ICT

Themes Key Findings

2018 Information & Communications Technology

The 40 ICT companies were assessed across the benchmark's seven themes, which were developed to capture the key areas where companies need to take action to eradicate forced labor from their supply chains: commitment; traceability and risk assessment; purchasing practices; recruitment; worker voice; monitoring; and remedy. There are a total of 23 indicators across the seven themes. For each theme a company can score a total of 100 points.

32

Overall Score 2018 Information & Communications Technology
29 Theme Score

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.

Traceability

The company demonstrates an understanding of the suppliers and their workers throughout its supply chains; the company publicly discloses the names and addresses of its first-tier suppliers, the countries of below- first-tier suppliers, the sourcing countries of raw materials at high risk of forced labor and human trafficking, and some information on its suppliers' workforce.

The company discloses: (1) the names and addresses of its first-tier suppliers; (2) the countries of below- first-tier suppliers (this does not include raw material suppliers); (3) the sourcing countries of raw materials at high risk of forced labor and human trafficking; and (4) some information on its suppliers' workforce.

Low: 0
High: 100
34

Risk Assessment

The company has a process to assess forced labor risks, and it publicly discloses forced labor risks identified in different tiers of its supply chains.

The company discloses: (1) details on how it conducts human rights supply chain risk or impact assessments that include forced labor risks, or assessments that focus specifically on forced labor risks; and (2) details on forced labor risks identified in different tiers of its supply chains.

Low: 0
High: 100
24

Traceability: Notable Example

HPE

Hewlett Packard Enterprise discloses a list of names, addresses and sustainability information of its final assembly suppliers; a list of smelters and refiners of tantalum, tin, tungsten and gold in its supply chains; a list of commodity and component suppliers; a list of countries where it believes minerals in its supply chains may originate from; and information on the proportion of students in its workforce supply chains.

Recommended Action

Risk Assessment

Companies should undertake risk assessments which evaluate supply chains for risks of forced labor and human rights abuses, for example on specific raw materials, regions and/or groups of workers.