Lululemon Athletica Inc.
NasdaqGS : LULU
2018 Apparel & Footwear
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Company Ranking
2 out of43 Companies
Company Score
SUMMARY
Lululemon Athletica Inc. (Lululemon), an athletic clothing products company based in Canada, ranks second 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 rank from third to second in the benchmark. The improvements included disclosing the outcomes of risk assessments, strengthening its foreign migrant worker standard, engaging with suppliers on migrant worker rights topics, and disclosing examples of remedy provided to workers. Lululemon further adopted several practices among its second-tier suppliers, including supplier training, supplier agreements to cascade standards, supplier monitoring, and disclosure of audit outcomes. Lululemon also developed a grievance mechanism and demonstrated that workers in the first and second tier of its supply chains use it. Notably, the company achieves the highest score on the theme of Recruitment and is among the highest scoring companies on the theme of Purchasing Practices; it has strong, forward-looking commitments in place. 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 Commitment & Governance, Worker Voice, and Remedy.
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SCORE HISTORY
THEME & indicator score
The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labour from their supply chains. The themes are comprised of a total of 12 key indicators. For each indicator, 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 | 80 / 100 |
| Management and Accountability | 100 / 100 |
| Training | 100 / 100 |
| Stakeholder Engagement | 75 / 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 | 87.5 / 100 |
| Risk Assessment | 100 / 100 |
Purchasing Practices
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 | 100 / 100 |
| Cascading Standards Through the Supply Chain | 100 / 100 |
Recruitment
| Recruitment Approach | 75 / 100 |
| Recruitment Fees | 100 / 100 |
| Monitoring and Ethical Recruitment | 100 / 100 |
| Migrant Worker Rights | 100 / 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.
| Communication of Policies | 100 / 100 |
| Worker Voice | 75 / 100 |
| Freedom of Association | 25 / 100 |
| Grievance Mechanism | 80 / 100 |
Monitoring
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 | 100 / 100 |
| Auditing Disclosure | / 100 |
Remedy
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 | 75 / 100 |