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. As stated in the Principles, which includes the ALDI Supplier Standards in Production, we expect our business partners throughout the supply chain to be in full compliance 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.
Specifically, the ALDI Supplier Standards states that we “will not tolerate any form of forced labor and related practices, such as lodging deposits or the retention of identity documents from personnel upon commencing employment.” These standards reflect requirements, which we strive to exceed wherever possible.
Our Social Monitoring Program is designed to monitor compliance with the ALDI Social Standards of Production. ALDI requires production facilities in high-risk countries to be audited by a third-party auditor to evaluate their social compliance. The ALDI standard for monitoring includes semi-announced audits, meaning an independent third-party auditor can come anytime within a two-week window. At times and where appropriate or feasible, unannounced audits by third parties may be commissioned.
Our standards specify that “we expect our business partners to act with due diligence and develop the necessary management systems, policies and processes to a reasonable extent as well as effectively prevent and address any human rights impacts that may be detected in the supply chain.”
ALDI Social Assessments (ASA) may be conducted to verify the information received in supplier 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.
Relevant ALDI employees and managers are trained on company policies and procedures regarding social compliance, including human trafficking and slavery, and mitigating risks within supply chains. We’ve also developed the ALDI Code of Conduct which all employees adhere to and is designed to “serve as a resource when (we need) additional guidance about policies and standards.”
We hold our employees and contractors accountable. If we find violations to our policies regarding human trafficking and slavery, we will take reasonable and necessary measures within the limits of the law to address the situation in an appropriate manner. We also have a toll-free number, which is managed by a third-party company, for our employees, business partners and suppliers to confidentially report any concerns.