Company Ranking5 out of
Nestlé S.A. (Nestlé), the world’s largest food company whose products include chocolate, confectionery, and coffee, among others, ranks fifth out of 38 companies, disclosing more information on its forced labor policies and practices than its peers across all themes. Compared to 2016, the company improved by disclosing the list of its palm oil suppliers, a requirement for suppliers not to use “production targets or performance indicators that lead to forced labour or work above reasonable limits”, and a collaboration with the Issara Institute, which provides workers in its Thai seafood supply chains access to grievance mechanisms. Notably, the company achieved the highest scores on themes of traceability and risk assessment, as well as monitoring, and it has strong and specific commitments to addressing forced labor in place. KnowTheChain identified three allegations of forced labor in the company’s supply chains. The company discloses public responses to the allegations, and steps taken to address forced labor risks going forward. However, it did not disclose remedy outcomes for workers. 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 purchasing practices, worker voice, 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 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||75 / 100|
|Training||50 / 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||87.5 / 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||60 / 100|
|Supplier Selection||50 / 100|
|Integration into Supplier Contracts||0 / 100|
|Cascading Standards Through the Supply Chain||100 / 100|
|Recruitment Approach||30 / 100|
|Recruitment Fees||75 / 100|
|Monitoring and Ethical Recruitment||25 / 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||0 / 100|
|Worker Voice||25 / 100|
|Freedom of Association||0 / 100|
|Grievance Mechanism||80 / 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 providing disclosure on the outcomes of supplier audits.
|Auditing Process||70 / 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 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||50 / 100|
|Remedy Programs and Response to Allegations||37.5 / 100|