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Hanesbrands 54/100

(NYSE:HBI) 8 of 20 (2016)

Hanesbrands Inc. (Hanesbrands) ranks eighth in the benchmark, with an above-average overall score of 54 out of 100 points. The company scores high on the themes of commitment and governance as well as monitoring. Notably, the company achieves the highest score on the theme of remedy. Hanesbrands has an opportunity to improve by developing and disclosing a process through which it assesses forced labor risks in its supply chain, by strengthening its practices with regards to recruitment agencies to avoid exploitation of migrant workers, and by engaging with workers in its supply chain.

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54 /100

2016 Ranking: 8 of 20

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54

Hanesbrands was evaluated both in 2016, when it ranked eighth out of 20 companies, and in 2018, when it ranked 15th out of 43 companies. Since 2016, the company has improved by disclosing a list with the names and addresses of selected suppliers, a slavery and human trafficking risk assessment process, board oversight over its supplier compliance program and increased information on its auditing process and outcomes.

METHODOLOGY

50

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.

2018 BENCHMARK

2016

54

Hanesbrands was evaluated both in 2016, when it ranked eighth out of 20 companies, and in 2018, when it ranked 15th out of 43 companies. Since 2016, the company has improved by disclosing a list with the names and addresses of selected suppliers, a slavery and human trafficking risk assessment process, board oversight over its supplier compliance program and increased information on its auditing process and outcomes.

METHODOLOGY

2018

50

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.

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 81
INDICATORS
Awareness and Commitment
100
Supply Chain Standards
80
Management and Accountability
50
Training
100
Stakeholder Engagement
75

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 38
Traceability
75
Risk Assessment
0

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 56
Purchasing Practices
25
Supplier Selection
100
Integration into Supplier Contracts
50
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 8
Recruitment Approach
0
Recruitment Fees
25
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 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 78
Auditing Process
75
Audit Disclosure
80

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 88
Corrective Action Plans
75
Remedy Programs
100

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