WESFARMERS SUSTAINABILITY REPORT 2017

Ethical sourcing and human rights training

Wesfarmers businesses deliver training on ethical sourcing requirements to our team members, third-party auditors, suppliers and factories to ensure they understand ethical sourcing risks and the standards expected by our divisions. During the year, our divisions delivered 3,783 hours of training which is 32 per cent more hours than last year, demonstrating our commitment to improving our teams understanding of this issue.

Our divisions continuously review and make enhancements to ensure our ethical sourcing programs run effectively and are up to industry standards and meet the expectations of our customers and stakeholders. The ethical sourcing teams in the divisions participate in forums and seminars and have regular discussions with other stakeholders including retailers, industry associations, non-government organisations and third-party audit firms to understand emerging trends and risks. Bunnings, for example, has become a key signatory to the European DIY Retailers Association (EDRA) and Global Home Improvement Network platform (GHIN). EDRA/GHIN is a proactive initiative from the home improvement industry focused on mutually recognised supplier audits and working together to share best practice and tackle emerging supply chain issues.  Kmart and Target have signed 'ACT' (Action, Collaboration, Transformation) a partnership between brands, retailers, manufacturers and IndustriALL (the global union) aimed at achieving living wages in apparel-sourcing countries. ACT aims to improve wages by establishing industry-wide collective bargaining, supported by world-class manufacturing standards and responsible purchasing practices.

Our cross-business ethical sourcing forum meets quarterly to share best practice and audit program outcomes, and ethical sourcing practices are reported regularly to the Wesfarmers Audit and Risk Committee.