Fairness GUIDELINE ON - REWE Group
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GUIDELINE ON Fairness
CONTENTS
To us, fairness
means respecting
and strengthening
human rights
and improving
working conditions I. UNDERSTANDING AND SCOPE . .. .. .. .. .. .. .. .. .. .. 4
as well as promoting II. APPROACH FOR FAIRER SUPPLY CHAINS . .. .. .. .. .. 6
2.1 Risk analysis of the supply chains .. .. .. .. .. .. .. .. .. .. .. 8
fair trade. 2.2 Derivation of focus raw materials and key topics .. .. .. .. .. 9
2.2.1 Focus raw materials and risk countries .. .. .. .. .. .. .. 9
2.2.2 Child labour and forced labour .. .. .. .. .. .. .. .. .. 12
2.2.3 Living income .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 14
2.3 Implementation of measures .. .. .. .. .. .. .. .. .. .. .. 15
2.3.1 Internal management .. .. .. .. .. .. .. .. .. .. .. .. 15
2.3.2 Supply chain management .. .. .. .. .. .. .. .. .. .. 18
2.3.3 Stakeholder management . .. .. .. .. .. .. .. .. .. .. 24
2.4 Regular reporting .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26
III. OBJECTIVES .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 26
List of references .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 27
4 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 5
I. UNDERSTANDING The present guideline outlines the management of the field of action “Fairness
within the supply chains of the private label products”. For REWE Group, fairness means
AND SCOPE respecting and strengthening human rights and improving working conditions as well as
promoting fair trade.
As a leading international trading and travel and tourism company, REWE Group is REWE Group strongly believes that the Company and its global supply chains can
aware of its special role as an intermediary between manufacturers, service providers only prevail in the long run if the persons employed directly and indirectly as well the
and consumers. raw material producers benefit from trade. Fairer supply chains are a key focus of REWE
The production of REWE Group private label products has an impact on people (so- Group since the Company operates in many countries where the governmental frame-
cial), animals and nature (ecological). REWE Group‘s customers expect and should be work conditions for the protection of human rights are inadequate. It is against this back-
able to trust that REWE Group, as a trading company, is aware of its responsibility in the ground that the present guideline on fairness, which represents a building block in the
supply chains of its private labels and addresses the effects. implementation of human rights due diligence, was drawn up.
In its “Guidelines for Sustainable Business Practices”, REWE Group acknowledges The scope of the guideline covers all supply chains for the private labels of REWE
its social and environmental corporate responsibility. The values described there lay the Group, which are sold in Germany by REWE, PENNY and toom Baumarkt DIY stores. The
foundation for the Company’s responsible actions (REWE Group 2011). For the private present guideline defines a binding framework for action for REWE Group and the busi-
labels of REWE Group, these values are further substantiated in the “Green Products” ness relationships with contractual partners. Defined requirements and targets are con-
strategy (REWE, 2018). The strategy is implemented through a comprehensive manage- sistently reviewed, and new measures and targets are agreed as required. In addition,
ment approach that defines the principles, instruments and measures. All levels of the the guideline is updated on the basis of current trends and developments.
management approach are oriented towards the three defined fields of action: REWE Group aligns its actions with the following internationally applicable
• Resource standards and guidelines:
Conservation; • the Universal Declaration of Human Rights of the United Nations (UN);
• Fairness; and • the United Nations Guiding Principles for Business and Human Rights (UNGP);
• Animal Welfare. • conventions and recommendations of the International Labour Organisation (ILO)
on labour and social standards;
• the principles of the United Nations Global Compact (UNGC);
Green • the UN Convention on the Rights of the Child;
Products
Strategy • the UN Convention on the Elimination of All Forms of Discrimination against
Women;
• the Organisation for Economic Cooperation and Development (OECD) Guidelines
for Multinational Enterprises; and
• the Forced Labour Priority Principles of the Consumer Good Forum (CGF).
Figure 1: Fields of action of the “Green Products” pillar6 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 7
REWE Group’s process
II. APPROACH FOR FAIRER
SUPPLY CHAINS for fairer supply chains
A four-stage process forms the core of REWE Group‘s efforts to establish fairer focuses on the people
supply chains. It serves to systematically identify, minimise and prevent
potentially adverse effects of corporate actions on human rights (cf. Fig. 2):
Step 1: Extensive risk and hotspot analyses are conducted to determine
negative impacts (chapter 2.1).
Step 2: From the insights gained in the first step, the focus raw materials and
key topics are derived (chapter 2.2).
Step 3: Appropriate measures are taken in order to deal with focus raw We are aware of our responsibility: We plan carefully: We continuously
Our aim is to strengthen human analyse the risks in our supply chains
materials and key topics and counteract negative impacts. These measures rights and improve the working and take our our due diligence
conditions in our supply chains. seriously.
are implemented by the management approach on three different levels 1. Risk analysis
(chapter 2.3):
al managem
ern
• within the Company: e.g. by training buyers (internal management – Int
en
t
chapter 2.3.1)
• within the supply chain: e.g. by defining requirements to suppliers,
Stakeholder
nagement
purchasing certified raw materials or projects (supply chain management –
chapter 2.3.2)
ma
4. Monitoring 2. Derivation of
ma
• beyond the own supply chain: e.g. through further development of stan- and reporting focus raw materials
n
n
i
ag
ha
em and key topics
dard organisations (stakeholder management – chapter 2.3.3) Supp
ly c ent
Step 4: Following implementation, the activities are monitored and evaluated.
The findings of the monitoring are incorporated into the further development of We stand firm: We require our We act: Through cooperation (with
suppliers, industry initiatives and
suppliers and producers to adhere
the measures (chapter 2.4). to our standards and producers to civil society), projects and trainings,
we support the implementation
control their implementation.
of improvements in our supply chains.
3. Implementation
of requirements
and measures
Figure 2: REWE Group’s process for fairer supply chains8 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 9
2.1 Risk analysis of the supply chains 2.2 Derivation of focus raw
REWE Group continuously assesses the risks of human rights violations in its supply
materials and key topics
chains. On the one hand, these assessments are based on external hotspot analyses for On the basis of the risk and hotspot analyses
commodity groups, specific products and raw material supply chains which are carried carried out, focus raw materials and key topics
out exclusively for REWE Group. On the other hand, the assessment and experience of were defined in which REWE Group‘s actions
the responsible employees and the external stakeholder advisory board for sustainability Especially in the supply have a significant impact on human rights.
are taken into account – they are experts in their fields and are in close contact with sta- chain stages of
keholders such as non-governmental organisations or suppliers.
RAW MATERIAL 2.2.1 Focus raw materials and
Where appropriate, REWE Group will publish further information on individual
product-specific or raw material-specific analyses relating to human rights issues in its
CULTIVATION risk countries
Especially in the supply chain stages of raw mate-
Sustainability Report.
AND PROCESSING, rial cultivation and processing, there is an increa-
At the beginning of 2017, REWE Group conducted an extensive input-output risk
analysis for strategic orientation, which consisted of both qualitative and quantitative
THERE IS AN sed risk of non-compliance with labour and social
standards. This is why REWE Group focuses its ac-
elements. The qualitative analysis was based on surveys and reports as well as interviews
with purchase managers and NGOs which were aimed at identifying key sustainability
INCREASED tivities on these levels.
topics along the value chain. The quantitative analysis was based on a macro-economic
RISK The following critical raw materials were iden-
tified based on a risk analysis in the field of fair-
model, in which the purchase data of REWE Group was paired with information on pro- of non-compliance with labour ness: coffee, cocoa, tea, palm oil, fish, fruits and
duction countries and countries of origin. and social standards. vegetables in general and banana and pineapple
in particular as well as cotton, textiles and natural
This is why REWE Group
stone.
FOCUSES ITS For the processing level, REWE Group uses
ACTIVITIES the assessment of amfori as guidance. This
country risk assessment is based on the
on these levels. governance indicators of the World Bank and
further indices and is updated every year.
The risk analysis also shows that the nature of
the different fairness risks is similar across all raw
materials and processing steps.Cotton Fish Coffee Cocoa Orange juice
Germany Norway Turkey Russia
Main sourcingmit
Weltkarte countries
Palm oil Tea Fruits and
vegetables
Bananas Pineapples Natural
stone
Netherlands Spain Italy Belgium of the focus
BSCI raw materials
Risikoländern
High-risk
countries
Low-risk
countries
No primary
sourcing countries of REWE Group
und Fokusrohstoffen
China Thailand
USA India Vietnam
Mexico Malaysia Indonesia
Nicaragua Maldives
Dominican
Republic
Costa Rica Ecuador
Peru Columbia
Morocco Ghana Kenya
Panama Brazil
Ivory Coast Burkina Faso Zambia
Identified fairness risks in the supply chains of REWE Group
Freedom of association
Child labour Forced labour Discrimination and the right to Living wage Overtime Occupational safety
collective bargaining
Child labour is when children under the age Forced labour often manifests itself in Legal working hours vary depending on
Despite statutory requirements regarding
of 13 perform light work for more than a few restrictions on freedom of movement, the retention The legal ban on discrimination on the grounds Living wage is an income that allows a decent the country of production: low income,
health protection and safety standards,
hours per week or when children under the age of of wages and identity papers, and of gender, race, colour, language, religion, political The right to freedom of association and standard of living. The amount of income that fluctuating demand, short delivery times,
violations occur time and again.
15 perform hazardous or stressful work. indebtedness to the employer or an employment opinion, national or social origin, or collective bargaining is still violated in many is considered living wage depends on the sector, falling prices and increased competition
In many high-risk countries, the ban on agency. As it often affects legal or illegal membership of a national minority is difficult countries today. Trade unions are banned or country of production and wage level. contribute to overtime. In some industries,
exploitative child labour is not sufficiently immigrants or temporary workers, forced to control and often inadequately implemented. restricted and union membership is persecuted. Farmers and workers often do not have sufficient working hours are as much as 16 hours a day.
implemented and pursued. labour is often not reported and therefore income from their agricultural production or labour.
difficult to control.12 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 13
2.2.2 Child labour and forced labour
The analyses have pinpointed two key issues that can be found throughout a
large number of focus raw materials and countries. These topics are “child and
forced labour” and “living wage”.
According to the ILO’s definition, the term child labour does not apply to
children over the age of twelve who only perform light work for a few hours a
week. It also excludes children over the age of 15 whose work is not classified
as hazardous (ILO 1973). Hazardous or exploitative work carried out by children
is any activity or occupation which has, or may have, harmful effects on the sa-
fety, physical or mental health or moral development of the child. Dangers can
also arise from an excessive workload – even if an activity or occupation as
such is not considered hazardous.
Forced labour and slavery are not a thing of the past in many value chains.
Even today, millions of people are still facing extreme exploitation which they
Approx.
are unable to break out of on their own due to debt and debt bondage, threats,
152 21 million violence, coercion, deception and abuse of power.
million
working children
people are victims
of forced labour
Forced labour often manifests itself in restrictions on freedom of move-
ment, the retention of wages and identity papers, and indebtedness to the
employer or an employment agency. Migrants, seasonal workers and unskil-
led workers frequently depend on employment agencies which often have in-
Approx. In total, income
formal and sometimes criminal structures and retain part of the wages earned
from forced labour
50 %of them are
Approx.
is estimated at approx.
USD 150
for their services. In many cases, the workers are placed into labour on credit,
which they can only repay through their employment. This creates a strong de-
pendency. In addition, these groups often work without written contracts, they
toiling under hazardous
or exploitative
conditions 90%
of forced labour occurs
million. can be easily replaced and often reside in the country illegally which makes it
impossible for them to claim their rights. In many cases, these factors prevent
them from leaving their jobs for lack of alternatives and fear. The situation is ta-
in the private sector
across all industries. ken advantage of by paying the workers very low wages and making them work
overtime.
Sources: ILO, 2017b, ILO, 2017a, ILO, 2014b14 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 15
2.2.3 Living income 2.3 Implementation of measures
A living income covers the cost of living and thus the basic needs, i.e. food, housing, clot- The chart on the following page provides an overview of the measures taken on the basis
hing, education and the health of workers and their families. The topic of living income of the risk analysis with regard to the identified focus raw materials and key topics. For
intersects with many other human rights issues, such as discrimination, child labour or a each of the focus raw materials, it is shown whether REWE Group has specific guideli-
high amount of overtime. Women often earn less than men. The parents’ low income nes, what objective REWE Group has set for itself for purchasing certified raw
makes it necessary for the children to work, too. Low hourly wages mean that workers materials for its private labels, whether there are projects at the origin and which
have to work overtime in order to secure their livelihood. relevant initiatives REWE Group engages in. The raw-material specific activities are
supplemented by overarching measures, such as the social improvement programme,
What is considered a living income depends on how much money must be spent on
which relates to the processing level in the supply chain, or the development of a system
food, housing, school fees, investments in raw material production or reserves, and va-
of grievance mechanisms.
ries from country to country. There is still no official definition that can serve as basis for
calculation, but there are already many approaches. Calculating living income is com- REWE Group’s value chain is multi-tiered and complex. The raw materials for the
plex as many producers are engaged in different activities or grow several raw materials. products are sourced all over the world. REWE Group has developed an integrated ma-
nagement approach in order to cope with the complexity and to promote compliance
The causes of non-living income are often structural problems which cannot be sol-
with human rights and good working conditions. The approach identifies three levels at
ved by certifications and standards alone since these are partly based on statutory mi-
which activities are implemented.
nimum wages. In many countries, statutory minimum wages are not enough to provide
sufficient income for the workers. Governments sometimes set the minimum wages too
low in order not to jeopardise international competitiveness. The income of many far-
2.3.1 Internal management
mers in raw materials production is also below the poverty line. Many commodities are al managem
ern en
traded on stock exchanges. In recent years, the world market prices e.g. for cocoa and REWE Group is working on further inte- Int t
coffee have fallen sharply. grating sustainable procurement into its
purchasing processes in order to take sus-
Stakeholder
tainability aspects into account in every
nagement
purchasing decision. By providing risk ana-
lyses and briefings, coordinating binding
targets with the purchasing departments
ma
ma
and training employees on sustainability
n
n
i
ag
ha
issues, REWE Group contributes to internal ly c
em
ent
sensitisation. Supp
REWE Group employees are regularly
trained on relevant topics regarding work and social standards so that the defined stan-
dards – such as, for example, the demand for social audits – are taken into account in
the selection of suppliers and in the purchasing process. Internal reporting enables con-
tinuous further development within the topic of fairness. External communication crea-
tes transparency vis-à-vis stakeholders.18 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 19
Cotton
and textiles
Fruits and
Guidelines
Objective: 100% cotton textiles
vegetables
made of more sustainable cotton Cocoa Orange juice Palm oil Objective: 100 % certified pineapple
(GOTS, Cotton made in Africa,
recycled cotton fibres) until 2025 Fish Coffee and bananas by 2016 (Rainforest Alliance)
Advisory Board Member Cotton
Guidelines Objective: 100% certified orange
juice by 2025 (Fairtrade,
Guidelines
Member of the Technical Committee Natural stone
Made in Africa (CmiA), Alliance for Guidelines Objective: 100% certified private labels
Objective: 100% certified cocoa by 2016
(Fairtrade, Fairtrade Sourcing Program, Rainforest Alliance, Bio)
Objective: 100 % certified palm
oil by 2013 (RSPO)
Tea of GlobalG.A.P. GRASP
Member of the Rainforest
Sustainable Textiles and Bangladesh by the end of 2020 (Fairtrade, Guidelines
Rainforest Alliance, UTZ, Bio) Alliance Standards Committee
Accord on Fire and Building Safety Objective: 100% certified private Rainforest Alliance, UTZ, Bio) Member of Fruit Juice Platform Founding member of Forum
label fish products by 2020 Founding member of Forum Objective: 100 % certified green Member of the World Banana Forum Objective: Continuous extension
Nachhaltiges Palmöl (German Initiative tea and Earl Grey by 2017
Project with CmiA for the support (MSC, ASC, GlobalG.A.P., Bio) Farmer project Peru Incahuasi+ Nachhaltiger Kakao (German Initiative of the range of certified products
Orange juice project in Brazil on Sustainable Palm Oil) (Rainforest Alliance)
of women on Sustainable Cocoa) Central America Fund project
Development of a grievance mechanism system
Social Improvement Programme
REWE GROUP
Measures to Cotton Fish Coffee Cocoa Orange juice
promote fairer supply Palm oil Tea Fruits and Bananas Pineapples Natural stone
vegetables
chains of REWE Group High-risk
countries
Low-risk
countries
no primary
sourcing countries
The objectives are partly presented in shortened form. For a detailed description and the defined scope, please refer to the respective guidelines.18 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 19
2.3.2 Supply chain management These business partners of REWE Group are obliged to comply with the minimum
requirements such as internationally and nationally applicable laws and the core labour
Risks in the supply chain are allocated to the three areas of resource conservation, fair-
standards of the International Labour Organisation (ILO). This is accompanied by the ob-
ness and animal welfare. REWE Group addresses the sustainability risks that arise with
ligation to comply with the following principles in particular:
regard to these fields of action in the supply chain in a targeted manner through system-
atic supply chain management. This is characterised by close cooperation with suppliers • All forms of discrimination are prohibited. Business partners undertake not to exclu-
and engagement of the factories and farms, as it is the responsibility of the entire supply de or favour persons on the basis of their gender, origin or other reasons.
chain to create fairer supply chains. As a first step, REWE Group’s supply management
• All companies in the supply chain must pay their employees minimum national wa-
increases, where required, transparency along the supply chain for the private label pro- ges (at least monthly).
ducts. This allows risks to be identified and avoided more easily or addressed directly. In
addition, the integration of sustainability is promoted as part of the supplier evaluation. • Business partners must ensure that working hours are in line with the legal or indus-
try standard working hours.
For its supply chain management, REWE Group follows a three-step approach in the
area of fairness, which includes the definition of requirements, monitoring and the de- • The business partners comply with occupational safety regulations in accordance
velopment of suppliers and supply chains. with national law and international standards.
• All business partners allow employees to exercise their right to freedom of associa-
tion and collective agreements.
• Business partners must ensure that no children are employed in their production
sites. The national laws and standards defined by the ILO apply here.
Development Development
• The business partners must ensure fair and respectful treatment of employees.
• Any form of forced or compulsory labour or human trafficking must be excluded by
Projects at the origin Training programme
Control Control
the business partners.
Audits and certifications Audits and certifications
e.g. Rainforest Alliance, Fairtrade,
GRASP...
BSCI, SMETA, SA 8000
Audits and standards are aimed at improving social conditions on a broad basis.
If REWE Group‘s business partners do not meet the requirements, the further proce-
Commitment
Raw materials guidelines, contracts
Commitment
Textile Guidelines, social compliance requirements,
dure is discussed and decided on the basis of a recommendation by the sustainability
department. REWE Group reserves the right to impose sanctions in the event of delibe-
Guidelines for Sustainable Business Practices Guidelines on Sustainable Business Practices, contracts
Raw materials/cultivation Processing/production rate gross non-compliance with the requirements. In principle, however, the Company
relies on individual measures and sustainability projects for supplier development. For
Figure 3: Three-stage approach in supply chain management in the cultivation and processing steps
example, training programmes are aimed at reducing negative impacts along the supply
of the supply chain.
chain in a targeted manner. Existing systems are used in audits and, above all, in trai-
ning courses in order to pool own strengths with other partners and to bring about joint
improvements.
All production sites used by business partners supplying private label products have
to be made transperent to REWE Group. By raising awareness and holding contract
partners accountable, concrete rules are created to implement sustainability
throughout the supply chain. The requirements are checked by REWE Group’s
sustainability department in the purchasing process.20 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 21
Processing in risk countries: The Social Improvement Programme
All production sites in the first tier from defined risk countries are integrated into REWE solutions for problems oneself. Sometimes, the partners involved are also not aware of
Group‘s Social Improvement Programme, which follows the three-step approach to sup- the positive impact that the introduction and implementation of social management sys-
ply chain management. New suppliers and production sites are informed about REWE tems may have on a company. This is why REWE Group has set up a training program-
Group‘s requirements and supported in the preparation of the first audit. In a second me for its strategically important and relevant suppliers. It is intended to help suppliers
step, all production sites in high-risk countries will be obliged to present audits of recog- understand the importance of complying with REWE Group standards for sustainable
nised standard systems. These audits are carried out – both announced and unannoun- business practices and to establish systems and working methods in order to strengthen
ced – by independent third parties. Recognised social audits include audits according to sustainable management. To this end, managers of strategic production sites are trained
the amfori BSCI standard or the SA8000 standard as well as SMETA audits by the Sup- in an 18-month modular training programme in the areas of health and safety, grievance
plier Ethical Data Exchange. mechanisms, wages and working hours as well as responsible recruitment. Where appro-
priate, the programme includes group training sessions addressing common challenges
In order to continuously improve labour and social standards, REWE Group docu-
at different production sites. In order to document progress, key figures are defined and
ments the audit results. Where the requirements are not met, improvement measures
continuously measured. The Sustainability Report provides information on developments
are defined together with the suppliers, and the production sites are requested to take
in the Social Improvement Programme.
part in amfori BSCI training courses.
If production sites are not willing to implement improvement measures, REWE Social standards in the supply chain of focus raw materials
Group ultimately reserves the right to terminate the business relationship. The implementation of social standards in the area of raw materials also follows the
three-step approach of supply chain management. In order to ensure compliance with
Risk analyses, factory visits and work with stakeholders show that many partners binding labour and social standards in the supply chain, REWE Group requires certifica-
in the supply chain still lack the knowledge and experience to implement processes and tions such as Fairtrade or Rainforest Alliance/UTZ. Especially for the identified focus raw
guidelines to ensure good working conditions and the observance of human rights. Even materials, the certifications support the implementation of REWE Group‘s requirements
though the requirements of the social standards are implemented, the management of and also ensure transparency in the supply chain. Many of the identified focus raw ma-
the factories sometimes lacks an understanding of the meaning and purpose behind terials are produced by small farmers. REWE Group therefore strives to support small
the requirements. What is more, there is a lack of knowledge and experience to develop holders, for example, by purchasing certified products and through projects. However,
the governments in the production countries are also important players when it comes to
protecting and promoting smallholders. Further details on raw materials can be found in
the specific guidelines.
There are also many challenges in the raw materials sector that cannot be solved
by standards alone. Therefore, another starting point for promoting good working
conditions and strengthening human rights are projects in the goods’ regions of origin.
More information on REWE Group‘s commitment in this area can be found in the
respective guidelines and the annual sustainability report.
Grievance mechanisms
Grievance mechanisms enable those affected by violations of labour or human rights
to raise their concerns. In this way, potentially adverse effects can be identified at an
early stage and appropriate measures can be taken to put an end to infringements, to
avoid them in the future and to provide compensation. Effective grievance mechanisms
are part of the requirements of the UN Guidelines for Business and Human Rights and
Figure 4: Part of the materials from the REWE Group on-boarding process for suppliers22 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 23
should meet a number of criteria: Legitimacy, transparency, predictability, accessibility, Examples show that grievance mechanisms are used if they are trustworthy and poten-
rights compatibility, balance. tial users are well informed on their existence. Some industries already rely on certain
standard systems – improving the grievance mechanisms of these system can there-
Grievance mechanisms include the receipt of a complaint or notification of mal-
fore have a wider impact. In addition, the collaboration of actors through standard
administration, the handling of the matter and the remediation of the grievance. There
systems promotes the development of some good grievance mechanisms instead of
are thus two possibilities of managing grievance mechanisms:
many different ones.
• internally (i.e. from within the company) or In some cases, however, the grievance mechanisms provided by standard organi-
• externally (grievance mechanism outside the company) sations do not meet the effectiveness criteria. For this reason, REWE Group focuses on
advancing these mechanisms. At the same time, internal processes are being further
In addition, various instruments can be set up to lodge complaints, from open doors
developed to determine how grievances should be dealt with and what remedy measures
to telephone hotlines or apps. All systems and means have advantages and disadvan-
should be taken (see also the following section on child labour).
tages. External mechanisms may be very cost-intensive to set up and maintain, internal
mechanisms are efficient, but are often perceived as untrustworthy. The success of a
grievance mechanism always depends on its reputation. This is why it is sensible to com-
Dealing with key topics
bine internal and external grievance mechanisms.
Besides the commitment to purchase certified focus raw materials, the Social Im-
The focus of a grievance mechanism is on remediation. Depending on the grievan-
provement Programme and the establishment of grievance mechanisms, REWE Group
ce, this ranges from formal apologies to the payment of fines, where parties have acted
intends to work more intensively on the selected key topics in the coming years by
unlawfully, or to monetary compensation to those affected.
implementing further measures.
REWE Group has set itself the goal of setting up a grievance mechanism system by
In the area of child labour, risk supply chains will be selected and analysed to deter-
2025. For this purpose, the supply chains that are to be classified as relevant are iden-
mine how child labour can be tackled more comprehensively.
tified in a first step. REWE Group then analyses which grievance mechanisms already
exist, which additions make sense and how these can be implemented. In 2018, REWE Group joined the Center for Child Rights and Corporate Social Re-
sponsibility (CCR CSR) and REWE Far East participates in the Child Labor Remediation
In 2017, REWE Group conducted a study on the further development of grievance
Rapid Response System of CCR CSR.
mechanisms in its supply chain. The results revealed that internal and external grievance
mechanisms already exist in many areas of the supply chain. For example, amfori BSCI In the area of forced labour, REWE Group undertakes to implement the principles of
checks the existence of internal grievance mechanisms during audits. Many raw material the Consumer Goods Forum (CGF) and to further integrate measures for this purpose.
standards also rely on internal and/or external grievance mechanisms.
Grievance mechanisms in connection with auditing systems have advantages and
disadvantages. The advantage is that auditors are already on site and can check the
awareness and functioning of mechanisms. On the other hand, grievance mechanisms
of standard organisations may not reach workers or may be perceived as not trustworthy.
EVERY WORKER NO WORKER NO WORKER SHOULD
SHOULD HAVE SHOULD PAY BE INDEBTED OR
FREEDOM OF MOVEMENT FOR A JOB COERCED TO WORK
https://www.rewe-group.com/de/nachhaltigkeit/gruene-produkte/leitlinien
3
Figure 5: The three principles of the Consumer Goods Forum (Consumer Goods Forum, 2016)24 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 25
Due to the complex structural causes of low wages and incomes, the work on the key Founding member of Forum Nachhaltiger Kakao (German Initiative on Sustainable
topic “living wage” must focus on the development of new and effective approaches. Cocoa): The multi-stakeholder initiative is committed to improving the living conditions
In addition to activities carried out directly in the supply chain, this may also include of cocoa farmers, protecting natural resources and biodiversity, and cultivating and
regional or industry-wide approaches or cooperation with governments. The central marketing sustainable cocoa.
topic here will be cooperation with various stakeholders. Developing concepts and
Member of the CSR FruitJuice Platform: The platform promotes social and environmen-
approaches for operationalising the topic is an important step for REWE Group.
tal improvements in the supply chains of the fruit juice industry.
The concrete goals of REWE Group can be found in Chapter III “Objectives”.
Member of the World Banana Forum: The Forum brings together different stakeholders
in the global banana supply chain to achieve sustainable cultivation, compliance with
human rights and improved working conditions.
2.3.3 Stakeholder management
Member of the Bangladesh Accord on Fire and Building Safety: The aim of the Accord
The challenges of dealing with sustainability risks in the manufacture of private label
is to increase safety in the textile industry through independent inspectors who check
products are often rooted in global trade structures and are influenced by political and
building safety, fire protection and electrical safety during factory visits.
social conditions. Good stakeholder management is therefore an important starting point
for identifying the relevant topics and implementing the sustainability strategy. REWE Member of the Alliance for Sustainable Textiles: The Alliance is a multi-stakeholder
Group is in constant exchange with stakeholders. In addition, the Company regularly in- partnership to drive improvements along the global value chain in the textile industry.
vites stakeholders to dialogue events. Moreover, REWE Group engages in national and
Member of the Advisory Board of Cotton Made in Africa: This initiative was launched
international initiatives that deal with the topics of human rights and working conditions
with the aim of improving the living conditions of people in African cotton growing areas.
in their respective contexts.
Member of the Technical Committee of GlobalG.A.P. GRASP: GRASP is a social risk as-
Member of amfori BSCI: As a member, the Company commits itself and all suppliers and
sessment module for companies certified according to the GlobalG.A.P. standard. The
producers to comply with the amfori BSCI Code of Conduct. REWE Group is actively
central task of the Technical Committee is to advise the Steering Committee on strategic
represented in working groups and the membership committee in order to help shape
and technical developments.
further development.
Member of the Rainforest Alliance Standards Committee: Rainforest Alliance is a sus-
Member of the Consumer Goods Forum: The organisation aims to help retailers and
tainability standard for the production of agricultural raw materials and products. The
manufacturers of consumer goods work with other key stakeholders to ensure consumer
Standards Committee decides on the further development of the content on the basis of
confidence and drive positive change according to the motto “Better lives through Better
the public standard consultations.
Business”.
Member of the Center for Child Rights and Corporate Social Responsibility
Founding member of Forum Nachhaltiges Palmöl (German Initiative on Sustainable
CCR-CSR supports companies in the implementation of child rights policies.
Palm Oil): The aim of the multi-stakeholder initiative is to significantly increase the pro-
portion of sustainably produced palm oil while at the same time improving existing certi-
fications and standards.26 · REWE Group · Guideline on Fairness REWE Group · Guideline on Fairness · 27
2.4 Regular reporting References
REWE Group is convinced that transparency and the provision of comprehensive
information are a basic prerequisite for more fairness in the supply chain. REWE Group
reports regularly and publicly on progress and obstacles in the implementation of the
measures and the attainment of the targets. This is done through press releases, via the REWE Group (2011): Guidelines for Sustainable ILO (1973) 138 – Minimum Age Convention, 1973
REWE Group website or via the sustainability report of the Group. There is separate Business Practices, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEX-
https://www.rewe-group.com/content/uploads/2019/06/gui- PUB:12100:0::NO::P12100_INSTRUMENT_ID,P12100_
reporting on specific topics, such as publications within the framework of the
deline-sustainable-business-practices.pdf LANG_CODE:312283,en
Partnership for Sustainable Textiles. Accessed on: 22/08/2018 Accessed on: 30/11/2018
REWE Group (2018): Consumer Goods Forum (2016): Industry Priority Principles,
https://rewe-group-nachhaltigkeitsbericht.de/2017/gri-be- https://www.theconsumergoodsforum.com/wp-content/up-
III. OBJECTIVES richt/produkte/gri-gruene-produkte/
Accessed on: 10/01/2019
loads/2018/08/Priority-Industry-Principles-One-Pager.pdf
Accessed on: 30/11/2018
REWE Group has set itself objectives for the implementation of the defined measures.
amfori/BSCI (2018): Country Risk Classification, Press release on more sustainable juice:
These give REWE Group’s commitment a clear orientation and are subject to a
https://www.amfori.org/content/country-due-diligence-tool https://www.rewe-group.com/de/presse-und-medien/news-
continuous progress review. REWE Group has set itself the following objectives: Accessed on: 29/10/2018 room/stories/zertifizierte-fruchtsaft-lieferkette-in-brasili-
en-die-faire-kraft-im-orangensaft/
Objective 1: Social Improvement Programme. By the end of 2020, REWE Group will
ILO (2014a): Wages and Working Hours in the Textiles, Accessed on: 10/01/2019
ensure that 100 per cent of the Tier 1 production facilities in high-risk countries are Clothing, Leather and Footwear Industries,
integrated into the Social Improvement Programme. http://www.ilo.org/wcmsp5/groups/public/@ed_dialogue/ Press release on more sustainable coffee:
@sector/documents/publication/wcms_300463.pdf https://www.rewe-group.com/de/presse-und-medien/news-
Objective 2: Training programmes for suppliers. REWE Group has set itself the Accessed on: 22/10/2018 room/stories/kaffee-zertifizierungen-mit-verbesserungen-fu-
objective of having 100 per cent of its strategic suppliers participate in the training er-bauern/
programme (capacity building) by 2030. ILO (2014b): Profits and Poverty: The Economics of Accessed on: 10/01/2019
Forced Labour,
Objective 3: Grievance mechanism. REWE Group has set itself the objective of https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---de- Guidelines of REWE Group:
claration/documents/publication/wcms_243391.pdf https://www.rewe-group.com/en/sustainability/strategy/gui-
establishing a grievance mechanism system for relevant supply chains by 2025.
Accessed on: 13/11/2018 delines/
Objective 4: Combating child labour. REWE Group has set itself the goal of developing Accessed on: 10/01/2019
ILO (2017a): Global Estimates of Forced Labour and
a child rights policy.
Forced Marriage, Sustainability report of REWE Group:
Objective 5: REWE Group will carry out a detailed risk analysis on the subject of https://www.ilo.org/wcmsp5/groups/public/---dgreports/--- https://rewe-group-nachhaltigkeitsbericht.de/
dcomm/documents/publication/wcms_575479.pdf 2017/sites/default/files/pdfs/de/rewe_group_gri-
forced labour.
Accessed on: 29/10/2018 bericht_downloadversion/index.pdf
Objective 6: Living wage. REWE Group wants to work towards living wages and incomes page 76 et seq.
ILO (2017b): Global estimates of child labour: Results and Accessed on: 10/01/2019
in dialogue with other companies and stakeholders. trends, 2012-2016,
https://www.ilo.org/wcmsp5/groups/public/---dgreports/---
Details of objectives and actitivites of the different focus raw materials can be found in
dcomm/documents/publication/wcms_575499.pdf
the respective specific guidelines. Accessed on: 29/10/2018Imprint Published by: REWE Group Corporate Responsibility 50603 Cologne, Germany Phone: +49 221 149-1791 The dialogue on the topic of fairness is of great importance to us. Please contact us with suggestions and questions at: nachhaltigkeit@rewe-group.com As of: January 2019
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