Modern Slavery Statement 2018 - Walmart
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2018
Modern Slavery
Statement
Contents
02 Introduction
03 Our policies
04 Risk assessment
05 Due diligence in our supply chains
07 Due diligence in our own operations
09 Training and awareness
11 Progress indicators for 2018/19
© Asda Stores Ltd 2018Introduction This statement has been published in accordance
with the Modern Slavery Act 2015. It sets out the
steps taken in relation to part 6, section 54, by
Asda Stores Limited and where appropriate, other
relevant group companies to prevent modern
slavery and human trafficking in our business and
supply chains. It relates to our financial year ended
31st December 2017.
Roger Burnley
President and CEO
Asda welcomes the transparency required under the Modern Slavery Act
2015. Modern slavery is a social, economic and political challenge which
requires collaboration from governments, society and both the public and
private sectors to successfully address. We work closely with our suppliers
and service providers from Europe, America, Africa and Asia and are part
of the global Walmart group committed to tackling this issue.
This statement covers the activities of Asda Stores Ltd, McLagan
Investments Limited, The Burwood House Group Limited, Power4All
Limited, International Procurement & Logistics Limited (IPL), Forza Foods
Limited, Kober Limited, and Asda Home Shopping Cards Limited (“Asda”),
all of which fall within the scope of section 54(2) of the Modern Slavery
Act 2015.
About the Asda Group
Asda employs 150,000 colleagues across Asda’s supply chain ranges from products
its UK stores, distribution centres, home sourced via its own integrated subsidiary
shopping centres and home offices. We serve businesses in George and IPL to working in
over 18 million customers each week in stores partnership with direct and indirect suppliers
and online, with products ranging from fresh producing goods and services in factories
food to general merchandise and clothing. and offices around the world.
Asda Modern Slavery Statement 2018 02Our policies Asda has implemented corporate policies and
procedures that are designed to support the
highest standards in ethical and responsible
business practices, as part of our mission to be
the most trusted retailer.
All of Asda’s suppliers are required Asda has distinct policies for Asda has updated its own colleague
to meet the high Responsible suppliers of Goods and Services policies to specifically address
Sourcing Standards expected Not for Resale (GNFR). In 2018, questions regarding non-retention
across Walmart. These standards we introduced a specific Modern of identity documents, and so
cover our fundamental expectations Slavery Policy for these suppliers, in helping to ensure its practices
regarding—amongst other things— order for them to be fully aware of and operations support freedom
the treatment and safety of workers. our expectations of their conduct. of movement. We strictly prohibit
In June 2017, the Standards were This policy was issued to all GNFR the confiscation of identity
revised and reissued to strengthen suppliers and published on our documents and only allow
the language around forced labour, externally facing supplier website. managers to temporarily request
human trafficking and responsible such documents to create and store
recruitment. Asda has policies on Recruitment copies, ensuring their prompt return
and Agency Workers. Recruitment before candidates leave assessment
Asda has implemented policies of agency workers is carried out centres/interview or a colleague
and procedures that are designed through one managed services leaves their shift. The updated
to support the highest standards provider - working with a panel of policy was published in April 2018.
in ethical and responsible supply agencies which has its own Modern
chain practices. All suppliers of Slavery Policy and statement and In early 2018 we published a
own label Goods for Resale (GFR), with which we have worked closely colleague facing Modern Slavery
upon starting work with Asda, are over the past year. Asda also has Policy for Asda, outlining our
required to ensure compliance with a formal Right to Work Policy commitment to implementing
Walmart’s Responsible Sourcing that outlines our procedures to systems and controls aimed at
Disclosure Policy. This means that ensure all potential colleagues have ensuring modern slavery is not
within the scope of the policy, permission to work in the UK and taking place anywhere in our
facilities should be made available do the work we are offering. operations.
for an audit.
Asda Modern Slavery Statement 2018 03Risk assessment Asda works closely with Walmart and regularly
assesses the risk of modern slavery in its business
and operations. It has regard to the Worldwide
Governance Indicators from the World Bank in
order to rate our supplier locations on their level of
risk and apply this to our risk based audit process.
These indicators consider political stability and
absence of violence, government effectiveness, the
rule of law and control of corruption.
As a UK business we actively engage and consult with internal and
external stakeholders such as the British Retail Consortium, the Ethical
Trading Initiative (ETI) and the Gangmasters and Labour Abuse Authority
(GLAA) in order to continually review risks in this area. Areas of highest
risk identified for Asda, our subsidiary companies and supply chain are in:
• Temporary and/or unskilled labour;
• Farming and food manufacturing labour, particularly seasonal;
• Clothing manufacture labour in the UK and overseas;
• Construction labour (third parties engaged by Asda);
• Catering sector – particularly temporary labour;
• Facilities management (third parties engaged by Asda) and;
• Car washes (tenants of Asda).
As a result, our priority activity to prevent modern slavery focuses on
these areas.
Asda Modern Slavery Statement 2018 04Due diligence Global collaboration
in our supply Many of the greatest risks to human rights are
complex, systemic and industry-wide issues that
chains cannot be solely addressed through supply chain
monitoring and remediation.
The risks of forced labour, In 2017, Walmart became a Asda and Walmart believe that
human trafficking and modern Supporting Member of the the men and women who work
slavery are beyond the ability Responsible Business Alliance in the global supply chain should
of a single organisation to (RBA), an industry association not pay for a job. In 2017, Walmart
solve, but by working with comprising more than 110 joined the Leadership Group
industry stakeholders, non-profit electronics, retail, auto and toy for Responsible Recruitment
organisations, governments and companies with combined annual as a member of the Steering
others, we are striving to improve revenue greater than $4.75 Committee. Over the next two
transparency, empower workers trillion. RBA offers its members years, Walmart will join fellow
and create positive change an auditing programme, Leadership Group members
throughout supply chains. Asda resources, training, and several to help create demand for and
works closely with Walmart working groups focused on availability of ethically-sourced
and supports the promotion of priority areas in the electronics workers in Thailand and Malaysia,
responsible recruitment, helping industry, including responsible as well as to advocate for better
form coalitions to confront these recruitment, environmental government regulation of
challenges in the global supply sustainability, and forced and recruitment agencies.
chain. trafficked labour.
Walmart and Asda are taking Walmart is a member of and sits
steps around the world to address on the Board of the Consumer
human trafficking and forced Goods Forum (CGF), which
labour, particularly focusing brings together more than 400
on seafood supply chains in retailers, manufacturers and
Southeast Asia and especially service providers in the consumer
Thailand. Walmart participates goods industry to create positive
in the Seafood Task Force, an change across the retail industry.
initiative established by a group In 2016, CGF aligned around
of seafood processors, feed three priority principles: Every
producers, buyers, retailers, worker should have freedom of
government representatives movement; no worker should pay
and NGOs to address issues for a job, and no worker should
surrounding labour conditions be indebted or coerced to work.
and illegal fishing in Thai
seafood supply chains. The
group’s board of directors
includes a representative from
Walmart’s Responsible Sourcing
organisation.
Asda Modern Slavery Statement 2018 05Due diligence To complement our robust supplier set up process
we use detailed social, safety, technical and
in our supply environmental compliance audits to evaluate facility
chains practices on an ongoing basis.
The audits are conducted under Our clothing brand has a Our integrated supply chain
the auspices of internationally- supply chain of approximately IPL has focused on end-to-end
recognised third-party social- 600 primary sites (where transparency of suppliers beyond
compliance programmes and full production takes place) its first tier for some time, and
focus on a variety of areas, and a further 238 second-tier in fresh produce it has achieved
including worker compensation sites where processes such as transparency to farm level. In
for all hours worked; voluntary washing, printing and embroidery order to further enhance this,
labour practices; facility take place. Like other Walmart a new traceability system has
observance of working age laws companies, disclosure of first tier been introduced: a software and
and standards; non-excessive sites is required, however, Asda data platform that allows for
working hours consistent with is working towards full second- complete farm-to-fork supply
local laws and regulations, tier supply chain mapping to help chain transparency and will be
and facility health and safety further strengthen responsible incorporated as a risk assessment
standards. sourcing practices across our tool.
clothing and apparel supply
Asda is also a sponsor of chain. In higher-risk fresh produce
Stronger Together - an alliance sourcing regions, our team is
working to reduce modern In addition to this, Asda’s leading working in collaboration to
slavery and human trafficking clothing business George has mitigate the potential risk of
by developing and providing taken steps to list all primary modern slavery in the supply
guidance, tools and training production facilities in its chain. An example of this is in
for suppliers. Asda contributes ‘sourced by George’ website Morocco, where we are working
to a UK Stronger Together providing further transparency. with supplier farms to develop
working group of retailers that The responsible sourcing team toolkits to provide awareness
collaborates on initiatives to actively engage in the Ethical and education for workers, to
address forced labour in UK retail Trade Initiative working groups improve worker management
supply chains. Asda colleagues for Leicester, India, Turkey and communication systems and
also actively engage in the British Bangladesh. provide training for managers to
Retail Consortium Ethical Trading deal with any identified issues.
Working Group and contribute to
Retailer and industry forums.
Asda Modern Slavery Statement 2018 06Due diligence Asda uses only specified reputable licensed
employment agencies to source labour via
in our own a single managed services provider. This
operations organisation has its own statement and Modern
Slavery Response Plan and verifies all agency
practices before workers are accepted. They
also conduct regular audits, including on right
to work processes.
2017 saw the introduction of Checks on payroll and banking
a Modern Slavery Awareness systems are carried out across
Programme, supported by Hope for Asda on a regular basis looking for
Justice, for all panel agencies and modern slavery indicators.
delivered by our managed services
provider. Quarterly awareness Part of our integrated supply
sessions are provided to panel chain works with labour agencies
agencies, a 10% wage slip audit is to provide temporary labour. This
carried out on all panel agencies temporary labour carries with it
and an incident register for modern certain risks and, as such, agency
slavery indicators is now in place. providers are regularly audited and
Further work is planned in the GLAA accreditation is checked by
coming year to include an agency the business.
toolkit focused on preventing
modern slavery; a Modern Slavery
Checklist for all new agencies
before starting work with Asda and
ongoing panel agency reviews.
Asda Modern Slavery Statement 2018 07Due diligence Service suppliers
in our own All suppliers brought into the business to provide
goods and services not for resale (GNFR) sign up, as
operations part of our terms and conditions, to adhere to our
policy on modern slavery.
Over the past twelve months, In order to minimise the inherent
we have chosen to prioritise risks of hand car washes we have
our resource and concentrate made the decision to streamline
specifically on our largest suppliers, and reduce the number of providers
seeking to ensure that where across our existing estate. This
appropriate they have their own will include the refurbishment of
Modern Slavery Statements and the existing estate with the aim
are working in the bounds of our to complete by the end of 2018.
most up to date contractual terms. The tenants will be required to
A newly drafted Modern Slavery have their own Modern Slavery
Policy for these suppliers helps Statement and provide clear
to ensure that the specifics of our evidence how their systems and
requirements are clear. processes seek to prevent right to
work and modern slavery breaches
in their aims to be industry leading.
Our contracts are intended to
ensure these requirements are
legally binding on the tenant and
that they conduct their business in
an appropriate manner.
Asda Modern Slavery Statement 2018 08Training and Colleague training
awareness Over the past year we have concentrated our
training programme on those colleagues who are
most likely to encounter modern slavery indicators.
Activity in this area has included In the clothing supply chain, we’ve
briefing Senior People Managers given ‘Buying Ethically’ training, run
(HR), People Business Partners in conjunction with ETI, for relevant
(HR), Store Managers and Colleague buyers. New colleagues to the
Representatives as part of raising business have attended awareness
modern slavery awareness. We have sessions, run throughout the year.
also delivered training to all ‘new to
role’ Managers and Section Leaders Within our wholly-owned supply
in retail and this training will be chain we’ve developed a poster
delivered to all new managers in campaign, a screen saver and media
future. screen campaign in eight languages,
to raise awareness across all of the
Through updating our induction UK sites. Additionally, at the start of
training across the business, we’ve 2018, key HR colleagues attended
ensured new managers in logistics Stronger Together workshops on
and Home Offices are briefed on modern slavery and colleague
modern slavery. This training is representatives completed Stronger
also being rolled out to colleagues Together e-learning.
across our retail stores. To help spot
any signs of slavery, we run a face
to face awareness session for our
Regional Compliance Managers.
These managers are often the first
point of contact for our sites for
any Compliance related matters
and pro-actively visit stores, depots
and a number of third party run
locations.
Asda Modern Slavery Statement 2018 09Training and Supply chain training and awareness
awareness In 2017, Walmart launched the Responsible Sourcing
Academy Training Portal, which is accessible
through Walmart’s corporate website. The portal
provides suppliers and their facilities with tools
and training opportunities designed to influence
continuous and sustainable improvement.
Asda continues to sponsor the All relevant colleagues will be
Stronger Together initiative, an required to undergo the training in
alliance working to reduce the the first half of 2018. Another role-
risks of forced labour and human specific training module is being
trafficking by developing and developed for any colleagues who
providing guidance, tools and are required to recruit as part of
training for suppliers. In 2017 their role and will be rolled out from
Walmart worked in collaboration May 2018.
with Stronger Together to create a
new e-learning module, (“Tackling At the start of 2018 we further
Forced Labour in Global Supply reinforced our expectations around
Chains”) to help suppliers and modern slavery to the top 25
colleagues understand the nature suppliers in our integrated supply
of forced labour in supply chains chain and will continue to engage
and to identify possible indicators with them on this topic. A supplier
and risk factors. The online training conference is held at the start of
is available free of charge for all every year for these suppliers and a
suppliers via the Responsible specific presentation was given on
Sourcing Training Portal. forced labour and modern slavery
at the start of 2018.
Monitoring and reporting
Asda expects all of its colleagues, suppliers, contractors, consultants and other service providers
to act in a manner consistent with Walmart’s Statement of Ethics. We expect that any suspicions
or concerns related to modern slavery are reported immediately to our anonymous ethics helpline,
24 hours a day, 365 days a year.
www.walmartethics.com 0800 318 405 ethics@asda.co.uk
Asda Modern Slavery Statement 2018 10Progress Over the next twelve months, Asda and its
subsidiary companies will continue to work with
indicators for suppliers and partners to embed programmes
2018/19 designed to prevent and tackle modern slavery.
Specifically, we will:
•A ssess sourcing risk down to primary production in key fresh produce
supply chains
•C omplete 2nd tier supplier mapping in selected supply chains
• Introduce a toolkit for our recruitment agencies focused on tackling
modern slavery
• Review the training provided to agency colleagues and all hiring managers
•E nsure all relevant colleagues complete the e-learning module ‘Tackling
Forced Labour in a Global Supply Chain’
• Continue to review all service suppliers in relation to modern slavery
including specifically construction, facilities and catering suppliers
Asda Modern Slavery Statement 2018 11ASDA House Southbank Great Wilson Street Leeds, LS11 5AD www.asda.com VAT registration: GB 362 0127 92 Company Registration: 464777 © Asda Stores Ltd 2018
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