EMPTY STATE
COMPARISON TOOL

Fomento Economico Mexicano (FEMSA) 7/100

(BMV:FEMSAUB) 19 of 20 (2016)

Formento Economico Mexicano S.A.B de C.V (FEMSA) ranks nineteenth on the benchmark and provides limited disclosure on its approach to managing forced labor and human trafficking risks in its supply chain. The company's Code of Business Ethics policy prohibits the use of forced labor, and it has a process for auditing suppliers. However, FEMSA is encouraged to develop and disclose a supply chain standard that addresses forced labor. The company also has an opportunity to improve its disclosure and performance in the areas of traceability and purchasing practices.

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7 /100

2016 Ranking: 19 of 20

HOW DO THEY COMPARE?

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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."

METHODOLOGY

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.

2018 BENCHMARK

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."

METHODOLOGY

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.

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 24
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
20
Management and Accountability
0
Training
0
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 13
Traceability
0
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 0
Purchasing Practices
0
Supplier Selection
0
Integration into Supplier Contracts
0
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 13
Auditing Process
25
Audit Disclosure
0

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 0
Corrective Action Plans
0
Remedy Programs
0

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