Welcome to Sedex Supplier Ethical Data Exchange

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1 Welcome to Sedex Supplier Ethical Data Exchange Improving Ethical Performance Biscuit Cake Chocolate & Confectionery Sector Group Jo Webb 18 th March 2010

2 Outline The CSR landscape Sedex and where we fit in How Sedex can help address common challenges The future

3 The landscape Increasing pressure from a variety of stakeholders child labour Media sweatshops NGOs audit fatigue government internal customers investors poor working conditions environmental damage bribery beyond auditing living wage tick box compliance Increasing demand for supply chain transparency and improvements in standards

4 The landscape (continued) The hurdles 1. Duplication of compliance documentation 2. Difficulty in obtaining and managing information 3. Lack of understanding (all parties) 4. Audit fraud 5. How do you facilitate continuous improvements? COLLABORATION AND THE BUSINESS CASE

5 What is Responsible Sourcing? Buying with your eyes open Knowing who you are buying from, what the implications of your purchase are Supply chain transparency beyond the first tier Throughout the lifecycle of the supplier relationship Knowing what to do with the information Having corporate support to make the right decisions

6 What is Sedex? Supplier Ethical Data Exchange A not-for-profit membership organisation launched in 2004 to ease the burden on suppliers and drive improvements in ethical and responsible business practices in global supply chains A web based platform for sharing and viewing information on four pillars: 1. Labour standards 2. Health and safety 3. Environment 4. Business integrity

7 Sedex Global Presence 2010 Sedex Membership Number of sites of employment More than Fewer than 50 Canada United Kingdom None France United States Spain Morocco Italy Turkey Egypt China Mexico India Columbia Top 10 Countries Sites of Employment: 1. China United Kingdom South Africa India Spain 945 Chile 6. Turkey Italy USA France Netherlands 543 Brazil Argentina Kenya South Africa Australia More than 27,000 sites of employment sharing data with over 350 customers in 169 countries New Zealand

8 Diverse Industries Increasing global and sector spread Sedex is helping to reduce duplication- our members are sharing data Members linked with 4.9 customers on average 8,825 audits completed in past 12 months (31% of audits on Sedex)

9 A and AB members include 350+ retailers, brands, manufacturers, NGO s and agents

10 A common problem in the supply chain: Unnecessary duplication of information in diverging systems and methodologies Sedex helps remove duplication and eases burden on supply chain CUSTOMER 2 CUSTOMER 1 CUSTOMER 2 CUSTOMER 3 CUSTOMER SEDEX SURVEY SURVEY SURVEY 1 CUSTOMER 3

11 The Sedex Model 11

12 Practical Tools to Help You Security model ensuring sites are only sharing data with companies with whom they are trading A Self Assessment Questionnaire and process for review involving all members Robust, flexible Risk Assessment tool available on the system Sedex Members Ethical Trade Audit (SMETA) report format and guidance, but any audit can be uploaded on the system Corrective Action Plan and process for follow-up actions with active supplier input Standardised Reports and data export facility Working Groups to dive best practice- Associate Auditor Group continuously sharing best practice audit guidance Assists Continuous Improvement of standards Sedex enables organisations to manage items in PINK

13 The Future Convergence of standards and best practice The requirements of transparency all the way through the supply chain Increased awareness of the issues from new stakeholders (e.g. government, investment community) The growth of the business case..

14 In Summary Responsible sourcing is good business Reduce reputation risk Investor scrutiny Drives staff satisfaction and retention Improves supplier productivity Enact company values Sedex facilitates supplier assessments and management There are many players in the landscape to help you We are all in this together!

15 Thank You