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Slavery and Human Trafficking Statement of SGS United Kingdom Limited and its UK affiliates (“SGS United Kingdom”) for the financial year ending 31 December 2020.

This is our fifth Modern Slavery Statement since the first was published in June 2017. It sets out what SGS United Kingdom did in 2020 to ensure that slavery and human trafficking did not take place in our supply chains or in any part of our business. It also sets out the SGS Group’s actions and our current plans for 2021 and 2022.

Group Structure and Business

SGS is the world’s leading inspection, verification, testing and certification company. With more than 89,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world helping to ensure quality and integrity of products and systems. The Group also provides some employment agency services.

SGS SA is the ultimate parent company of SGS United Kingdom and the SGS Group.

The SGS Group has recently published the SGS 2020 Sustainability Report, which reports on the environmental and societal impacts of our business activities using our Value to Society (V2S) model. Our Sustainability Ambition 2020 is to deliver measurable sustainable value to society. Ensuring human rights are a working reality across our operations and our supply chain is a fundamental part of this ambition. During 2021 we will publish our Sustainability Ambitions 2030, which will include our human rights commitments.

Our Legal & Compliance Policies

Human Rights Policy

SGS SA’s Human Rights Committee is chaired by our Chief Executive Officer and oversees compliance with all human rights in all affiliates of the SGS Group. It has implemented a publicly available Human Rights Policy, which mandates SGS affiliates to protect and respect human rights, including whilst selecting and managing employees, suppliers and business partners.

Our Code of Integrity – Our Employees and Representatives

For many years the entire SGS Group has operated under a publicly available Code of Integrity applicable to all employees, consultants, joint-venture partners, agents, subcontractors and anyone acting on behalf of, or representing, SGS. This Code contains a clear prohibition on child labour and forced labour, breach of which will result in disciplinary proceedings or termination of contracts.

All new employees are trained in the Code of Integrity upon joining SGS and all existing employees and contractors undertake annual refresher courses.

Our Supplier Code of Conduct

SGS United Kingdom procures various equipment, consumables, property and utilities for the provision of its services. It also purchases manpower through sub-contractors, temporary/agency staff, recruitment agencies and various professional advisors and other services such as facilities management services.

SGS has a Supplier Code of Conduct that is publicly available and sets out SGS’s requirement that all suppliers and their suppliers operate a zero-tolerance approach to modern slavery and that non-compliance can result in the termination of our relationship with any supplier. SGS United Kingdom continues to require vital suppliers to commit to our Supplier Code.

Our Supplier Due Diligence Process

The SGS Group Procurement and Quality functions evaluate our supplier base utilising a detailed self-assessment questionnaire to obtain information from new and certain existing suppliers to enable us to give each an ethical risk rating. This rating dictates how often we will review that supplier and the depth of the review required to properly monitor compliance with the MSA. We focus upon our top 50 existing suppliers by spend and our operationally critical suppliers. We also specifically screen suppliers from higher risk geographical areas and/or offering higher risk services or goods such as security, cleaning, catering, waste, laundry, logistics, hospitality and branded merchandising products. In the event that we judge a supplier to be a potential high risk (on the basis of the screening and pre-qualification stages) we will look to complete more detailed evaluations of their operational practices on a case by case basis.

Our Training

SGS, as mentioned above, runs annual Integrity training which addresses many areas of ethics, trust and human rights and restates the mechanisms by which one can report concerns. It includes topics such as child labour, forced labour, freedom of association and discrimination, working hours and health and safety. The training is conducted by eLearning and is mandatory for all employees.

In addition, in 2020 due to Covid-19 we had to adapt our more personal face to face training on ethics and human rights issues via our bi-monthly Integrity Talks to online training and we continued to run a global communication campaign about our V2S model and human rights.

Reporting Modern Slavery

For many years SGS SA has had an established Integrity Helpline available to employees and suppliers to enable confidential and anonymous reporting of possible legal and policy violations without recrimination. Reports can also be made directly to the Compliance function in Switzerland or the UK. Details are contained in the Code of Integrity, the Human Rights Policy, the Supplier Code of Conduct, on our internal and external websites and in our integrity training. We remind our staff and suppliers of the Helpline by which they can report issues involving modern slavery and we highlight the recommended means of escalating perceived issues.

Effectiveness Of Our Modern Slavery Act Initiatives

SGS United Kingdom did not detect any violations of the MSA within our supply chain or business in 2020. We shall continue to review suppliers. We shall report on the progress of all MSA initiatives in our Modern Slavery Statement next year.

Further, the SGS Group is committed to the transparent reporting of all our human rights commitments and performance through our Annual Report and our Corporate Sustainability Report.

2020/2021

SGS is currently working on the definition and deployment of various improvements to our human rights mechanisms. In particular, we are working on updating our Human Rights training by integrating intelligence and cases compiled through our integrity helpline and compliance departments during previous years.

In addition, SGS is enhancing its corporate due diligence and for this purpose has included key human rights topics within its risk management process so that they are all evaluated and mitigation actions are put in place if needed. SGS has also created a dedicated Human Rights Task Force which will be developing an enhanced human rights agenda for the coming years.

June 2021

This Statement is made pursuant to the Modern Slavery Act 2015 and has been approved by the Board of Directors of SGS United Kingdom Limited.

James McGurk signature
On behalf of the Board (signature of James McGurk, Managing Director)