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Under Armour 38/100

(NYSE:UA) 15 of 20 (2016)

Under Armour Inc. (Under Armour) ranks 15th on the benchmark, with an overall score of 38 out of 100. The company's overall score is largely driven by its performance on the themes of commitment and governance and monitoring. Notably, the company has leading practices in place with regards to supplier selection, a process which includes a review of policies regarding migrant workers, and a review of production capacity. Under Amour also has a policy prohibiting undeclared subcontracting. Under Armour has the opportunity to improve in particular on the themes of traceability and risk assessment, recruitment, and worker voice.

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38 /100

2016 Ranking: 15 of 20

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38

Under Armour was evaluated both in 2016, when it ranked 15th out of 20 companies, and in 2018, when it ranked 21st out of 43 companies. Since 2016, the company has improved by disclosing requirements for its auditors and a supplier list which includes the names, addresses, and number of workers for the majority of its suppliers. It also discloses that it assessed human rights risks, placed orders at suppliers based on social compliance performance, extended its grievance hotline to its suppliers' workers, and audited some second-tier suppliers.

METHODOLOGY

44

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

38

Under Armour was evaluated both in 2016, when it ranked 15th out of 20 companies, and in 2018, when it ranked 21st out of 43 companies. Since 2016, the company has improved by disclosing requirements for its auditors and a supplier list which includes the names, addresses, and number of workers for the majority of its suppliers. It also discloses that it assessed human rights risks, placed orders at suppliers based on social compliance performance, extended its grievance hotline to its suppliers' workers, and audited some second-tier suppliers.

METHODOLOGY

2018

44

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 66
INDICATORS
Awareness and Commitment
50
Supply Chain Standards
80
Management and Accountability
100
Training
50
Stakeholder Engagement
50

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
25
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 44
Purchasing Practices
50
Supplier Selection
100
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
25

Recruitment

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

OVERALL 8
Recruitment Approach
25
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 9
INDICATORS
Communication of Policies
25
Worker Voice
0
Worker Empowerment
0
Grievance Mechanism
10

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 80
Auditing Process
100
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 38
Corrective Action Plans
75
Remedy Programs
0

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