Annual Report 2024

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ESRS S2

Workers in the Value Chain

We recognize the importance of operating responsibly along the entire value chain by safeguarding the rights of the workers who manufacture our products, and by applying our influence to affect change wherever we cause or contribute to human rights impacts, or where human rights issues are linked to our business activities.

Impacts, risks and opportunities

Impacts

  • Workplace accidents or work-related health and safety hazards due to thenature of the work, such as use of machinery or handling chemicals, can negatively impact workers
  • We recognize that vulnerable groups – such as migrant workers, indigenouspeoples and female workers – are exposed to additional risks
  • We advance positive impacts through responsible sourcing practices, increasing gender equality, and providing fair compensation to workers in our supply chain

Risks

  • At the raw material level of the value chain, there are potential risks of forced labor and child labor
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Targets

We have set specific social targets to be achieved by 2025, which aim to reduce negative material impacts and risks and advance positive impacts and opportunities for workers in our value chain.

Social impact (S-KPI)

The social impact (S-KPI) rating helps us track impacts on workers in the supply chain including in the areas of health and safety, wages, gender equality, and working hours.
4S rating or better1
Current status 2024 82%
Target 2025 90%
3S rating or better1
Current status 2024 95%
Target 2025 100%
1 On a scale of 1S to 5S, with 5S being the highest rating read more

Gender equality and equal pay for equal work

Key Tier 1 suppliers will have secured gender wage parity for workers by 2025.

We have focused our actions on capacity building so suppliers can improve wage management systems that ensures equal pay for equal work.

Human Rights and Environmental Due Diligence (HREDD)

By 2025, 100% of the upstream value chain and our operations have a system in place to identify and manage high-risk human rights issues.

In 2024, we matured the internal risk management of non-trade goods and services suppliers – both upstream and downstream.

Key metrics & actions

The program activities and actions we have taken in 2024 have generated positive outcomes for workers in our supply chain, with measurable impacts.

Worker Voice (WOVO) grievances

35,700 human and labor rights complaints were shared by workers through the WOVO platform

Worker Voice (WOVO) grievances

99% of these complaints were successfully closed by the end of 2024

Women leadership program

1,600 Female supervisors from 76 factories in 6 participating countries (Vietnam, Indonesia, India, Myanmar, China and Cambodia) joined this program

Gender equality program

46,000 Workers participated in the Gender Equality worker survey in 2024
100% of factories within our data collection scope exceeded their applicable 2023 minimum wage in all six countries

Policies

We have adopted multiple policies, guidelines and standard operating procedures that anchor our approach to workers in the value chain in the management of our business. An overview of these policies can be found in the topical standard of S2.