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Coca-Cola 58/100

(NYSE:KO) 2 of 20 (2016)

The Coca-Cola Company (Coca-Cola) ranks second on the benchmark, demonstrating a higher degree of transparency and disclosure on its approach to managing forced labor and human trafficking risks in its supply chain relative to its peers. The company ranks amongst the top three companies in five thematic areas, including commitment and governance, traceability and risk assessment, and purchasing practices, among others. Coca-Cola has a strong governance system in place for addressing forced labor in its own operations and in its supply chain, strong purchasing practices, and a strong recruitment approach. The company can improve its performance by auditing recruiters used in its supply chain and improving and disclosing its practices in the areas of worker voice and remedy.

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58 /100

2016 Ranking: 2 of 20

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58

Coca-Cola was evaluated both in 2016, when it ranked second out of 20 companies, and in 2018, when it ranked third out of 38 companies. Compared to 2016, the company improved its score by four points, to 62/100. This is because the company discloses that it is co-chairing the work stream on responsible recruitment of the industry initiative AIM-PROGRESS, which involves awareness-raising on this topic among suppliers and industry peers. It further discloses that it trained suppliers in different countries on forced labor and responsible recruitment.

METHODOLOGY

62

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

58

Coca-Cola was evaluated both in 2016, when it ranked second out of 20 companies, and in 2018, when it ranked third out of 38 companies. Compared to 2016, the company improved its score by four points, to 62/100. This is because the company discloses that it is co-chairing the work stream on responsible recruitment of the industry initiative AIM-PROGRESS, which involves awareness-raising on this topic among suppliers and industry peers. It further discloses that it trained suppliers in different countries on forced labor and responsible recruitment.

METHODOLOGY

2018

62

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 96
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
80
Management and Accountability
100
Training
100
Stakeholder Engagement
100

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 75
Traceability
50
Risk Assessment
100

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 63
Purchasing Practices
50
Supplier Selection
50
Integration into Supplier Contracts
100
Cascading Standards through the Supply Chain
50

Recruitment

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

OVERALL 33
Recruitment Approach
50
Recruitment Fees
50
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 23
INDICATORS
Communication of Policies
50
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
40

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 68
Auditing Process
75
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 50
Corrective Action Plans
75
Remedy Programs
25

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