About this question 

Measuring employee satisfaction through surveys, focus groups, and other tools demonstrates that employees are recognized as key stakeholders and enables companies to identify opportunities for improvement. This question evaluates whether a formal process exists for employees to regularly provide feedback to management on satisfaction and engagement.

By systematically measuring employee satisfaction and collecting feedback on the effectiveness of employment practices, a company acknowledges the critical role of its workforce. This enables the organization to identify areas requiring improvement, set meaningful and appropriate targets, assess the effectiveness of improvement actions, and gather lessons learned to inform future initiatives. Employee engagement is a strategic business priority, as satisfied and engaged employees contribute to long-term employee retention, enhanced performance, improved work quality, and overall organizational success.

Companies should also describe efforts to gain insights into the perspectives of individuals within their workforce who may be particularly vulnerable to impacts or marginalized (e.g., women, migrants, people with disabilities).

• Answer yes if you can provide evidence that your company has a formal process in place to gather feedback from employees
• Answer no if you cannot provide evidence of how the company gathers this feedback, or if there is no process of gathering feedback from employees in your company

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MQ

Evidence

Either

• Partnership agreements with third parties (e.g., employee engagement consultancy, research organization, NGO, trade union) engaged to gather data on employee satisfaction

and

• Evidence of the consistent use of employee satisfaction in the monitoring strategy, demonstrating all the mechanisms used for gathering data, such as surveys, focus groups, or feedback tools. This should include:
  • Whether engagement occurs with the company’s own workforce or with employees’ representatives that have insight into their situation
  • The stage(s) at which engagement occurs, the type of engagement, and the frequency of the engagement

and

• Where applicable, a Global Framework Agreement or other agreements that the company has with employees’ representatives related to respecting the human rights of its own workforce. This should include an explanation of how the agreement enables the company to gain insights into the perspectives of its own workforce

and

• Evidence that there is a process in place to measure the effectiveness of workforce engagement across the company, including how the effectiveness of its engagement with value chain workers is assessed

and

• Internal documents describing the process and outcomes of consultation, with evidence of oversight by senior leadership. The process documentation should include the information set out in the guidance to this question.

Optional supplementary evidence:

• Screenshots of documents or other materials demonstrating examples of employee feedback mechanisms (e.g., focus group feedback)

Topic areas

Employee voice and representation

About this question 

A pay gap is calculated by comparing the median pay rate of one group against another across an organization. Calculating pay gaps helps identify areas of inequality. Some pay gap reporting is required by law in some regions.

This question asks all companies, irrespective of jurisdiction, whether they routinely measure pay gaps. An example of pay gap measurement could be between the median pay of men and women (gender pay gap).

• Answer yes if you can provide evidence that your company has a formal process in place to measure and report on one or more ‘pay gaps’ (internal reporting is acceptable for this question)
• Answer no if this calculation is not carried out in your company

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mg

Evidence

Provide

• Links to published reports of pay gaps calculated (e.g., Annual Report, HR report, ESG report)

or

• Internal reports with evidence of board oversight (e.g., board minutes)

and

• Screenshots of internal systems and/or reports, documents, and spreadsheets demonstrating:
  • The characteristics by which pay gap data is collected and analyzed
  • The methodology used for the calculations
  • Contextual information to support the analysis of the data, including any adjustments made to reflect purchasing power in different countries.

Topic areas

Wages and benefits, diversity, equity and inclusion

About this question 

A pay gap is calculated by comparing the median pay rate of one group against another across an organization. Calculating pay gaps helps identify areas of inequality. Some pay gap reporting is required by law in some regions (e.g., gender pay gap reporting).

This question gives the opportunity to demonstrate leading practice if your company identifies pay gaps above and beyond those required by law. For some companies this could be by calculating one area when none is required in your company’s region. For other companies, this will mean calculating more broadly and including characteristics that are not required by law (e.g., calculating a disability pay gap in addition to a statutory gender pay gap report).

• Select one or more of the listed characteristics where you can provide evidence that your company has a formal process in place to measure a ‘pay gaps’ beyond what is required by the law (internal reporting is acceptable in this question)
• Select none if no pay gaps are calculated by your company, or if your company only calculates what is required by law

Answer options: Age, Disability, Ethnicity, Gender, Gender identity, National origin, Sexual orientation.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mw

Evidence

Either

• Link to published report or update setting out pay gap analysis for each Characteristic (e.g., Gender/Other characteristic pay gap report, ESG report, Annual Report and Accounts, progress update on corporate website, DEI report).

or

• Internal reports with evidence of board oversight (e.g board minutes)

and

• Screenshots of internal systems and/or reports, documents and spreadsheets demonstrating
  • the characteristics by which pay gap data is collected an analysed
  • the methodology used for the calculations
  • contextual information to support analysis of the data including any adjustments made to reflect purchasing power in different countries

Topic areas

Wages and benefits, diversity, equity and inclusion

About this question 

A living wage is defined as the income necessary for a worker to meet their basic needs and those of their family, including housing, food, healthcare, and education, in a specific location. This often exceeds the minimum wage requirements set by law. Addressing this complexity, this question probes whether your company employs a method to verify that wages surpass the legal minimum wage benchmarks.

To bridge the gap between current wages, minimum wages, and living wages, companies must utilize credible living wage benchmarks tailored to each operational region. This inquiry seeks to understand if your company adopts a location-specific living wage calculation methodology, endorsed or validated by reputable, locally representative organizations. An illustrative example is the adoption of the Anker Methodology, which involves stakeholder engagement for validating living wage estimates transparently.

• Answer yes if you can demonstrate that your company assesses pay rates (including those of temporary workers) against a recognized methodology to ensure the payment of a living wage.
• Answer partial yes if you can show that your company has applied a recognized living wage methodology on a restricted basis, such as in a single geographic area.
• Answer no if your company has not engaged a recognized methodology to ascertain living wage compliance, relies solely on legal minimum wage standards, or does not ensure a living wage for its workforce.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_NA

Evidence

Either

• A link to a published report or update (e.g., ESG Report, Annual Report and Accounts) setting out the company’s commitment to paying living wages, including the methodology and benchmark used to calculate the living wage.

And the following data:

• The percentage of both employees and non-employees (e.g., agency workers) covered by the living wage commitment
• The percentage of employees and non-employees paid in line with the living wage benchmark selected
• Any countries where employees or non-employees are paid below the living wage benchmark selected

or

• Internal documentation indicating the scope of employees covered by the commitment to living wages and the methodology used to calculate the living wage (e.g., HR reports, Board papers, trade union correspondence)

And the following data, with evidence of board oversight:

• The percentage of both employees and non-employees (e.g., agency workers) covered by the living wage commitment (e.g., region, role type)
• The percentage of employees and non-employees paid in line with the living wage benchmark selected
• Any countries where employees or non-employees are paid below the living wage benchmark selected

Evidence of oversight by senior leadership:

• E.g., ESG Committee minutes, HR/Reward Director report, Board papers

Optional supplementary evidence:

• Formal accreditation as a Living Wage  employer fro m an established NGO or other third-party body, setting out the scope and methodology of the living wage commitment (e.g., Living Wage Foundation)
• Screenshots of the modelling system used to calculate living wages in different regions
• Guidelines on how the living wage methodology is used

Topic areas

Wages and benefits

About this question 

The development of skills requires a training program that is fair, equitable, and accessible, and recognizes diverse learning needs and styles. Everyone’s performance is critical in building and maintaining a high-performing organization. Planning learning and development (L&D) involves understanding the required performance and identifying skill needs at the organizational, group, and individual levels. L&D opportunities empower individuals to progress in their careers, making it essential to ensure equal access to these opportunities, which supports progress in diversity, equity, and inclusion (DEI).

Employees are entitled to expect that L&D will be delivered in a fair and equitable manner, ensuring that progression opportunities are not limited to specific groups. This question evaluates whether your company has a transparent assessment process and a strategic approach to L&D that is inclusive of all employees. A robust L&D strategy should include monitoring performance management, training, and skills development opportunties across the organization, segmented by employee group (e.g., all employees and non-employees) and by gender.

• Answer yes if you can provide evidence of a systematic and strategic approach to learning and development
• Answer partial yes if only selected parts of your organization are covered by your company’s learning and development approach (e.g., head office only)
• Answer no if training, learning and development activities are carried out on an ad hoc basis, or if there is no learning and development strategy or policy, or if no training, learning or development took place

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_NQ

Evidence

Either

• Link to published learning and development strategy including evidence that a fair and equitable approach is taken to providing learning and development opportunities

or

• Internal learning and development strategy and implementation documentation

and

• Evidence of oversight by board/senior leadership (e.g., HR Director endorsement, Board papers)

and:

• A training tracker or table recording employee performance reviews, career development reviews, and learning and development activities by gender
• A calculation of average hours of training per employee by gender
• A breakdown of average hours of training per employee group (groups could include leadership, middle management, function-specific roles, non-employees such as agency workers or freelance staff)

Optional supplementary evidence:

• Examples/screenshots from internal communications setting out your company’s inclusive and equitable learning and development offer

Topic areas

Diversity, equity and inclusion, learning and development

About this question 

Targets and indicators are essential for establishing and maintaining effective practices across a company. This question evaluates whether strategic huma resources approaches are in place to address specific employment-related risks and opportunities. To ensure effective progress, targets should be specific, measurable, achievable, realistic and time-bound (SMART). Targets should be approved by senior management, with relevant employees held accountable for monitoring and achieving key performance indicators (KPIs). Maintaining stability in targets over time is advised to enable consistent assessment of progress.

When setting these targets, companies should clearly define the outcomes they aim to achieve for their workforce.

• Select one or more of the areas of employment practice where you can provide evidence that your company has set formal targets to improve its standards or performance
• Select none if there are no formal targets in place related to the employment standards listed

Answer options: Regular work and employment stability, Diversity, Equity, Inclusion, Employee satisfaction & engagement, Employee retention, Employee voice/representation, Learning and development, Equal opportunity in recruitment, Equal opportunity in career development, Health and safety, Employee wellbeing.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Ng

Evidence

Either

• Link to published targets (e.g., ESG strategy or report, HR strategy or report, Diversity, Equity and Inclusion Report, progress report on corporate website, Health and Safety report, Annual Report and Accounts)

or

• Internal strategy or program documentation indicating targets set in an appropriate format

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, HR Director report, Board papers)

Topic areas

Employment standards, wages and benefits, diversity, equity and inclusion, learning and development, career development, health, safety and wellbeing, employee voice and representation

About this question 

Targets and indicators are critical as they establish and maintain effective practices throughout a company. This question asks if a strategic approach is in place to identify and address pay gaps amongst employees against one or more characteristics (e.g., gender, race, age).

To drive effective progress, targets should be specific, measurable, achievable, realistic and time bound. Targets should be approved by the company’s senior management, and relevant employees should be accountable for the monitoring and achievement of KPIs.

• Answer yes if you can provide evidence that your company has formal targets in place to strategically address pay gaps identified across its business for one or more characteristics
• Answer partial yes if you can provide evidence that your company has a target or targets to address one or more pay gaps in a limited section of the business (e.g., in one department or site only)
• Answer no if there are no formal targets in place to address pay gaps identified, or if no pay gaps have been identified

Calculating pay gaps is a means to identify areas of inequality amongst the workforce. See SEM02 and SEM03 for guidance on how to calculate a pay gap.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Nw

Evidence

Either

• Link to published targets (e.g., ESG strategy or report, Pay Gap reports, HR strategy or report, Diversity, Equity and Inclusion Report, pay gap information on corporate website

or

• Internal HR, Reward or pay and benefits strategy or documentation indicating corporate pay gap reduction targets

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, HR Director report, Board papers)

Topic areas

Wages and benefits, diversity, equity and inclusion

About this question 

Employment standards are essential to regulate the relationship between a company and its employees, ensuring safe, fair, and decent work, as well as compliance with the law. However, policies and procedures can become ineffective or inappropriate over time due to various factors, such as legal changes, technological developments (including the use of artificial intelligence tools), emerging work practices like remote working, internal cultural shifts, geographical expansion, efforts to enhance the employee experience, or a drive to adopt best practices.

To address these challenges, it is crucial to regularly review employment standards to identify areas of non-compliance or opportunities for improvement. This question evaluates whether your company has systems in place to ensure that its employment (human resources) standards are updated, compliant, and fit for purpose. Examples of such systems include regular audits, reporting by qualified human resources professionals, input from external advisors, review by a board committee, or benchmarking processes.

• Answer yes if you can provide evidence that your company has a formal process in place to ensure its employment standards remain compliant and support decent work in all relevant jurisdictions
• Answer partial yes if you can provide evidence that your company has a formal process in place to ensure its employment standards remain compliant and support decent work in some of the regions where it has operations
• Answer no if your company has no documented process in place to ensure employment standards are compliant with the law

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_OA

Evidence

Either

• Link to published corporate governance policy or procedure that describes how employment standards are maintained (e.g., responsible persons, timeframes, process etc…). May be found in annual report, corporate governance section of website

or

• Employee handbook/standard contractual terms describing employment standards (including date of publication)

and

• Policy or process documentation indicating how your company updates its employment standards and employee handbook in line with changing regulation and other external requirements

and

• Evidence of oversight by board/senior leadership (e.g., role description of responsible person HR Director, senior director or legal advisor that includes ensuring employment standards are maintained in all territories)

Topic areas

Employment standards

About this question 

Compliance with key employment policies ensures effective and consistent practices across the organization. This question evaluates whether strategic human resources initiatives are in place to meet your company’s targets regarding critical employment standards and practices and to address human rights risks associated with your workforce.

Companies should be able to disclose data on employee entitlement versus actual take-up rates of work-life balance policies, broken down by % gender split. This includes policies related to parental leave, dependents leave, and flexible working arrangements.

• Select one or more employment areas for which you can provide evidence that your company has implemented a strategic plan, initiative or program to achieve its targets
• Select none if your company has not implemented a strategic plan or program for any of these employment related areas

Answer options: Pay, Working hours, Provision of written statement of terms of employment, Annual leave (holiday), Paid leave for sickness/injury, Parental leave (maternity, paternity, adoption,fostering, other) and return to work, Dependents’ (parental, carers, family) leave, Flexible working, Redundancy protections (including transfer of undertaking), Retirement, Grievance, disciplinary and dismissal procedures, A safe and healthy work environment, Protection for part-time, fixed-term and temporary workers, Protection for young workers, Protection from bullying and harrassment, Protection from discrimination.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_OQ

Evidence

Either

• Links to published HR documentation, policies, or corporate governance routines or reports, indicating the process by which your company ensures its employment standards are compliant (e.g., internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with a third-party audit company, report by a third-party audit company)

and

• Data on entitlement vs. take-up of work-life balance-related policies by gender (e.g., parental leave, dependents leave, flexible working)

or

• Internal HR or Corporate Governance documents and processes that indicate how your company ensures its employment standards are compliant (e.g., responsible person’s role description, annual review, internal audit processes)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with a third-party audit company, report by a third-party audit company)

Topic areas

Employment standards

About this question 

This question evaluates whether strategic human resources initiatives are in place to achieve your company’s targets across critical employment-related topics. It provides an opportunity to report on:

1. Actions undertaken to prevent, address, or remediate employment-related risks, and
2. Strategic plans or programs aimed at creating a positive or beneficial impact on employees.

Companies should ensure that their strategic initiatives include clear procedures to avoid discrimiantion and actively advance diversity and inclusion.

• Select one or more topic areas for which you can provide evidence that your company has implemented a strategic plan, initiative or program to achieve its targets
• Select none if your company has not implemented a plan or program for any of these topic areas

Each of the topic areas in the dropdown list is defined in the Glossary.

Answer options: Regular work and employment stability, Diversity, Equity, Inclusion, Employee satisfaction & engagement, Employee retention, Employee voice/representation, Learning and development, Equal opportunity in recruitment, Equal opportunity in career development, Health and safety, Employee wellbeing.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTA

Evidence

Either

• Links to published HR documentation, policies, or corporate governance routines or reports, indicating the process by which your company ensures its employment standards are compliant (e.g., internal audit, annual review, responsible persons)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with third-party audit company, report by third-party audit company)

or

• Internal HR or Corporate Governance documents and processes that indicate how your company ensures its employment standards are compliant (e.g., responsible person’s role description, annual review, internal audit processes)

and

• Evidence of oversight by board/senior leadership (e.g., HR Director’s report to the board, board papers and minutes, contract with third-party audit company, report by third-party audit company)

Topic areas

Employment standards, wages and benefits, diversity, equity and inclusion, learning and development , career development, health, safety and wellbeing, employee voice and representation, transparency

About this question 

Measuring strategic employment topics and outcomes is a critical element of a company’s human rights and social risk approach. This question seeks evidence of your company’s ability to monitor progress and achieve targets related to strategic employment topics, aimed at mitigating risks or creating positive impacts for employees during the reporting year.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTE

Evidence

Either

• A link to a published report or update demonstrating targets and milestones related to employment standards, and your company’s progress against them for the reporting period (e.g., HR report, Annual Report and Accounts, progress update on the corporate website)

or

• An internal progress report demonstrating targets and milestones related to employment standards, and your company’s progress against them for the reporting period

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard,’ HR Director report to the board)

or

• A report on your company’s progress from a third-party assessment framework, assurance organization, NGO, or benchmarking organization

• Evidence of oversight by senior management (e.g., Board ESG Committee papers, HR Director report to the board)

Topic areas

Employment standards

About this question 

Developing proactive programs to reduce pay gaps helps diminish areas of inequality.

This question asks if your company is taking proactive steps to reduce or eliminate structural pay inequalities as measured by pay gap calculations.

• Select one or more characteristics for which your company has implemented a plan or program to reduce pay inequality (as measured by calculating pay gap ratios)
• Select none if your company has not implemented a plan or program to address pay inequality for any of the listed characteristics

Answer options: Age, Disability, Ethnicity, Gender, Gender identity, National origin, Sexual orientation.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTI

Evidence

Either

• Link to published HR, Reward or DEI strategy, indicating specific, pro-active programs in place to reduce pay gaps for each of the selected characteristics

or

• Internal HR, Reward or DEI strategy or implementation program documentation indicating specific, pro-active programs in place to reduce pay gaps for each of the selected characteristics

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, HR Director validation, Board papers)

Optional supplementary evidence:

• Examples of specific initiatives in place to reduce pay gaps for specific characteristics (e.g., board sponsorship program for women leaders)

Topic areas

Wages and benefits, diversity, equity and inclusion

About this question 

Developing proactive programs to reduce pay gaps helps diminish areas of inequality.

This question asks for evidence that your company is monitoring its progress on improving gender and other pay gaps and achieved its stated goals during the reporting year.

• Answer yes if you can provide evidence that 100% of your company annual milestone targets have been fully met
• Answer partial yes if you can provide evidence that at least 50% of your company annual milestone targets have been fully met
• Answer no if less than 50% of your company annual milestone targets have been fully met

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTM

Evidence

Either

• Link to published report or update demonstrating targets and milestones related to pay gaps, and your company’s progress against them for the reporting period (e.g., Pay Gap reports, ESG report, Annual Report and Accounts, progress update on corporate website, DEI report)

or

• Internal progress report demonstrating targets and milestones for the pay gaps selected, and your company’s progress against them for the reporting period and
• Evidence of oversight by senior management (e.g., Board ESG Committee papers, ESG ‘Dashboard’, HR Director report to board)

or

• Report on your company’s progress from a third-party assessment framework, NGO or benchmarking organization

Topic areas

Wages and benefits, diversity, equity and inclusion

About this question 

Proactive diversity recruitment programs are considered a critical area of diversity and inclusion. This question asks for a program that demonstrates a systematic approach to addressing equal opportunity in recruitment practices.

Programs of this nature may include measuring and analyzing applicant data for diversity characteristics, training and other interventions to eliminate bias, engagement with stakeholders from under-represented communities to identify and remove barriers to application, proactive advertising strategies to attract specific groups, taking steps to reduce bias in interviewing (such as training, and ensuring diverse panels), as well as taking steps to facilitate the effective onboarding and retention of new recruits.

• Answer yes if you can provide evidence that your company has a proactive strategy in place to attract diverse talent
• Answer no if there is no proactive diversity recruitment program in place

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTQ

Evidence

Either

• Links to published HR/People strategy, DEI strategy, recruitment strategy indicating steps taken to increase the diversity of your company’s workforce by attracting diverse talent.

or

• Internal recruitment strategy or implementation program documentation (plans, processes, guidance, reports)

and

• Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, Board papers)

Optional supplementary evidence:

• Training materials for recruiting managers, examples of inclusive recruitment campaigns, partnership agreements with NGOs or other expert advisors supporting your company’s proactive work to attract diverse talent (e.g., partnership with a disability charity)

Topic areas

Diversity, equity and inclusion

About this question 

Reporting publicly on your company’s progress on achieving targets in key strategic employment areas is an indicator of commitment, transparency and good practice. This question asks you to confirm your company’s approach across different employee factors.

• Select one or more employment related topics for which you can provide evidence that your company has reported publicly on its targets and progress
• Select none if you are unable to provide evidence of public reporting, or if there are no employment targets and/or progress to report on

Each of the topic areas in the dropdown list is defined in the Glossary.

Answer options: Regular work and employment stability, Diversity, Equity, Inclusion, Employee satisfaction & engagement, Employee retention, Employee voice/representation, Learning and development, Career/talent development, Equal opportunity in recruitment, Equal opportunity in career development, Health and safety, Employee wellbeing.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTU

Evidence

Provide

• Links to most recent published reports indicating where your company’s report on progress against selected employment standards can be found (e.g., ESG Report, Annual Report and Accounts, Corporate Governance section of website, HR Report, DEI report etc.)

Topic areas

Employment standards, wages and benefits, diversity, equity and inclusion, learning and development , career development, health, safety and wellbeing, employee voice and representation, transparency

About this question 

Reporting your company’s progress on reducing pay gaps is an indicator of transparency and good practice. A pay gap is calculated by comparing the median pay rate of one group against another across an organization. Calculating pay gaps helps identify areas of inequality. Some pay gap reporting is required by law in some regions (e.g., gender pay gap reporting). However, transparent reporting demonstrates good practice in corporate governance.

This question asks all companies, irrespective of their jurisdiction, whether their public pay gap reporting extends beyond compliance with the law. For some companies this could be by reporting on one area when none is required in your company’s region. For other companies, this will mean reporting more broadly and including areas that are not required by law (e.g., disability pay gap in addition to a statutory gender pay gap report).

• Select one or more characteristics for which you can provide evidence that your company’s pay gap reporting is in the public domain
• Select none if you are unable to provide evidence of public pay gap reporting, or if your pay gap reporting is for internal use only

Answer options: Age, Disability, Ethnicity, Gender, Gender identity, National origin, Sexual orientation.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTY

Evidence

Provide

• Links to published reports, including the results of pay gaps calculated (e.g., Gender/Other Characteristic Pay Gap Report, Annual Report and Accounts, Corporate Governance section of website, HR Report, DEI report, etc.)

• Internal reports with evidence of board oversight (e.g board minutes)

and

• Screenshots of internal systems and/or documents and spreadsheets demonstrating the methodology used to calculate the pay gaps along with any contextual information necessary to understand the resulting data. Include information on any adjustments made to reflect purchasing power differences across different countries.

 Topic areas

Wages and benefits, diversity, equity and inclusion, transparency

About this question 

Employers have a role to play in balancing pay fairly for earners at all levels. The CEO pay ratio is calculated by dividing the annual total remuneration for the highest paid individual, by the pay of the median employee, meaning half of a company’s workers make more and half make less.

To address concerns about fairness in how organizations treat their stakeholders, and bring more transparency to issues of executive compensation, some regulatory bodies require companies to report publicly on the ratio of CEO pay to median worker pay (e.g., a ratio of 63:1 or as a percentage (e.g 63:1 = 6300%)).

This question asks companies, if they calculate and publish CEO to median worker pay ratio information. If your company has a different title for the highest paid individual (e.g President, Managing Director) , this can be substituted for ‘CEO’ in this question.

• Answer yes if you can provide evidence that your company publishes the ratio of its CEO pay compared with median worker pay
• Answer no if this information is not in the public domain

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTc

Evidence

Provide

• A link to the most recent published report indicating where the ratio of CEO or highest-paid individual’s total pay to median worker pay can be found (e.g., Annual Report and Accounts, Corporate Governance section of the website, HR Report, DEI report, etc.)

and

• Any relevant contextual information, for example, an explanation of where the remuneration ratio is adjusted for purchasing power differences between countries

Topic areas

Wages and benefits, diversity, equity and inclusion, transparency

About this question 

Relevant stakeholders, including worker unions, civil society, or government representatives, can provide valuable input and guidance in the development of robust employment programs. Stakeholder engagement involves identifying, analyzing, planning, and engaging with individuals and groups affected by a company’s activities. In the context of employment matters, stakeholders include employees, their representatives (such as trade unions), and expert advisors.

This question evaluates whether your company has actively engaged with employees and associated stakeholders to identify areas for improvement and to inform the development of its employment programs or strategies, including setting targets and tracking performance against those targets.

• Answer yes if you can provide evidence that your company engaged with employees, employee representatives and employee stakeholders in relation to employment / human resources strategy development
• Answer no if your company did not engage with stakeholders in relation to its employment strategies and programs, or if you cannot provide evidence of stakeholder engagement

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTg

Evidence

Either

• Partnership agreements with third parties (e.g., Trade Unions, NGOs, expert consultancies, or other organizations) engaged to carry out stakeholder engagement work

or

• Evidence demonstrating mechanisms used for stakeholder consultation (e.g., surveys, grievance mechanism platforms, focus groups)

and

• Internal documents describing the process and outcomes of consultation, verified by a senior leader

Optional supplementary evidence:

• Screenshot of documents or other materials demonstrating examples of stakeholder feedback

Topic areas

Employment standards, wages and benefits, diversity, equity and inclusion, learning and development, career development, health, safety and wellbeing, employee voice and representation and stakeholder engagement

About this question 

This question provides an opportunity to demonstrate that your company adopts a collaborative approach to addressing human rights risks and opportunities in the workplace. Partnering with other businesses, civil society, or governmental groups by funding or participating in joint initiatives is an effective way to address complex issues. Examples include working with a cross-sector group, NGOs, or membership organizations. For instance, collaborating to tackle the low representation of people with disabilities in the workplace or addressing mental health challenges at work at the sector level.

When disclosing participation in a multi-stakeholder initiative as part of its efforts to address material negative impacts, companies should be ready to outline the aims and targets of the initiative and how it addresses these impacts. Additionally, companies should be prepared to explain how employees or their legitimate representatives contribute to the development and evaluation of such initiatives.

• Select one or more of the employment areas listed if you can provide evidence that your company has collaborated with other organizations to address these employment risks and opportunities in the workplace
• Select none if you cannot provide evidence of any collaborative work on the listed employment risks and opportunities in the workplace, or if collaboration has not formed part of your strategy

Answer options: Regular work and employment stability, Diversity, Equity, Inclusion, Employee satisfaction & engagement, Employee retention, Employee voice/representation, Learning and development, Equal opportunity in recruitment, Equal opportunity in career development, Health and safety, Employee wellbeing.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_MTk

Evidence

Either

• Link to membership/signatory page or annual report published on the website of the relevant multi-stakeholder initiative/s, indicating the topics addressed and your company’s logo/name plus signatory/membership level during the reporting period

or

• Membership/signatory agreement/s including company’s name and level of commitment to the MSI

and

• Document or link to information indicating how the topic is addressed by the multi-stakeholder initiative(s)

Optional supplementary evidence:

• Examples of your company’s data/reporting submission required by the MSI
• Feedback from an NGO on your company’s contribution to the MSI

Topic areas

Employment standards, wages and benefits, diversity, equity and inclusion, learning and development, career development, health, safety and wellbeing, employee voice and representation and stakeholder engagement

About this question 

Monitoring employee data helps companies identify and address biases, ensure fairness, diversity, equity, and create a more inclusive workplace. This data also aids in legal compliance. Workforce data can cover both employees and non-employees, such as contractors, freelancers and agency workers.

Companies should be able to disclose the following:

• Headcount by gender, including non-binary genders/non disclosed genders
• Headcount by country where your company has 50+ employees representing 10%+ of total headcount (where relevant)
• Headcount by contract type (permanent, temporary, non-guaranteed hours)
• Headcount by age group (under 30 years old; 30-50 years old; over 50 years old.
• Headcount by contracted hours (full time/part-time)
• Average number of employees (headcount) by country during the reporting period
• Percentage of employees with disabilities, by gender
• Number of ‘non-employees’ (self-employed workers, contractors, agency workers). Companies should be able to disclose the most common type of non-employees in the workforce and the type of work they do. If there are no ‘non-employees’ in the workforce, this should also be disclosed.

Headcount and FTE are defined in the BRM Glossary

• Answer yes if your company can provide evidence that it collects and monitors the data described above

• Answer partial yes if only some of these characteristics are recorded

• Answer no if the data described is not available

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mu1

Evidence

Either

• Links to public reporting of this data (such as annual report, HR report)

This should be cross referenced with

• Data reported in internal reports

and

•  Evidence of board oversight (e.g., board minutes, agenda, reports)

and

• Contextual information and methodology used to calculate the data. If estimates are used, for example to calculate non-employee data, companies should provide information on how the estimate was calculated.

Note: unscored question

About this question 

Employee turnover refers to the number of employees who leave a company over a specific period, whether voluntarily or through termination. Monitoring employee turnover is essential as it offers valuable insights into employee satisfaction, highlights underlying issues such as potential breaches of human rights, and enables companies to benchmark performance, manage costs, improve workplace culture, and implement strategies to retain talent.

Companies should track the number of employees who left the organization during the reporting period and calculate this as a percentage of the total employee headcount or Full-Time Equivalent (FTE). To gain deeper insights, companies are encouraged to break down this data by geographical region or other workforce sub-divisions, helping identify root causes and address specific challenges.

• Answer yes if your company collects and monitors data on employee turnover.

• Answer no if your company does not track employee turnover data.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mu2

Evidence

Either

• Links to published reports providing information on the rate of employee turnover during the reporting period

or

• Internal HR reports providing this data, with evidence of board oversight

and

• Internal documentation describing the methodologies and assumptions used to compile the data (e.g., how Full-Time Equivalent (FTE) is defined)

and

• Any relevant contextual data explaining significant fluctuations in the number of employees (e.g., a merger, a site closing)

Note: Where relevant, companies should present the same information by country.

Note: unscored question

About this question 

Monitoring health and safety data is essential for ensuring compliance and identifying underlying issues to proactively manage risks, prevent accidents, address long-term illnesses, and protect employee wellbeing. Companies should be able to report on health and safety KPIs that provide insights into workforce coverage, incidents, and overall wellbeing.

• Answer yes if your company is able to provide relevant health and safety data to support risk identification and management.

• Answer no if your company is not able to provide this data.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mu3

Evidence

Either

• Published reports providing data on health and safety outcomes for the reporting period (e.g., Annual Report, HR report, health and safety report)

or

• Internal documentation providing this information, with evidence of board oversight (e.g., board minutes)

• and

• Screenshots of the safety management system indicating how this data is collated, including:
  • The percentage of the workforce covered by the company’s health and safety management system (legal requirements/recognized standards apply)

and

• Internal documentation explaining which employee groups are not covered by the monitoring approach (e.g., non-employees such as temporary workers or freelance workers)

and

• Evidence that the data is analyzed to inform changes in company practices to increase safety, including:
  • The number of fatalities as a result of work-related injuries or ill health (include employees plus all other persons working on company sites)
  • The number and rate of recorded accidents
  • The number of cases of recordable work-related ill health among employees and non-employees
  • The number of days lost due to injuries, fatalities, or work-related ill health (include non-employees)

Note: All data should demonstrate alignment with legal requirements and recognized standards where applicable.

Note: unscored question

About this question 

Recording and reporting on human rights breaches is a fundamental component in implementing and upholding Human rights standards and commitments. This data underpins risk assessment, policy development, target setting, impact evaluation, and transparency efforts.

This question assesses whether your company has a structured process for collecting and reporting data on incidents that breach Human Rights codes of practice related to its own employees. The emphasis lies on the robustness of the process rather than the specific number of breaches. However, evidence of the process is required, which may include a ‘zero’ report to confirm that no complaints or breaches occurred during the reporting period.

• Select one or more of the listed topics where your company has a process for collecting and reporting data as described above.

• Select none if your company lacks a process for collecting and reporting data on incidents breaching human rights codes of practice.

Answer options: Incidents of discrimination or harrassment reported, Complaints raised through the company’s grievance mechanisms, Complaints filed via the OECD, Severe human rights issues and incidents, Fines, penalties or compensation paid in respect of damages related to human rights breaches.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mu4

Evidence

Either

• Links to published reports providing information on each of the human rights breaches, complaints, or adverse impacts selected, indicating that there is a process in place to monitor this data even when the reported figure is zero

or

• Internal HR reports providing this data, with evidence of board oversight

and

• Contextual information relevant to the breaches reported

and

• The total monetary amount and a breakdown of any fines, sanctions, or compensation due as a result of these incidents during the reporting period. This data should be cross-referenced to relevant disclosures made in the company’s financial report

and

• Information on the status of the incidents and actions taken in relation to the incidents disclosed, including any remediation actions in which the company played a role

and

• Internal documentation describing the process by which the data is collected and monitored, with evidence of board oversight

Note: unscored question

About this question 

Collective bargaining is an essential mechanism through which employers, employer organizations, and trade unions negotiate fair wages and working conditions, fostering sound labor relations. Key topics typically addressed in these negotiations include wages, working time, training, occupatdional health and safety, and equal treatment. The goal of collective bargaining is to establish a collective agreement that regulates terms and conditions of employment.

This question evaluates the extent to which your company’s employees’ working conditions and terms of employment are determined or influenced by collective bargaining agreements.

Companies are encouraged to provide a breakdown of the data under the following headings, where applicable:

• Percentage of total headcount covered by collective bargaining agreements.
• Percentage of employees covered by collective bargaining agreements by region, distinguishing between regions within and outside the EEA.
• The global percentage of employees covered by workers’ representatives, reported at the country level for each EEA country where the company has significant employment.
• Percentage of employees represented in social dialogue by a European Works Council (EWC), a Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council.

• Answer yes if your company reports the percentage of employees covered by collective bargaining agreements.

• Answer no if your company does not report this data.

Advisory: For employees not covered by collective bargaining agreements, companies should also disclose whether their working conditions and terms of employment are determined based on:

1. Collective bargaining agreements covering other employees within the company; or
2. Collective bargaining agreements from other organizations.

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: sem_Mu5

Evidence

Either

• Links to published reports providing information on the percentage of employees covered by collective bargaining agreements and social dialogue where relevant

or

• Internal HR reports providing this data, with evidence of board oversight (Where relevant, companies should present the same information by region as described.)

Including

• Information on the extent to which the working conditions and terms of employment of non-employees in its own workforce are determined or influenced by collective bargaining agreements, including an estimate of the coverage rate.

Note: unscored question