The success of an ethical sourcing program hinges on nuanced risk assessment and a comprehensive understanding of the supply chain, particularly in areas where specific risks to the business exist.

In the past year, Wesfarmers Health conducted extensive desktop research and benchmarking activities against industry peers, leading to the formulation of five Standard Operating Procedures (SOPs) designed to complement its Ethical Sourcing Program.

These SOPs serve as a crucial tool in providing the business with granular knowledge of various aspects within the supply chain. Specifically, they address animal testing in Own Brand goods for resale and goods not for resale (GNFR) that are high risk (in particular suppliers that manufacture GNFR products such as cotton, mica, rubber, and solar panels).

Animal Testing

Owners and handlers of animals bear a responsibility for the welfare and well-being of the animals in their care. While recognising the prevalence of animal testing in pharmaceutical products for safety and efficacy verification, Wesfarmers Health emphasises the humane treatment of animals. The business expects suppliers to prioritise practices that safeguard and promote animal welfare.

Cotton

Cotton is one of the most common fibres used in Wesfarmers Health’s Own Brand products and team members’ apparel. The sector, however, is linked to human rights abuses in certain high-risk regions, emphasising the need for careful consideration when sourcing this material.

Mica

Widely used in cosmetics, mica mining is known for being highly manual, labour-intensive and often dangerous. Wesfarmers Health acknowledges the risk of exploitative practices, particularly involving children, in regions where mica is sourced.

Rubber

Extracted from trees, natural rubber is a key material used in medical gloves and other products. The manufacturing hubs of rubber, concentrated in specific South Asian countries, pose potential risks to migrant workers who may be exposed to excessive recruitment fees and exploitative labour conditions.

Solar Panel

The solar panel supply chain, from quartz mining to the production of solar modules, could potentially be linked to serious human rights abuses, including forced labour. The tiered structure of the supply chain highlights potential risks associated with each stage.

The newly developed SOPs mandate that suppliers disclose relevant information to Wesfarmers Health to ensure alignment with the Ethical Sourcing and Modern Slavery Policy. These disclosures are expected to be regular and will become an integral part of the supplier onboarding procedure. Business units, including merchandise, wholesale, supplier engagement and indirect procurement teams, were actively consulted during the SOP formulation.

Wesfarmers Health is prepared to fully operationalise the SOPs in the upcoming reporting period, underscoring its commitment to ethical sourcing practices and robust risk management.