(Step 3 OECD Guidelines | UNGPs 13, 17 and 19 and Step 4 | UNGPs 17 and 20)
Human Rights
We conduct audits both in our selection process of new perishables and Private Brand suppliers and regularly to monitor the management and control of production processes, in particular the implemented quality and food safety systems. These audits are conducted by internal teams, with the help of independent external auditors, covering aspects such as food safety and quality, environmental and labour-related aspects, among other criteria.
Social audits, in turn, carried out by an independent external entity, aim at monitoring and ensuring compliance with national and international law, and at encouraging the adoption of good practices shared by The Consumer Goods Forum’s Sustainable Supply Chain Initiative. They also seek to ensure compliance with the Resolution and Priority Principles1, in force since 2015, of the Human Rights Coalition – Working to End Forced Labour, also of the Consumer Goods Forum (CGF).
These social audits cover more than 120 assessment criteria, some of which considered to be of “zero tolerance” regarding aspects related to eradicating forced and child labour, emergency preparedness, health and safety and, among others, fighting corruption.
They are preceded by training and, after an on-site verification of infrastructures and interviews with workers, culminate in an overall score. A corrective action plan is created, where necessary, with a stipulated time limit for implementation based on the level of severity. Audits apply to three types of activities in the agri-food sector: primary production, at-sea operations and manufacturing.
For more information about the audits we carry out of our suppliers, see “Selection and monitoring of suppliers”.
Alongside the initiatives carried out with our suppliers, we encourage them to implement a sustainability certification system. These systems follow benchmarks that take into account environmental and/or social requirements that are verified by external entities and can cover one or more ingredients, the product itself and/or its packaging. This certification ensures the implementation of good environmental practices in the value chain and assures that product manufacturing did not entail deforestation or conversion of high conservation value ecosystems, that the production processes are best in class to mitigate pollution, and/or that the principles of human rights are respected, confirming the absence of child or forced labour, fair payment to producers, among other aspects. Specific symbols on products and other forms of communication are also used at the point of sale to facilitate the communication of these attributes to consumers, encouraging them to make more informed choices.
Information about certified-sustainable products can be found in “Consumers and end-users”.
Internally, and as a means to prevent and mitigate the risk of labour rights violations in Portugal, we perform regular HR operations audits of working hours, rest and holiday periods, health assessments, working conditions and other criteria with which compliance and control are aimed at promoting the dignity of workplaces and the well-being of employees. Where nonconformities are identified, a correction plan is defined, with actions closely monitored by the HR team, and the subsequent audit is brought forward to confirm that the plan has been implemented. Ara’s teams also monitor a criticality map that allows them to control priority labour rights indicators and trigger the audit of stores with an identified risk.
Preventing and fighting corruption
When onboarding employees, and to impart our values and ethical principles, they participate in in-person training on the Code of Conduct and we provide and formally request an acknowledge receipt of the Code of Conduct and the Anti-Corruption Policy, ensuring regular communication on these issues.
Moreover, we have implemented a training programme on the Anti-Corruption Policy, in two formats (e-learning and advanced training for critical functions), the content of which are periodically reviewed to ensure that it is up to date. In 2024, a total of 24,937 hours of training were provided on this topic (47.1% more than in 2023) and we reached 42,477 employees through communication campaigns. In addition to general training on the policy, at different levels of depth, training was given to specific target audiences such as the Human Resources and Quality and Food Safety teams on different topics related to corruption prevention, such as, for example, the Due Diligence Procedure. In Colombia, 6,151 employees received training in the self-control and risk management system for money laundering and terrorist financing, and training was given on the Transparency and Business Ethics Programme (PTEE), a Colombian legal regulation.
We also ensure communication with third-party entities that work with Group Companies. In this regard, of note is the dissemination of the Anti-Corruption Policy among suppliers, the Supplier Code of Conduct and Sustainable Sourcing Policy, published on the Group’s website and/or included in contracts.
In addition, we periodically check the effectiveness of our internal policies, procedures and control mechanisms by means, for instance, of audits that include risk verification (including operational risks that may be associated with fraud and corruption) in order to identify possible nonconformities and opportunities for improvement. More detailed information is provided in “Internal Control and Risk Management”.
Taxation and fair competition
We take a collaborative approach with the tax authorities of the countries where the Group does business, participating, for instance, in various initiatives by the Portuguese Tax Authority on tax transparency and cooperative relationship.
The risk associated with tax and legal matters, as well as disputes with tax and competition authorities is constantly monitored by Management and by the Audit Committee.
Regarding fair competition, the Jerónimo Martins Group supports all efforts aimed at banning activities that restrict free trade, unfair practices or abuse of a negotiating position, and believes in strong and fair competition, scrupulously complying with the competition laws of the markets in which it operates.
Internal control and risk management systems
The Group’s internal control system is ensured by a group of departments dedicated to monitoring critical processes at central and operational level, involving, namely:
- the Board of Directors;
- the Audit Committee;
- the Chief Executive Officer, assisted by the Managing Committee;
- the Risk Committee;
- the Internal Audit Department, which reports hierarchically to the Chairman of the Board of Directors and functionally to the Audit Committee;
- the Strategy and Risk Management Division;
- the Business Unit Risk Managers;
- all employees in charge of the execution and/or control of a given process or activity, within a business unit or the corporate structure, and who are responsible for managing the risks involved in those activities.
The Internal Audit Department assesses the quality and effectiveness of the internal control and risk management systems (operational and non-operational) determined by the Board of Directors, ensuring that they comply with the procedures and policies of the Group and its business units. This department’s mission is also to promote compliance with the laws and regulations applicable to our operations. Internal control processes are formalised in policies and procedures, as described in point 50. “Individuals, Boards or Committees Responsible for the Internal Audit and/or Implementation of the Internal Control Systems” to point 55. “Core Details on the Internal Control and Risk Management Systems Implemented in the Company Regarding the Procedure for Reporting Financial Information”.
1 The CGF Priority Principles (available here) advocating for issues considered critical in the protection of labour rights in global supply chains: freedom of movement (the ability of workers to move freely should not be restricted by their employer through abuse, threats and practices such as retention of identification documents and valuable possessions); the voluntary nature of a job (no worker should pay for a job, should be aware of the terms and conditions of their work in advance, and should be paid regularly as agreed; contractual arrangements based on indebtedness or servitude are prohibited); and, contractual freedom (no worker should be indebted or coerced to work and fees or costs associated with recruitment and employment should be paid by the employer and not by placing any financial burden on a worker).