Modern Slavery Statement 2017 - 2018

For the financial year December 2017 to December 2018

Introduction from RAC CEO, Dave Hobday

As an organisation, we take a zero tolerance approach to offences under the Modern Slavery Act 2015 or any other violation of human rights. We require the same from our suppliers, contractors and anyone else we do business with.

We are committed to upholding the principles and objectives of the Modern Slavery Act 2015. Ensuring that we have a reputable and dependable supply chain and helps safeguard the reputation and integrity of our business, and enables us to continue to operate a high standard of service to our members.

Slavery and human trafficking: our commitment

All members of the RAC Group are committed to helping combat slavery and human trafficking.

We promote protecting the integrity of our business as fundamental to how we operate. We are committed to taking all reasonable steps to prevent any acts of modern slavery or human trafficking occurring anywhere within our supply chains. As such we continue to assess our internal systems and controls to ensure they are effective, and improved where possible.

Our Modern Slavery Policy is an internal resource with user friendly guidance on the types of risks we should be identifying as an organisation, what steps can be taken and how to raise a concern. It is clear on individual responsibilities of RAC employees, and ensures as a business we take collective corporate responsibility.

Due diligence processes for slavery and human trafficking

At RAC we have a set of standard requirements which must be incorporated into all of our contracts, unless authorised by exception. This forms a checklist confirming to our executive board that we have appropriate contractual provisions in place with our customers and suppliers.

Our ‘Golden Rules’ document is completed as part of our internal sign off process each time we enter into a new contract. This is required both for new business relationships and when contracting to extend the time or scope of services with an existing supplier. Any deviation from these Golden Rules must be highlighted to the executive board for approval.

All RAC colleagues are directed under the Golden Rules to undertake due diligence on any new supplier. We have produced some user friendly, common sense guidance to what this due diligence exercise might entail. This is published internally and also available as a link on our new supplier application form.

Each contract should contain a provision requiring suppliers to comply with all applicable law in the supply of goods and performance of services and granting RAC audit rights. From March 2016 our Golden Rules have been updated to specifically instruct colleagues to consider the risk of slavery and human trafficking. Our standard terms of purchase now include specific drafting clarifying our expectations on suppliers with regards to prevention of modern slavery.

Awareness and training

We place responsibility on every colleague in our business to uphold our legal and ethical obligations. Our Modern Slavery Policy was published internally in October 2016. This was publicised to all colleagues on our intranet. To reinforce this message, and to ensure we can audit understanding and awareness, mandatory training was introduced as part of our computer based training (CBT) for all colleagues from November 2016.

The business ethics module incorporating modern slavery prevention training forms part of the compulsory CBT undertaken by all new colleagues, and refresher training is undertaken by all colleagues annually. This will be updated in accordance with any future guidance published.

To reinforce the message, in line with the publication of our second modern slavery statement, a reminder publication has been made on the RAC intranet. This is to reinforce the message to all colleagues of the role everyone in the organisation must play in supporting this commitment.

Monitoring

RAC has in place the internal procedures to ensure that the business is clear on its obligations in respect of due diligence and whistleblowing to combat slavery and human trafficking.

Specifically, we have in place systems to:

identify and assess potential risk areas in our supply chains;
mitigate the risk of slavery and human trafficking occurring in our supply chains;
monitor potential risk areas in our supply chains; and
protect whistle blowers.

We also have a dedicated compliance team, which consists of:

Risk and Regulatory;
Corporate Legal; and
Internal Audit

Who we are

The RAC is a leading consumer motoring services organisation serving both private and business motorists. It does this through a nationwide, branded patrol base focusing primarily on vehicle repair and recovery. RAC also supports motorists with roadside assistance, insurance, buying used cars, vehicle inspections, telematics data and legal services.

RAC has a network of partners, contractors and suppliers who support it in running its business, both operationally and in the supply of goods and services. RAC’s outsourced services and supply chains are predominantly UK based, other than recovery abroad and the wider supply chains for certain parts and products. RAC has a limited number of suppliers, direct and indirect, in higher risk jurisdictions (as identified in the Global Slavery Index).

This statement applies to all applicable companies in the RAC Group (meaning companies with RAC Group Limited as parent company) including, without limitation, RAC Motoring Services, RAC Financial Services Limited and RAC Insurance Limited.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group's slavery and human trafficking statement for the financial year December 2017 to December 2018.