in 2018, when it ranked 11th out of 38 companies. Compared to 2016, the company improved its score by ten points, increasing from 28/100 to 38/100 in 2018. This is because the company discloses stakeholder engagement on forced labor, a forced labor risk assessment and some outcomes, a supplier code which prohibits worker-paid recruitment fees. Further, it started to require suppliers to cascade the standard, and expanded its grievance mechanism to include human rights-related grievances.

METHODOLOGY

2018

38

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.

2018BENCHMARK

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 22 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.

OVERALL 38
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
40
Management and Accountability
0
Training
50
Stakeholder Engagement
0

Traceability and Risk Assessment

The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.

OVERALL 50
Traceability
75
Risk Assessment
25

Purchasing Practices

The company's awareness and action on purchasing practices that can exacerbate forced labor risks and its process for selecting suppliers, integrating standards into contracts, and cascading them down the supply chain.

OVERALL 25
Purchasing Practices
0
Supplier Selection
50
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
0

Recruitment

The company's approach to reducing exploitation by recruitment agencies and eliminating workers' payment of fees for their jobs.

OVERALL 0
Recruitment Approach
0
Recruitment Fees
0
Recruitment Audits
0

Worker Voice

The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.

OVERALL 0
INDICATORS
Communication of Policies
0
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
0

Monitoring

The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.

OVERALL 43
Auditing Process
25
Audit Disclosure
60

Remedy

The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.

OVERALL 38
Corrective Action Plans
75
Remedy Programs
0

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