EMPTY STATE
COMPARISON TOOL

ASML Holding 36/100

(ENXTAM:ASML) 16 of 40 (2018)

ASML Holding N.V. (ASML) ranks 16th out of 40 companies disclosing more information on its forced labor policies and practices than its peers on all themes except traceability and risk assessment and monitoring. It has improved its score by ten points since 2016 by disclosing a supplier code of conduct on its website. The company uses the code of the Responsible Business Alliance (RBA) which includes provisions on recruitment fees and migrant workers and is available in several languages. The company has also disclosed details on how it engages with the RBA, and a process to assess forced labor risks at potential suppliers prior to entering into contracts. Notably, the company provides details on how it supports suppliers to address non-compliances. Additional steps the company could take to address forced labor risks in its supply chains include strengthening its disclosure and practices on the themes of traceability and risk assessment, worker voice, and monitoring.

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36 /100

2018 Ranking: 16 of 40

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26

ASML was evalauted in both 2016, when it ranked 15th out of 20 companies, and in 2018, when it moved to the top half of the benchmark, now ranking 16th out of 40 companies. Despite a strengthened methodology which makes it harder to achieve the same score, it improved its score by ten points since 2016 (26/100 to36/100). It has done this by disclosing a supplier code of conduct on its website; using the code of the Responsible Business Alliance (RBA) which includes provisions on recruitment fees and migrant workers and is available in several languages; and disclosing details on how it engages with the RBA as well as a process to assess forced labor risks at potential suppliers prior to entering into contracts.

2016 BENCHMARK

36

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

METHODOLOGY

2016

26

ASML was evalauted in both 2016, when it ranked 15th out of 20 companies, and in 2018, when it moved to the top half of the benchmark, now ranking 16th out of 40 companies. Despite a strengthened methodology which makes it harder to achieve the same score, it improved its score by ten points since 2016 (26/100 to36/100). It has done this by disclosing a supplier code of conduct on its website; using the code of the Responsible Business Alliance (RBA) which includes provisions on recruitment fees and migrant workers and is available in several languages; and disclosing details on how it engages with the RBA as well as a process to assess forced labor risks at potential suppliers prior to entering into contracts.

2016BENCHMARK

2018

36

The average score for the sector was 32/100, compared to 39/100 in 2016. The drop in score is due in part to the increase in number of small and mid cap companies from 20 to 40, as well as the changes made to the methodology that strengthened it. The 20 companies benchmarked in both 2016 and 2018 saw their average score improve from 39/100 to 40/100, which is notable given the changes to the methodology.

METHODOLOGY

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 23 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

This theme evaluates a company's commitment to addressing forced labor, supply chain standards, management processes and board oversight, training programs, and engagement with stakeholders.

OVERALL 71
INDICATORS
Commitment
100
Supply Chain Standards
80
Management and Accountability
75
Training
50
Stakeholder Engagement
50

Traceability and Risk Assessment

This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information, and assesses and discloses forced labor risks across its supply chains.

OVERALL 6
Traceability
12.5
Risk Assessment
0

Purchasing Practices

This theme assesses to what extent a company adopts responsible purchasing practices and integrates supply chain standards into supplier selection and supplier contracts. It also assesses the degree to which a company cascades their standards down its supply chains.

OVERALL 66
Purchasing Practices
15
Supplier Selection
100
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
100

Recruitment

This theme measures a company's approach to reducing the risk of exploitation of supply chain workers by recruitment agencies, eliminating workers' payment of fees during recruitment processes throughout its supply chains, and protecting the rights of migrant workers.

OVERALL 31
Recruitment Approach
0
Recruitment Fees
75
Monitoring and Ethical Recruitment
0
Migrant Worker Rights
50

Worker Voice

This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.

OVERALL 23
INDICATORS
Communication of Policies
50
Worker Voice
0
Freedom of Association
0
Grievance Mechanism
40

Monitoring

This theme evaluates a company's process for auditing suppliers (including whether it performs non-scheduled visits, reviews relevant documents such as wage slips or contracts, interviews workers, and audits lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.

OVERALL 20
Auditing Process
10
Audit Disclosure
30

Remedy

This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains which occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.

OVERALL 38
Corrective Action Plans
50
Remedy Programs and Response to Allegations
25

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