Ethical Trading Initiative (ETI)

ETI: provides training and information on responsible sourcing for organisations, unions, etc. There are codes to follow if signed up.

The ETI Base Code: a set of labour standards, used by ETI members to drive improvements in working conditions around the world. Some standards included are ‘Employment is freely chosen’, ‘Child labour shall not be used’, ‘Living wages are paid’, ‘No discrimination’, etc. These standards apply along the entire supply chain in all countries, to protect everyone along entire supply chain.

OBLIGATIONS of ETI- It is expected that companies are committed, are directly involvement, and show improvement over time. They should adopt the ETI Base Code in full as a first step. Corporate members must play an active part in ETI activities, working in partnership with trade unions and NGO colleagues. Corporate members must sign up to ETI’s Principles of Implementation:

• clear commitment to ethical trade

• integrate this into core business practices

• year-on-year improvement

• support supplier to improve working conditions

• report openly

Biennial reports are submitted to the ETI Board which tells them:

• who is driving strategies

• how much money has been spent on ethical trade activities

• what training has been given

• what progress has been made

• how working conditions are being assessed

Detailed feedback is given, and membership can be terminated if sufficient progress isn’t made or obligations are not honoured. The key trends in performance are analysed and innovative approaches are shared within the membership.

Forest Stewardship Council (FSC)

FSC: promotes environmentally appropriate, socially beneficial and economically viable management of the world’s forests. Aiming for improved forest management, with sustainable use, conservation, restoration and respect for forests.

Principles include ‘Compliance with laws’, ‘Management planning’, ‘Community relations’, ‘Environmental values and impact’, etc.

FSC forest management certification: forest management preserves biological diversity, benefits the lives of local people and workers, and ensures it sustains economic viability.

FSC chain of custody certification: credible confirmation for products with responsible sources to access the market.

Conflict Minerals

Tin, tantalum, tungsten and gold (3TG) - the trade of these materials sometimes finances armed conflict or are mined using forced labour.

Conflict Materials Regulation - law in the EU aiming to ensure importers of these materials meet international responsible sourcing standards, helping to break links between conflict and illegal exploitation of materials, and put an end to exploitation and abuse of local communities. Requires that EU companies ensure minerals are from responsible and conflict-free sources.

Case Study: Marshalls Fairstone

Marshalls Fairstone paving is sourced from carefully selected quarries in India and China, processed by the standards of the ETI, ensuring no child labour, fair wages and safe working conditions.

BES 6001 and BES 6002 Standards

BES : BRE Environmental and Sustainability

BES 6001: Framework Standard for Responsible Sourcing

Score given for different requirements in 3 components: organisational management, supply chain management and requirements related to the management of sustainable development.

Some requirements considered compulsory for a certification against this standard.

Total score gives a certification from Excellent to Pass, depending on scores in different sections.

Advantages of BES 6001 - BES 6001 is a very rigid system for a compliance driven sector, including risk assessment for non EU/OECD countries. It sets out a s structure for continuous improvement.

Limitations of BES 6001 - Has not been extended to complex products with complex supply chains and potentially high-risk materials. Only looks at products produces and not whole business procurement, such as PPE, manufacturing equipment, etc.

BES 6002: Ethical Labour Sourcing Standard

Requirements are actions which demonstrate ethical labour sourcing. Completion of these actions is assessed against twelve issue areas:

• Organisation structure

• Management systems

• Human resources

• Procurement

• Bribery and Corruption

• Forums

• Management Policies

• Assurance, compliance and auditing

• Immigration

• Supply Chain Management

• Learning and Development

• Reporting

Baseline level achieved if minimum requirements are met, but higher levels achieved if further work done for each issue area.

It allows for construction to gain certification for apply Ethical Labour Standards. It applies to all construction activities, not just product supply chains. It sets our a structure for continuous improvement.

Construction sector has lots of procurement power, so could hold responsibility for products and services over which it has an indirect influence.