This statement is made in accordance with section 54 of the Modern Slavery Act 2015. It is made on behalf of Formula One Topco Limited and each of its UK subsidiaries, being Formula One Management Limited, Formula One World Championship Limited, Formula One Hospitality and Event Services Limited, Formula One Marketing Limited, Formula One Marketing II Limited, Formula Motorsport Limited, Formula One Research, Engineering and Development Limited, Formula One Digital Media Limited, Delta 3 (UK) Limited, Alpha Prema UK Limited, SLEC Holdings Limited, Beta Holdings Limited and Formula One Administration Limited (Formula 1 Companies or we) and has been approved by their respective boards of directors.
This statement confirms that during 2021/2022, 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.
Since our 2020/2021 statement we have continued following 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 our procedures as set out in this statement.
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 which in 2022 is currently scheduled to take place in 21 countries, over 5 continents. We employ approximately 550 members of staff, the majority of whom are based in the UK. We also outsource a range of goods and services to partners and suppliers across the world who are involved in the organisation of the Championship season racing events.
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.
Our policies and standards
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 the Formula 1 Supplier Code of Manufacturing Standards (Supplier Code).
The Code supports our commitment to conduct business ethically, sustainably, with integrity and to the highest standards, including by guarding against modern slavery. In 2021, we reviewed and updated the Social and Environmental Responsibility section of the Code by adding a component dedicated to Sustainability.
All our staff are required to adhere to the Code, attest to it annually and report any violation they become aware of.
We encourage our staff 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”. We publicise the facility on our intranet, in our policies, in offices and via our Code training.
In the latter part of 2021, subject to the constraints of Covid-19 travel restrictions, we continued our regular modern slavery and health and safety risk briefing programme for travelling staff visiting existing and new high-risk sites. After each visit the staff are asked to report their observations and concerns. In 2022, we will continue this programme as the constraints of Covid-19 travel restrictions are gradually being reduced.
The Supplier Code 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.
We universally commit to respect internationally recognised human rights in our agreements with third parties. In 2021, 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
In 2022, we will continue engaging with our licensees and suppliers to help them develop a greater awareness of Formula 1’s ethical values and how they should be applied.
Supply chain 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. We issue 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, working conditions and workers welfare.
As part of our ongoing monitoring programme, we continue to conduct risk assessments of our race jurisdictions which include assessing modern slavery and human trafficking risks, and to engage with the local promoters to assess the measures they have in place to mitigate against such risks. In 2021, subject to the constraints of ongoing Covid-19 travel restrictions, we continued undertaking regular reconnaissance trips as part of our due diligence procedures. In 2022, we will continue undertaking regular in-person site monitoring, as the constraints of Covid-19 travel restrictions are gradually being reduced.
In 2021, two new circuits were being constructed and we monitored the construction sites through our own due diligence procedures and, in respect of one the sites, also through the use of a business intelligence investigations specialist who conducted on-site assessments and interviews and provided detailed reporting and evaluation of identified modern slavery and human trafficking risks.
In 2021, we enhanced our due diligence procedures by introducing a compliance evaluation risk-rater summary which we use to standardise the way in which our due diligence findings are identified and communicated to the relevant stakeholders in the business. This includes an assessment of any modern slavery and human trafficking risks and suggested mitigation measures.
We continue using our Know Your Client due diligence questionnaires which cover modern slavery and human trafficking issues. In 2021, we enhanced the questionnaires by including questions designed to assess our counterparties’ sustainability policies and standards around the impact of their operations on the environment and local communities.
In 2022, we will continue to review and improve our supply chain due diligence efforts. We aim to enhance our product sourcing requirements for licensees and suppliers to ensure that we are constantly improving our standards to further protect workers welfare and the environment.
We continue to maintain records of our procedures to reflect accurately and in detail our activities in relation to modern slavery due diligence, training and external monitoring intelligence. These records will be used in 2022 to help assess, refine and improve our strategy for mitigating modern slavery and human trafficking risks.
Training and awareness
We train all relevant staff to identify modern slavery and human trafficking risks to which they may be exposed.
During 2021, we have continued to enhance our training programme. We have re-launched an updated version of one of our interactive e-learning modules which includes scenario-based education on modern slavery issues. All current staff have completed (and new joiners are required to complete) the module.
We continue to conduct virtual training sessions on the Code which include a component on human rights, modern slavery and human trafficking with references to any contemporaneous media reports about these issues. All new joiners and current staff are required to complete the training.
Members of our compliance and procurement teams continue to play an important role in raising risk awareness within the business and ensuring that ethical considerations are given due weight in our business partnerships and procurement activities.
Over the course of 2022/2023, we will continue to provide information, training and guidance to staff on modern slavery and human trafficking across our business operations.
To assess the impact of the steps we have taken to combat the risks of modern slavery and human trafficking in our operations and supply chains, we track the following key performance indicators:
• Ensure that 100% of all new staff are introduced to the topic of modern slavery through training.
• Ensure that 100% of all staff complete their mandatory training on specified topics in the Code.
• Ensure that 100% of all staff complete their annual Code re-attestation.
• Ensure that appropriate modern slavery due diligence checks and assessments are undertaken on all relevant partners, licensees and suppliers.
• Ensure that reported incidences of modern slavery in our operations and supply chains are investigated and addressed.
Signed by Sacha Woodward Hill, Director
For and on behalf of Formula One Topco Limited, Formula One Management Limited, Formula One World Championship Limited, Formula One Hospitality and Event Services Limited, Formula One Marketing Limited, Formula One Marketing II Limited, Formula Motorsport Limited, Formula One Research, Engineering and Development Limited, Formula One Digital Media Limited, Delta 3 (UK) Limited, Alpha Prema UK Limited, SLEC Holdings Limited, Beta Holdings Limited and Formula One Administration Limited.