Supply Chain Verification and Responsible Sourcing Fred Waelter - - PowerPoint PPT Presentation

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Supply Chain Verification and Responsible Sourcing Fred Waelter - - PowerPoint PPT Presentation

Nov 02, 2022 36 likes •270 views

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

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Supply Chain Verification and Responsible Sourcing Fred Waelter

Global Business Lead, Responsible Sourcing

UL Consumer and Retail Services

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UL: Who We Are and What We Do

Working for a safer world Since 1894

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UL Consumer and Retail Services Global Footprint

20,000+

Nationalities and languages represented by

  • ur staff

Assessments conducted each year

30+ 120+

Countries covered by our global auditing footprint

270+

Auditors Globally

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Drivers in Responsible Sourcing

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What we can learn from other industries?

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Driver: Managing Business Risks

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Concerns

  • Child labor
  • Forced labor
  • Forced birth control, discrimination
  • Low wages
  • Unsafe working conditions
  • Loss of manufacturing jobs in the West

Garments

Factory Retailer / Brand

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Concerns

  • Child labor
  • Forced labor
  • Low wages
  • Unsafe working conditions
  • Migrant labor issues
  • Inappropriate country of origin labeling

Tomatoes

Farm Packing House Supermarket

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Concerns

  • Child labor
  • Forced labor
  • Low wages
  • Unsafe working conditions
  • Migrant labor issues

Coffee

Grower / Plantation Processor (Washing) Government Agency / Auction Roaster Supermarket / Retailer / Coffee Shop

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Concerns

  • Illegal, Unreported, Unregulated (IUU)

Fishing

  • Boats use migrant labor
  • IUU allows for overfishing  Migrant labor
  • n boats cannot catch much – usually just

“trash fish” – migrant labor becomes slave labor

  • Unsafe working conditions, starving of

fisherman on boats, drownings at sea

Shrimp

Vessel Port Fishmeal Feed Mill Hatching Ponds

Migrant labor: Cambodia, Laos, Myanmar

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allemansrätten

Blueberries

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Concerns

  • Forced labor due to loans taken out in

exporting country

  • Non‐compliance with local legal

requirements, including collective bargaining agreements in Sweden, Finland

  • Unsafe working conditions – unsafe

driving, getting lost in the wilderness, being robbed by other migrants

Blueberries

Migrant labor agencies: Thailand

Picker camps Weighing stations Packing house / Processing plants Supermarkets

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What we can learn from other industries?

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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
  • thers; always check what’s been done, and avoid reinventing the

wheel

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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

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Examine your own management systems

Legal compliance

Policies and procedures Sustainability reporting, especially for mining industry Strong accounting systems

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Special Focus:

Responsible Jewellery Council (RJC)

Code of Practices

management systems / social audit: focus on process

Chain of Custody

traceability, Conflict Minerals: focus on product

Pre‐Assessment RJC Certification Re‐Certification

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Third Party Monitoring and Assessment

What can I expect from an audit?

Opening meeting

Audit team arrives onsite, business cards are provided. Meeting is held with management to discuss plan for the audit.

Management interview

Audit team gathers information from management representatives regarding production capacity, lead times, machinery, hiring practices, general policies.

Documentation review

Documents are reviewed in

  • rder to

evaluate factory's practices, policies and procedures.

Private employee interviews

Employees are selected by audit team for private interviews focusing on wages, working hours, and working conditions.

Facility walkthrough

Auditor visits all production, storage, employee living and eating areas to evaluate compliance with relevant guidelines.

Closing meeting

Audit team prepares summary of findings from audit, and prints out document for review with factory management; Management signs document confirming receipt and understanding

  • f its content.
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Available Resources

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Available Resources

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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