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PVH 57/100

(NYSE:PVH) 7 of 20 (2016)

PVH Corp (PVH) ranks seventh in the benchmark. Its overall score of 57 out of 100 points is driven by its strong disclosure on the themes of commitment and governance and purchasing practices. Notably, PVH is one of two companies achieving the highest score on the theme of purchasing practices and among the companies with the second-highest score on remedy. The company has an opportunity to improve by assessing and disclosing forced labor risks in its supply chain, strengthening its practices related to recruitment agencies to avoid exploitation of migrant workers, and engaging with workers in its supply chain.

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57 /100

2016 Ranking: 7 of 20

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57

PVH was evaluated both in 2016, when it ranked seventh out of 20 companies, and in 2018, when it ranked sixth out of 43 companies. The company improved by 12 points to score 69/100. Since 2016, the company has improved by disclosing its supplier guidelines (which include provisions regarding recruitment fees and migrant workers), joining the Responsible Labor Initiative, launching a program on responsible purchasing practices, and expanding its audit program to include second-tier suppliers.

METHODOLOGY

69

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

57

PVH was evaluated both in 2016, when it ranked seventh out of 20 companies, and in 2018, when it ranked sixth out of 43 companies. The company improved by 12 points to score 69/100. Since 2016, the company has improved by disclosing its supplier guidelines (which include provisions regarding recruitment fees and migrant workers), joining the Responsible Labor Initiative, launching a program on responsible purchasing practices, and expanding its audit program to include second-tier suppliers.

METHODOLOGY

2018

69

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
50
Supply Chain Standards
80
Management and Accountability
100
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 25
Traceability
50
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 88
Purchasing Practices
50
Supplier Selection
100
Integration into Supplier Contracts
100
Cascading Standards through the Supply Chain
100

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 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 75
Corrective Action Plans
100
Remedy Programs
50

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