Strong alliances can positively impact social and environmental standards in our supply chains. By joining forces with suppliers, manufacturers, retailers, multistakeholder initiatives, and civil society organisations, we can align our approaches to human rights due diligence.
As an international retailer with global supply chains, ALDI understands the importance of respecting human rights. Our business partners are important allies in implementing our due diligence policy and ensuring that the requirements of our Business Partner Sustainability Standards are met throughout our supply chains.
Building long-term partnerships with suppliers
Our goal is to form strong relationships with strategic business partners that have a good sustainability performance and increasingly source more from them. To identify their performance, we conduct an annual Corporate Responsibility Supplier Evaluation (CRSE) that goes beyond audits. It evaluates the suppliers' social and environmental compliance management systems and the performance of their farms or production facilities. The results are then verified through our ALDI Sustainability Assessments (ASAs) and based on our contractual sustainability requirements, rating them from A to D. The ALDI SOUTH Group prioritises sourcing from A and B rated suppliers. Suppliers rated with a D and consistently failing to improve fall under the risk of getting delisted.
Human rights in global supply chains
We have identified a number of human rights topics as relevant to our operations and supply chains, including non-discrimination, occupational health and safety, the right to fair remuneration, and the prohibition of child labour and forced labour.
The way we operate, purchase goods, and choose our business partners can impact people and their communities. Respecting human rights is an important aspect of ALDI’s Global Sustainability Strategy. They are non-negotiable, and we want them embedded into the core of our business.
We work with the following multistakeholder Initiatives and civil society organisations
amfori
Since 2008, ALDI is a member of amfori, a leading global business association for sustainable trade, empowering companies across the globe to operate successful and sustainable businesses, helping us to improve the Environmental, Social and Governance performance of our supply chain.
As part of this membership, the ALDI SOUTH Group utilises Business Social Compliance Initiative (BSCI) audits through the amfori platform, as well as engage actively in a number of amfori projects focusing on various different areas of global supply chains.
Sedex
Sedex is a global platform that provides practical tools, services and a community network to help companies improve responsible and sustainable business practices and sustainable sourcing. ALDI became a member in 2017. We use the Sedex Members Ethical Trade Audit (SMETA) as a standard for auditing production facilities in our Social Monitoring Programme.
Ethical Trading Initiative (ETI)
ETI is a global alliance of companies, trade unions, and NGOs that promotes respect for workers' rights. The ALDI SOUTH Group joined as a full member in July 2022, recognising ALDI’s efforts to trade ethically and to make a positive difference in workers' lives. Our Business Partner Sustainability Standards align with the ETI Base Code.
International Accord
The ALDI SOUTH Group is a member of the International Accord for Health and Safety in the Textile and Garment Industry. The multi-stakeholder initiative promotes an accessible, rights-based, and confidential grievance mechanism. ALDI actively supports the investigation and remediation of findings raised by workers through the Accord grievance mechanism.
Issara Institute
The Issara Institute is an independent non-governmental organisation focussing on issues related to human trafficking and forced labour. The ALDI SOUTH Group has been a strategic partner since 2021, and participates in Issara’s worker voice programme. It empowers workers to speak up when they have concerns about recruitment conditions and working environment.
The power of being heard - Worker Voice Program
The ALDI SOUTH Group supports Issara’s worker voice programme. It offers workers across food and non-food supply chains in southeast Asia the opportunity to raise and report issues in their mother tongue.
An analysis of grievances received demonstrated how gender-related barriers to accessing the grievance mechanism can vary by nationality and culture. To have a positive impact, an effective grievance mechanism requires an environment where workers feel comfortable sharing their issues but also companies being responsive to those grievances.
The Centre for Child Rights and Business (The Centre)
The ALDI SOUTH Group has partnered with the Centre for Child Rights and Business (The Centre) to develop and evaluate strategies to combat, prevent and remediate child labour.
When confirmed or suspected child labour cases are found at production sites in ALDI supply chains, The Centre conducts an on-site rapid assessment. If child labour is confirmed, the organisation proposes and implements a remediation plan, which is financed through ALDI’s joint child labour remediation fund. To further strengthen our partnership, we also signed The Centre’s ‘Joint Action Pledge Towards the Elimination of Child Labour’.
Mekong Club
The Mekong Club collaborates with the private sector to promote sustainable practices and combat modern slavery across the globe. As a member, ALDI works with the Mekong Club to develop strategies for preventing, mitigating, and remedying forced labour in supply chains. ALDI also participates in working groups with other members to share best practices and provide resources and tools to business partners to combat forced labour.
