Summary of Results
Although companies generally have traceability processes in place, few companies publish details on their first-tier supply chain, or on the countries of below-tier suppliers. Additionally, a disappointing number of companies carry out human rights risk assessments on their supply chains to identify risks of forced labor.
Nine out of 40 companies disclose a list of their first-tier suppliers, with three of those companies – Apple, Hewlett Packard Enterprise, and HP disclosing both names and addresses of those suppliers. HP additionally publishes a list of its commodity and component suppliers. Twenty-seven out of 40 companies disclose the sourcing countries of raw materials at high risk of forced labor in their supply chains including for tantalum, tin, tungsten, and gold.
Very few companies provide detail on the workforce of their supply chains. Three companies describe the processes they have in place to record data on their suppliers' workforce (Intel, NXP, and Qualcomm) including factors such as gender, age, and the number of migrant workers. HP and Hewlett Packard Enterprise go further: HP discloses data on the number of migrant workers in its supply chains and the number of workers per final assembly factory, and Hewlett Packard Enterprise reports the proportion of student workforce in its supply chains.
The number of companies disclosing a risk assessment that includes forced labor, carried out on their supply chains, was surprisingly low. Thirteen out of 40 companies state that they conduct risk assessments on their supply chains which specifically cover forced labor risks. Although far fewer companies are carrying out risk assessments than expected, this does mark an improvement since 2016 when only three out of 20 companies (Hitachi, HP, and Intel) disclosed conducting such risk assessments. Of the companies benchmarked in 2016, Apple, Ericsson, and Qualcomm have since disclosed undertaking risk assessments that include forced labor for their supply chains.
Similarly, only 12 out of 40 companies detail risks identified in their supply chains. Three of these companies (Ericsson, Intel, and Nokia) named risks identified in multiple tiers of their supply chains. Risks identified include the sourcing and extraction of raw materials, and high rates of employment of migrant workers through labor agencies.