Company Ranking1 out of
Adidas AG (Adidas), a footwear and sports apparel company based in Germany, ranks first out of 43 companies, disclosing more information on its forced labor policies and practices than its peers across all themes. Compared to 2016, the company improved its score by 11 points. Since 2016, the company has improved by disclosing a responsible purchasing policy, the percentage of unannounced audits undertaken, and an example of reimbursement of recruitment-related fees. The company also strengthened its practices regarding its second-tier suppliers by auditing second-tier suppliers deemed at-risk and by training second-tier suppliers in high-risk countries on forced labor risks. It further engaged with local stakeholders related to different raw materials, sourcing countries, and tiers on forced labor. Notably, the company achieves the highest score on the themes of Traceability & Risk Assessment, Worker Voice, and Remedy, and is among the companies achieving the highest score on the theme of Commitment & Governance. Additional steps the company could take include strengthening its disclosure and practices on the themes of Purchasing Practices, Recruitment, and Worker Voice.
HOW DO THEY COMPARE?
The comparison tool allows companies' results to be easily compared. Up to two additional companies can be selected and compare against each other as shown below.
THEME & 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 accross the seven themes. For each themes, a company can score a total of 100 points.
Commitment and Governance
This theme evaluates a company's commitment to addressing forced labor, whether it discloses supply chain standards, and to what extent it has management processes and board oversight, training programs, and engagement with stakeholders on forced labor in place.
|Commitment||100 / 100|
|Supply Chain Standards||100 / 100|
|Management and Accountability||100 / 100|
|Training||100 / 100|
|Stakeholder Engagement||100 / 100|
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 (such as supplier names or sourcing countries) and assesses and discloses forced labor risks across its supply chains.
|Traceability and Supply Chain Transparency||100 / 100|
|Risk Assessment||100 / 100|
This theme assesses to what extent a company adopts responsible purchasing practices (such as providing price premiums and procurement incentives) and integrates supply chain standards into supplier selection and supplier contracts, and whether it cascades them down the supply chain.
|Purchasing Practices||100 / 100|
|Supplier Selection||100 / 100|
|Integration into Supplier Contracts||50 / 100|
|Cascading Standards Through the Supply Chain||50 / 100|
|Recruitment Approach||100 / 100|
|Recruitment Fees||100 / 100|
|Monitoring and Ethical Recruitment||75 / 100|
|Migrant Worker Rights||75 / 100|
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.
|Communication of Policies||100 / 100|
|Worker Voice||50 / 100|
|Freedom of Association||100 / 100|
|Grievance Mechanism||100 / 100|
This theme evaluates a company's process for auditing suppliers, including whether audits include non-scheduled visits, review relevant documents such as wage slips or contracts, interview workers, and audit lower-tier suppliers and provide disclosure on the outcomes of supplier audits.
|Auditing Process||90 / 100|
|Auditing Disclosure||/ 100|
This theme measures the extent to which a company has corrective action plans and 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 that 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.
|Corrective Action Plans||100 / 100|
|Remedy Programs and Response to Allegations||100 / 100|