As one of the most widely used audit methodologies/projects in the field of sustainable and responsible supply chains, at least 370,000 SMETA audits have been recorded on the Sedex platform. In 2023, 185,000 SMETA non-conformances were closed, which represents the number of risks in the area of sustainability in the global supply chain that have been improved or resolved through SMETA audits. With SMETA, any organization can use SMETA to assess and measure the social or environmental compliance performance of its own workplaces, suppliers, and other supply chain partners to support supply chain due diligence and ESG (environmental, social, and governance) management.

Sedex reviews and updates the SMETA audit annually to align it with the latest global sustainability trends and to meet the real needs of its members and stakeholders. The third quarter of this year's SMETA Review will receive its most significant update in recent years, with the updated version of the SMETA Review being upgraded from 6.1 to 7.0.

The new version of SMETA 7.0 is scheduled to be released on September 10, 2024, and its impact on SMETA audits is as follows:

# Full Review #

· Prior to the release of SMETA 7.0 (10 September 2024), the full audit (Initial and Period Audit) initiated should be SMETA 6.1, but the review date should be no later than 31 December 2024.

· After the release of SMETA 7.0 (10 September 2024), the full audits (Iinitial and Period Audit) initiated should be SMETA 7.0.

# Follow-up Review #

· Following the release of SMETA 7.0 (10 September 2024), the follow-up review of the previous SMETA 6.1 review will be SMETA 6.1, but the review date will be no later than 31 December 2025.

· The follow-up review of the previous SMETA 7.0 review should be SMETA 7.0.

Important changes in SMETA 7.0

#New#

Compared to version 6.1, SMETA 7.0 incorporates workplace requirements that break down the ETI Basic Guidelines and SMETA Additional Terms into more than 100 audit clauses; At the same time, a new Management System Assessment (MSA) has been added to evaluate the management system of each standardized area of the site; In addition, a new type of NC has been added: CAR (Collaborative Action Required), which allows SMETA not to set a fixed deadline for closing NCs if the ability to close NCs may not be within the direct control of the site.

#revise#

1. File schema update

SMETA 7.0 has an updated guidance structure and new guidance will be issued, and the previous SMETA 6.1 guidance documents will be deactivated or updated.

2. Digital audit tools

The digital audit tool will be updated to support the SMETA 7.0 methodology.

3. Issue Title

In order to allow the auditor to accurately and reasonably select the problem title when writing the report, the problem point title corresponds to the WR. Some of the issue titles have been carried over in SMETA 7.0, and new question titles have been added.

4. Non-compliance / Non-compliance (NC: Non-compliance / Non-Comformance)

The steps for the auditor to report the NC have been slightly changed to accommodate the WR:

· Select the specification area associated with the discovery point

· Select the applicable WR

· Confirm that the WR is not being met

· Confirm whether the discovery point violates local laws and regulations

· Select the corresponding Issue Title

· Write the findings and attach the evidence

5. Good Example (GE) and Observation (OB)

· The definition of a Good Example (GE) and the auditor's steps for its report remain the same, but the report is written instead of selecting a question point title to selecting a WR.

· SMETA 7.0 will remove observations, allowing suppliers to focus on improving their management systems to reduce risk in the long term.

6. Data Information (Date Point)

Some of the data in the SMETA report has been modified, such as an increase in the number of data information disaggregated by sex.

SMETA requirements

SMETA (SEDEX Members Ethical Trading Audit) is an ethical trade auditing standard that aims to ensure the ethics, labor rights, and human rights of global supply chains.

The following are the main requirements of SMETA for factories:

1. Child labor:

Child labor is not allowed in the factory, and juvenile workers are not allowed to perform manual labor or other jobs that may cause physical injury, and they are not allowed to work night shifts.

2. Comply with laws and regulations:

At a minimum, the supplier's factory shall comply with the labor contract law and relevant environmental protection regulations of the country where it is located.

3. Forced labor:

The client strictly prohibited the use of forced labor in the factory, including forcing employees to work overtime, using labor, imprisoning employees, and threatening to force employees to work by confiscating their ID cards.

4. Working hours:

The required working hours shall not exceed 60 hours, with at least one day off per week.

5. Benefits:

Is the employee's salary less than the local minimum wage? Do employees who work overtime get overtime pay? Does the overtime wage meet the requirements of laws and regulations (1.5 times of normal overtime, 2 times of overtime on weekends, and 3 times of overtime on statutory holidays)? Was the salary paid on time? Does the factory buy insurance for its employees?

6. Safety and health: Whether the factory has serious safety and health problems, including complete and effective fire protection equipment, whether the ventilation and lighting fixtures in the production area are in place, whether the factory is a three-in-one or two-in-one factory, whether the number of residents in the staff dormitory is correct, and whether the safety of the staff dormitory is correct?

These requirements are designed to ensure that the factory not only operates in accordance with legal and ethical standards, but also provides a safe and healthy working environment for employees.