UEBT response to BBC report on child labour in Jasmine supply chains in Egypt

29 May 2024

This statement responds to a BBC report on child labour and low prices in Jasmine supply chains in Egypt.

A BBC report (‘Perfume’s Dark Secret’ released on 28 May 2024) on the Jasmine sector in Egypt highlights issues that are deeply concerning and extremely important to the work of UEBT. UEBT is a mission-based non-profit organisation. Social issues, and particularly human rights, are part of our mission to secure a better future for people and to regenerate nature through ethical sourcing of ingredients from biodiversity. UEBT takes the BBC findings very seriously, and the issues highlighted will inform and advance our continuing work, accelerate change in the sector, and help improve the lives and livelihoods of Jasmine farmers, pickers, and their families.

As noted in the BBC report, UEBT works with companies in Egypt to identify and address risks on social and environmental topics. Based on such work, as well as a participatory risk assessment with local stakeholders, including cooperatives, companies, authorities, and NGOs, we are aware of the likelihood of child labour in smallholder farms in Egypt, which constitute most Jasmine producers, and are working to address risks, improve practices and address root causes, related to traditional communal harvesting, poverty, and gaps in the legal framework. This statement provides some clarifications on aspects of our work raised in the BBC report.

  • The UEBT field verification programme referenced in the BBC report is not a certification scheme, but an improvement-focused programme, which does not permit any consumer-facing labels.

  • As mentioned in the BBC report, UEBT conducted a field assessment on Jasmine for A. Fakhry & Co during the harvest season of 2023.  The scope of any UEBT field verification is defined by the company requesting verification. The UEBT field assessment, conducted by a team composed of a fair-trade auditor and two human rights experts, focused on farms that are part of an A. Fakhry & Co project to address child labour and provide local communities with education and medical support.

  • As the BBC correctly mentions, UEBT issued A. Fakhry & Co a ‘responsible sourcing’ attestation, subject to the adoption of a human rights action plan, in line with the recommendations of human right experts.  For transparency, written reference to the action plan is made in the attestation. ‘Responsibly sourced’ focuses on ‘critical’ requirements in the UEBT standard that include the process of mitigating negative impact, working on supply chain due diligence and managing risks.

  • In line with the UN Guiding Principles on Business and Human Rights, the A. Fakhry & Co human rights action plan recognises human rights-related risks in the Jasmine sector and reinforces the company’s existing actions. In particular, the action plan seeks to further strengthen the company’s risk management systems and grievance mechanisms, including on child labour risks in the supply chain. The plan also foresees the establishment of child protection centres. The aim of the human rights action plan is to drive positive change for Jasmine farmers, pickers, and their families and is supported by various clients of A. Fakhry & Co.

  • The content and implementation of the A. Fakhry & Co human rights action plan is continuously reviewed by UEBT. A follow-up field assessment will take place during the 2024 Jasmine harvest. The attestation will be withdrawn if the plan is not fully implemented.

  • On prices paid to farmers for Jasmine, we found that cost calculations required to determine a fair price need to be further improved to promote living incomes for Jasmine farmers and living wages for pickers. UEBT will continue to support and monitor Egyptian companies on this issue.

As noted in the BBC report, there are limitations to audits. However, UEBT finds that its field verification programme is proving a powerful tool for understanding risks and impacts and driving improvements.  But field assessments alone cannot solve deeply rooted systemic issues such as child labour and poverty in Egypt. As noted in the OECD Guidelines for Multinational Enterprises, companies need to remain engaged to prevent and mitigate human rights risks. The OECD guidelines highlight the value of continuing relationships with suppliers and providing them with guidance and support. Disengagement, as emphasised in the OECD guidelines, should be a ‘last resort.’