Modern Slavery Act transparency statement 2019/20 - B&Q
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Modern Slavery Act transparency statement 2019/20
2 Kingfisher Modern Slavery Act transparency statement 2019/20
At Kingfisher, we respect
This statement has been published in
accordance with the UK Modern Slavery Company overview
Act, which requires businesses to disclose
human rights and do the steps they are taking to tackle slavery,
servitude, forced labour and human trafficking
(together known as modern slavery).
Kingfisher plc is a home improvement
company with over 1,350 stores in nine
countries across Europe.
not tolerate any form of It sets out the steps taken by Kingfisher plc and
its UK operating companies, to prevent modern
We employ 77,000 people and
nearly six million customers shop in our
modern slavery. However, slavery in its own business and supply chain for
the financial year ending 31 January 2020.
stores and through our websites and
apps every week.
we recognise that no Our statement covers the six areas outlined
in the legislation and takes into account good
At Kingfisher, our purpose is to make home
improvement accessible to everyone.
supply chain is without
practice, including Home Office guidance.
77,000
risk of modern slavery Responding to COVID-19
The impact of the COVID-19 pandemic
Colleagues
and it is our responsibility did not directly affect the contents of
this statement which covers the time 1,350+
period 1 February 2019 – 31 January Stores
to ensure we understand 2020. However, the pandemic presents
9
a huge challenge to society, to business
these risks and work
and to all our colleagues, customers and
suppliers, and will have a dramatic impact
on demand and our supply chains. Countries
in partnership with our At the time of publication, we don’t yet
know the full scale of this impact, but 6 million
suppliers to identify and we remain committed to supporting our
communities, including our suppliers, and
governments to manage the COVID-19
Customers every week
mitigate them. pandemic, and to ensuring the ongoing
health and safety of all our colleagues £11.5 bn
and customers. Total sales3 Kingfisher Modern Slavery Act transparency statement 2019/20
Our stores
Our business
structure
and strategy
Kingfisher is a multiformat retailer.
Our retail businesses occupy
number one or two positions
in our core home improvement
Russia markets of the UK, France and
18
Poland with over 90% brand
awareness.
Russia Over the last four years, Kingfisher has
leveraged its collective buying and sourcing
scale and developed our own exclusive brands
to differentiate us from our competitors and
UK &
Ireland Poland drive sales and gross margin growth.
982 1 80
To serve customers effectively today, we
need to be digital and service orientated, while
leveraging our strong store assets. Under our
new strategic plan, Powered by Kingfisher, we will
utilise our core strengths and commercial assets,
and ‘power’ our distinct retail formats in order
to address the significant growth opportunities
France Romania that exist within the home improvement market,
221 2 35 returning the business to growth.
Portugal
3
Spain Turkey 3
28 92
1. B&Q UK & Ireland 296, Screwfix UK & Ireland 686.
2. Castorama 100, Brico Dépôt 121.
3. Turkey joint venture not consolidated.4 Kingfisher Modern Slavery Act transparency statement 2019/20
Our supply Goods for resale – supplier
production sites by continent (%)
chain
The products we sell are currently
sourced globally from around
3,250 suppliers that are listed on
our system in 61 countries and
there are around 2,970 known
production sites that supply us
with finished goods.
The map shows the percentage of production Eastern
sites by continent based on data disclosed to Europe region
us by suppliers via Sedex (the online supplier Western 19.85%
Americas region Europe region Asia Pacific
data exchange). 1.38% 35.99% region
Middle East region 37.27%
There are many more indirect suppliers in our 1.82%
extended supply chain, including suppliers of
raw materials and component parts used in
the products we sell and buy. Read more in
‘Assessing risks among materials suppliers’. Africa region
0.17%
We also source goods and services not for
resale (GNFR) with our 1,000 top suppliers
accounting for around 85% of GNFR spend.5 Kingfisher Modern Slavery Act transparency statement 2019/20
Our target
We aim to support human rights
in our supply chain and have one
We support a number of external initiatives that
aim to protect and promote human rights. We are
committed to playing our part in working towards
We are committed
target relevant to our work in this
area (see table).
the United Nations Sustainable Development
Goals (SDGs) and are a signatory to ‘Better
Retail, Better World’, the British Retail Consortium
to playing our part
(BRC) commitments on the goals. We are also a
member of the UN Global Compact and report in working towards
progress against its 10 principles annually in our
Responsible Business Report.
the United Nations
Sustainable Development
We believe it is important to report openly on
our approach and progress. Our Modern Slavery
Act Transparency Statement was ranked 16th in
Goals and are a signatory
the 2019 Global Governance FTSE 100 League
Table compiled by the non‑profit Development
International.
to ‘Better Retail, Better
World’, the British Retail
Target Progress in 2019/20
Ensure all suppliers 904, or 68%, of our high-risk production sites have had an
meet our ethical ethical audit in the past two years. 62% of our suppliers
and environmental
standards by 2020.
are currently registered on Sedex, the online supplier data
exchange (www.sedexglobal.com). Consortium commitments
To monitor progress,
we require high-risk
Unfortunately, this means that we are currently not on track
to meet our target. We are, however, continuing to focus our
on the goals.
production sites of efforts on auditing high-risk production sites, and we will
finished goods for resale review our approach in 2020/21.
to have an ethical audit
by 2020. We assess 230 GNFR suppliers completed an EcoVadis assessment.
our suppliers of GNFR These suppliers represent 42% of our spend with our top
using the EcoVadis 1,000 GNFR suppliers.
assessment.
See ‘Due diligence processes’ for further details.6 Kingfisher Modern Slavery Act transparency statement 2019/20
Company policies
Our policy framework addresses
human rights and modern slavery 1. Code of Conduct 2. Human Rights Policy 3. Supply Chain Workplace 4. Ethical Sourcing Policy
Standards
and is supported by training. Our Our Code of Conduct helps Sets out our commitment to Our Ethical Sourcing and
key policies and standards include: to promote a culture where respect human rights, in line Our Supply Chain Workplace Supplier Workplace Ethical
transparency, honesty and with international agreements Standards explain the ethical and Environmental Assurance
fairness are the norm. It sets and guidelines including: standards we require from (SWEEA) Policy sets out our
out our personal and shared the United Nations Guiding suppliers. These are aligned approach to ethical audits.
responsibilities for meeting high Principles on Business and with the Code used by Sedex The policy requires all high-risk
ethical standards. It states that Human Rights; the International in the Sedex Members Ethical production sites of finished
all employees have a duty to Bill of Human Rights (which Trade Audit (SMETA). This goods for resale to have an
report any potential breaches includes the Universal includes the Ethical Trading ethical audit by 2020.
of the Code. The Code includes Declaration of Human Rights); Initiative (ETI) Base Code and
a section on modern slavery and the UN Global Compact; additional elements agreed
states our commitment to human the International Labour by the Sedex Stakeholder
rights and ethical sourcing. Organisation’s Declaration on Forum. They prohibit slavery
Fundamental Principles and and child labour and set out our
Our Code forms part of the Rights at Work; the Children’s expectations in areas such as
contractual terms and conditions Rights and Business Principles health and safety, working hours
for all employees and is and UN conventions on the and wages, and freedom of
integrated into training (see page elimination of discrimination. association.
15). Our compliance network, It sets out our commitment
including a compliance officer in to implement due diligence Our ethical audits check
each operating company, helps procedures to avoid infringing supplier compliance with
us implement our Code. on the rights of others (see our Supply Chain Workplace
‘Due diligence processes’). Standards (see ‘Due diligence
Our internal audit function processes’).
monitors compliance among
businesses to the Code
requirements, using a risk-based
approach to plan their work. The
Audit Committee of the Board
of Directors receives regular
updates on the outcomes from
our internal audits.7 Kingfisher Modern Slavery Act transparency statement 2019/20
We review our policies annually and update
them where necessary. During 2020, our
a contract to supply goods for resale.
— Our Vendor Manual for our goods for resale
All reports to the hotline are reviewed and,
where necessary, investigated with the outcome Our Factory
policies relating to human rights and modern
slavery will be reviewed by Slave Free Alliance,
summarises the key requirements of our
policies and ethical audit requirements. It is
reported to the Audit Committee of the Board
of Directors. Handbook
a social enterprise and membership initiative
launched by anti-slavery charity, Hope for
usually shared with vendors when we request
a quotation. Many employees, including those in our quality, provides details
Justice, see page 8. Our policies have been — Our Factory Handbook for China, which buying and logistics teams, will visit supplier
approved by members of our Group Executive. provides details of our Supply Chain factories in the course of their work. We want of our Supply
You can read our policies at www.kingfisher. Workplace Standards and shows how these them to support our efforts to improve supply
com/sustainabilitypolicies should be applied in the factory reflecting chain standards by reporting any unsafe or Chain Workplace
local circumstances and regulatory unethical practices they encounter during
More information on our governance and
control framework is in our Annual Report and
requirements, is available in English and
Chinese and on our website. Over 300
these visits. We launched ‘CSR Watch’, an online
reporting tool to make it easy to report such
Standards and
Accounts, available at www.kingfisher.com/
investors/company-reports
printed copies of the Handbook have been
distributed to suppliers in the Far East. We
issues, for our employees in China and the Far
East. All reports are investigated by our ethical
shows how these
will publish Factory Handbooks for suppliers
in Vietnam and India during 2020 which also
sourcing team. We have provided training to
help our teams use the tool and understand
should be applied
Embedding our policies into
procurement
summarise key aspects of local labour law.
See www.kingfisher.com/en/sustainability/
the types of issues they might encounter.
in the factory,
We embed the requirements of our policies,
supplier-resources
— Training for our colleagues (see page 15)
There were no reports relating to modern
slavery made via our whistleblowing line or
reflecting local
Code of Conduct and Supply Chain Workplace
Standards into our procurement processes in a
and suppliers (see page 11). other reporting channels in the 2019/20
financial year.
circumstances
number of ways:
Whistleblowing We require suppliers to maintain a means by and regulatory
— Potential new suppliers are informed during
the tender process of our Code of Conduct, — Our whistleblowing policy and procedures
which workers can openly communicate and
share grievances with management, without requirements.
policies and ethical audit requirements, enable staff and suppliers to report any fear of reprisal, intimidation or harassment.
so they can take these into account when concerns, including about modern slavery This requirement is included in our Supply
quoting to provide products or services. and any other human rights violations. Chain Workplace Standards and our ethical
— Supplier contracts include clauses on audits check that suppliers have grievance
compliance with our Code of Conduct, Our independent and confidential mechanisms in place (see ‘Due diligence
policies and standards. Our buying offices whistleblowing hotline is available to all processes’).
review compliance with our ethical audit employees (intouchfeedback.co.uk/kingfisher)
requirements before any vendor is offered and suppliers (intouchfeedback.co.uk/kfsupplier).8 Kingfisher Modern Slavery Act transparency statement 2019/20
Risk assessment
We have an extensive global — Ethical risk matrix: Our ethical risk matrix Our salient human rights issues
uses data from Maplecroft to help identify Partnering with Slave Free Alliance
supply chain so we need to take
the high-risk product areas and countries We aim to identify and manage ‘salient’ human
a risk-based approach, focusing in our goods for resale (GFR) supply chain. rights issues. We know modern slavery is not an issue
on the highest-risk countries and We are currently focused on risks in our that any business can tackle alone, given
sectors for modern slavery and direct supply chain, particularly labour risks During 2020, we are working with a consulting the complexity of the issues involved,
human rights issues. We assess among suppliers of finished GFR. We are also partner to identify our salient human rights including aspects of organised crime.
developing approaches to reducing risks issues as defined by the UN Guiding Principles Collaboration with others in the retail
risk on an ongoing basis using: sector and beyond is therefore key to
in the wider supply chain including among Reporting Framework. These are the human
raw materials suppliers, see ‘Assessing risks rights at risk of the most severe negative raising awareness, sharing information
among materials suppliers’. impact through our activities. We are also on risks as well as good practice.
— Sedex: We also use Sedex to help us undertaking a review of our high-risk sectors.
assess risks in our GFR supply chain. Sedex We will report on this in our statement next year. To help strengthen our capabilities, we
provides two indications of risk for each have launched a new partnership with
production site – an inherent risk (based on Slave Free Alliance, a social enterprise
sector and country) and a self-assessment developed by anti-slavery charity Hope
risk (based on a site’s response to the Sedex for Justice. The Alliance works with
risk assessment questionnaire). victims, law enforcement agencies and
businesses to help bring about a slavery
We aim for all suppliers of GFR to be using the -free supply chain.
Sedex platform by the end of 2020. We are
not currently on track to meet our target, see During 2020, Slave Free Alliance will
page 5 for more detail. Around 2,000 suppliers, review our policies and implementation
incorporating 2,973 factory sites, have now procedures and make recommendations
joined the Sedex platform. This equates to for improvement. They will review our
around 62% of suppliers of GFR1. risk assessment process for the UK, and
also deliver training to our colleagues.
We use the results of our risk assessment with Our work with Slave Free Alliance is one
Stop the Traffik, an organisation dedicated of the steps we’re taking in response
to preventing modern slavery and human to modern slavery identified in our UK
trafficking, to help us prioritise risk areas in our supply chain. See ‘Responding to modern
GNFR supply chain. slavery in the UK’.
1. This is the percentage of suppliers that had joined the Sedex platform by the end of the Kingfisher financial year (31 January 2020). In order
to fully onboard suppliers onto Sedex, Kingfisher also requires that suppliers disclose and link Kingfisher to all production sites of finished
goods for resale (including direct and indirect sites) and work is in progress to achieve this.9 Kingfisher Modern Slavery Act transparency statement 2019/20
Goods and services not for resale audited one of our contractors in the UK and
found it to meet high standards with a low risk We are working
We are working with EcoVadis, a sustainability
ratings platform, to help us assess and
for human rights. We have a plan in place to
undertake further audits with other suppliers. with EcoVadis,
manage risk in our GNFR supply chain. Any
new suppliers are required to complete the a sustainability
EcoVadis questionnaire covering four themes Assessing risks among materials
– labour and human rights, environment, ethics, suppliers ratings platform, to
and sustainable procurement. Their responses
are reviewed by EcoVadis and a rating In some cases, we can help to influence help us assess and
provided highlighting strengths, weaknesses standards in our extended supply chain,
and risk areas. We have added the EcoVadis
assessment as a requirement in our tender
including among raw material suppliers. manage risk in our
process for new suppliers and set a minimum
score threshold which must be achieved within
For example, we require the wood and paper
used in our products to be responsibly
goods and services
a year of the assessment. sourced, meaning it is certified to schemes
such as FSC and PEFC or is certified recycled.
not for resale
We aim for our top 1,000 suppliers that
account for around 85% of our GNFR spend to
These certification schemes ensure wood is
from well-managed forests. Both schemes
supply chain.
complete the EcoVadis assessment by the end are also in the process of developing new
of 2021. 230 suppliers have done so to date1. requirements to increase protection for
The response rate among existing suppliers workers’ rights including strengthening their
was lower than anticipated and we are looking criteria relating to health, safety and labour
at how we can increase this. issues in the supply chain. More information is
included in our reporting, see www.kingfisher.
Our contracts with new GNFR suppliers in com/en/sustainability/about-our-reporting
high-risk categories now include a ‘right to
audit’ clause. We have asked some of our We use the results of a materiality assessment
suppliers to undergo a third-party ethical audit from 2017, which considered 25 raw materials
to help us better understand risks in our GNFR present in our products, to help focus our work
supply chain. Our findings show that the level on raw materials. This assessed their level
of risk can vary significantly from supplier to of risk for human rights and environmental
supplier and that not all suppliers in high-risk practices. We will update the assessment
categories will present a high risk. For example, during 2020 following our review of our salient
facilities management have been identified as human rights issues.
a potential high-risk area. However, we have
1. EcoVadis assessments are completed at a parent company level. Where we work with multiple subsidiaries of the same parent company,
we therefore use the same EcoVadis assessment. This means one assessment may cover more than one of our top 1,000 suppliers.10 Kingfisher Modern Slavery Act transparency statement 2019/20
Due diligence processes
for modern slavery
Our due diligence on modern Governance of modern slavery risks
Responding to modern slavery in the UK
slavery issues includes ethical
Our Modern Slavery Working Group meets
risk assessment, ethical audits, three times a year and brings together During 2019, we became aware that a labour Following this incident, we have begun our
supplier engagement, training and senior managers and ethical sourcing provider used by one of our suppliers partnership with the Slave Free Alliance
broader collaboration, including representatives from our group functions had been trafficking people in the West to strengthen our due diligence in the UK
with others in our sector and including procurement (both for GFR and Midlands area of the UK since 2015. The (see page 8). We are also sponsoring the
GNFR), logistics, property, human resources, labour provider also worked for suppliers Responsible Recruitment Toolkit from
expert partners. to several other major UK retailers. The allianceHR, a specialist trade organisation.
community, sustainability and legal and
compliance. The Working Group coordinates landmark case, known as Operation Fort, This provides a package of free training
implementation of our business-wide resulted in arrests and jail sentences for and support to help suppliers and their
modern slavery action plan covering due members of the people trafficking gang. labour providers to embed responsible
diligence, ethical audit, supplier and colleague recruitment practices. It provides good
engagement, and training, policy, and reporting. We were alerted by our supplier in June practice guidance based on global
2019 and immediately set up a steering standards and includes a self-assessment
In 2019, we further strengthened governance group to coordinate our response. We process to help suppliers monitor and
of modern slavery risks by establishing our carried out audits at the production sites improve progress among their labour
Modern Slavery Steering Committee made up of the supplier concerned; conducted a full providers.
of senior directors from risk, corporate affairs investigation; and collaborated with expert
and procurement of GFR. The Committee was organisations and other retailers to inform The Toolkit will initially be made available
formed after the high-profile Operation Fort our response. The police investigation to our suppliers of finished goods in the
case in the UK (see ‘Responding to modern established that our supplier was not UK, with a view to rolling this out to other
slavery in the UK’), to oversee the Modern complicit in the human rights abuses and sourcing regions, as well as GNFR suppliers,
Slavery Working Group’s response to this issue that the labour provider used had been at a later date. We also developed a protocol
and support required process improvements, infiltrated by a criminal gang. for handling incidents of modern slavery,
such as strengthening our due diligence to help us coordinate future responses
process for labour providers in our GFR supply Following this case, we have reviewed our effectively and consistently.
chain; further training for colleagues; and our approach to labour providers in our supply
partnership with the Slave Free Alliance which chain. Labour providers can help suppliers We met with the UK’s Independent Anti
supports businesses to tackle modern slavery, to plan and react efficiently to seasonal -Slavery Commissioner during 2020 to
but also supports victims to rebuild their lives. demand and production peaks and flows. discuss our response to this case.
However, poor recruitment, supply and
The Committee will now report to our management practices by labour providers
new Responsible Business Committee, a can leave their workers vulnerable to
sub-committee of our Board of Directors, human rights violations.
established in early 2020.11 Kingfisher Modern Slavery Act transparency statement 2019/20
Supplier ethical audits We require suppliers to act swiftly to address
non-conformances and to ensure the welfare Top five non-conformances by category
Our most significant human rights and of workers. We monitor the effectiveness of
modern slavery risks are in our supply chain. our audit programme by grading suppliers The majority of non-conformances relate to The number of non-conformances in
We continue to roll out our programme of and tracking the number and type of non- health and safety, which include fire safety the table are from ethical audits carried
ethical audits for high-risk production sites conformances that are found and remedied issues such as provision of fire extinguishers out in the past two years (2018/19 and
of finished GFR (see the ‘Risk assessment’ (see ‘Effectiveness of measures: supplier audit and number of fire exits. Other common non- 2019/20). The data covers production
section for details of how we identify risk). results’). 941 production sites have had an conformances include working hours, wages sites registered so far on Sedex.
Each production site identified as high-risk is ethical audit in the past two years. We aim for and benefits, and environmental factors.
required to have a SMETA or equivalent at least all high-risk production sites of finished GFR
once every two years. to be audited by 2020 and we are currently at Non-conformances Number of non-conformances
68% (904 sites).
The audit reviews suppliers’ performance and Health, safety and hygiene 6,192
identifies any instances of non-conformance We carry out spot checks on our suppliers and
Working hours 1,624
with our standards relating to labour standards carry out regular follow-up audits to ensure
and human rights, health and safety, business improvement within our suppliers’ factory base. Wages and benefits 1,358
ethics and environmental performance. Non- Environment 749
conformances are prioritised according to the
Sedex classifications of minor, major, critical, Supplier training Management systems 658
and business critical. Any instances of modern All other non-conformance categories 744
slavery or child labour would be classified as We are collaborating with suppliers to help
business critical – the most serious breach of build their knowledge and understanding of
our standards. human rights issues and how to address them.
Examples are included in the section
We set up a new tracker in 2019, to improve ‘In practice: supplier engagement’.
how we monitor suppliers identified as
having business critical non-conformances. In the UK, suppliers of finished goods and
Any factories with business critical non- their labour providers will be able to use
compliances are recorded as ‘open’ until we the Responsible Recruitment Toolkit, see
have third-party confirmation (via an ethical ‘Responding to modern slavery in the UK’.
audit) that these issues have been resolved,
and can be marked as ‘closed’. At the end of We have held two training sessions for GNFR
January 2020, we had three factories classified suppliers to raise awareness about the EcoVadis
as ‘open’. platform and answer supplier questions.12 Kingfisher Modern Slavery Act transparency statement 2019/20
External initiatives and partnerships
In practice: supplier engagement examples
We participate in several partnerships aimed
Excessive overtime Embedding our standards among Protecting migrant workers at improving standards across the retail sector.
sub‑contractors For example:
Excessive overtime remains a challenge Migrant workers are often vulnerable to
in China and is detrimental to the health Our tools and hardware suppliers often exploitation. In Malaysia, for example, many — We are a member of an EDRA (the European
and wellbeing of factory workers. We’re work with a large number of manufacturing migrants end up in bonded labour, working DIY Retail Association) Working Group, which
exploring how we can engage suppliers sub-contractors. We want to make sure that for months or even years to pay back debts aims to develop a collaborative approach
to address excessive overtime and raise these sub-contractors meet our responsible to recruitment agents. to responsible sourcing within the home
awareness of the business benefits of doing sourcing standards. improvement sector.
so, including improved productivity and During 2020, we will be working with the — We are members of the British Retail
reduced staff turnover. We are running a pilot project with our tools UN’s International Organisation for Migration Consortium (BRC) Working Group on
and hardware suppliers in China to develop on a project to help improve working Ethical Labour and Responsible Sourcing
During 2019, we worked with one of our our approach in this area. Suppliers have been conditions and protect the human rights and we are signatories to Better Retail,
garden furniture suppliers in China. An expert required to disclose the sub-contractors they of migrant workers in the Far East. This will Better World, a collaboration led by the BRC
consultancy benchmarked the factory’s work with and how they select, manage, audit include training suppliers on responsible aimed at supporting the UN SDGs in areas
current position, conducting site visits and and review sub-contractors. Where we find recruitment and use of recruitment agents. including modern slavery and decent work.
interviews with management and workers. that suppliers do not have a robust approach We will also be training our teams to engage — We helped establish the Indirect
This found that working hours are not to responsible sourcing, we are working suppliers on responsible recruitment. Procurement Human Rights Forum to
currently accurately recorded and that many with them to address this and put in place an promote collaboration with other businesses
workers are working excessive hours with action plan to meet our standards. and Sedex on ways to understand and
too few rest days. The study also identified a address risks associated with GNFR. For
number of process improvements that could example, it has developed a set of standards
be implemented to improve efficiency in for labour providers. We are one of 10 core
production, enabling the factory to increase members who meet on a quarterly basis.
output and quality while reducing working — We have launched a partnership with Slave
hours, without reducing compensation levels Free Alliance, a social enterprise developed
for workers. by anti-slavery charity Hope for Justice.
During 2020, Slave Free Alliance will review
During 2019, we held two training sessions our policies, implementation procedures
with factory managers and supervisors and risk assessment process for the UK, and
covering process improvements, worker deliver training to our colleagues.
incentives and attendance management, and
helped the factory develop an action plan.13 Kingfisher Modern Slavery Act transparency statement 2019/20
Effectiveness
of measures
We aim to drive up ethical was discontinued for business reasons.
standards in our supply chain One factory has submitted a corrective
action, which is pending a follow-up audit.
37
through our supplier engagement The remaining two factories are pending
production sites did not meet our minimum standards
and ethical audits (see ‘Due (i.e. they achieved a business critical grade) of these:
investigation and will require follow-up audits to
diligence processes’). ensure any business critical non-compliances
are resolved. 33 1 3
production sites production site was production sites
Performance indicators During 2019/20, ethical audits identified resolved the discontinued for submitted corrective
35 non‑conformances under the heading non-conformance business reasons actions and are pending
We monitor supplier progress and the ‘employment is freely chosen’. These included auditor approval
effectiveness of our ethical audit programme one case of employers illegally withholding
for production sites supplying GFR using a worker passports, see ‘In practice: audit
number of indicators. These include: examples’.
Supplier production sites – GFR
— percentage of suppliers and production sites by audit grade % 5.8%
on the Sedex platform (currently 62%) Grade 1
Audit grades – goods for resale 0.4%
— percentage of sites according to audit Business critical 4.2%
grades (see pie chart) We allocate grades based on the results of the Grade 2
— number of sites that failed to comply with most recent ethical audit that has been carried 2.8%
our minimum standards and the number of out in the past two years. Grade 3
these which have been remedied (see ‘Audit
results’ below) We use the Sedex audit grade classifications
— top non-conformances identified by to develop our own internal grading. The
category (see table). grades are based on the number of non-
conformances identified during the audit, see
pie chart:
Audit results: business critical grades
— grade 1 (no non-conformances);
During 1st February 2019 – 31st January 2020, — grade 2 (some observations);
our buying offices identified 37 production — grade 3 (minor non-conformances);
sites of finished GFR that did not comply with — grade 4 (1-3 major non-conformances); 56.0% 30.8%
Grade 5 Grade 4
our minimum standards (i.e. they achieved a — grade 5 (4 or more major non-conformances
business critical grade). or 1-3 critical non-conformances); and
— business critical (business critical
We were able to work with 33 of these sites to non‑conformances or 4 or more critical
resolve the non-conformances. One factory non-conformances). The chart shows the audit grades for the production sites that have had an audit in the past two years. It includes the
results from the latest full audit at each site. It therefore does not reflect any corrective actions taken or results from
follow up audits.14 Kingfisher Modern Slavery Act transparency statement 2019/20
A minor non-conformance represents an and work with suppliers to improve factory
occasional or isolated incident, which represents performance grades over time. In practice: addressing business critical issues
low risk to workers. A major non‑conformance
represents, for example, a material breach of Withholding passports Child labour
local law which represents a danger to workers, EcoVadis scores – GNFR
whereas a business critical failing represents the During 2019, we identified two cases of Auditors identified two cases of child labour
highest level of breach and requires immediate 230 GNFR suppliers completed an EcoVadis employers withholding the passports of in an electronics factory in China. The
action. It includes non‑conformances which assessment. These suppliers represent migrant workers. The production sites were children were removed from the factory and
present imminent risk to workers’ safety or 42% of our spend with our top 1,000 GNFR located in Malaysia and Taiwan. We worked we implemented our standard operating
constitute a significant breach of workers’ suppliers. The suppliers achieved an average with these suppliers to ensure that clear procedure. This included: contacting the
human rights. score of 55 out of 100. A score of 55 equated processes are in place to safeguard worker parents of the children to make sure they
to a silver rating1. rights, and regular re-audits are in place to were involved in the remediation plan;
Over time, we aim for our suppliers to improve continually monitor their performance. medical checks to confirm the children
performance and require suppliers with low had not been injured while working at the
grades (5 and business critical) to have an In Malaysia, it was identified during an factory; and helping the children to return to
annual re-audit. Other suppliers are re-audited audit visit that a glove-making factory education. The factory assisted one of the
within two years. was holding passports for safekeeping children to find a place at a technical school
with a signed consent letter from workers. and is in the process of securing a place
We follow-up with suppliers to ensure the most Following our discussions with the factory, for the second child. We worked with the
serious issues are remediated. As a last resort, they returned passports to workers. This factory to improve its human resources and
we cease to trade with factories if they don’t was verified through a follow-up audit which recruitment processes to ensure underage
work with us to address business critical issues. included worker interviews and the factory workers are not hired in future. Visits by our
received a grade 5. responsible sourcing team and a follow-up
The chart shows the audit grades for the audit confirmed no further cases.
production sites that have had an audit in the In Taiwan, passports were held by a labour
past two years. It includes the results from the provider. These were returned to workers Another factory, also in China, was found
latest full audit at each site. and this was verified through an audit and to be using an underage worker (aged 15)
worker interviews. A follow-up audit found on a temporary contract during the school
It therefore does not reflect any corrective the factory had addressed all business holidays. The child was removed from the
actions taken or results from follow-up audits. critical issues and received a grade 4. factory and received medical checks. The
child returned to her hometown to continue
We work with sites graded as business critical with her schooling. A follow-up audit
to resolve the issues (see ‘Audit results’). confirmed that the factory has strengthened
During 2020, we plan to review how we monitor its HR procedures for hiring temporary staff.
1. The EcoVadis overall score (0-100) reflects the quality of the company’s CSR management system at the time of the assessment. The
EcoVadis CSR recognition levels are based upon the percentile ranking of your company’s EcoVadis score. Silver represents the top
25% of companies. EcoVadis updated their scoring system in January 2020 and this means our results from 2019/20 will not be directly
comparable with those in 2020/21.15 Kingfisher Modern Slavery Act transparency statement 2019/20
Employee Future plans Transparency Entities covered
training and Statement by this statement
awareness approval
Employees complete an Through our Modern Slavery This Transparency Statement was This statement covers Kingfisher plc and all
approved in May 2020 by the Boards of its subsidiary undertakings. This includes the
e-learning module on modern Working Group, we will continue
Directors of Kingfisher plc, B&Q Limited, following UK subsidiaries with a turnover of
slavery as part of our Code of to identify risks and implement B&Q Properties Limited, Kingfisher £36 million or above:
Conduct training. Over 40,000 due diligence to help tackle Information Technology Services (UK)
employees completed this modern slavery. Over the next two Limited, Kingfisher International Products — B&Q Limited
training in 2019/20. years, our key priorities are to: Limited, and Screwfix Direct Limited. — B&Q Properties Limited
— Kingfisher International Products Limited
— on board all suppliers and production sites It is signed by the Kingfisher Chief — Kingfisher Information Technology Services
Training our buying teams of finished GFR on to the Sedex platform; Executive Officer who is also a member (UK) Limited
— roll out ethical audits to all our high-risk of the Board of Directors. — Screwfix Direct Limited
We run regular training sessions to build production sites of finished GFR;
awareness of modern slavery and ethical — strengthen our UK due diligence processes, Thierry Garnier
sourcing risks among key employees, including training for colleagues, through Chief Executive Officer
including those responsible for overseeing our partnership with Slave Free Alliance;
our modern slavery due diligence and buyers — roll out training and tools on modern slavery
of products and services. to our colleagues in our sourcing regions;
— roll out the Responsible Recruitment
Our buying offices carry out training for Toolkit to suppliers in the UK with a
appropriate employees on ethical sourcing, view to rolling this out to other sourcing
which includes modern slavery. In 2019, regions, as well as GNFR suppliers, at a
buyers and quality assurers in our Middle later date;
East and Romanian buying offices were — conduct a review of our salient human
trained on responsible sourcing and our audit rights issues and high-risk sectors;
programme and learnt how to identify good — continue to roll out EcoVadis assessments
and poor practices during factory visits. to GNFR suppliers and support low-scoring
suppliers to improve;
We will be conducting training during 2020 — establish a new Responsible Sourcing
through our partnership with Slave Free Alliance. Steering Group made up of senior
directors to provide strategic oversight of
all issues relating to responsible sourcing
GNFR training across the business.
We held four training sessions for our GNFR
buyers to introduce them to the EcoVadis
platform so they can encourage their suppliers
to participate. The sessions were attended by
90% of our GNFR buyers.You can also read
