2500 companies 1 Global & 5 Regional Studies Stockholm MARCH 2018 Benchmark DATA 2500 companies 1 Global & 5 Regional Studies

About the Corporate Sector and Children’s Rights Benchmark Series What is it? Global Child Forum and the Boston Consulting Group initiated the children’s rights and the Corporate Sector and Children’ Rights Benchmark study series in 2013 to fill a gap in research. The purpose of the series is to develop a children’s rights benchmark for the corporate sector and to enable tracking of progress over time on how children’s rights are addressed by business. To date, we have produced one global and five regional studies of the Nordic region, the Middle East and Northern Africa; Southern Africa, South America and South East Asia, covering 2500 companies across 9 industries.  

About the Corporate Sector and Children’s Rights Benchmark Series How has it been conducted? The data referred to in this document has been compiled from the 1 global and 5 regional studies conducted by Global Child Forum and the Boston Consulting Group between 2013-2016, where companies were selected based on being publicly listed and size in terms of revenue: For 5 regional studies: 300 largest in region For global study: 1000 largest on Forbes 2000 list Which amounts to 2500 companies in total. For each company, publicly available information have been screened against a set of 7 children’s rights indicators.  Each indicator is scored on a yes/no basis and the score is wheighted. For indicators 1 and 2 - 2 points; indicators 3 to 7 – 1 point. Thus a total score of 9 can be achieved.

The 7 children’s rights indicators assessed (1/2) Key Area Indicator Explanation Score (no/yes) Core Operations 1 BOARD ACCOUNTABILITY Board of directors or a board committee explicitly states that children’s rights/child labour are part of their responsibilities Company receives two points if it clearly states the highest-level responsibility for child rights issues (not only sustainability in general) rests with the board. The company receives a point if it is stated that managerial level/sustainability officer reports directly to board level and board acts on that information. 0/2 2 MATERIALITY ASSESSMENT Company conducts risk or materiality analysis on issues regarding child labour/children’s rights. Company receives two points if it in public reporting, analyses children’s rights in relation to risk management and/or issues that are considered material to its operations, for example: child labour in operations is analysed as a business risk, with potential impact on the company’s reputation, sales, etc. Reporting 3 CHILD LABOUR POLICY Company has a child labour policy. Can be part of human rights policy, supply chain policy, group wide policy or separate child policy Company receives a point if it has clearly stated a commitment against child labour even if actual policy document is not publicly available. 0/1 4 PERFORMANCE REPORTING Company specify that they publish performance reporting results on child related issues (e.g. non compliance in child labour) Company receives a point if it highlights results of or follow-up on policies and commitments that relate to children’s rights. 5 ADDRESSING CHILDREN’S RIGHTS ISSUES OTHER THAN CHILD LABOUR Company addresses child related issues other than child labour such as: product safety, responsible marketing, sexual exploitation, environment/water/sanitation or community displacement impacting children Addressing issues up or down the supply chain will give a point even if not part of companies own operations.

The 7 children’s rights indicators assessed (2/2) Key Area Indicator Explanation Score (no/yes) CHarity 6 COLLABORATIONS WITH CHILD ORGANISATIONS Company collaborates with organisations with focus on children’s rights (UNICEF, Save the Children, Plan, Ecpat, etc.). Company receives a point if the collaboration changes how companies conducts its core activities, for example: collaboration with a child rights organisation to conduct a Child Rights Impact Assessment or to take child rights into account when developing products/marketing strategies, etc. 0/1 7 CHARITY AND/OR PROGRAMS RELATED TO CHILDREN’S RIGHTS Company is driving own strategic programs or projects regarding children’s rights (could be e.g. health or education focus). and/or Company donates to charity related to children’s rights. Company receives a point if it has an initiative that go above and beyond charity donations, for example: volunteering, or another activity creating a direct relationship that benefits children or impacts children’s rights. Donation in kind, scholarships and adopting schools fall under this indicator as they are usually part of a wider commitment/relationship. If company has established a charity foundation that in its turn have own programme(s) in line with the above it receives a a point. If company (or company’s charity foundation) donates money to another established child rights organisation. Partnerships for fundraising and donation drives also fall under this indicator.

Results per indicator 1 2 3 4 5 6 7 Board accountability Share of companies 1 Board accountability Board accountability 9% Child Labour Policy & Own programmes an/or donating to charity: roughly half of the companies do this. Seems to be the entry point for many to these issues. But only half of those who have a child labour policy report on compliance, i.e. the results of it. And even fewer address child rights beyond child labour, as set out in the CRBPs, for example: how their marketing and products or services affect children, child protection (from abuse) or making sure that security arrangements are taking children’s rights into account. 2 Risk & materiality assessment Materiality and risk assessment 12% 3 Child labour policy Child labor policy 57% 4 Addressing child rights issues other than child labour Performance reporting 15% 5 Performance reporting Other children's rights issues 26% 6 Collaborations with child rights organisations Collaborations with other organizations 12% 7 Charity & programs related to children’s rights Driving own programs or donating 46%

2.2 AVERAGE INDUSTRY SCORES 9 8 7 6 5 4 3 2 1 3.3 2.5 2.5 2.3 2.0 1.8 AVERAGE INDUSTRY SCORES The industries that has the most direct impact on children are doing the best. The ICT industry is best in class (telecommunications, internet providers, hardware (computers/telephones). Why? Possible explanations could be: Industry collaboration (GSMA, etc) Child rights throughout value chain: from child labour in metal mining, to child protection using the internet. Market that is close to state: many actors who are partly owned by state actors Media attention + focus on child sexual exploitation/exposure to risk in a “new” environment, i.e. the internet/mobile phones Financials (banks, investment, real estate, insurance) are worst in class. Why? Indirect impact on children’s rights makes it a low priority issue. Further from the human rights due diligence and sustainability discourse? Total Average 2.2 ICT 3.3 CONSUMER GOODS 2.5 FOOD & BEVERAGE 2.5 BASIC MATERIALS 2.3 TRAVEL & LEISURE 2.0 HEALTHCARE 1.8 INDUSTRIALS 1.8 OIL & GAS 1.8 FINANCIALS 1.6 INDUSTRIES