SEDEX SMETA 7.0

SMETA 7.0 Requirements

The SEDEX SMETA 7.0 requirements are based on the following points:

Labour regulations: (2 pillars)

Compliance with labour rights under the ETI (Ethical Trading Initiative) Code of Practice, including no child labour, no forced labour, decent wages, legal working hours, freedom of association, fair working conditions, no discrimination, etc.

Some of the points to consider are:

  • Safe and healthy conditions. No harsh or inhumane treatment is permitted. The ISO 45001 certificate is a good support tool.
  • Risk management. You can integrate with the risk management of an ISO certification or the materiality analysis of a GRI report.
  • Personal protective equipment, to enable safe working.
    Training and awareness in safety and Social Responsibility.
  • Emergency plans for workplace and environmental accidents.

The company must comply with all applicable environmental legislation. This involves having valid environmental permits and licences.
Regarding the environmental management system, it does not require an ISO 14001 certificate, but a basic system is required.

Staff must receive appropriate environmental training related to their roles.

Key requirements of section 10B – Environment:

  • Compliance with applicable local, national and international environmental legal requirements.
  • Waste management. There must be a system for the identification, control and disposal of hazardous and non-hazardous waste.
  • Efficient use of resources by reducing water, energy and raw material consumption, promoting energy efficiency and the sustainable use of resources.
  • Emissions and pollution. Control and minimise greenhouse gas emissions, water, air and soil pollution, as well as noise and other environmental impacts.
  • Handling of hazardous substances. Safe storage, handling, and disposal of chemicals and hazardous substances in accordance with regulations.
  • Environmental emergency plans. Have response protocols and plans for environmental emergencies, such as chemical spills, fires or leaks.
  • Biodiversity and ecosystem protection. Assess and mitigate environmental impacts on local ecosystems and biodiversity.
  • Sustainable supply chain. Promote sustainability practices among suppliers.
  • Environmental Awareness and Training. Provide regular training on environmental best practices and regulatory compliance.
  • Auditing and Continuous Improvement. Implement monitoring and evaluation systems for environmental performance, such as an internal ISO 14001 audit, setting objectives for continuous improvement.

Key requirements on business ethics in the SMETA 7 audit:

  • Compliance with laws and regulations. The company must comply with all applicable national and international laws on business ethics.
  • Business ethics policy. A formal policy on integrity and ethics in business is required, applicable to all employees and business partners.
  • Anti-corruption and anti-bribery practices. Mechanisms must be implemented to prevent and detect bribery, corruption, and fraud within the organisation.
  • Whistleblowing and whistleblower protection. The company must have an anonymous and accessible system for employees and third parties to report improper practices without fear of reprisal.
  • Prevention of conflicts of interest. Measures must be established to avoid and manage conflicts of interest in business and employment relationships.
  • Fair competition practices. The company must ensure it does not engage in anti-competitive practices or market manipulation.
  • Responsible use of information. Protection of personal and confidential data, ensuring its appropriate use and compliance with applicable privacy regulations.
  • Supply chain oversight. Ensure that suppliers and business partners adhere to similar ethical standards, promoting transparency throughout the supply chain.
  • Training and awareness. The company should offer periodic CSR courses to employees on business ethics, regulatory compliance, and best practices.
  • CSR audit and continuous improvement. Periodic reviews of business ethics policies should be conducted, and improvements implemented based on the findings.

On the SEDEX platform, you will find the SMETA requirements in more detail for the SMETA audit.

In addition to these 4 pillars, SMETA 7.0 emphasises management systems. As well as meeting the requirements, it assesses how companies implement, manage and monitor these processes over time. This approach ensures sustainable improvements and a long-term reduction in risks.

The key areas of the management system are policies and procedures; resource allocation; training and communication; and monitoring and documentation.

SEDEX SMETA audit FAQs

What is SMETA?

SMETA (Sedex Members Ethical Trade Audit) is not a standard or a certified management system but an ethical audit methodology developed by Sedex, which combines good audit practices in the areas of labour rights, health and safety, environment and business ethics

SMETA 2 or 4 pillar (Sedex Members Ethical Trade Audit) is an ethical audit methodology that combines best practice auditing in the areas of labour rights, health and safety, environment and business ethics. It allows companies to assess their sites and suppliers to understand working conditions in their supply chain.

The SMETA audit brings together best practices into an ethical and sustainability auditing technique. It is not a code of conduct, a new methodology or a certification process.

By using the SMETA audit, a supplier can conduct one audit and share it with multiple clients, rather than having to conduct multiple audits for each client.

Companies that wish to demonstrate their commitment to ethical practices and are suppliers to companies that require SMETA audits from their suppliers.

Furthermore, SMETA provides access to new markets and clients that require this type of audit. It improves corporate reputation and promotes continuous improvement in working conditions and sustainability.

The results are uploaded to the SEDEX platform and can be shared with the audited company’s clients and business partners.

Only SEDEX-accredited audit bodies can conduct a SEDEX SMETA audit. These are typically the main ISO certifiers.

These auditors must follow the established methodology to ensure an objective assessment in line with the ethical, labour, environmental and safety standards required by SEDEX.

SEDEX is the platform that enables the sharing of sustainability and compliance information, while SMETA is the audit methodology that allows companies’ level of ethical and sustainability compliance to be verified.

To prepare for the SMETA 2p and 4p audit, you need to follow the steps below:

  • Phase 1. Initial assessment. You need to check that the company has or complies with the following:
    • A clear code of conduct and business ethics policies.
    • Applicable employment legislation.
    • Adequate health and safety practices.
    • Environmental records and documentation (if applicable).
  • Phase 2. Prepare the documentation and records required by SMETA, relating to ethics, sustainability, workplace safety and corporate social responsibility.
  • Phase 3. Implement SMETA requirements such as Selection and training procedures; Business ethics policy; Risk assessments and preventive measures; Environmental document management (across the 4 pillars) and Internal review and corrective actions
  • Phase 4. Internal audit. Our SMETA auditor verifies the implementation of the SMETA requirements and the effective implementation of the management system.
  • Phase 5. SMETA audit, by an ISO certifier.
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