At Fitbit, we are passionate about health and wellness, including the health and wellness of those who are helping to build our wearable devices. We believe all workers in our supply chain deserve a fair and ethical work environment and certain minimum standards of human rights as described further in our Human Rights Policy. To that end, we undertake a due diligence process aimed at ensuring our supply chain meets our standards. This statement covers the calendar year identified above and is intended to comply with the applicable requirements, including, without limitation, those set forth in: (i) the UK Modern Slavery Act; (ii) the California Transparency in Supply Chains Act; and (iii) the Australia Modern Slavery Act.
Background on Fitbit’s value chain
Fitbit is a technology company focused on delivering health and wellness products and services that positively impact health outcomes. We combine wearable devices with software and services to give our users tools to help them reach their health and fitness goals. The core of our platform is our wearable devices.
Fitbit outsources the manufacturing of these wearable devices to several contract manufacturers. These contract manufacturers produce our devices in their facilities, which are primarily located in Asia.The components used in our devices come from a variety of component suppliers located worldwide, and are sourced either directly by us or by our contract manufacturers on our behalf. Our operations employees coordinate our relationships with our contract manufacturers and the component suppliers.
Our approach to eliminating modern slavery in our value chain
Policy, code, and management system
- As it relates to our value chain, we have adopted a Supplier Code of Conduct that reflects our commitment to protect human rights throughout our value chain. In 2020, all our existing tier 1 contract manufacturers and tier 2 value chain partners who are the suppliers of the components and commodities used in manufacturing our devices received and acknowledged their compliance with our Supplier Code of Conduct. We integrated the requirements set forth in our Supplier Code of Conduct into our value chain supplier onboarding processes through the use of the Supplier Handbook.
- In 2019, we established a Responsible Sourcing Steering Committee made up of senior representatives from our legal, sourcing, and manufacturing teams which is responsible for making decisions in regards to the company’s responsible sourcing program efforts, including due diligence and planned improvements. The committee met two times in 2020 to review the program.
- We have a compliance hotline that provides for a confidential and anonymous means of reporting violations of our Supplier Code of Conduct and any other applicable laws. We did not receive any report in 2020 through this hotline regarding potential violation of our Supplier Code of Conduct or other human rights standards.
Value chain risk assessments
- The assessments we use are designed to identify and mitigate modern slavery and overall human rights risks in our value chain. The 2020 assessment scope was focused on our tier 1 value chain suppliers. The assessment started with company and site level social, environmental, and health & safety risk mapping. To understand further risks at a site level, we deployed self-assessment questionnaires and on-site assessment to evaluate our supplier’s maturity level in identifying and mitigating human rights risks. For the on-site assessments, we adopted Responsible Business Alliance (RBA) audit protocol which typically reviews the supplier’s internal policy, certifications, and process control documents, as well as performs a facility and dormitory walkthrough, and worker and management interviews.
- The assessment result was used to develop corrective and preventive action plans and guided our capacity building focus areas. Our continuous improvement activities were built with the principle of collaboration, because we believe it is the best way to drive sustainable changes.
- The surveys, on-site assessments, and continuous engagement we executed in 2020 showed no obvious signs of slavery, bonded, or forced labor in our value chain.
Risk monitoring and management
- Even though the use of slavery, bonded, or forced labor was not identified, we observed some issues relating to the proper implementation of workplace health and safety requirements. Dedicated resources, including Fitbit local team members, were assigned to help our suppliers remediate these issues. We also made available, at no cost to our suppliers, subject matter experts that our value chain suppliers can contact and consult in regards to their questions or concerns related to labor rights, environmental, and health and safety.
- Our value chain suppliers performance and maturity in managing human rights risks are included in their overall performance evaluation. Suppliers who were underperforming in this area and do not remediate the performance promptly are at risk to no longer be considered for any new products we are developing and would be phased out of the supply chain. We are committed to work with our value chain suppliers to establish proper management systems and controls necessary to guard against any use of slavery, bonded, or forced labor. Our goal is to ensure that we do not do business with any supplier promoting, engaging in, or tolerating such practices.
- In 2020, the consumer electronics industry saw increasing concerns with respect to forced labor. To address and mitigate the issue, we have and continue to increase our communication and activities with suppliers related to force labor. For example, third party on-site visits were conducted at facilities presenting higher risks. We will continue this effort in 2021.
Reporting and continuous improvement
- We annually publish this statement on our website, describing our efforts in combating modern slavery.
- As a member of the RBA, we also undertake all activities necessary to maintain our member status, including reporting our progress to the RBA.
- The result of our annual due diligence efforts and this statement were reviewed and approved by the Fitbit Responsible Sourcing Steering Committee.