Fyffes Modern Slavery Statement 2023

This is Fyffes sixth Modern Slavery Statement outlining how we manage slavery and human trafficking risks in our own operations and supply chains. This Statement was prepared in accordance with the UK Modern Slavery Act of 2015[1], the California Transparency in Supply Chains Act of 2010[2], and Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act of 2023[3].

Fyffes is committed to maintaining the highest ethical business standards across its operations and does not tolerate any form of modern slavery or human trafficking. We understand that the risks associated with modern slavery and human trafficking are not static and we continue to adapt our approach to mitigating this risk on an annual basis, as described in our Statement.

Fyffes Business and Supply Chains

Most of our business centres on three core products: bananas, pineapples, and melons. We source our products from more than 15 countries in Latin America, the Caribbean, and Africa, including 20 of our owned farms in Costa Rica, Belize, Honduras, Guatemala, and Ecuador.

Our shipping and distribution routes include 19 ports of loading, 24 ports of discharge, and 19 distribution and ripening centres in the US and Europe. Our fresh products are sold to more than 500 customers in 22 countries across Europe and North America. We have partnerships with over 2,000 fruit suppliers.

With over 4,346 permanent employees and between 6,000 and just over 10,000 temporary workers each year, we aim to build a world-leading company that cares deeply about how our produce is grown, harvested, and transported from farm to table, ensuring a positive commercial, social, and sustainable future. In general, Fyffes directly hires employees and contractors. The UK ripening centres are the only sites where Fyffes requires labour providers for a significant portion of its workforce.

Fyffes has spent over 100 years developing our farms while also building strong relationships with partner growers. This enables our growers to benefit from longer term agreements and pre-agreed prices and it enables Fyffes to invest in quality and support. It’s about confidence and sustainable supply. We work with our partners to internationally recognised codes of practice that focus on worker welfare and environmental sustainability.

Our Policies and Training in Relation to Slavery and Human Trafficking

The Fyffes Principles of Responsible Business Conduct (Fyffes Principles) is a foundational document that provides a clear set of guiding behaviours we expect of our people, our leaders, and all our closest partners and suppliers. This includes the requirement to be vigilant regarding forced or coercive labour, human trafficking, and child labour and to immediately report any suspicious activity. All new employees are furnished with a copy of the Fyffes Principles, which they must read and sign. During 2023 all employees took part in training on the Fyffes Principles, which is also available on YouTube. The Fyffes Principles also apply to our key consultants who have worked with Fyffes for more than six months and large suppliers with contracts over US$500,000. Any supplier or consultant wishing to work with Fyffes must acknowledge and sign their willingness to abide by our code of conduct, declaring that at all times they will abide by the Fyffes Principles in how they conduct themselves and in the delivery of their work for Fyffes.

Fyffes Global Human Rights Policy sets out our approach to protecting the human rights of all stakeholders, including our employees. This policy also requires Fyffes to undertake regular human rights due diligence. In July 2021, we announced our target of 100% of Fyffes workers and supply chain workers to be trained on human rights by 2030; 100% of managers and employees by 2025. During 2022 and 2023 Fyffes rolled out training on Human Rights, which was completed by 100% of employees with access to our online human resources system and classroom-based training using the same materials was provided to employees without access to this system.  So far, we have trained a total of 4,672 employees, including a number of seasonal employees. The training includes information for employees to understand better the importance of human rights and how they relate to the workplace. The training includes information relating to migrant workers, child labour, forced labour, slavery, and human trafficking, amongst others.

Fyffes has a Global Child Labour Policy and Remediation Protocol applicable to all Fyffes own and suppliers’ operations. The policy clearly defines child labour, the minimum working age for Fyffes employees, and the definition of hazardous work for young people. In addition, it provides a clear protocol for remediating cases of child labour, including a list of reputable NGOs focusing on child labour by country/region.

Due Diligence Processes in Relation to Slavery and Human Trafficking, Risk Assessment, and Management

Human Rights Due Diligence

Fyffes seeks ways to prevent or mitigate adverse human rights impacts that are directly linked to our operations, business relationships, products, or services, including risks related to slavery and human trafficking. We provide for or cooperate through, legitimate processes in the remediation of adverse impacts on human rights when we identify that we may cause or contribute to these impacts. Action plans are established to prevent or mitigate the risks identified through the Fyffes Human Rights Risks Prevention and Mitigation Plan.

We started our human rights journey in 2018 when we agreed on our first materiality matrix to focus on important issues related to human rights. In 2019, we conducted our first HRIA, identifying our salient human rights risks and implementing the Human Rights Risk Mitigation and Prevention Action Plan. A human rights impact assessment involves identifying, understanding, and assessing potential as well as actual human rights impacts and risks. Businesses should remedy adverse impacts they have ‘caused or contributed to’, and grievance mechanisms should be established for those at risk of being adversely impacted, including workers, communities, consumers, and other rights-holders.

Over 2022 and 2023, we conducted our third external HRIA and we have expanded its scope to include our largest suppliers in Colombia and two suppliers in Costa Rica, and look more closely at our operations in Honduras and Guatemala.

In addition to our HRIA, we conducted community needs assessments (CNAs) in all the neighbouring communities that are close to our operations. In all, we interviewed 2,200 people from more than 50 communities in the five countries where we own farms. We have also conducted a community needs assessment neighbouring one of our suppliers working with an NGO.

Our HRIA reconfirmed the human rights issues that were salient in 2019 and highlighted the need to reframe our list of salient human rights issues and focus on actions.

At Fyffes, we identify and assess actual or potential adverse human rights impacts with which we may be involved — either through our activities or because of our business relationships — by taking a rightsholder-centred approach. In the graph below you can find our list of salient human rights risks per rightsholder. A full description of our approach to Human Rights is outlined in our most recent Human Rights Report, published in August 2023.

Our internal policy also stipulates that we will conduct internal annual HRIAs. Our Corporate Affairs team developed a self-assessment tool for site-level human rights due diligence in 2020. The assessment evaluates systems in place locally to manage human rights. Recently, it was expanded to incorporate Rainforest Alliance requirements. The tool assesses the potential scope, scale, remediability and/or irreversibility, the likelihood of the risk and how well the risk is being managed.

We review the site-level results, validate the answers provided and work with the site on a mitigation plan. These action plans factor in independently conducted HRIAs and feed into our Human Rights and Environmental Due Diligence Committee.

Our 2023 assessment showed that we need to invest in developing a broader network of human rights practitioners at Fyffes and capacity-building within our operations. Capacity-building develops and strengthens the skills, instincts, abilities, processes, and resources that organisations and communities need to survive, adapt, and thrive in a fast-changing world. We want to make sure we have accountable points of contact who are trained in own-farm operations, procurement, shipping, transportation, and distribution. We are providing capacity-building training to our local teams accordingly. The results of the external and internal assessments can be found in our most recent Human Rights Report. We have reviewed the results of both the external and internal HRIAs and updated our Human Rights Risk Prevention and Mitigation Plan. This plan helps us continue to improve our policies and control systems so they can be strengthened to continue to prevent and mitigate potential risks in addition to taking action where needed. Progress is assessed every quarter by Fyffes Human Rights and Environmental Due Diligence Committee.

Audits and Certifications

Our compliance team conducts and participates in internal and third-party ethical and social audits, including Sedex Members Ethical Trade Audits (SMETA[4]) throughout a large proportion of our supply chain. Fyffes entire compliance team has been trained in SMETA and applies its methodology in their regular internal audits.

Our UK ripening centres are the only sites where Fyffes requires labour providers for a significant portion of its workforce. We also audit the labour providers we work with. Fyffes has developed a Labour Provider Standard, which includes the minimum requirements for labour providers to comply with when supplying labour to Fyffes. It includes business practices, recruitment, terms and conditions of employment, prevention of modern-day slavery, training, selection of staff to work at Fyffes, supply of staff to Fyffes and health and safety.

Fyffes is also the largest supplier of certified Fairtrade bananas in Europe, and we have a significant number of Fairtrade melons distributed in the United States. Fairtrade-certified farms are audited under the Fairtrade standards which incorporate a blend of social, economic, and environmental criteria. The standards contain both core requirements and development requirements aimed at improvements that benefit producers and their communities.

Similarly, Fyffes also produces or buys from a large number of Rainforest Alliance-certified farms. Currently, 100% of Fyffes pineapples and bananas produced on our owned farms, and one in two bananas overall, are certified by Rainforest Alliance.

In 2023, there were no forced labour or child labour non-compliances detected by audits on our owned or supplier farms.

Food Supplier Screening and Management

Our Food Supplier Management Procedure outlines our supplier screening process, prior to the start of a business relationship. In addition, it stipulates ongoing ethical compliance monitoring for managing our suppliers, comprising regular reviews and audits.

We carry out background checks for new partners joining our supply chain. The Compliance department increasingly participates as part of the contractual negotiations. Before issuing a potential supplier with the traceability code, we coordinate a visit to the supplier farm for compliance and quality review and gather the data pertaining to the production site in our database.

We also coordinate membership of appropriate compliance platforms and ensure ongoing suppliers are monitored through periodic reviews.

Action Taken to Address Modern Slavery

Grievance Mechanisms

Fyffes provides for legitimate, accessible, predictable, equitable, and transparent operational-level grievance mechanisms aligned with UN Guiding Principles criteria as outlined in our Fyffes Principles Grievance Procedures. This enables us to understand and address challenges in our operations and potential dissatisfaction amongst our stakeholders.

Employees who believe improper practices or questionable acts have or will be committed are encouraged to report their concerns through existing grievance mechanisms if they feel comfortable doing so. These mechanisms include contacting their immediate supervisor or line manager, their human resources representative, or workers’ representative (where it exists), or making use of the open-door policy at the site.

Fyffes Ethics Committee

Providing access to effective grievance mechanisms with sufficient guarantees for the complainant and adequate resolution procedures, to raise potential cases of impact on human rights and, where appropriate, provide remedy in our operations and across our supply chain is a key expectation of the UN Guiding Principles and a core element of our due diligence approach.

Where an employee reasonably believes that reporting a potential breach of the Fyffes Principles cannot be appropriately resolved with any of the mechanisms above, or that s/he might suffer retaliation or require confidentiality, employees should contact any member of the Fyffes Ethics Committee. The Fyffes Ethics Committee includes the Chief Corporate Affairs Officer, the Chief Human Resources Officer, the Global Head of Legal and the Global Director of Compliance.

Employees can also choose to use the Fyffes Ethics Hotline, an independently run, confidential business reporting hotline available to both internal and external stakeholders globally to raise and resolve concerns about behaviour that contradicts the Fyffes Principles.

The Fyffes Ethics Hotline and grievances concerning the Fyffes Principles (including any grievances related to slavery and human trafficking) raised with a manager, human resources representative, line manager, or the Fyffes Ethics Committee are confidential. Complainants using the Fyffes Ethics Hotline who choose to remain anonymous can log onto the Hotline site to keep track of the complaint and how it has been assessed and investigated.

Fyffes does not tolerate any form of retaliatory action to be taken against anyone for reporting a concern or cooperating with an investigation. Fyffes will take all steps necessary to protect employees expressing concern with honesty, but it is a violation of the Fyffes Principles to make, on purpose, a false accusation, lie to investigators, deny, or refuse to cooperate with an investigation related to these Principles, which could lead to disciplinary measures.

The Ethics Committee assesses, investigates, agrees on an action plan, and resolves and reports on those complaints to the Board of Directors and our parent company Sumitomo, as outlined in the Grievance Procedures. The Fyffes Ethics Committee meets quarterly to advance the ethical agenda at Fyffes and on an ad hoc basis to deal with cases raised via any of the channels mentioned above.

Additional internal experts or external advisors will be brought onto the committee as required by the issue raised, provided the complainant gives permission for the complaint to be shared. The role of the Ethics Committee is to make decisions regarding all complaints, including as appropriate assessing them, determining the investigation process, agreeing on an action plan to resolve complaints and escalating those complaints to Fyffes Board of Directors or our parent company Sumitomo, as required by our legal commitments and Sumitomo’s Compliance Policy.

The time necessary to handle and resolve complaints may differ depending on the scale, complexity, and geographical origin of a complaint and will be resolved in the quickest possible timeframe, according to the timeline set out in the Grievance Procedures.

Non-conformance Remediation Process

Non-conformance reports from audits are issued to the farm or ripening centres and followed up for closure within 28 days. We work with our farms and ripening centres or suppliers to resolve the non-conformances, but if any serious non-conformance persists, this is escalated and procurement from that farm can be (and in some instances has been) suspended. Such drastic measures seldom happen; non-conformances are usually resolved and the farm in question is back in line within a few days. Fyffes will always first seek a viable remediation strategy with suppliers. In 2023, Fyffes temporarily suspended one banana supplier based on allegations received from a third party until it was able to make an assessment. Fyffes helped the supplier find an alternative customer for a short period and resumed sourcing from this supplier shortly after conducting its investigation. Fyffes did not de-list any supplier for poor compliance performance in 2023.

Zero Tolerance

Slavery and human trafficking are a serious infringement of human rights and Fyffes will not tolerate any instances in its supply chain and will take immediate remedial action to mitigate, address and resolve within the shortest possible timeframe. If not promptly and satisfactorily remediated, with the assurance of non-recurrence, Fyffes reserves the right to take any further action, including, but not limited to, termination of employment, contractual relationship and/or notification to law enforcement agencies.

Partnerships and Industry Collaboration

In the UK, Fyffes ripening centres are also Business Partners of Stronger Together and have implemented its guidelines. Staff from the UK Head Office and ripening centres have attended workshops to stay informed of developments in the modern-day slavery sphere.

In Costa Rica, Fyffes is a member of the Red de Empresas Contra el Trabajo Infantil de Costa Rica (Network of Companies Against Child Labour of Costa Rica). The Network’s members pledge to defend and promote the rights of the underage working population; especially, the right to education, health, and development.

Fyffes is also a member of the Food Network for Ethical Trade (FNET). Members of FNET can access a number of resources to develop a human rights due diligence approach, in line with the UN Guiding Principles on Business and Human Rights and the requirements of the UK’s Modern Slavery Act. Resources include the FNET ethical trade risk assessment tool which identifies the human rights risks of ingredients and raw materials and supports companies to prioritise where to focus their resources along their supply chains.

This statement was approved by the Fyffes International S.A.  Board of Directors on 25^th March 2024.

 

 

[1] The UK Modern Slavery Act of 2015 requires organisations with a footprint in the UK to be transparent about their efforts in identifying and eradicating modern slavery and human trafficking in their own operations and supply chains.

[2] The California Transparency in Supply Chains Act of 2010 requires large retailers and manufacturers doing business in California to disclose on their websites their efforts to eradicate slavery and human trafficking from their direct supply chain for tangible goods offered for sale.

[3] The purpose of this Act is to implement Canada’s international commitment to contribute to the fight against forced labour and child labour through the imposition of reporting obligations on: (a) government institutions producing, purchasing or distributing goods in Canada or elsewhere; and (b) entities producing goods in Canada or elsewhere or in importing goods produced outside Canada.

[4] SMETA is an audit methodology providing a compilation of best-practice ethical audit techniques. It is designed to help auditors conduct high-quality audits that encompass all aspects of responsible business practice, covering Sedex’s four pillars of Labour, Health and Safety, Environment and Business Ethics.