Li & Fung Trading Limited modern slavery statement summary (2024)

Organisation address
7/F, Hong Kong Spinners Industrial Building,
800 Cheung Sha Wan Road, Kowloon, Hong Kong,
Hong Kong,
none

We asked the organisation a series of questions about its modern slavery statement. Its answers are published on this page as a statement summary.

This statement provides information for all 6 recommended areas

What is a modern slavery statement?
UK law requires certain organisations to publish an annual modern slavery statement on their website, setting out the steps they are taking to address modern slavery risks in their operations and supply chains. Read more in the government guidance on publishing modern slavery statements.
Link to full statement
Go to full modern slavery statement on organisation’s website

PDF version of the statement

Warning The file has been uploaded directly by Li & Fung Trading Limited and has not been reviewed, assessed or moderated by the Home Office for suitability and accessibility.
If you need an accessible version of this PDF file, please contact Li & Fung Trading Limited for further assistance.
Download

LI-Fung-2023-Modern-Slavery-Statement_Final.pdf

File uploaded: 23 June 2024 at 4:38pm
PDF | 5.92 MB

Download file

About this statement summary

All answers relate to the financial year covered by the statement. The organisation is responsible for all the information it provided. Some of our questions are optional, so organisations may not have answered all of them. The statement summary does not replace the full modern slavery statement – below we provide a link to the full statement on the organisation’s website.

Contents

Statement period and sign-off details

The statement covers the following period:
1 January 2023 to 31 December 2023

The statement was signed off by:
Joseph Phi (Group CEO)

It was approved by the board (or equivalent management body) on:
23 May 2024

Recommended areas covered by the statement

Government guidance encourages organisations to cover a range of areas in their modern slavery statements, setting out the steps they’re taking to address modern slavery risks in their operations and supply chains. Read about the recommended areas in the statutory guidance.

We asked the organisation to tell us which areas its statement covers.

Areas recommended by government guidance Organisation’s response
The organisation’s structure, business and supply chains Covered
Policies Covered
Risk assessment Covered
Due diligence (steps to address risk) Covered
Training about modern slavery Covered
Goals and key performance indicators (KPIs) to measure the effectiveness of the organisation's actions and progress over time Covered

The organisation’s sectors and turnover

Sectors

The organisation operates in the following sectors:

  • Fashion, textiles, apparel and luxury goods
  • Hardgoods

Turnover

Its turnover in the financial accounting year of this statement was:

Over £500 million

If the organisation is a public body, this amount is based on the organisation’s budget for the year of the statement.
What does 'turnover' refer to in group statements?
If this is a group statement, this includes the total turnover for all the organisations covered by the statement.

Number of years producing statements

The organisation has been producing modern slavery statements for the following number of years:
More than 5 years
How does this work for group statements?
If the statement is for a group of organisations, this answer applies to the organisation with the longest history of producing statements.

Policies (optional)

We asked the organisation whether its policies include the following provisions in relation to its domestic and international supply chains, as well as its own operations.
Policy provisions we asked about Organisation’s response
Freedom of workers to terminate employment Included
Freedom of movement Included
Freedom of association Included
Prohibits any threat of violence, harassment and intimidation Included
Prohibits the use of worker-paid recruitment fees Included
Prohibits compulsory overtime Included
Prohibits child labour Included
Prohibits discrimination Included
Prohibits confiscation of workers' original identification documents Included
Provides access to remedy, compensation and justice for victims of modern slavery Included
Other
Not included

Training (optional)

We asked the organisation whether it provided training on modern slavery, and who it was for.
What counts as training?
We explained that by ‘training’ we meant anything designed to increase knowledge and skills around identifying, addressing or preventing modern slavery risks. This could range from formal training courses to broader awareness-raising activities such as workshops or webinars.
We asked who the training was for Organisation’s response
Your whole organisation Yes
Your front line staff Yes
Human resources Yes
Executive-level staff Yes
Procurement staff Yes
Your suppliers Yes
The wider community No
Other
No

Monitoring working conditions (optional)

Engaging with others

We asked the organisation to tell us who it engaged with to help monitor working conditions across its operations and supply chains.
We asked who the organisation engaged with Organisation’s response
Your suppliers Yes
Trade unions or worker representative groups Yes
Civil society organisations Yes
Professional auditors Yes
Workers within your organisation No
Workers within your supply chain Yes
Central or local government No
Law enforcement, such as police, GLAA and other local labour market inspectorates No
Businesses in your industry or sector Yes

Social audits

We asked the organisation to tell us about any social audits it used to look for signs of modern slavery.
What are social audits?
A social audit is a review of an organisation’s working practices from the point of view of social responsibility, and should include an evaluation of working conditions in the organisation’s operations and supply chains. By their nature, audits of supplier workplaces represent a snapshot in time.
Social audits we asked about Organisation’s response
Audit conducted by your staff Yes
Third party audit arranged by your organisation Yes
Audit conducted by your supplier’s staff No
Third party audit arranged by your supplier Yes
Announced audit Yes
Unannounced audit Yes

Grievance mechanisms

We asked the organisation how workers in its operations or supply chains could raise concerns or make complaints.
We asked if workers could raise concerns this way Organisation’s response
Using anonymous whistleblowing services, such as a helpline or mobile phone app Yes
Through trade unions or other worker representative groups Yes

Other ways of monitoring working conditions

We asked the organisation whether it had any other ways of monitoring working conditions across its operations and supply chains:
Li & Fung utilizes a worker voice tool to hear from workers directly to better understand their experiences on key topics such as responsible recruitment, forced labor and gender equality.

Modern slavery risks (optional)

Warning Identifying modern slavery risks is a vital step towards eradicating it. The government encourages organisations to be as open and transparent as possible, to improve understanding, collaboration and best practice around tackling this worldwide problem.
We asked the organisation to describe up to 3 priority risks it focused on during the period of the statement, including details of the affected workers, the activity involved, and the location.

Priority risks for this organisation (1 of 3)

Migrant workers in Macao, Philippines, Thailand and Taiwan
Questions we asked about this risk Organisation’s response
Where it was most likely to occur Organisation’s response: Within your supply chains.
  • Tier 1 suppliers
    Provide their products and services directly to your organisation.
Who was it most likely to affect Organisation’s response:
  • Migrants
In which country Organisation’s response:
  • Philippines
  • Thailand
  • Macao
  • Taiwan
Actions or plans to address this risk Organisation’s response: In 2023, Li & Fung identified five instances of foreign migrant worker payment of recruitment fees and costs. These instances of non-compliance were recorded in a standardized monitoring system and discussed with the factory. The factory developed a corrective action plan that included reimbursing the affected workers and conducting a root cause analysis. More information on these cases, including the amounts that were repaid, can be found on pages 15 and 16 of the Modern Slavery Statement.

Priority risks for this organisation (2 of 3)

Forced overtime
Questions we asked about this risk Organisation’s response
Where it was most likely to occur Organisation’s response: Within your supply chains.
  • Tier 1 suppliers
    Provide their products and services directly to your organisation.
  • Tier 2 suppliers
    Provide products and services to your organisation via your Tier 1 suppliers.
Who was it most likely to affect Organisation’s response:
  • Women
  • Migrants
In which country Organisation’s response:
  • Indonesia
  • Philippines
Actions or plans to address this risk Organisation’s response: Through LI & Fung unannounced spot check program, we identified two cases of forced labor. In Indonesia, an apparel factory had forced overtime without pay & verbal abuse, but was remediated by Better Work Indonesia. The affected workers were paid pack wages owed for the overtime. In the Philippines, forced overtime with restricted movement was also remediated by a qualified third-party and workers are now free to leave the facility without restriction.

Priority risks for this organisation (3 of 3)

Child Labor
Questions we asked about this risk Organisation’s response
Where it was most likely to occur Organisation’s response: Within your supply chains.
  • Tier 1 suppliers
    Provide their products and services directly to your organisation.
  • Tier 2 suppliers
    Provide products and services to your organisation via your Tier 1 suppliers.
Who was it most likely to affect Organisation’s response:
  • Children
In which country Organisation’s response: China
Actions or plans to address this risk Organisation’s response: Li & Fung partners with The Centre for Child Rights and Business to protect child rights and eliminate child labor from global supply chains. We are an active member of The Centre's Business Working Group collaborating with other member companies to address common challenges and implement best practices. Since 2022, we've worked with the Centre on a Child Labor Due Diligence Project, including a rapid risk assessment and Child Labor Prevention and Remediation (CLPR) Training.

Indicators of forced labour (optional)

We asked the organisation whether its statement refers to finding any International Labour Organization (ILO) indicators of forced labour.
What are ILO indicators of forced labour?
The International Labour Organization (ILO) has produced a list of the most common signs of forced labour. They’re based on the definition of forced labour as ‘all work or service which is extracted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.’ More details and guidance are available on the ILO website, and in their publication ILO indicators of forced labour
ILO indicators we asked about Organisation’s response
Abuse of vulnerability No
Deception No
Restriction of movement Yes
Isolation No
Physical and sexual violence No
Intimidation and threats Yes
Retention of identity documents No
Withholding of wages Yes
Debt bondage No
Abusive working and living conditions No
Excessive overtime Yes
Other
-

Actions taken in response to finding ILO indicators

We asked the organisation to tell us whether its statement refers to any actions it took after finding indicators of forced labour
Actions we asked about Organisation’s response
Financial remediation, including repayment of recruitment fees Yes
Change in policy No
Change in training Yes
Referring potential victims to government services No
Supporting victims via NGO Yes
Supporting investigations by relevant authorities No
Other
-

Demonstrating progress (optional)

We asked the organisation how its statement demonstrates progress over time in addressing modern slavery risks. They provided the following answer:
Li & Fung (LF) is committed to addressing modern slavery risks across its supply chain and sets clear objectives and KPIs to measure progress and set improvement targets. In our most recent Modern Slavery Statement, LF identified four key objectives, each with corresponding KPIs: enhancing governance, strengthening risk assessment, educating suppliers, and enhancing responsible recruitment in Li & Fung operations. For more information, refer to pages 22 and 23 of our Modern Slavery Statement.