Company Training & Learning Webinar Series Responsible Supply Chain Management: Best Practices
March 2, 2021 Company Training & Learning Webinar Series Responsible Supply Chain Management: Best Practices
Today’s speakers: framework.org - www.accountability
Sarah Lake Leah Samberg Shawn MacDonald Justin Nadine Syarief Dupré-Harbord (Moderator) Vice President and Scientist, Rainforest CEO Senior Project Manager AFi Southeast Asia Manager Global Director for Alliance Verité Proforest Latin America AFi Backbone Team AFi Backbone Team
2 Mighty Earth 3 www.accountability-framework.org A collaborative effort to make ethical supply chains the “new normal” 4 www.accountability-framework.org The scope of the Accountability Framework initiative: Framework Accountability the scope of The Respect for human rights for human Respect ecosystems natural other of Conversion Deforestation Ethical supply chains in agriculture & forestry Topical scope ------including: violations, rights and human conversion, deforestation, for All commodities posing risks rubber cocoa pulp/timber oil palm beef soy Commodity scope Geographic scope Global 5 www.accountability-framework.org Protection of forests and other 9 5 1 environmental restoration Supply chain assessment assessment chain Supply Access to remedy and and remedy to Access Contents of the Accountability Framework natural ecosystemsnatural and traceability Set and strengthen goals strengthen and Set 10 6 2 Collaboration for landscape Respect for human rights human for Respect Managing for supply chain and sectoral sustainability compliance Implement ethical supply chains supply ethical Implement planning, and site development site and planning, Specification of commitments of Specification Monitoring and verification Land acquisition, Land use land 11 3 7 Report progress Report processes to drive effective toeffective drive processes 12 Land management and and management Land 8 4 long Company systems and Reporting, disclosure, disclosure, Reporting, implementation - term protection term and claims Core Principle 5: Supply chain assessment & traceability Origins of supply chain materials are known or controlled to a sufficient extent to ascertain compliance with commitments framework.org -
If risk assessment is used, it follows good www.accountability practice, including: • Comprehensive scope • Clearly defined metrics • Commonly accepted tools and data • Documentation of the risk assessment process
6 Core Principle 5: Supply chain assessment & traceability Origins of supply chain materials are known or controlled to a sufficient extent to ascertain compliance with commitments framework.org -
How much traceability is enough? www.accountability To ensure products in a supply chain are free of deforestation, ecosystem conversion, & human rights abuses, companies need to know how these materials were produced. • Primary processors and first intermediary traders know the origin of raw materials • Downstream intermediaries, manufacturers and retailers trace 7 supplies upstream until they are able to verify compliance Core Principle 5: Supply chain assessment & traceability Origins of supply chain materials are known or controlled to a sufficient extent to ascertain compliance with commitments framework.org -
Four approaches to traceability that allow buyers to assess www.accountability performance at the production level: 1. Trace back to the production units of origin 2. Trace to a low-risk jurisdiction 3. Trace back to a supplier that has a control system that ensures supplies are traced to origin
8 4. Use certification that is aligned with the Framework and links product volumes to production units Core Principle 6: Managing for supply chain compliance Companies manage their entire supply chain to fulfill commitments, identify non-compliance, and resolve any such issues expeditiously and effectively. framework.org -
Supplier Engagement
www.accountability • Buyers communicate to suppliers that they will accept only materials that comply with company commitments • Buyers engage with direct suppliers to ensure that they source from indirect suppliers that comply with the company’s commitments • Buyers that maintain long-term buying relationships with suppliers support them to fulfil commitments; prioritizes smallholders and others who may
9 require more assistance Core Principle 6: Managing for supply chain compliance Companies manage their entire supply chain to fulfill commitments, identify non-compliance, and resolve any such issues expeditiously and effectively. framework.org -
Management of non-compliance • Buyers manage non-compliance to resolve issues quickly without enabling
www.accountability further non-compliance • Prioritize solutions that drive improvement by retaining & engaging non- compliant suppliers in time-bound improvement process to achieve compliance • In some cases, suspension or exclusion may be appropriate, depending on: o severity of non-compliance o supplier’s degree of culpability 10 o supplier’s commitment & capability to resolve outstanding issues Core Principle 11: Monitoring and Verification Regular monitoring is conducted relative to time-bound targets. M&V for commodity buyers assesses performance across the supplier portfolio
• Monitoring of the supply base: For companies that framework.org - own or have control over the production unit being monitored or are able to achieve this level of visibility
www.accountability • Monitoring of sourcing or jurisdiction areas: When sourcing from low-risk areas and/or without traceability to the production unit • Monitoring of suppliers’ management and control systems: Buyers may monitor compliance at the supplier level, assessing implementation of suppliers’ control systems as a proxy for monitoring 11 performance and outcomes at the supply base level 12 www.accountability-framework.org 13 www.accountability-framework.org • • • • • User tools More how studiesCase on supply ( chain management Guidance on using certification fulfil to ethical supply chains supplierSample code Self - assessment tool - to guidesto in the works! forthcoming ) 14 www.accountability-framework.org April 13 March 2 9 December 17 November October 21 30 September Company Training and Learning Webinar Series Webinar Learning and Training Company Join the rest of the webinar series! webinar the of rest the Join accountability For more information visit: th nd st - framework.org th th th /events Responsiblesupply chain management: Company roundtable Responsiblesupply chain management: Best practices Using the Framework in tandem with certification and other tools Reportingforeston ratings sustainability company’s your Improve Overview of the Accountability Framework - risk commodities accountability-framework.org