EMPTY STATE
COMPARISON TOOL

HPE 71/100

(NYSE:HPE) 3 of 40 (2018)

Hewlett Packard Enterprise Company (Hewlett Packard Enterprise) ranks third out of 40 companies, disclosing more information on its forced labor policies and practices than its peers across all themes, despite having a significantly smaller market capitalization than the majority of the top ten scoring companies. The company's score is based on its good performance on the themes of commitment and governance, traceability and risk assessment, and recruitment. Notably, the company ranks highest of all companies in the benchmark on the theme of recruitment, and is one of the companies achieving the highest score on the theme of traceability and risk assessment. KnowTheChain identified one allegation of forced labor in the company's supply chain. The company provided a public response to the allegation, has taken steps to investigate the allegation through an unannounced audit at the facility in question, and committed to implement corrective actions where required. However, the company does not disclose outcomes of remedy for impacted workers. The company is encouraged to improve its performance and disclosure on the themes of purchasing practices, worker voice, and remedy.

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71 /100

2018 Ranking: 3 of 40

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71

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

2018

71

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 95
INDICATORS
Commitment
100
Supply Chain Standards
100
Management and Accountability
100
Training
100
Stakeholder Engagement
75

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 88
Traceability
100
Risk Assessment
75

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 65
Purchasing Practices
60
Supplier Selection
0
Integration into Supplier Contracts
100
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 94
Recruitment Approach
75
Recruitment Fees
100
Monitoring and Ethical Recruitment
100
Migrant Worker Rights
100

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 33
INDICATORS
Communication of Policies
75
Worker Voice
25
Freedom of Association
0
Grievance Mechanism
30

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 70
Auditing Process
80
Audit Disclosure
60

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 56
Corrective Action Plans
75
Remedy Programs and Response to Allegations
37.5

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