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Building a Responsible Supply Chain with amfori BSCI Date: March 18, 2021 Presenters Emi Vrioni Kelli Hoggle Business Development Manager, Network Representative US & Canada, QIMA amfori – Trade with Purpose [email protected] 2 A global footprint to help with all your quality and compliance programs, everywhere 3,800 staff 35+ offices and labs 85 countries covered 14,000 corporate customers spanning all Consumer Goods & Food [email protected] 3 Managing global supply chains has never been tougher Compliance pressure Increasing scrutiny from regulatory bodies, governments and civil initiatives Expertise Visibility Eyes on the ground to Be on top of safety and Consumer expectations really understand all tiers regulatory requirements Media scandals are commonplace; modern consumers of your supply chain are increasingly educated and demand higher standards from the brands they buy brings you Mounting supply chain risks Forced and child labor, environmental impacts, ground water pollution, worker safety concerns, fire hazards... the list goes on Insights Agility Collect real-time data A global footprint so you Disruption is the new normal you can use to make can easily scale your operations Trade wars, pandemics, rise of pure e-commerce players… informed decisions up or down anywhere uncertainty is everywhere [email protected] 4 Human Intelligence is at the heart of QIMA solutions People, not organizations or management systems, get things done” — Hyman Rickover Field experts in 85 countries, trained and accredited to QIMA processes or your own tailored requirements We train your own suppliers and staff on compliance best practice for your programs With a blended approach: onsite workshops for vendors + QIMA Academy for e-learning (50,000 courses taken every year) QIMA training promotes transparency and continuous improvement for a stable, safe and ethical supply chain [email protected] 5 Digital from Day 1 Our audit services are tech-enabled, accessible from your secured QIMA online account Easily book and manage QIMA audit services online Access real-time reporting, monitor compliance trends and assess supplier performance via your custom audit dashboard or the QIMA Mobile App Manage risk in your supply chain with data-driven tools: GPS tracking, supplier mapping and risk mapping A single platform that brings you flexibility, efficiency and smart insights for your compliance activities [email protected] 6 Comprehensive CSR solutions for a responsible supply chain A suite of options to help your business meet all of its ethical and environmental sourcing goals Independent third-party review of your supply chain’s impact with a focus on long-term change Ethical Environmental Gather data to manage risks and make informed decisions to build audits audits a sustainable supplier network Audit protocols performed to recognized industry standards or customized to your needs Corrective action plans equip you and your suppliers to take action Protect workers and the planet, improve consumer trust and encourage meaningful continuous improvement [email protected] 7 Ethical Audits: Manage social risks in your supply chain with QIMA’s best-in-class audit protocol Gather an accurate picture of working conditions and human rights QIMA’s in-house ethical audit program is built from 15 years of audit experience, utilizing best practice from international standards and experience gathered from tens of thousands audits per year Protocol covers hygiene, health & safety, waste management, labor practices, worker representation, disciplinary practices, discrimination, working hours and wages On-site process consists of opening meeting, factory tour, document review, worker interviews, closing meeting, Corrective Action Plan review and optional supplier workshops Programs can be tailored to ensure the compliance of your suppliers to your specific requirements [email protected] 8 Ethical Audits: Perform audits to the standards of key international schemes QIMA is accredited to key international standards for responsible business practice Reduce audit duplication with results shared between brands and retailers using the same scheme Protocols based on key international and national regulations, as well as codes from the International Labor Organization (ILO) and ETI Globally recognized schemes help communicate your supply chain’s achievements in addressing social issues and enforcing socially responsible practices [email protected] 9 Environmental Audits: Monitor and improve your environmental impact Assess compliance with regulations for environmental protection QIMA’s actionable environmental audit protocol based on the ISO 14001 standard Suppliers are assessed on their: • Environmental management system • Nuisance • Solid and hazardous wastes • Energy and water use • Wastewater • CO² emissions • Air emissions • Waste management Chemical control audits use protocols based on the global environmental Detox® campaign, Zero Discharge of Hazardous Chemicals principles (ZDHC) or your own requirements [email protected] 10 Structural Audits: Verify the integrity and safety of your suppliers' premises Structural audits ensure there’s no danger to worker life and health Structural auditors are licensed structural/civil engineers Audit protocols covering: • Verification of load conditions • Maintenance and exposure • Structural system of the building to aggressive environment • Detection of structural defects, damage, • Fire safety check (optional) distress, deformation or deterioration • Electrical safety check • Plan and alignment check (optional) Suggestions provided for repairs, strengthening and retrofitting measures Follow-up services including live load analysis and redesign of fire/electric safety systems [email protected] 11 Robust process designed for long-term transformation 1. Engage (months 1-2) 2. Measure and correct (months 3-6) 3. Train and educate (months 6-12) • Mandatory supplier kickoff workshop • Ensure visibility of your supply chain • Organize supplier training workshops to share the audit program and know who your high and low • Follow-up audits for failed suppliers; philosophy and organization performing suppliers are eliminate those with continued non- • Audit existing factories incl. tier 2 • Use QIMA Factory Improvement compliance suppliers (fabric mills, raw material Services to help suppliers implement suppliers, etc.) corrective action plan • Timeframe: Agree on a format and Potential third AT RISK launch within 1-2 weeks intervention follow-up Action Plan AT RISK + NEEDS GOOD Desktop Review InitialVisual Second IMPROVEMENT CONDITION Audit NEEDS Intervention - IMPROVEMENT GOOD Full Visual CONDITION Re-audit Desktop GOOD Review CONDITION Approved for 1 Year [email protected] 12 Complement onsite audits with worker voice solutions Confidential channels for grievance reporting to gain a complete and accurate picture of your factory’s work environment Integrate worker voice surveys into onsite assessments to provide an additional layer of reporting and objectivity A worker hotline provides a direct line for workers to share complaints direct to the auditor and end buyer Our proactive callback service uncovers occurrences of post-audit factory retaliation to ensure worker safety Services provided in the worker’s own language, via their preferred platform and at the time that best suits them Gather the voice of your workers for full transparency and informed decision making [email protected] 13 Anti-Retaliation Callback Service A proactive approach to worker voice How the data is reported Proactively contacting workers leads to 20X more non- Automatically categorize complaints and determine compliances discovered if they’re a non-compliance or red-flag issue Get consent in advance and determine the best day, Grievances are presented by category in an online time and phone number to contact the worker at their portal with analytics and live filtering of data convenience Red flag issues are agreed with the client before Multi-lingual support in 17 languages commonly program commencement – if they’re reported, spoken by factory workers they’re immediately drawn to the client’s attention Program can be customized to focus on at-risk migrant workers’ and support them in their own language and culture [email protected] 14 Data and tech-enabled solutions for greater visibility Identify and manage risk in your supply chain Monitor supplier compliance and identify performance trends by audit type, industry or location with your custom dashboard Identify unauthorized subcontracting with GPS tracking & supplier mapping; link audit and inspection data to spot inconsistencies Risk-based approach: prioritize audits for higher risk countries and establish optimal frequency based on KPI data and our robust country risk map Ensure business continuity and assess ethical compliance when physical factory access is limited with remote auditing solutions Advanced tools to simplify decision making and maximize the impact of your supplier audit programs [email protected] 15 Auditor app for streamlined operations Proprietary app developed to improve efficiency, accuracy and data security Developed in-house for our auditors and tested extensively in the field Auditors can capture all audit entries as data points, receive checklist updates in real-time, edit and upload pictures, automatically generate a corrective action plan Reports delivered faster and auditors have more time onsite to detect areas for improvement All sensitive information is secure and cannot be edited, such as GPS coordinates and time of audit
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