Human Rights

Our approach is guided by the United Nations Guiding Principles on Business and Human Rights, reflecting our deep commitment to ethical business conduct and social responsibility. We believe that respect for human rights iis fundamental to sustainable business practices and the well-being of our employees, stakeholders, and the communities in which we operate.

Mercer is committed to continuous improvement and transparency in human rights practices. We work with stakeholders to identify, prevent, and remediate any adverse human rights impacts linked to our activities, products, and services. Our Board of Directors, along with our Chief Human Resources Officer and Chief Sustainability Officer, oversee our Human Rights Policy, ensuring accountability and progress. We adhere to internationally recognized standards, including the Ten Principles of the United Nations Global Compact, the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. These principles inform our policies and business decisions, keeping human rights at the core of our sustainability strategy.

Mercer is committed to fostering positive and respectful relationships with Indigenous Peoples, particularly in Western Canada where Mercer operates. We value the diverse histories, languages, cultures, and perspectives of Indigenous communities and recognize their essential role in sustainable forest management. For more information, see the Indigenous Relations section in this report and our Western Canada Indigenous Relations Policy on our website.

As part of our sustainability approach, we expect our suppliers and business partners to adhere to our human rights policies. Mercer actively monitors supplier performance, assists them in meeting our ethical standards, and takes corrective actions when necessary.

ANTI-DISCRIMINATION STATEMENT

Mercer fosters an inclusive and diverse workplace, offering equal employment opportunities to all individuals, regardless of age, race, color, creed, religion, disability, marital status, sex, sexual orientation, or national origin. Our work environment is built on respect, free from discrimination, intimidation, and harassment. Our Respectful Workplace Policy sets clear standards and expectations around harassment and discrimination and outlines actions Mercer takes to foster a respectful workplace. We encourage open communication, provide management with awareness training on respect in the workplace, and offer supportive resources for all employees such as counseling and guidance.

Mercer strictly prohibits child labor, forced labor, slavery, and human trafficking. We maintain robust internal accountability mechanisms to ensure compliance with these standards among our employees and business partners across the supply chain. Targeted training is provided to employees to reinforce awareness and implementation of these policies.

We recognize the lawful rights of employees to free association and collective bargaining, complying with labor laws in all jurisdictions where we operate. Additionally, Mercer prioritizes workplace safety and health through our “Road to Zero” program, a CEO-led initiative designed to eliminate workplace incidents by equipping employees with tools, training, and policies that promote a safe and healthy work environment.

Mercer is committed to identifying, preventing, and addressing human rights risks within our industry and supply chain. Our comprehensive, multi-stage due diligence process evaluates risks across our global supply chain, aligning with international standards and evolving regulations like Germany’s Supply Chain Due Diligence Act (SCDDA) and Canada’s Modern Slavery Act.

Our Supply Chain Due Diligence Process is structured to proactively assess and mitigate human rights risks, aligning with federal and international standards and regulations.

• Risk Management Framework: Our process is embedded within a robust risk management framework. This includes annual vendor risk assessments (with ad hoc assessments as needed), identification and weighting of human rights risks, establishing preventative and remedial measures, ongoing monitoring, and documentation. We utilize external third-party data to understand risks Mercer might encounter directly, indirectly, or contribute to (e.g., country risk indices, slavery indexes). Vendors are assessed for risks including forced labor, child labor, hazardous conditions, discrimination, and freedom of association violations. In 2024, a risk analysis was conducted on 6,646 companies. 85% were classified as low risk, 15% as medium risk, and 0% as high risk business partners. The Vice President, Procurement oversees supplier due diligence and supply chain risk management.
• Supplier Code of Conduct Integration: All vendors must adhere to Mercer’s Supplier Code of Conduct, which reflects international human rights and sustainability principles. Acceptance of a purchase order signifies agreement to this code. Suppliers are expected to uphold these standards within their own supply chains. In 2024, Mercer revised its Procurement Terms and Conditions to further enhance ESG requirements.
• Ongoing Monitoring & Media Tracking: Our system continuously scans global media for human rights or environmental risks linked to suppliers. Detected issues trigger immediate ad hoc risk assessments. Based on internal assessments and the low prevalence of modern slavery risks in primary operating/sourcing regions (Canada, USA, Germany), Mercer considers the risk in its owned operations and supply chain to be low.
• Stakeholder Engagement & Training: Mercer employees in supply chain relevant roles receive regular human rights due diligence training. In 2024, a newly developed Supply Chain Due Diligence training program was delivered to 150 Mercer employees in Germany and North America.
• Policy and Compliance: In 2024, Mercer created a Policy Statement outlining its Supply Chain Due Diligence practices (Risk Management Framework), specifically addressing the German Supply Chain Due Diligence Act and submitted its first Modern Slavery Report to Public Safety Canada, fulfilling requirements under Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act. Annual reports and compliance statements are made publicly available.

Mercer has a structured framework to address potential violations swiftly. Continuous monitoring helps identify risks early. If concerns arise, we engage directly with vendors through meetings, audits, or site visits. Mercer collaborates with vendors, offering training and remediation strategies to improve compliance. Termination is considered only if corrective actions fail. To data, no severe human rights violations requiring remediation have been identified. Concerns can be reported confidentially via the EthicsPoint channel.