Ethical sourcing overview
We acknowledge that protecting human rights in supply chains is a global issue and we understand the important role we have in safeguarding human rights within our complex supply chains.
We are committed to protecting and upholding fundamental human rights as set out in the Universal Declaration of Human Rights. We do so by conducting our business with due care, acting in accordance with relevant laws and regulations, and creating a culture of respect and inclusivity.
While our approach to ethical sourcing continues to evolve, we remain committed to working with our stakeholders to identify, understand and remedy negative human rights impacts across our business.
In February 2020, we launched an updated
Human Rights Strategy
of which a key component is our Ethical Sourcing Program.
Our Ethical Sourcing Program commenced in 2005 and has continued to evolve.
Ethical Sourcing Program
Our Ethical Sourcing Program is aimed at ensuring suppliers within our supply chains conduct business with integrity, and that they uphold, protect and respect the human and labour rights of their workers, and provide a safe and healthy workplace.
Our expectations of suppliers are detailed in our
Ethical Sourcing Policy
and
Ethical Sourcing Supplier Requirements, which draw on international standards and best practice guidance. These include the Ethical Trade Initiative (ETI) base code and the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work. Suppliers agree to adhere to our Ethical Sourcing Policy as part of their supply contract with us.
Our Ethical Sourcing Policy outlines our commitment to ensuring the goods and services we procure are ethically and responsibly sourced. Our Ethical Sourcing Supplier Requirements contain more comprehensive information in areas such as labour rights, safe working conditions, environment and business integrity. Suppliers are notified of changes to our Policy and Requirements through our supplier portals.
We take a risk-based approach to managing our suppliers within our Ethical Sourcing Program. Suppliers undergo a risk assessment which informs how we manage and monitor their compliance with our Program. It allows us to focus our resources where there is a greater risk of labour or human rights violations, and where we have leverage to facilitate change in our supply chain.
This means that, while every one of our suppliers is subject to our Ethical Sourcing Policy and Requirements, we will have different requirements for each supplier depending on their risk, as determined by us.
Selected suppliers (including suppliers within our extended supply chain) are required to provide information on a regular basis about ethical sourcing performance, through an online supplier portal such as the Supplier Ethical Data Exchange (SEDEX) or Fair Farms. They may:
- Undertake a desktop or on-site audit, administered by us;
- Undertake a desktop or on-site audit, administered by an independent third party, at the supplier’s expense, to monitor compliance with our policy and requirements;
- Participate in training and development programs.
The Policy and Requirements are reviewed annually in consultation with stakeholders to align with changes in regulations and reflect best practice.
While it is impractical for us to monitor compliance for every supplier within our extended supply chains, it is our expectation that our direct suppliers will cascade these or similar requirements to their own suppliers.
Local languages
With suppliers operating in more than 40 countries, our Ethical Sourcing Policy and Supplier Requirements are available in English, Mandarin and Vietnamese, with other translations planned.
Our Wages and Conditions Hotline, available to workers within our supply chains, is available in Korean, Chinese, Malay, Spanish, French, Vietnamese, Tongan, Samoan, Bislama and Tetum.
These translations are available
here.
Our supply chain
Our supply chain is complex, comprising thousands of suppliers and workers who contribute to producing the goods and services we use and sell.
We take a risk-based approach to managing our supply chain, focusing our resources on areas with a greater likelihood of labour and human rights issues and where Coles has leverage to affect change.
All Coles Supermarkets and Coles Express suppliers of Own Brand products and fresh produce, including indirect suppliers who contribute to packing/manufacturing product to its final retail form, are required to participate in our program.
Our Program is being expanded to include suppliers of Own Brand liquor, suppliers of liquor exclusive to Coles and selected suppliers of goods-not-for-resale. Further suppliers within our supply chain will be included as our program progresses.
Ethical sourcing program scope FY211
Business Unit |
Category |
Production Tier |
Justification |
Supermarkets & Express |
Own Brand |
Direct Vendors (Tier 1)
Packing / Manufacturing to Final Retail Form (Tier 2) |
Leverage: brand ownership
Inherent exposure: manufacturing operations are largely in medium risk countries |
|
Fresh Produce (unprocessed fruit, vegetables and flowers) – including those bearing a proprietary brand label |
Direct Vendors (Tier 1)
Packing / Manufacturing to Final Retail Form (Tier 2) |
Leverage: high level of association with the Coles Brand
Inherent exposure: labour hire structure, increased risk of forced labour due to high use of migrant labour, product and country risk. |
Liquor (commencing Q3 FY20) |
Own Brand, Export |
Direct Vendors (Tier 1)
Bottling Sites (Tier 2) |
Leverage: brand ownership
Inherent exposure: manufacturing operations are largely in medium risk countries. |
|
Exclusive |
Direct Vendors (Tier 1) |
Leverage: exclusivity
Inherent exposure: manufacturing operations are largely in medium risk countries. |
Goods-not-For Resale (GNFR)
(commencing Q3 FY20) |
Suppliers of high-risk services / goods
Suppliers with operations in high risk Countries |
Direct Vendors (Tier 1)
Sub-contractors (Tier 2) - selected circumstances |
Leverage: ownership of commercial relationship
Inherent exposure: high risk activities and/or Countries. |
1 Leverage refers Coles’ ability to influence change where required and is determined by factors such as ownership, spend, length of relationship and exclusivity.
Own Brand
Coles Own Brand is the portfolio of food, drink and non-food product brands owned by Coles. The following table illustrates the countries from which we source Own Brand products, by product type.
Download Coles Own Brand sourcing
Coles Own Brand sourcing (Data as at 8 January 2021)
Apparel suppliers
In selected Coles supermarkets, we sell our Own Brand apparel range – Mix. We work with apparel suppliers to build strong relationships throughout the supply chain and monitor performance against our Ethical Sourcing Policy and Ethical Sourcing Requirements. The names and locations of the factories producing the Mix clothing range are available
here
.
Our commitments
Coles is a signatory to the United Nations Global Compact (UNGC) and a member of the UNGC Network Australia’s Modern Slavery Community of Practice. We are committed to the UNGC’s 10 Principles and the UN Women’s Empowerment Principles.
In 2015, Coles signed the Australian Business Pledge Against Forced Labour, an industry-led initiative to end forced labour.