SMETA 2 Pillar Audit Checklist

SMETA (Sedex Members Ethical Trade Audit) is a social compliance audit methodology created to enable suppliers to share a single report with multiple customers, helping reduce duplication of effort. In this article we'll cover the basic components of a 2-Pillar Audit Checklist created using this methodology.

UL Responsible Sourcing is an Affiliate Audit Company for Sedex and can carry out two Pillar SMETA assessments globally. These audits cover labor standards and health & safety protocols while four Pillar assessments also encompass Environment and Business Ethics considerations.

Labor Standards

Sedex (the Supplier Ethical Data Exchange) is a non-profit membership organization that facilitates standard social auditing practices among its member buyers, such as retailers who require suppliers to participate in auditing programs and submit audit reports through Sedex's website.

SMETA Audits, led by global professionals from the Ethical Trading Initiative Foundation and composed of international labor standards as well as local laws (for instance the ETI Base Code is based upon conventions from ILO and EU conventions).

SMETA is available to all Sedex Producer or supplier members who choose to conduct standardized audits, providing best practice guidance and an audit report template with standard requirements as well as online facility self-assessments. Furthermore, its audit checklist offers clear and straightforward evaluation that ensures standards are being observed at each facility.

Health & Safety

Make sure your suppliers abide by international labor standards and protect workers' health and welfare, including setting up appropriate health and safety policies, providing adequate staff training, addressing workplace hazards with proper procedures, and creating an emergency action plan.

Following COVID-19, ELEVATE has implemented Sedex Virtual Assessment as a practical alternative to physical audits using video conferencing technology to connect auditors directly with factory sites. Aligned with SMETA standards, this new delivery mode enables brands and retailers to conduct social audits while still maintaining consistency in their supply chains.

While SMETA 2-Pillar audits cover only core ETI modules, the 4-Pillar audit goes further by covering Management Systems, Entitlement to Work, Subcontracting and Homeworking issues as well as an extended Environmental and Business Ethics assessment. Not all factories need all 4 Pillar audits so it is crucial both employers and auditors know which pillars apply before proceeding with this type of assessment.

Environment

SMETA (Sedex Members Ethical Trade Audit) is an internationally-recognized audit method created by Sedex (Supplier Ethical Data Exchange). Designed to ensure transparency and minimize audit duplication - thus saving time and resources -, SMETA comprises two basic modules: self-assessment questionnaire and official in-person assessment.

SMETA audits are carried out by an AAC (Affiliate Auditing Company) accredited by Sedex buyer/seller member, using standards outlined by ETI Base Code as well as international best practices criteria to assess factories and sites. A 2-Pillar audit covers Labor Standards and Health & Safety while 4-Pillar covers Management Systems, Entitlement to Work Subcontracting Homeworking plus an extended assessment replacing shorter evaluation for Environment (extended assessment replacing short evaluation). A questionnaire format offers comprehensive criteria with clear and accessible answers; any gaps or ambiguities exploitable by factories under audit.

Business Ethics

Audits consist of more than just site visits: they also involve worker and management interviews, policy, procedure and record reviews as well as verification of compliance with ethical trade requirements. Audits follow the ETI Base Code's two or four pillar methodology with specific focus areas like Labor Standards, Health & Safety, Environment and Business Ethics being prioritized accordingly.

Sedex, an ethical trading membership organization, created the SMETA auditing method as an auditing technique to measure responsible business conduct in global supply chains. The four-pillar assessment - Labor Standards, Health & Safety Policies/Procedures, Environment Impact Analysis, and Business Ethics Evaluations - cover all aspects of responsible trade including Labor Standards, Health & Safety Policies/Procedures/Impact Analyses as well as Business Ethics Evaluation. In preparation for a SMETA Audit Checklist audit a supplier should strive to improve their health & Safety policies/procedures, analyze any impacts its operations have had on local environments such as water/energy/waste as well as determine its policies/procedures on local environments like water/energy/waste disposal or deal with conflicts of interest or corruption management mechanisms within its company.