It is important to track and measure all parts of the process of a product. From sourcing to the consumer, a product is not only defined by its end use, but also by its route to the end customer. Support strong, well-defined supply chain transparency as a methodology for brands, retailers and cusumers to understand how products come into existence and their social and environmental impacts. Believe that being on the forefront of both national regulations and international standards and laws raises the bar and creates benchmarking possibilities and market opportunities.
Businesses must work towards transparency in their supply chains
Multiple stakeholders such as civil society, governments and industry pay continuously more attention to the environmental and social concerns created by a product. Retailers seek additional and specific assurances from their suppliers with respect to environmental and societal impacts and they demand certifications as well as the right to verify them to be able to truthfully state that all steps requiring disclosure have been taken.
We regard transparency throughout the entire supply chain as an important tool for companies addressing concerns involving their surroundings, which also includes the public in general. Quality control, product liability and reporting allow the possibility of creating a commitment between supplier and seller as well as of creating a product with lesser negative environmental and social impacts. NICE endorses the gradual inclusion of both vendors and subcontractors in order to create a common sustainable and transparent platform.
- Engage in verification of product supply chains to identify and address the risks of environmental and societal impact
- Conduct audits of suppliers to evaluate their compliance with company standards
- Require direct suppliers to certify that the materials incorporated into the product comply with the laws and international labour and environmental standards
- Maintain internal accountability standards and procedures for employees or contractors or suppliers that fail to meet company standards with international environmental and labour standards
- Provide training for employees and management who have direct responsibility for supply chain management as well as training on mitigating risks within the supply chain
- Supply chain transparency is created through a disclosure of suppliers and subcontractors. By creating a visible and traceable public list of suppliers and subcontractors, it is possible to track maleficence or breach of any international standards. The disclosure of subcontractors and suppliers will furthermore create a closer relationship with stakeholders and also ensure a higher level of trust from business partners and other suppliers
- The disclosure of subcontractors and suppliers also creates a better overview of the business process and stages that the product goes through and will ease reporting and coherence to international standards and codes of conduct
- Issue an annual Communication on Progress, a public disclosure to stakeholders (e.g. investors, consumers, civil society and governments) on progress made in implementing transparency goals