Chris HarropMay 2014May 2014

Supply Chain Issuesin the Developing World

&UNGC Solutions ...

Me

Everone Walks ( and probably sits ) on Marshalls( and probably sits ) on Marshalls

Why are we here ?( today )( today )

Why are we here ?( today )( today )

Marshalls Sustainability StrategySustainability Strategy

• Hygiene Factors

• Legality• Staying in

Business

• Competitive Advantage

• Brand Premium

• New Products

Operating in a Changing World

Significant Supply Chain Challenges ExistChallenges Exist

168m11%

30m14

1.3Bn400m 99bn

14th6\10

66 10%11%13%

14m5k

400m137m13%

14th1%

66:10%13%

Very Significant Supply Chain Risk existSupply Chain Risk exist

• 60% of the worst countries60% of the worst countries worldwide for Labour Rights are in Africa

• 45% of the worst countries45% of the worst countries worldwide for Human Rights are in Africa

The United NationsGlobal CompactGlobal Compact

The UN Global Compact

• The Worlds largest corporate citizenship initiative• There are over 12,000 participants spread across 145 countries

and 101 local networks• The UNGC wants participants to be agents for change and to

i titi d t l d hi t dgain competitive advantage, assume a leadership stance andexperience accelerated business success in return.

Marshall UNGCCommunication on ProgressCommunication on Progress

UNGC Signatories Financial PerformanceFinancial Performance

Explicit link between Sustainability and TSRSustainability and TSR

The UNGC Framework

Pillars of Engagement

Platforms & Principles Global Working Groups Sister Initiatives

• Caring for Climate• CEO Water Mandate• Water Action Hub

• Human Rights • Labour• Anti-Corruption

• Principles for Responsible Investment (PRI)

• Women’s Empowerment Principles

• Children’s Rights and Business Principle

• Supply Chain Sustainability• Business & Investment in

High-Risk Areas

• Principles for Responsible Management Education (PRME)

Business Principle • LEAD

• Land, Real Estate and Construction

RecentlyL h d

• Sustainable Agriculture Business Principles• Social Enterprise Hub

B i 4 P I iti tiLaunched • Business 4 Peace Initiative• Business Engagement in Education Platform

A New Approach toBusiness & Human RightsBusiness & Human Rights

• Professor John Ruggie• The Chief Architect of the

Global Compact• Started the process in 2005• Started the process in 2005• Endorsed in June 2011• September 2013 the UK Gov’tp

became the first country to publish its strategy in response

Protect

• The state has a duty to protect against human rights abuses by third parties, including business enterprises, through appropriate policies, regulation, and adjudication.

Respect

• An independent corporate responsibility to respect human rights, which means that the business enterprises should act with due diligence to avoid infringing on the rights of others and address adverse impact which they are involved

Remedy

• The need for greater access by victims to effective remedy, both judicial and non judicial

The Guiding PrinciplesOverall Implications for BusinessOverall Implications for Business

1. A policy commitment by enterprises to meet the responsibility to human rights

2. A human rights due diligence process to identify, prevent mitigate and account for the way they addressprevent, mitigate and account for the way they address their impacts on human rights

3. A process to enable the remediation of any adverse human rights impact they cause or to which they g p y ycontribute

Marshalls Response ...

Understanding Human Rights Impacts in Supply ChainsImpacts in Supply Chains

Fairstone®

®• Marshalls Fairstone® is an ethically sourced range of Natural Stone that hasNatural Stone that has been quarried and produced in line with a l t f thi l lclear set of ethical values

and commitments that Marshalls strongly believe g yin.

• These commitments are b d th UNGCbased on the UNGC principles.

Marshalls Fairstone

Children’s RightsImpact AssessmentImpact Assessment

Understanding Impacts ... Explicit Link to SalesExplicit Link to Sales

26

UN Global CompactFrameworksFrameworks

What's Next ?

Sustainable Development Goalsp

UNGC A Framework for Sustainable

Growth

To Sustain ... to Endure