Company Ranking21 out of
Fast Retailing Co. Ltd. (Fast Retailing), the world’s third-largest apparel retailer, ranks 19th out of 43 companies, disclosing more information on its forced labor policies and practices than its peers on all themes except Traceability & Risk Assessment and Recruitment. Compared to 2016, the company has improved its score by five points by disclosing more details on its supplier training, developing responsible procurement principles, and monitoring sewing and fabric partners. It improved some practices in relation to two of its nine brands, Uniqlo and GU. The company discloses the names and addresses of the “core partner factories” of both brands and established a hotline that suppliers’ workers of the two brands can use to contact the company. Fast Retailing is the highest scoring of the companies based in Asia. Additional steps it could take include strengthening its disclosure and practices on the themes of Traceability & Risk Assessment, Recruitment, and Worker Voice and expanding its existing practices across its brands.
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, 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||60 / 100|
|Management and Accountability||50 / 100|
|Training||75 / 100|
|Stakeholder Engagement||25 / 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||12.5 / 100|
|Risk Assessment||25 / 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||45 / 100|
|Supplier Selection||75 / 100|
|Integration into Supplier Contracts||50 / 100|
|Cascading Standards Through the Supply Chain||50 / 100|
|Recruitment Approach||0 / 100|
|Recruitment Fees||0 / 100|
|Monitoring and Ethical Recruitment||0 / 100|
|Migrant Worker Rights||25 / 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||75 / 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 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||25 / 100|