Supply Chain
Disney brings stories and characters to life through innovative and engaging physical products and digital experiences across hundreds of categories, from toys and t-shirts, to food, books and games. Responsible sourcing is an important focus of Disney’s overall corporate social responsibility efforts. We are committed to respecting human rights, reducing the environmental footprint of the supply chain, monitoring the safety and integrity of products, promoting supplier diversity, and working in collaboration with others to meet our objectives.
Overview
We sell products directly to consumers through our parks, stores, and online. We also license our characters and stories to third parties to produce and sell Disney-branded products, making Disney the largest consumer products licensor in the world.
Across these business models, Disney-branded products are produced in approximately 43,500 facilities in more than 100 countries across the globe. This manufacturing network and global footprint create a highly complex network of suppliers, many that are several degrees removed from our direct operations.
In addition, we purchase a vast array of products, materials, and services from thousands of suppliers to support our operations, such as theme parks and resorts; cruise and vacation experiences; film, television, streaming, and theatrical productions; and offices and distribution centers.
International Labor Standards
The Disney International Labor Standards (ILS) Program oversees labor standards compliance across the extensive supply chain for Disney-branded consumer products. The Program establishes requirements for licensees and vendors to monitor their supply chains for compliance with relevant labor laws and the labor provisions of Disney’s Supply Chain Code of Conduct; specifies where products may be produced; provides for review of social compliance audit reports and the issuance of corrective action plans to promote improvement in working conditions; and facilitates supply chain labor-related training.
To promote company-wide integration, the ILS Program is monitored and reviewed at the highest levels of the company. The Audit Committee of The Walt Disney Company’s Board of Directors is responsible for the review and oversight of the ILS Program and receives periodic updates about the ILS Program’s performance.
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Supply Chain Code of Conduct
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ILS Program Requirements
The following materials provide licensees, vendors, and suppliers with additional information about the requirements for compliance with Disney’s International Labor Standards Program.
Forced Labor Supplemental Guide
Product Sustainability
To systematically address the environmental impacts we have across our product portfolio, we are focused on a set of materials that are consistently used in high volumes and across a number of different product categories in both our direct and licensed manufacturing or are known to have significant environmental impacts associated with their production and use (forest products including paper, wood, and palm, as well as textiles and plastics). We are working to reduce the environmental impacts of these materials while also increasing the sustainability of our manufacturing network as a whole. We are committed to working with suppliers that track their environmental impacts, with the aim of minimizing our environmental footprint everywhere that Disney-branded products are made.
Read our Paper Sourcing Policy
Product Safety
The safety of products bearing Disney brands, characters, and other intellectual property is of the utmost importance to us.
Our product safety program sets Disney’s policies, procedures, and operating requirements designed to help us achieve our safety objectives and commitments. Disney requires that all independent licensees and vendors engaged in the production of Disney-branded products contractually commit to comply with all applicable regulatory requirements and any additional requirements that may be specified by Disney. Disney also requires that licensees and vendors contractually commit to follow reasonable and proper procedures for verifying that Disney-branded products comply with all applicable regulatory requirements by conducting safety tests using accredited and independent testing facilities and following other procedures to confirm compliance with applicable requirements.
To promote compliance and to help reinforce the safety of Disney-branded products, the product safety program engages in monitoring activities that include requiring designated licensees and vendors to submit product safety testing reports or other compliance documentation to Disney and subjecting Disney-branded products to periodic, risk-based auditing programs to confirm continuing compliance.
Disney is committed to a continuous review of our product safety policies, procedures, and operating requirements to help support an approach that: results in Disney-branded products that meet, or exceed, current regulatory requirements and any additional Disney requirements; follows developments in our complex global consumer products business; and reflects Disney’s commitment to product safety. Disney implements changes to the product safety program as appropriate and is committed to communicating our approach to all concerned parties.
Supplier Diversity
We believe that including diverse suppliers in our sourcing process provides a meaningful opportunity to seek innovative and high-quality business solutions.
Supply Chain Investment Program
Disney’s Supply Chain Investment Program (SCIP) provides grants to non-profit organizations, social enterprises, international organizations, and other qualified groups that advance solutions and collaboration to address issues such as forced labor, worker voice, supply chain traceability, child labor, and ethical recruitment in global supply chains. SCIP funds programs which aim to:
- Promote innovation to address root cause issues of poor conditions for supply chain workers
- Incubate tools that enhance supply chain transparency
- Support ethical sourcing in global supply chains
- Increase worker standards and mechanisms for accountability
To learn more about SCIP, including criteria for applying and submitting a project proposal for funding consideration, email [email protected].
A few of our partners are highlighted here:
BSR HERproject
BSR’s HERproject™ is a collaborative initiative that strives to empower low-income women working in global supply chains.
Better Work
Better Work–a collaboration between the United Nation’s International Labour Organization (ILO), a United Nations agency, and the International Finance Corporation (IFC), a member of the World Bank Group–is a comprehensive programme bringing together all levels of the garment industry to improve working conditions and respect of labour rights for workers, and boost the competitiveness of apparel businesses.
GoodWeave
GoodWeave–a nonprofit organization founded in 1994 by Nobel laureate Kailash Satyarthi–is the leading global institution working to stop child labor in global supply chains through a market-based holistic and authentic system.
Collaboration
Disney values the input of external stakeholders and works with a variety of organizations to foster safe, inclusive, respectful, and sustainable supply chains. External stakeholders include non-governmental organizations, multi-stakeholder initiatives, labor unions, peer companies, inter-governmental organizations, governments, socially responsible investors, industry associations, and others. Some of our collaborations include:
Facilities List
Supply Chain Highlights
$25M+
Contributed by Disney since 2012 through SCIP
$1B+
Invested with diverse suppliers in FY23
20
Digital wellness grants given to support digital literacy