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CCFB Homepage / Social / Responsible Sourcing
As a responsible retailer we are committed to the principles of sourcing responsibly, respecting human rights, and promoting the dignity of all those who contribute to our business. We collaborate across industries and organisations around the world to help combat risks including but not limited to, forced and child labour, unsafe working conditions, restricted freedom of association, violence, harassment, and discrimination. Our commitment extends to all individuals impacted by Asda and our subsidiaries’ business activities and relationships, including colleagues, customers, suppliers, workers within our supply chains, and the communities in which we operate. Asda's Human Rights Policy outlines the steps we take to respect internationally recognised human rights and formalises our expectations across our global supply chains.
Transparency of the supply chain is key to our approach. We map and collect data on our supply chains through Sedex, an online responsible sourcing management platform which helps us to identify our salient labour risks. We monitor and investigate issues in the supply chain, we enable colleagues within the business to understand their role in human rights and its impacts, and engage in initiatives to find root cause solutions that can transform entire supply chains. Partnering with our suppliers and their global facilities, we work to mitigate risks, drive remediation, and improve standards for workers via our risk-based approach. We are active members of external collaborations such as the Ethical Trading Initiative (of which we are a founding member), Stronger Together, and the Food Network for Ethical Trade which continue to support their members to drive continuous improvement. Through these partnerships we engage with other retailers, NGOs, Trade Unions, and suppliers to address risks, share best practice, investigate issues where appropriate, and establish initiatives to achieve collective goals.
Improving labour standards is a responsibility that should be shared with all our suppliers. We expect suppliers to operate responsibly, abiding to applicable local labour and employment laws and adhering to our Standards for Suppliers. These standards are the cornerstone of our programme and lay out how we expect our suppliers to respect foundational worker rights across the globe. Our Standards for Suppliers are aligned to the ETI Base Code; an internationally recognised code of labour practice. Our Supply Chain Monitoring Requirements and Guidance policy details how we monitor supply chain compliance with our standards and how we will support suppliers to demonstrate continuous improvement through the provision of guidance and resources.
We currently use third party social, safety, and environmental compliance audits to help us evaluate our suppliers’ compliance to our standards and to manage risk in the supply chain. These audits seek to monitor whether, among other things, workers are properly paid for the work they do, labour is voluntary, working hours are not excessive and are consistent with local laws, and facilities meet health and safety laws and regulations. Whilst social audits still have a place within our programme, we recognise their limitations and the need to move beyond audit to identify root cause. We will continue to work with suppliers to help upskill and improve standards within their facilities through the provision of guidance and access to tools and resources. For example, we have partnered with suppliers from our George, Food and GNFR supply chains, to pilot a worker voice application to improve understanding and gather additional data on the worker experience, including temporary labour. We will compare the outputs from this exercise against audit data to identify any potential gaps and areas of risk not previously considered.
Where an issue is identified in the supply chain, we are committed to working with suppliers and third parties to understand the root cause and provide relevant guidance and resources to support thorough investigation and remediation for impacted workers. We ask suppliers to close any non-compliances raised in a social audit within the timelines recommended by the auditor. If this is not possible, we will discuss the circumstances on a case-by-case basis and where there is both commitment and a clear action plan to resolve the outstanding issues, we may agree an extension. We encourage our suppliers to apply the same principles when working with their supply chain. Further examples of our approach to incident management can be found in our annual Modern Slavery Statements, available on the Asda Corporate website.
Our supply chains are vast and complex; we buy an extensive range of products and services from all over the globe which we either sell or use within our own business operations. This is managed across four key business areas: Grocery, Apparel, General Merchandise and Goods & Services Not For Resale. The supply chains for each of these areas vary but can include the following at different stages: processing factories, farms, fishing vessels, abattoirs, packing and storage facilities, dye houses and fabric mills.
Transparency of the supply chain is essential to identify and manage our salient risks. Below we have published a list of our Tier 1 Food, Non-Edible Grocery, Produce and General Merchandise sites, supplying Asda branded or exclusive products.
In July 2023 we have partnered with Open Supply Hub to provide more datapoints publicly. With more interactive and user friendly information we hope to drive accountability and awareness of where Asda operates globally.
Data uploaded in January 2024
This list contains active supplier sites as of the time of publication. This data is based on self-declared information disclosed by our suppliers on Sedex and Asda/IPL internal management systems. Where 'data is not available', the information has not yet been disclosed to us through these platforms. Where a supplier has requested that their information is not included, we have removed reference to their facilities in this list. Whilst we make every effort to ensure published information is accurate, we acknowledge that with any large dataset errors can occur. We will review and update this information on an annual basis.
In certain areas of higher risk, we recognise the need for further transparency beyond Tier 1 suppliers and we will continue to work towards greater visibility of the challenges faced at lower tiers of the supply chain. For example, George have mapped and published a list of Tier 1 and Tier 2 Apparel supplier sites. This information is available on the George website.
To identify the salient labour and human rights risks in our supply chains we have used a combination of country-specific risk information from publicly available sources, self-declared supplier information, social audit trends and incidents that have occurred. Using this data, we have formulated the salient risks which are pertinent to the operation of our business and require attention from Asda, our suppliers, and colleagues, to address root cause. We have prioritised our focus based on commodity, geography, impact, and complexity, and are committed to understanding these areas better, to address the risks for the benefit of the people who make the products we sell.
Our 5 priority salient risk themes:
Forced Labour
Vulnerable Workers
Worker Representation
Gender
Working Hours
Relating to the following categories and geographies:
Bananas
Berries
Car Washes
Citrus
Coffee
Fish & Seafood
Logistics
Meat & Poultry
Plants & Flowers
Stone & Top Fruit
Tea
Textiles
Toys, Games & Plastics
Waste Management
Wine
Bangladesh
China
India
Kenya
Spain
Turkey
United Kingdom
We are working closely with data science colleagues to explore how open-source information and technology can provide us with real-time information and enhance our understanding of the experience of workers in our supply chains. In 2022, over 50 data scientists from Asda and the University of Leeds’ Institute of Data Analytics completed a Responsible Sourcing and Human Rights Hackathon to test if open-source information and computer science can assess root cause in lower tiers of our supply chain and model potential risks in the future. The outputs of this exercise and future work will inform our ongoing approach to identifying and managing risk.
We will continue to explore the salient human rights risks identified and utilise our emerging data science led approach, to better understand and address root cause, whilst constantly reviewing our scope and human rights impact across all tiers of our supply chains. Action plans have been developed for these risks with early phases of risk mapping and stakeholder engagement being undertaken to better understand the role Asda can play in delivering change.
China – Toys, Games, & Plastics
UK – Berries, Car washes, Fish & Seafood, Logistics, Meat & Poultry, Textiles, Waste management
Please see our latest Modern Slavery Statement for a detailed update.
China – Toys, Games, & Plastics
Spain – Berries, Stone fruit
We recognise the individual’s right to have their voice heard which can include their right to join, form, or assist a trade union and require all suppliers to respect workers’ rights to freedom of association and collective bargaining in accordance with applicable laws and practice (as set out in our Standards for Suppliers). It is therefore important that we are aware of circumstances where workers in our supply chain face barriers to effective worker representation. Through our responsible sourcing programme, we collect data to identify the availability of trade unions and worker committees in our supply chain. In 2023 we improved the transparency of this information through our partnership with the Open Supply Hub; we now include whether a trade union is present within our published list of tier-one Food, Non-Edible Grocery, Produce and General Merchandise supplier sites.
There are areas within our supply chain where we have identified an absence of independent representation available to workers. Where our suppliers do not have recognised Trade Unions present or a functioning workers committee in their operations, we will engage these suppliers to understand the value and advantages of effective representation and grievance channels in the workplace. Where Trade Union representation is not possible, we will encourage the establishment of worker committees appointed and facilitated by workers themselves. Building on our existing Standards for Suppliers we have created a Worker Representation policy to clarify our position and communicate our expectations of suppliers. This policy is due to be published in 2024.
Asda operates an ethics helpline that is available to anyone wishing to raise any questions or concerns they may have. Through our dedicated supplier portal, we signpost open-source and subsidised tools to support our supply chain to build capacity and drive demonstrable continuous improvement. We will continue to identify and include resources that support suppliers to measure the effectiveness of the grievance mechanisms they have in place (e.g., AIM-Progress Grievance Mechanisms Maturity Framework) and share best practice to ensure that the channels available are accessible by and represent all workers.
We are committed to working with external stakeholders to identify tools that improve understanding of worker experience and barriers to worker and employer dialogue. In partnership with ES3G, we are piloting a real time worker voice tool in our George, General Merchandise and Goods Not For Resale supply chain to obtain live, direct feedback from workers about their working conditions. Outputs of this project will be reviewed against the labour standards data we collect through our responsible sourcing programme to identify any gaps we need to explore. We will continue to use our programme data to focus our activity on geographies and commodities that present the biggest gap and map Trade Unions and other third parties who can support us to improve representation in these areas of the supply chain.
Bangladesh – Textiles
China – Toys, Games, & Plastics
India – Textiles
Kenya – Berries (Avocado), Plants & Flowers, Tea
Spain – Berries, Stone fruit
Turkey – Textiles
UK – Berries, Car washes, Fish & Seafood, Logistics, Meat & Poultry, Textiles, Waste management
All workers are subject to varying degrees of vulnerability; some may be considered at greater risk due to factors such as contract status or salary, or protected characteristics such as age, gender, race, and religion. Throughout our risk assessment of our global supply chain including both Goods for Resale and Goods Not For Resale we have identified several groups of workers across different industries who may be more vulnerable to labour exploitation. These include young and older workers, migrant workers, temporary and seasonal workers, and pregnant women.
Through our ongoing work with our external partners, we are continuing to enhance our knowledge around the risks vulnerable workers face. For example, we have identified increasing instances of seasonal, migrant workers entering the UK who have been charged excessive recruitment fees by third parties who have infiltrated the labour supply chain, have limited understanding of their rights, and enter employment with unmatched expectations of their working hours, pay and working conditions. To address these issues, we are supporting Just Good Work, an initiative that provides migrant workers with critical information to migrate to the UK and find fair and safe work. We also continue to be active members of the Seasonal Worker Scheme (SWS) Taskforce, a collaboration of industry trade bodies, retailers, growers, recruiters and non-profits focussed on implementing tangible actions to help safeguard and ensure access to workers’ rights in UK horticulture.
Worker vulnerability can increase when working in a hazardous environment. We can use our risk assessment data to identify suppliers who demonstrate best practice, comprehensive management systems for health & safety including training, storage of hazardous materials and fire safety plans. We will then promote and share this best practice with other suppliers who we identify as needing additional support in this area. An example of further due diligence is illustrated through our engagement with Nirapon, a non-profit organisation focussing on improving and maintaining high safety standards and management systems in Bangladesh facilities. Through Nirapon we are ensuring the health and safety of vulnerable workers improves in a geography we know has heightened risks.
As of March 2023, we alongside 8 other UK retailers and IDH, are working with a collective goal to close the living wage gap within our banana supply chains by the end of 2027. We are working pre-competitively to reduce the supplier burden and aim to promote tools and mechanisms that will help to close the living wage gaps. This first year has been focussed on gathering supply chain data to provide an understanding of our current living wage gap. Our next step is to validate this data which we aim to do through coordinated validation audits that will help inform our next steps and activities.
Bangladesh - Textiles
India – Textiles
Kenya – Berries (Avocado), Plants & Flowers, Tea
Spain – Berries, Stone fruit
Within global supply chains, women face additional barriers of accessing decent work and fair benefits. Our aim is to promote a supply chain where all workers are free from discrimination and share equal rights and opportunities.
To help obtain a detailed understanding of how gender responsive we are as a business, in 2022 we worked with Womenwin to undertake a gender assessment. The gender assessment provided a baseline understanding of where we are as a business regarding gender-responsive due diligence and gender-responsive policies and practices. We have received feedback which we have used to develop a road map to implement further due diligence within our supply chains. The first step in our roadmap was to create a specific Gender policy to clarify our position and communicate our expectations of suppliers on this topic. This policy is due to be published in 2024. Transparency is also an important step to understanding gender related issues, we aim to work towards gathering relevant gender-disaggregated data with a strong emphasis on worker voice to support our assessments and subsequent prevention and remediation measures.
Bangladesh - Textiles
China – Toys, Games, & Plastics
India - Textiles
Turkey – Textiles
When analysing our supply chain data, we can see that excessive working hours affects many of the workers in our supplying facilities. Working hours is a complex topic which needs to be understood end-to-end to appreciate the role all stakeholders can play to improve conditions for workers. Contributing factors can include buying practices, capacity bookings and supplier planning as well as labour shortages and increased absenteeism. Focusing on our own business practices, we have been delivering training internally to existing buyers and new starters in our George business to improve awareness of the impact of our purchasing decisions. This will build in 2024 via our bespoke Human Rights training aimed at our Sourcing, Technical and Buying colleagues bringing the topic to life and detailing the impacts of purchasing practices throughout the supply chain.
Collective action and collaboration are vital to driving improvement into global supply chains and at Asda we work extensively with suppliers through external partnerships to bring about positive change. We regularly perform stakeholder mapping exercises to identify external partners who can collaborate with us to deliver action plans for our salient risks, including NGOs and Trade Unions.
For a full list of our active partnerships see our latest Modern Slavery Statement available on the Asda Corporate website.
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