We had several engagement interactions with Broadcom in 2022, covering topics including human rights due diligence, labour standards and diversity & inclusion.

As part of the Corporate Human Rights Benchmark engagement, we spoke with the supplier of semiconductor and infrastructure software on their performance on human rights. The company is lagging on the benchmark, but has made progress on its human rights efforts, such as conducting due diligence assessment and working on a tailored supplier engagement programme. However, Broadcom relies on supplier self-assessment surveys and audits to identify poor practices. We recommended the company conduct a comprehensive human rights due diligence assessment and disclose salient risks, enabling it to proactively address any potential risks. We also encouraged extending the assessment beyond their tier 1 suppliers and using audits as a supplementary tool after a human rights assessment has been conducted.

On diversity & inclusion and human capital management, we were pleased that Broadcom enhanced the disclosure of the frequency and metrics from its Employee Ethical Culture Survey. We had previously encouraged the company to share this information to enable stakeholders to track progress regarding employee satisfaction.

We continued our engagement by recommending diversity and inclusion target setting, conducting racial equity audits and increasing disclosure of lagging areas and action plans linked to the employee engagement surveys.