Supply chain policy - Li & Fung


Supply chain policy

To stay abreast of changing industry and regulatory requirements, Li & Fung continually engages directly with policymakers and participates in a number of industry consortiums that contribute to the development of relevant standards and norms. Li & Fung is committed to upholding internationally recognized human rights and labor standards in our own operations and across our supply chain and proudly supports the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work and the United Nation’s Universal Declaration of Human Rights. Li & Fung is committed to ensuring that there is no modern slavery or human trafficking in our supply chains or any part of our business. Our Supplier Code, Combatting Forced Labor Policy and Responsible Recruitment Policy, and the Certification Letter for Global Trade Regulations Compliance reflect our commitment to act ethically in our business relationships and to enforce controls and systems to eradicate any form of modern slavery in our supply chain.

Supplier code of conduct

At Li & Fung, supplier risk assessment starts with our Supplier Code of Conduct. This is our supplier engagement document and it outlines the minimum standards required in accordance with the ILO’s Core Conventions, the California Transparency in Supply Chains Act, the UK Modern Slavery Act and local laws, for human and labor rights, safety, environment and security, as well as transparency and ethics. All suppliers must accept these minimum standards as a condition of doing business with us.

The Supplier Code of Conduct is supported by a package of information available in multiple languages, including Guidelines on social, environmental and security standards as well as practical resources for implementing standards within factory operations. Globally, we offer regular onboarding training to new factories and our own business units to ensure they understand the Code of Conduct and the consequences of non-compliance.

All suppliers must accept these minimum standards as a condition of doing business with us. Suppliers must also do their utmost to ensure standards are communicated to and respected by next-tier suppliers that produce parts or materials for Li & Fung and its customers. The Supplier Code is available to suppliers in 13 languages.

Compliance against the Supplier Code of Conduct is assessed by Li & Fung, external audit firms approved by us or our customers, or independent industry organizations. When non-compliance issues are identified, the factory is required to commit to rectifying the issue through a Corrective Action Plan, with varying timelines for remediation from immediately to three or six months, depending on the severity of the issue.

Modern slavery statement

Our Disclosure Statement on Modern Slavery discloses our policies and actions relating to modern slavery and human trafficking in business and the supply chain. You can also read our previous statements from  2023, 2022, 2021, 2020, 2019, 2018 (July) and 2018 (March).  We also acknowledge our responsibility to maintain a respectful workplace that is free of all forms of discrimination or harassment.

Child labor policy

The Li & Fung Child Labor Policy complements the requirements set forth in the Supplier Code to ensure that Li & Fung’s supply chain is free from forced, trafficked and child labor and in compliance with local and national laws / regulations, the ILO’s Core Conventions, and other relevant international standards. Suppliers must comply with the Policy as a condition of doing business with Li & Fung.