Sphere of action: Procurement, production, processing

Social audits relating to own imports by MGB Hong Kong and non-food own brands of the METRO GROUP sales lines

at the reporting date

Definition:
Status of all the producers in defined risk countries in which MGB Hong Kong has import goods manufactured based on the assessment of the Business Social Compliance Initiative (BSCI), and of producers that manufacture own brands or own imports in the areas of clothing, shoes, toys and consumer durables for the METRO GROUP sales lines. Factories that have passed the audit can demonstrate their successful compliance with the BSCI standard or an equivalent social standards system by presenting a certificate awarded by an independent third party.

Explanation:
Previous year’s figures adjusted to social audits of factories rather than suppliers in relation to own imports by MGB Hong Kong. As of 2014/15, the figures also include factories producing non-food own brands for the METRO GROUP sales lines.

1,943 producers were audited as of 30 September 2015, of which 93 per cent (1,808 producers) passed the audit. Producers who do not pass the audit are given 18 months as of the audit date to provide proof of improvement. If they fail to do so, they will receive no further orders until they can provide evidence of sustainable improvements in their organisational processes.

The key performance indicator relates to all the factories of which we are made aware by our suppliers.