Global Production Practices
At ALDI, we operate with integrity across all lines of our business around the world and expect the same from our suppliers and business partners. We have developed a series of global protection practices that support our dedication to human rights and fair labor standards.
Ethical Working Conditions
We're committed to promoting workplace practices and conditions that are safe, fair and legal for everyone involved in making our products. Our Social Standards in Production are based on guidelines defined by the United Nations (UN), International Labour Organization (ILO) and the amfori Business Social Compliance Initiative (BCSI) Code of Conduct.
As an international company with global supply chains, we are aware of our responsibility to respect human rights. The ALDI SOUTH Group is certain that long-term business success can only be ensured if human rights are acknowledged and respected, protected and fulfilled. View our Human Rights Policy Statement.
In addition, ALDI does not tolerate child labor in any areas of our operations, including our supply chains, as outlined in our Child Labor Policy.
Social Monitoring Program
We comply with social and environmental standards during every step of the product procurement process. Our Social Monitoring Program requires suppliers to provide third-party audit reports demonstrating they’re upholding our Supplier Standards. If these audits raise any concerns, we require a Corrective Action Plan (CAP) to be developed so that action can be taken to improve working conditions.
ALDI Social Assessments
Our internal teams perform ALDI Social Assessments (ASAs), which are supplemental audits to routine third-party audits. The ASAs more thoroughly analyze conditions in a particular location or industry, such as the textiles industry in Bangladesh. ASAs identify any local risks where a comprehensive plan can be developed in combination with stakeholders, to transfer knowledge and educate teams on how to improve their work environment.
Sourcing in Bangladesh
There have been challenges like factory fires and long working hours associated with the rapid development of the garment industry in Bangladesh - the world’s second-largest textile producer. All production facilities must undergo an extensive evaluation prior to producing products for us. In addition, our suppliers must have qualified local representatives to regularly monitor social performance.
Our local Corporate Responsibility team and our supplier representatives routinely visit factories to continually improve initiatives. Our ALDI Factory Advancement (AFA) Project aims to improve the working conditions at Bangladesh factories that produce our textile goods. This program empowers workers and managers to identify problems in their working life and find appropriate solutions to fit their needs.
As a signatory of the Accord on Fire and Building Safety (Accord), we’re also working to improve the safety of factory workers across our Bangladesh textile factory base and achieve specific, permanent improvements. Independent experts conduct electrical, fire and structural safety inspections at all factories that make products for ALDI and define which measures are necessary to support a safe workplace.
We are committed to cleaner production processes within our textile and footwear supply chains. Through our Greenpeace partnership, we intend to reduce the threat to humans and the environment by effectively managing the chemically aided production processes.
Our action plan includes gradually eliminating certain chemicals used in the manufacturing process by 2020.We also use the OEKO-TEX standard 100 - a certification that can be seen on many of our textile products. Our apparel and home textile products are rigorously tested to ensure they are free from harmful levels of over 300 substances. We also strive to use recycled material to further reduce the environmental impact of our textile products. View the commitment and current progress report for further information.
California Transparency in Supply Chains Act
The California Transparency in Supply Chains Act of 2010 (SB 657) requires retailers to disclose measures used to track possible slavery and human trafficking in their supply chains.
As part of our Master Purchase Agreement, all ALDI direct suppliers agree to comply with the ALDI Corporate Responsibility Principles. These include the ALDI Supplier Standards in Production where we expect our business partners to fully comply with all applicable national laws and regulations, industry minimum standards, ILO and UN Conventions where they are consistent with national law and/or any other relevant statutory requirements.
Our Social Monitoring Program is designed to monitor compliance with the ALDI Social Standards of Production. We require production facilities in high-risk countries to be audited by an independent third-party who conducts semi-announced and unannounced audits when appropriate or feasible.
ALDI Social Assessments (ASA) may be conducted to verify supplier information received in discussions and third-party audit reports including risks of human trafficking and slavery. The purpose of the ASA is to evaluate the effectiveness of suppliers' monitoring systems based on the social compliance performance of its production facilities.
We train our relevant employees and managers on company policies and procedures regarding social compliance (e.g., human trafficking and slavery) and how to mitigate risks within supply chains. We’ve also developed the ALDI Code of Conduct, which all employees adhere to, that provides additional guidance about policies and standards when needed.
We hold our employees and contractors accountable. If we find violations to our human trafficking and slavery policies, we will take reasonable and necessary measures to address the situation. We also have a toll-free number, managed by a third-party, for our employees, business partners and suppliers to confidentially report any concerns.
See also CA Chemical Disclosure