Terms and Policies

Modern slavery statement

Values 

There is no place for modern slavery or human trafficking in any part of our business or supply chains. We are committed to improving our practices to combat slavery and human trafficking.

Description of business

We design, manufacture and sell furniture and furnishings for the home. Our UK headquarters are in Wiltshire and we have stores throughout the UK and Europe. We have a digital presence and ship to customers globally. We have around 350 employees in the UK.

We own a production facility in Qingdao, China which we set up ourselves and manage directly as part of the business. We employ 450 people at this production facility which only manufactures for Neptune.

Description of our supply chain

We make core range wooden furniture, upholstery and kitchens at our production house in China, and bespoke ranges at our Wiltshire, UK headquarters. We also design, manufacture and procure a wide range of other products for the home, such as lighting, decorative items, home textiles, tiling and flooring. We consider this finished product sourcing to constitute our “tier one” merchandise supply chain. Tier one means there exists a direct contact between the production partner and our company as the purchaser of finished goods or services for sale to Neptune’s customers.

The following are production locations for our tier one merchandise and non-merchandise suppliers:

• United Kingdom

• Ireland

• Bangladesh

• Belgium

• Myanmar

• Indonesia

• Denmark

• Netherlands

• Romania

• Portugal

• Poland

 

• India

• China

 

 

We define “tier two” in our supply chain as procurement that takes place to allow suitable and sufficient outputs from tier one suppliers. Our tier two merchandise supply chain is a combination of componentry and processed raw material suppliers.

The following is a list of our tier two sourcing locations as we currently understand it:

• USA

• Vietnam

• Belgium

• Italy

• China

• New Zealand

• Taiwan

 

 

Neptune categorises “non-merchandise” as any source of goods or services that will not be offered for sale by Neptune to its customers. Examples for the period covered in this Modern Slavery Statement include the purchase of heat pumps for our China production site, the purchase and leasing of delivery vehicles in the UK and the purchase of janitorial services by our stores and head office. Neptune’s non merchandise supply chain will be mapped to Tier 1 by April 2022.

Description of due diligence

We undertook a project with expert external assistance to assess gaps and opportunities in our modern slavery due diligence processes from October 2020 to January 2021. As part of this project we undertook the following:

  • Improvements to our data gathering and information storing processes on suppliers
  • A grading exercise and further due diligence on the most at-risk suppliers encompassing all sourcing categories, both merchandise and non-merchandise
  • We used geopolitical risk, country level poverty, the likely presence of a foreign and or migratory workforce and likelihood of homeworking as modern slavery indicators
  • Re-issuing of an improved ‘Principles of Souring’ document incorporating all our required standards of conduct to suppliers
  • Introduction of a bespoke site audit for suppliers to be rolled out from Q2 2021 covering H&S, labour conditions and modern slavery.
  • Introduction of a gatekeeper process to ensure the appointment of new suppliers is subject to our being satisfied they are compliant with our modern slavery standards.
  • The business committed to joining the United Nations Global Compact and as such to report on an annual basis a range of issues including modern slavery due diligence practices.

Analysis of risk and opportunities

Neptune acknowledges that the risks of modern slavery occur in every country where we operate and source, including the United Kingdom; nowhere is entirely zero risk. However, we recognise that those risks are more likely in some areas of the world than in others in both merchandise and non-merchandise supply chains.

In terms of non-merchandise, outsourced facilities management and janitorial services (including of our delivery vehicles) are categories in which we will be extra vigilant. When considering product sourcing, countries and types of sourcing in which there is a higher prevalence of modern slavery will continue to be risk assessed in greater detail and depth than others. We have assessed that the following categories of products present an increased risk:

  • Hand crafts and rug making, including artisanal and village work
  • Stone worktops, flooring and other products
  • Sourcing in India, Myanmar and Bangladesh
  • Sourcing from any country where workers have travelled or been brought to their place of work from another part of that country or a separate country

Next steps

In 2021 Neptune will complete the following tasks:

  • Appoint a full-time factory social and environmental auditor to be based in China
  • Implement a gatekeeper process for all new products on social and environmental standards
  • Conduct in house and third party auditing in key parts of the supply chain including beyond tier one
  • Commit to reporting the results of these due diligence activities in this report in a year’s time
  • Conduct a non-merchandise mapping exercise and risk based due diligence programme including site audit and self-assessment questionnaire dependent on supplier relationship and risk profile