Summary of Results
With an average of 41/100, this theme is the third-lowest scoring theme, below the overall average score of 46/100. Twelve out of the 20 companies analyzed have a process in place to trace their supply chain. Four companies disclose the names and locations of first-tier suppliers: adidas, H&M, Lululemon, and Nike, who also provides the percentage of migrant workers at each factory.
Seven companies disclose some information on suppliers beyond the first-tier, such as sourcing countries of certain commodities. For example, Hanesbrands discloses geographic information about the different tiers of its supply chain, which includes garment factories (Central America, the Caribbean, Vietnam, and China), textile mills (Dominican Republic, El Salvador, and China), yarn (United States) and cotton (United States). Notably, adidas and H&M also provide the names of at least some second-tier suppliers, and Puma (one of the brands of Kering) even discloses the names of its core third tier suppliers (in addition to first- and second-tier suppliers).
A number of companies have set time bound targets aiming to source 100% sustainable cotton or to achieve full traceability across all tiers, something few companies have achieved yet. Lululemon reports that it has traced its supply chain down to subcontractors of mills and holds direct relationships with all raw material vendors.
Eleven out of the 20 companies disclose some information on their supply chain risk assessment processes. Only five companies conduct forced labor risk or impact assessments focused on specific commodities, regions, and/or groups, such as migrant workers. Seven companies disclose forced labor risks identified throughout their supply chains. Risks identified include forced labor in cotton harvest in Uzbekistan, the Sumangali scheme in Indian spinning mills, the large migrant population in Taiwan, and high risk countries in the Middle East, Asia, and Southeast Asia which employ foreign temporary workers and/or have minimal human rights regulation and enforcement (such as Bangladesh and Cambodia).