Formula 1 Modern Slavery Act Transparency Statement

This statement is made in accordance with section 54 of the Modern Slavery Act 2015 on behalf of Formula One Management Limited, Formula One World Championship Limited, Formula One Hospitality and Event Services Limited and Formula One Marketing Limited (Formula 1 Companies or we) and has been approved by their respective boards of directors.

This statement confirms that during 2019/2020, we have continued following our last financial year (ending 31 December) to take steps to identify and combat the risk of modern slavery and human trafficking occurring in our business activities and supply chains and that no incidents have arisen.

We are committed to guarding against modern slavery risks globally throughout our operations and to assessing the potential impacts of our activities. This commitment is underpinned by our Human Rights Statement and the Formula 1 Code of Conduct (Code) and from 2019, the Formula 1 Supplier Code of Manufacturing Standards (Supplier Code).

Since our 2018/2019 statement we have further enhanced our due diligence procedures (as detailed below) and have worked to increase the awareness of modern slavery and human trafficking risks across the business through training and communication.  Over the course of the next year, we will continue to review and enhance these procedures as set out in this statement

Our business

The Formula 1 Companies hold the exclusive commercial rights to the FIA Formula One World Championship (Championship) which is an annual, approximately 9 month long, motor racing competition in which teams compete for the Constructor’s Championship and drivers compete for the Driver’s Championship.  It is a global series taking place in 22 countries, over 5 continents.  We employ approximately 550 members of staff, the majority of whom are based in the UK.

We assess the risk of modern slavery and human trafficking in our supply chain on an ongoing basis and are particularly mindful of the heightened risk in the areas of circuit labour (which is selected and contracted by a third party local promoter or operator), labour at our own premises, the production of F1 branded merchandise (which is commissioned and produced by third party licensees and sponsors) and the production of uniforms, workwear and equipment used in our own workplaces.

Due diligence

In order to identify modern slavery and human trafficking risks in our supply chains we conduct risk-based due diligence on relevant third parties before we enter into new or renewed contractual arrangements.

Factors we take into account when considering the level of due diligence required include the nature of the services being provided, the industry and the geographic location of the counterparty and such services.

In respect of potential high risk areas we proactively engage with our relevant partners and suppliers to ensure that circuits are constructed ethically and in accordance with relevant labour laws and that our branded products are sourced responsibly.

In 2019, we enhanced the focus of our due diligence in potential high risk areas by issuing supplementary questionnaires on modern slavery and human trafficking which probe issues such as our counterparties’ internal policies and procedures, due diligence, ethical audits and whistleblowing mechanisms, risk assessment, supply chain mapping and working conditions.

As part of our monitoring programme, Formula 1 receives regular risk assessments on each of its race jurisdictions.  In 2019, these assessments were enhanced to include more detailed analyses of modern slavery and human trafficking risks.  We also engaged a business intelligence investigations specialist to conduct on-site assessments and interviews at a new circuit construction site and to provide detailed reporting and evaluation of modern slavery and human trafficking risks.

We have also enhanced our record keeping procedures to reflect accurately and in detail our activities in relation to modern slavery due diligence, internal modern slavery travel briefings and reports, training and external monitoring intelligence.   These records will be used in 2020 to help assess, refine and improve our strategy for mitigating modern slavery and human trafficking risks.

Contracts

We universally commit to respect internationally recognised human rights in our agreements with third parties. In 2019, we continued to review and update our bespoke contractual provisions which prohibit the use of forced and child labour, human trafficking and unsafe working conditions in our circuit related contracts and impose specific obligations on relevant product licensees and sponsors relating to the manufacturing process.

Code

The Formula 1 Code of Conduct supports our commitment to conduct business ethically, with integrity and to the highest standards, including by guarding against modern slavery.  All our staff are required to adhere to our Code and report any violation they become aware of.  We encourage them to speak up about any concerns, including issues relating to human rights or modern slavery. It is possible to do so anonymously through our 24-hour hotline “Speak up”.

In 2019, we conducted a series of briefings on modern slavery and health and safety risks for travelling staff visiting construction sites for new circuits. Following each visit, the staff are asked to report their observations and any concerns.  In 2020, we will expand upon this briefing programme to capture all existing and new high-risk sites, although disruptions to our operations caused by the Covid19 pandemic may hinder and delay fulfilment of this project.

The Supplier Code, introduced in 2019, summarises the steps Formula 1 takes to honour its commitment to ensure that its manufacturing supply chains are free from human rights and modern slavery abuses.  It also sets out the standards we expect the suppliers and licensees of F1 branded products (and the subcontractors in the supply chain) to observe and the measures we expect them to implement to ensure compliance with internationally recognised human rights laws, statutes, conventions and regulations.

In 2020, all relevant suppliers will receive the Supplier Code and we will work to ensure early engagement with counterparties to help them develop a greater awareness of Formula 1’s ethical values and how they should be applied.

Training

We train all relevant staff to identify modern slavery and human trafficking risks to which they may be exposed.

During 2019, we continued to enhance our training programme. We updated our face-to-face training sessions on the Code, including by enhancing the component on human rights, modern slavery and human trafficking issues.  All staff have completed (and new joiners are required to complete) our interactive e-learning module which includes scenario-based education on modern slavery issues.  Members of our procurement department have obtained ethical sourcing certificates from the Chartered Institute of Procurement and Supply and they play an important role in raising risk awareness within the business and ensuring that ethical considerations are given due weight in our procurement activities.

Over the course of 2020/2021, we will continue to provide information, training and guidance to staff on modern slavery and human trafficking and will support additional personnel to obtain relevant ethical certifications to enhance their modern slavery knowledge.

 

Signed by Sacha Woodward Hill, Director

For and on behalf of Formula One Management Limited, Formula One World Championship Limited, Formula One Hospitality and Event Services Limited and Formula One Marketing Limited

2018/2019 statement

2017/2018 statement

2016/2017 statement