Supply Chain Verification and Responsible Sourcing Fred Waelter Global Business Lead, Responsible Sourcing UL Consumer and Retail Services
UL: Who We Are and What We Do Working for a safer world Since 1894
UL Consumer and Retail Services Global Footprint 20,000+ 30+ 120+ 270 + Countries covered by our global Nationalities and languages represented by Assessments conducted each year Auditors Globally auditing footprint our staff
Drivers in Responsible Sourcing
What we can learn from other industries?
Driver: Managing Business Risks
Garments Factory Concerns • Child labor • Forced labor Retailer / • Forced birth control, discrimination • Low wages Brand • Unsafe working conditions • Loss of manufacturing jobs in the West
Tomatoes Packing Farm House Concerns • Child labor • Forced labor • Low wages Supermarket • Unsafe working conditions • Migrant labor issues • Inappropriate country of origin labeling
Coffee Grower / Processor Plantation (Washing) Government Concerns Roaster Agency / Auction • Child labor • Forced labor • Low wages Supermarket / • Unsafe working conditions Retailer / • Migrant labor issues Coffee Shop
Shrimp Migrant labor: Cambodia, Laos, Myanmar Vessel Port Concerns Illegal, Unreported, Unregulated (IUU) • Feed Mill Fishmeal Fishing Boats use migrant labor • IUU allows for overfishing Migrant labor • on boats cannot catch much – usually just “trash fish” – migrant labor becomes slave Hatching labor Ponds Unsafe working conditions, starving of • fisherman on boats, drownings at sea
Blueberries allemansrätten
Blueberries Migrant labor agencies: Thailand Weighing Picker camps stations Concerns Forced labor due to loans taken out in • exporting country Non ‐ compliance with local legal • requirements, including collective Packing house bargaining agreements in Sweden, Finland Supermarkets / Processing Unsafe working conditions – unsafe plants • driving, getting lost in the wilderness, being robbed by other migrants
What we can learn from other industries?
What we can learn from other industries? • Sourcing items from far away does not escape the scrutiny of media or consumers • Supply chain mapping is possible, even if there is resistance to this at first • Supply chains crossing borders may make management systems and monitoring more complex, but definitely not impossible • Success in efforts at supply chain social responsibility rely on: • Clear supply chain mapping • Education of supply chain partners • Monitoring • Basic concepts that have worked in one space often work in others; always check what’s been done, and avoid reinventing the wheel
Jewelry Industry Existing Frameworks • EICC ‐ GeSI Conflict Free Smelter Program (“CFS Program”) • Responsible Jewellery Council (RJC) • Signet Responsible Sourcing Protocol for Diamonds (D ‐ SRSP) • Alliance for Responsible Mining (ARM) – Fairmined • Diamond Development Initiative (DDI) • Initiative for Responsible Mining Assurance (IRMA) Look for standards that apply to your business and actively seek out synergies between systems! Ex: SRSP Provenance Claims under RJC
Examine your own management systems Legal compliance Policies and procedures Sustainability reporting, especially for mining Strong accounting systems industry
Special Focus: Responsible Jewellery Council (RJC) Chain of Custod y Code of Practices traceability, Conflict Minerals: management systems / social audit: focus on process focus on product Pre ‐ Assessment RJC Certification Re ‐ Certification
Third Party Monitoring and Assessment What can I expect from an audit? Audit team Audit team Documents are Employees are Auditor visits Audit team Opening meeting Management interview Documentation review Private employee interviews Facility walkthrough Closing meeting arrives onsite, gathers reviewed in selected by all production, prepares business cards information order to audit team for storage, summary of are provided. from evaluate private employee findings from management factory's interviews living and audit, and representatives practices, focusing on eating areas to prints out Meeting is held regarding policies and wages, working evaluate document for with production procedures. hours, and compliance review with management capacity, lead working with relevant factory to discuss plan times, conditions. guidelines. management; for the audit. machinery, Management hiring signs practices, document general confirming policies. receipt and understanding of its content.
Available Resources
Available Resources
Thank you! We hope you enjoyed this presentation. For additional information or to speak in further depth with a UL team member, please reach out to Marla Hedworth Global Jewelry and Watch Industry Lead UL Consumer and Retail Services Marla.Hedworth@ul.com 860.212.6644 Fred Waelter Global Responsible Sourcing Business Lead UL Consumer and Retail Services Fred.Waelter@ul.com 213.590.5940
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