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COMPARISON TOOL

BOE Technology 4/100

(SZSE:000725) 39 of 40 (2018)

BOE Technology Group Co. Ltd. (BOE) is a supplier of display products and components to companies such as Apple. It ranks 39th out of 40 companies, disclosing a limited amount of information on its forced labor policies and practices than its peers. Compared to 2016, the company has improved by disclosing some information regarding suppliers training and supplier assessment against the standards of the Responsible Business Alliance. However, the company has not adopted these standards as its supplier code of conduct. The company is encouraged to develop and disclose a supplier code of conduct that includes all four rights outlined in the ILO Declaration on Fundamental Principles and Rights at Work, and to improve its performance and disclosure on the themes of commitment and governance, traceability and risk assessment, and recruitment

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4 /100

2018 Ranking: 39 of 40

HOW DO THEY COMPARE?

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4

BOE was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 39th out of 40. Since 2016, despite a strengthened methodology which makes it harder to achieve the same score, the company maintained its score of 4/100. Compared to 2016, the company has improved by disclosing some information regarding suppliers training and supplier assessment against the standards of the Responsible Business Alliance.

2016 BENCHMARK

4

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

4

BOE was evaluated both in 2016, when it ranked 19th out of 20 companies, and in 2018, when it ranked 39th out of 40. Since 2016, despite a strengthened methodology which makes it harder to achieve the same score, the company maintained its score of 4/100. Compared to 2016, the company has improved by disclosing some information regarding suppliers training and supplier assessment against the standards of the Responsible Business Alliance.

2016BENCHMARK

2018

4

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 5
INDICATORS
Commitment
0
Supply Chain Standards
0
Management and Accountability
0
Training
25
Stakeholder Engagement
0

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 0
Traceability
0
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 16
Purchasing Practices
15
Supplier Selection
50
Integration into Supplier Contracts
0
Cascading Standards through the Supply Chain
0

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 0
Recruitment Approach
0
Recruitment Fees
0
Monitoring and Ethical Recruitment
0
Migrant Worker Rights
0

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 0
INDICATORS
Communication of Policies
0
Worker Voice
0
Freedom of Association
0
Grievance Mechanism
0

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 5
Auditing Process
10
Audit Disclosure
0

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 0
Corrective Action Plans
0
Remedy Programs and Response to Allegations
0

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