Sedex Supplier Ethical Data Exchange 1 A MACRO VIEW - LEVERAGING SUPPLIER AUDIT DATA TO DRIVE CHANGE Sedex Overview 2 Who is Sedex? A not-for-profit membership organization for businesses committed to continuous improvement of the ethical performance of their supply chains. Offers the largest collaborative platform for sharing ethical supply chain data in the world, in order to ease the burden on suppliers facing multiple audits, questionnaires and certifications 560+members 28,000+ suppliers 150+ countries 25+ industry sectors 3 Our Membership Model Sedex has 3 membership types that reflect the different types of businesses in global supply chains Visibility A Membership AB Membership B Membership Information flow Who? Retailers, consumer brands, government organisations What? View supply chain information on the system Who? First tier suppliers, manufacturers, agents, service suppliers, utilities What? View and manage supply chain information on system 4 Who? Farms, growers, factories, service centres, production sites What? Manage supply chain information on the system Sedex Pillars Sedex focuses on four pillars. Members commit to improving their supply chain performance accordingly. Labor Health & Safety Environment 5 Business Integrity How does it work? Six industry specific interactive questionnaires Hosts supporting information to aid data verification Risk Assessment Tool Reporting Tools 6 Partnership with Maplecroft Sedex partnered with Maplecroft in 2011 Maplecroft is a leading risk analytics, research and strategic forecasting company 7 Risk Assessment Tool Identify the likelihood of issues occurring in a supply chain. Risk Assessment based on key factors: country of production product type site profile answers to self-assessment questions Audit information All sites of employment with up to date information on Sedex can be assigned a risk rating of: low, medium or high. Tool developed in partnership with global risk specialists, Maplecroft. 8 Data Analysis 9 Number of Sites - Global 10 Total Sites - Sector 11 Worker Distribution - Sector 12 Sector - High Risk Sites – SAQ Risk Apparel, Footwear, Accessories 13 Sector - High Risk Sites – Inherent Apparel, Footwear, Accessories 14 Risk - A global phenomenon 15 Supply Chain Complicity Risk Index High risk countries offer greater potential – risks must be managed, not avoided Source: Maplecroft 2013 16 % Sites by Risk Rating - Regional 17 High Risk Answers By Code Global Sector 18 % Total Issues by Code vs. Average 19 Issue Frequency per Audit 20 Issues Over Time 21 % NC’s by Status 22 % Issues – Criticality & Status 23 Bangladesh Case Study 24 Bangladesh’s labour environment unlikely to improve in medium term Powerful garment lobby resistant to change and government pressure Poor regulatory frameworks Lack of control over subcontractor networks Severe restrictions on rights of employees to organise Protest against garment worker deaths, Dhaka Credit: Flickr user Derek Blackadder Source: Maplecroft 2013 25 A look at Bangladesh A percentage of each country’s total audited risk Source: Sedex Source: Maplecroft 2013 26 How to Get More Information 27 For More Information http://www.sedexglobal.com/ www.sedexglobal.com/multimedia Bernie Giblin Bernie.Giblin@sedexglobal.com 484-650-7927 Marianne Voss marianne.voss@sedexglobal.com 617-792-8357 http://www.sedexglobal.com/ www.sedexglobal.com/multimedia 28 Maplecroft’s multi-award-winning Global Risks Portfolio (G R P) 1 Seven Maplecroft country risk atlases: • • • • • • • 1 3 2 4 Global Risks Atlas Political Risk Atlas Human Rights Risk Atlas Legal and Regulatory Environment Risk Atlas Natural Hazards Risk Atlas Climate Change and Environment Risk Atlas Growth Markets Atlas 2 Access to all Maplecroft maps and indices covering 160 issues across 197 countries 3 Daily news analysis; Global Risks Forecast 4 Policy bank, providing guidance to business on 23 key risk issues 5 Access to a curriculum of WebEx's and over 10,000 risk analysis articles Pre-approved purchase of briefings (3-10pp) and 6 in-depth reports (30pp), election monitors etc., on countries/themes of your choice All content is available organisation wide under our ‘one company, one licence’ policy. This ensures access to our Global Risks Portfolio will be available to all client users. 29