Company Ranking16 out of
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.
HOW DO THEY COMPARE?
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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, supply chain standards, management processes and board oversight, training programs, and engagement with stakeholders.
|Commitment||100 / 100|
|Supply Chain Standards||80 / 100|
|Management and Accountability||75 / 100|
|Training||50 / 100|
|Stakeholder Engagement||50 / 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, and assesses and discloses forced labor risks across its supply chains.
|Traceability and Supply Chain Transparency||12.5 / 100|
|Risk Assessment||0 / 100|
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.
|Purchasing Practices||15 / 100|
|Supplier Selection||100 / 100|
|Integration into Supplier Contracts||50 / 100|
|Cascading Standards Through the Supply Chain||100 / 100|
|Recruitment Approach||0 / 100|
|Recruitment Fees||75 / 100|
|Monitoring and Ethical Recruitment||0 / 100|
|Migrant Worker Rights||50 / 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||50 / 100|
|Worker Voice||0 / 100|
|Freedom of Association||0 / 100|
|Grievance Mechanism||40 / 100|
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.
|Auditing Process||10 / 100|
|Auditing Disclosure||/ 100|
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.
|Corrective Action Plans||50 / 100|
|Remedy Programs and Response to Allegations||25 / 100|