Company Ranking3 out of
Hennes & Mauritz AB (H&M), a Sweden-based apparel company with stores in 70 markets and e-commerce in over half of these markets, ranks seventh out of 43 companies. It discloses more information on its forced labor policies and practices than its peers across all themes. Since 2016, the company has taken some additional steps to address forced labor risks in its supply chains. Since 2016, H&M has engaged with additional local stakeholders, such as the Turkish government and NGOs, with the aim to improve refugees’ access to work permits. The company also joined the Mekong Club, an industry initiative focused on addressing modern slavery. Further, it conducted training on forced labor for its teams in Cambodia and Vietnam. Notably, H&M commits to training its first- and second-tier suppliers in Vietnam on forced labor going forward. The company has particularly robust disclosure on the themes of Commitment & Governance and Traceability & Risk Assessment. Additional steps H&M could take to address forced labor risks in its supply chains include strengthening its disclosure and practices on the themes of Purchasing Practices, Recruitment, and Remedy.
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
The company's top-level commitments on forced labor, supply chain standards, management processes, training programs and stakeholder engagement.
|Awareness and Commitment||100 / 100|
|Supply Chain Standards||60 / 100|
|Management and Accountability||100 / 100|
|Training||100 / 100|
|Stakeholder Engagement||100 / 100|
Traceability and Risk Assessment
The extent to which the company traces its supply chain and conducts forced labor risk assessments, and discloses information about these processes.
|Traceability and Supply Chain Transparency||/ 100|
The company's awareness and action on purchasing practices that can exacerbate forced labor risks, and its process for selecting suppliers, integrating standards into contracts and cascading them down the supply chain.
|Purchasing Practices||100 / 100|
|Supplier Selection||50 / 100|
|Integration into Supplier Contracts||0 / 100|
|Cascading Standards Through the Supply Chain||100 / 100|
|Recruitment Approach||50 / 100|
|Recruitment Fees||50 / 100|
|Recruitment Audits||0 / 100|
The extent to which the company proactively communicates with workers through the supply chain, enables freedom of association and ensures access to effective and trusted grievance mechanisms.
|Communication of Policies||100 / 100|
|Worker Voice||0 / 100|
|Worker Empowerment||100 / 100|
|Grievance Mechanism||80 / 100|
The company's process for auditing (including whether it includes non-scheduled visits, document review, worker interviews) and disclosure about the audit process and findings.
|Auditing Process||50 / 100|
|Auditing Disclosure||80 / 100|
The extent to which the company has corrective action plans for non-compliant factories, as well as processes for remedying workers who are victims of forced labor, and reports on remedies provided.
|Corrective Action Plans||100 / 100|
|Remedy Programs||25 / 100|