Correspondence
Email sent to Schwarz Gruppe’s press office, which handles Lidl media inquiries.
The email said that Lidl’s own brand of squid, under the Eridanous range, is processed at a seafood plant in China called Zhoushan Xifeng Aquatic Co. Ltd. Visual evidence shows Xifeng being supplied by at least three companies whose vessels have a history of fishing offenses, including lengthy transmission gaps, illegal fishing and shark finning. It also noted Lidl’s commitments to sustainability and human rights, and asked if the company had any comment to make in light of the information discovered in The Outlaw Ocean Project investigation.
Lidl’s Corporate Communications International team asked for more time to carry out internal checks on the questions raised by The Outlaw Ocean Project.
Lidl replied by email saying that they had raised the issues with its direct supplier Vassiliou Trofinko and their supplier in China, Zhoushan Xifeng: "Zhoushan Xifeng Aquatic Co. Ltd. has confirmed to us in writing that they are not involved in fishing offenses, including the practices you described. Please see their statement attached to this e-mail." Attached to the email was the same supplier declaration from Zhoushan Xifeng that Vassiliou provided to The Outlaw Ocean Proejct in separate correspondence. Lidl also said: "Please note that the product you addressed is purchased by Lidl Greece and only sold in Greece and Cyprus."
The Outlaw Ocean Project replied, detailing specific illegal, unreported, or unregulated fishing linked ships found supplying Zhoushan Xifeng and asking Lidl if they feel that the supplier statement from Xifeng gives adequate assurances Lidl's supply chain is free from illegal, unreported, or unregulated fishing. This email also noted that the Lidl Eridanous squid range is available in other parts of Europe, such as Ireland.
Lidl replied, asking for further specific details and supporting materials on the red flag vessels identified in earlier correspondence so that it can pursue its own investigation with its supply chain. Lidl's team also clarified that the product range in question is a permanent range in Greece and Cyprus, and at times has appeared in other countries as part of a seasonal offer.
The Outlaw Ocean Project replied to Lidl providing more specific details, where possible for sharing externally, on the named vessels and companies.
The Outlaw Ocean Project emailed Lidl to see if the company wished to make any additional comment ahead of publication.
Lidl replied that right now, they do not want to make any additions to our previously submitted on-the-record statement.
The Outlaw Ocean Project's publishing partner in Germany, Die Zeit, contacted Lidl for comment on the investigation.
Lidl replied with a statement, saying: "We take such allegations very seriously and the practices described below are not acceptable to Lidl. We were also in direct exchange with 'The Outlaw Ocean Project' on this to discuss the allegations and our handling of such cases. Lidl is committed to its corporate duty of care. We are therefore working hard to minimize negative impacts in our supply chains, to effectively remedy rights violations, and to use our influence for positive change." The statement added that Lidl had examined the concerns raised by The Outlaw Ocean Project: "We immediately contacted our direct suppliers to investigate these allegations. For the specific case of illegal fishing highlighted by Outlaw Ocean, the business relationship with the affected supply chain actor was suspended by our direct supplier due to limited cooperation. With respect to the information we received regarding human rights violations, we remain in the process of investigating the allegations, including working with national industry initiatives such as The Seafood Ethics Action (SEA)."
The Outlaw Ocean Project's publishing partner in Germany, Die Zeit, asked Lidl for an update on its internal review into the findings of The Outlaw Ocean Project’s investigation.
Lidl International’s Corporate Communications team replied with additional information to supplement its statement of October 9, 2023. The email said that it takes the allegations raised in The Outlaw Ocean Project’s investigation seriously and the practices described are not acceptable to Lidl. Therefore, the company has immediately contacted its direct suppliers to investigate the allegations and is currently checking its entire fish and seafood supply chain for such links. The email added: “We ask for your understanding that these investigations are thorough and take a long time due to the complexity of international supply chains. We plan to have further discussions with The Outlaw Ocean Project once the comprehensive review of our supply chains is complete. For the specific case of illegal fishing highlighted by Outlaw Ocean, the business relationship with the affected supply chain actor was suspended by our direct supplier due to limited cooperation. We are still investigating the allegations with regard to the information we received on human rights violations. One of the production facilities concerned has now also been blocked by our direct supplier.”
The Outlaw Ocean Project's publishing partner in the UK, Sky News, contacted Lidl for comment on the investigation.
Lidl International’s Corporate Communications team replied: “We take such allegations very seriously and the practices described by Outlaw Ocean are not acceptable to Lidl. We were also in direct contact with The Outlaw Ocean Project to discuss the allegations and our handling of such cases. Lidl is committed to its corporate due diligence. We are therefore working intensively on minimizing negative effects in our supply chains, effectively remedying rights violations and using our influence for positive change.
With our Policy Statement, we are unequivocally committed to respecting human rights and environmental obligations. Through our Code of Conduct for business partners, we set minimum social and ecological standards for cooperation and incorporate this into negotiations with our business partners. If we have specific facts regarding violations of these provisions, we will investigate and take appropriate steps. We continuously and systematically review potential human rights, social and environmental risks in our supply chains. The aim is to record and minimize these risks.
We have therefore also examined the cases presented to us by The Outlaw Ocean Project from a compliance perspective. We immediately contacted our direct suppliers to investigate these allegations. We are currently reviewing our entire fish and seafood supply chain for relevant links. We ask for your understanding that these investigations are carried out thoroughly and take a long time due to the complexity of international supply chains. We plan to have further discussions with The Outlaw Ocean Project once the comprehensive review of our supply chains is completed. For the specific case of illegal fishing highlighted by Outlaw Ocean, the business relationship with the affected supply chain actor was suspended by our direct supplier due to limited cooperation. With regard to the information presented to us on human rights violations, we are still investigating the allegations, including in cooperation with national industry initiatives such as The Seafood Ethics Action (SEA). One of the affected production sites has also been blocked by our direct supplier.
Further information on the topic of compliance at Lidl can be found at https://info.lidl/en/compliance, including our procedural guidelines for compliance cases. Understanding where our fish and seafood comes from is important for both us and our customers. We therefore speak out against illegal, unreported or unregulated fishing (IUU fishing) as well as against illegal fishing methods. We also require our suppliers to use risk-oriented procedures and refrain from using raw materials from IUU fishing. We support initiatives such as the WWF's “Initiative of Trade Against Illegal Fish”, which is committed to ensuring that appropriate political measures are taken to ensure the implementation of the loading requirement. Further information on our measures can also be found in our position paper for the sustainable purchase of fish, shellfish and their products: https://unternehmen.lidl.de/pdf/show/49182.”
The Outlaw Ocean Project emailed Lidl: "We were in contact with Lidl in 2023 regarding our investigation into China’s squid fishing and seafood processing industries. Our ongoing investigation into the use of forced labor in Chinese seafood plants has uncovered additional evidence which we wanted to bring to your attention.
We have investigators on the ground in China who have been engaging with labor brokers directly involved with the transfer of North Korean workers to factories in China. Through this and other investigative means, including collecting online footage from the plants and interviews with workers recently returned to North Korea from China, we’ve found large numbers of North Korean workers at a range of seafood processing plants in Liaoning province, on China’s border with North Korea. These include plants belonging to companies called Dalian Haiqing Food, Donggang Haimeng Foodstuff and Dandong Hailong Foodstuff.
According to trade records seen by The Outlaw Ocean Project, the Polish company Abramczyk Sp. Z O.O. was the consignee for shipments of seafood from Dalian Haiqing, Donggang Haimeng and Dandong Hailong in 2021. Trade records also show that the Portuguese company Riberalves was the consignee for shipments from Donggang Haimeng in 2021.
The use of overseas North Korean workers was prohibited by the United Nations Security Council in 2017, with Resolution 2397 setting a deadline of December 2019 for the repatriation of all such workers to North Korea. Under the Countering America's Adversaries Through Sanctions Act (CAATSA), passed in 2017, the United States prohibits the import of any goods produced by North Korean nationals unless clear and convincing evidence is provided that indicates the materials were not made with forced labor.
Lidl store brochure details show that Abramczyk Sp. Z O.O. has supplied seafood to Lidl Poland, and that Riberalves has supplied fish to Lidl in Portugal.
In light of the above, we have some questions for Lidl:
- While we understand that you may not be aware of the above issues, we want to ask if Lidl has any comment to make in response to this email?
- Has Lidl been supplied with fish from Donggang Haimeng, Dalian Haiqing or Dandong Hailong since December 2019?"
Lidl International's corporate communications team replied: ""Thank you for your inquiry. Lidl is committed to its corporate due diligence. We are therefore working intensively on minimizing negative effects in our supply chains, effectively remedying rights violations if necessary and using our influence for positive change. In addition, our Code of Conduct for suppliers describes the fundamental principles for cooperation with business partners and is based on the ILO labor standards. If we become aware of specific instances of violations of these provisions, we investigate them and take appropriate action. We continuously and systematically review potential human rights, social and environmental risks in our supply chains. The aim is to identify and minimize these risks. We also expect honesty and compliance with our regulations and guidelines from our suppliers throughout our business relationships as well as proof that these guidelines have been complied with. We take information of this kind very seriously, which is why we will investigate whether fish is being sourced from the companies you mentioned. We ask for your understanding that such investigations must be carried out with neutrality and might take some time due to the complexity of the seafood supply chain. We therefore thank you for your patience."