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Forced labor risk assessment check

The Forced labor risk assessment helps to uncover an organization’s risk exposure to all forms of forced labor and extreme labor exploitation using Moody's Forced Labor Risk Assessment. The Forced labor risk assessment check allows companies to assess, disclose, and manage risks comprehensively. The check also helps you to make efficient investments in risk mitigation strategies and systems and discharge compliance obligations. The check gives access to detailed due diligence through a multi-factor risk assessment, expert interpretation of risk, and guidance to take meaningful action. To learn more about the Forced labor risk assessment model, see Forced labor risk assessment model.

Information used to run this check

To run the check, the company profile information must have a valid Company number to generate the BvD ID, and all required fields must be filled.

The Forced labor risk assessment needs supplier survey data in order to give a Forced labor risk score. When running a check for a company for the first time, send a form to your supplier to fill out the questionnaire that helps form the score. Before sending the form, inform your supplier about the survey and ask them to provide an email address to which the form should be sent. To submit the form to your supplier, select Send survey request in the Forced labor risk assessment. The form asks for the email address to be used before sending it.

Example of Forced labor risk check

Once the supplier has filled out the form, you can see their answers, the percentage of the form they completed, and the overall score. Any fields your supplier chooses to leave empty count negatively toward the overall score. The result of the Forced labor risk score is only available to your company and isn't visible to the supplier. If the supplier has an error or missing data in their submitted form, use the Send survey request button to resend the form.

Overall results of the check

Moody's Forced Labor Risk Assessment generates a Forced labor risk score comprising three metric scores for Business, Industry, and Country risk. Each sub-score consists of categories that can be examined to see their weight relative to the overall score. The items listed first are the most weighted for the overall score. The Forced labor risk score and risk zones have scores from 0 to 100, with a higher score representing more risk. All scores are based on user input data. Missing data is penalized by assigning the corresponding metric the highest risk score.

The three metric scores are individually compared against the Maximum business score to pass, the Maximum industry score to pass, and the Maximum country score to pass, which are set in the smart policy. The comparison will return a Pass, Partial, Fail , or Error result. For a check to pass, the metric scores need to be lower or equal to the value set in your smart policy. Note that Moody's can't advise on the configuration of your maximum risk scores, which should be configured according to your own internal risk policy.

The scale categories of the risk score are the following:

Risk zones

Color

Risk sub-zones

Lower risk

Green

  • Negligible, score from 0 to 9

  • Very low, score from 10 to 19

  • Low, score from 20 to 29

Emerging risk

Amber

  • Low-emerging, score from 30 to 39

  • Emerging, score from 40 to 49

  • Emerging-high, score from 50 to 59

Higher risk

Red

  • High, score from 60 to 72

  • Very high, score from 73 to 86

  • Severe, score from 87 to 100

The overall score consists of three metric scores:

Metric scores

Risk categories and their metrics

Business

A range of financial characteristics of the organization, and an assessment of employee and supplier behaviors. The overall business score is a weighted sum of 10 individual metric scores.

  • Worker relations, rights, and remedy

    • Worker voice and labor rights

    • Labor cost resilience

    • Workforce turnover

  • Governance and commitments

    • Human rights policies and management

    • Remuneration inequality

  • Organizational resilience

    • Knowledge intensity

    • Balance sheet pressure

    • Cost resilience

  • Supplier management

    • Procurement and contract management

    • Supply chain concentration

Industry

Relate to an organization through its main industry/sector and the main industries associated with its primary suppliers and subsidiaries.

  • Decent work

    • Migrant worker rights

    • Child labor levels

    • Human rights policies on forced labor

    • Labor policies on forced labor

    • Wage levels

    • Hazardous conditions (fatal)

    • Hazardous conditions (non-fatal)

  • Climate risk

    • Air pollutants

    • Carbon emissions

    • Tree loss

    • Water footprint

    • Water pollutants

  • Gender equality

    • Migrant worker recruitment costs

    • Informal employment

    • Gender equality policies

    • Education levels

    • Gender pay gap

  • Industry, innovation, and infrastructure

    • Temporary and seasonal workforce

    • Foreign migrant workers

    • Workforce skills level

    • Levels of purely domestic output

    • R&D intensity

  • Sustainable production and consumption

    • Labor productivity

    • Low labor cost

    • Levels of regulation

    • Excessive overtime

Country

Relate to an organization through the locations of the organization’s HQ and the locations of its primary suppliers and subsidiaries.

  • Peace, justice, and strong institutions

    • Violence and torture

    • Public sector corruption

    • Anti-slavery legislation

    • Organized crime

    • Internally displaced persons

    • Birth registration levels

    • Armed conflict

    • Political violence and terror

    • Government anti-slavery efforts

    • Freedoms of movement, speech, and religion

    • Institutional discrimination

  • Decent work

    • Unemployment and underemployment

    • Labor rights protections

    • Youth unemployment

    • Resource efficiency and environmental protection

    • Informal economic activity

    • Youth employment policies and action

    • Financial inclusion

    • Economic growth

    • Trade openness

    • Economic contribution from tourism

  • Poverty reduction

    • Equal rights and access to economic resources

    • Multidimensional poverty

    • Social protection coverage

    • Extreme poverty and income inequality

    • Quality of governance and public services

    • Government investment inessential services

    • Impact of economic shocks on vulnerable communities including refugees

  • Climate action

    • Resilience to climate-related hazards and disasters

    • Climate change-related hazard exposure

    • Climate change measures to reduce emissions

    • Climate change adaptation and mitigation planning

    • Climate change adaptation and mitigation infrastructure

Check results

These are the possible results of the check:

Result

Explanation

Pass

The business, industry, and country scores are all equal to or below the provided threshold.

Partial

Awaiting data. There is not enough data to generate a score.

Fail

At least one of the business, industry, or country scores is greater than the provided threshold.

Error

  • Invalid credentials: Internal authentication error. If the problem persists, there may be an issue with your smart policy setup, and you should contact Moody's Client Service team for assistance.

  • The provided API key is invalid: If the API key in the policy builder isn't set or is wrong. Contact Moody's Client Service team for assistance.

  • Forced Labor API did not have information about searched company: Contact Moody's Client Service team for assistance.

  • No company name configured: Contact Moody's Client Service team for assistance to set up your company name.

  • No check API key configured: Contact Moody's Client Service team for assistance to set up your Forced labor risk assessment API key.

Additional information

In this section: