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Unilever 65/100

(LON:ULVR) 1 of 20 (2016)

Unilever plc (Unilever) ranks first on the benchmark demonstrating robust disclosure of its approach to managing forced labor risks in its supply chain. Unilever achieves the highest score in five out of seven thematic areas including commitment and governance, traceability and risk assessment, purchasing practices, recruitment, and remedy. Unilever also ranks in the top three among the remaining two thematic areas of worker voice and monitoring. Notably, the company discloses leading practices with respect to its training, stakeholder engagement, and recruitment initiatives. To improve its disclosure the company is encouraged to address gaps in its transparency in the areas of recruitment and remedy, and to develop and report on initiatives that ensure supply chain workers' voices are heard.

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65 /100

2016 Ranking: 1 of 20

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65

Unilever was evaluated both in 2016, when it ranked first out of 20 companies, and in 2018, when it maintained its first rank out of 38 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score by four points since 2016, to 69/100, by disclosing efforts undertaken across various themes. For example, the company developed and disclosed a grievance mechanism for its palm oil supply chains and discloses the positive impacts of engaging workers in its supply chains.

METHODOLOGY

54

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

65

Unilever was evaluated both in 2016, when it ranked first out of 20 companies, and in 2018, when it maintained its first rank out of 38 companies. Despite a strengthened methodology which makes it harder to achieve the same score, the company has improved its score by four points since 2016, to 69/100, by disclosing efforts undertaken across various themes. For example, the company developed and disclosed a grievance mechanism for its palm oil supply chains and discloses the positive impacts of engaging workers in its supply chains.

METHODOLOGY

2018

54

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 88
Traceability
75
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 50
Recruitment Approach
50
Recruitment Fees
50
Recruitment Audits
50

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 28
INDICATORS
Communication of Policies
50
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
60

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 63
Corrective Action Plans
100
Remedy Programs
25

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