APPAREL

Themes Key Findings

2016 Apparel & Footwear

The companies' average overall score across the benchmark methodology's seven themes, which were selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains: commitment and governance; traceability and risk assessment; purchasing practices; recruitment; worker voice; monitoring; and remedy. There are a total of 22 indicators across the seven themes. For each theme a company can score a total of 100 points.

46

Overall Score 2016 Apparel & Footwear
41 Theme Score

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).

Traceability

The company has processes to trace its supply chain. It publicly discloses the names and locations of its first-tier suppliers, and some information on suppliers beyond its first tier.

The company: (1) has a process to trace its supply chain. (2) publicly discloses the names and locations of its first-tier suppliers. (3) publicly discloses some information on suppliers beyond its first-tier suppliers (i.e. name, location, source country).

Low: 0
High: 100
46

Risk Assessment

The company publicly discloses forced labor risks identified throughout its supply chain, the names and locations of its first-tier suppliers, and some information on suppliers beyond its first tier.

The company: (1) conducts forced labor risk or impact assessment(s) focused on specific commodities, regions and/or groups. (2) discloses forced labor risks identified throughout its supply chain.

Low: 0
High: 100
36

Traceability: Leading Practice

H&M

H&M reports that 1,900 factories, about 820 suppliers, and 1.6 million workers make its products. The company discloses a supplier factory list that includes the names, addresses, and sustainability gradings for its first tier and most important second tier suppliers. The company aims to update this list every three months. Further, H&M has set the target to achieve full traceability of cotton and 100% sustainable cotton sourcing by 2020.

Recommended Action

Risk Assessment

Assess risks related to forced labor on specific commodities, regions, or groups such as migrant workers in the supply chain, and disclose the risks identified. Companies may wish to engage relevant stakeholders, such as NGOs working with migrants, unions, or local groups, to better understand their risk exposure.