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Traceability Method Typology
Supply Chain Typology
Technology
Examples
About
Supply Chain Traceability Matrix
Traceability works for companies.
It makes global supply chains more efficient through improved assurances, reduced inventory costs, improved lead times, improved cashflow, and more sophisticated data analytics. Traceability can also support compliance in an increasingly complex landscape of consumer demand and regulatory mandates.
Traceability should work for workers, too.
Supply chain traceability can and should access and reflect the voices, experiences, and needs of workers. Downstream companies implementing traceability systems in their supply chains need to act on supply chain information surfaced by traceability systems, feeding it back into their labor and human rights due diligence systems that prevent, address, and remediate abuses like forced labor and child labor.
The Supply Chain Traceability Matrix is a guide for leveraging the power of traceability to combat labor rights violations in global supply chains.
Explore Traceability Approaches
Find traceability approaches that can help combat forced labor and child labor.
Explore Supply Chain Risks
Identify relevant forced labor and child labor risks in specific supply chains that need increased transparency.
What do we mean by traceability?
Traceability can refer to a wide range of strategies that shed light on the origins and movement of goods in supply chains.
Traceability is not new to global companies.
Companies already track the movement of products through their supply chains to ensure food safety, consumer safety, and to forecast and generally optimize supply chain efficiency. Today, many conversations about traceability focus on the promise of sustainable and fair supply chains but it is sometimes hard to parse what is being traced and why.
How can companies use traceability to improve the lives of workers and communities?
Increased supply chain traceability does not automatically lead to better working conditions and less child labor and forced labor. Companies need to design and implement traceability systems with specific labor and human rights due diligence goals in mind like preventing, addressing, and remediating forced and child labor. Companies should also consider how their traceability systems will facilitate efforts to access and amplify worker voice: hearing directly from workers and their advocates at different points in their supply chain and integrating that information back into due diligence systems.
The Matrix is designed to help users interested in designing traceability systems that work for workers. It guides users to start by identifying the due diligence goals they want to support via traceability. From there, the Matrix guides users to consider the types of information they’ll need to meet those goals, learn which traceability approaches offer the needed functions and insight, and finally to consider how the unique characteristics of different global supply chains – including the presence of different labor rights risks – can impact feasibility of traceability system implementation.
What labor or human rights due diligence goal do I want to achieve? (
What traceability functions and insight will I need to achieve that goal? (
What traceability approaches offer the functions and insight I will need? (
How do the characteristics and labor risks of specific supply chains impact the feasibility and relevance of different traceability approaches? (
At the highest level, the Matrix organizes the broad universe of supply chain traceability approaches – as well as the tools and technology needed to implement these approaches – into groups based on the function they can play in traceability and due diligence systems. These functions are:
Identifying and Engaging With Supply Chain Partners
Mapping suppliers to learn about their identities, locations, the relationships between them, and collecting basic voluntary information about their practices
Communicating expectations and providing capacity building to meet those expectations
Learn more about how Identifying and Engaging with Supply Chain Partners can be used to support labor rights due diligence
Tracking Movement and Transactions of Products Throughout the Supply Chain
Gathering and documenting information on the journey specific goods or materials take as they move through a supply chain – the who, what, when, and where tied to that good
Learn more about how Tracking Movement and Transactions of Products Throughout Supply Chains can be used to support labor rights due diligence
Scientific Validation of Supply Chain Information Gathered via Other Traceability Approaches
Confirming the data elicited via other traceability approaches that may be vulnerable to fraud or human error in the data entry process
Learn more about how Scientific Validation of Supply Chain Information Gathered via Other Traceability Approaches can be used to support labor rights due diligence
Traceability and Labor Rights Due Diligence
What Does Supply Chain Traceability Have to Do with Combating Forced Labor and Child Labor?
Traceability alone cannot improve conditions for workers. Combating forced and child labor and other human rights abuses in global supply chains requires concrete actions: accessing and amplifying workers’ voices around their experiences, identifying and understanding labor conditions workers face every day, working to mitigate and prevent identified risks, and transparently reporting on progress. While they are not a one-size-fits-all answer, traceability systems can be tools to support and inform these due diligence actions. How do we come to a common understanding of what due diligence means for companies? Widely accepted normative due diligence frameworks specific to human and labor rights in global supply chains include:
OECD Due Diligence Guidance for Responsible Business Conduct
Comply Chain, United States Department of Labor
These frameworks are well aligned and, when taken together, lay out the following key
Labor Rights Due Diligence Steps
for combating forced labor and child labor:
Establish
due diligence policies and engage with supply chain partners to
integrate
due diligence systems throughout the supply chain
Understand
the risks and root causes of forced labor, child labor, and other labor rights abuses facing workers in the supply chain
Actively
address
the risks and root causes of forced labor and child labor identified in the supply chain
Close gaps in knowledge and
continuously improve
due diligence systems
Demonstrate and communicate
compliance with laws and regulations as well as progress towards commitments to government officials and the public
Let’s get more specific about how traceability systems can be leveraged to create concrete changes for workers. Supply chain insights surfaced by traceability systems CAN support labor rights due diligence IF companies leverage traceability information to
take concrete due diligence actions
. For example:
If companies use traceability systems to understand the identities and locations of entities along a supply chain, they can use this information to engage supply chain actors, cascade labor and human rights expectations, provide training and capacity building to suppliers on labor rights and their own ethical procurement, and to make business decisions that prioritize labor rights due diligence in procurement. (
Labor Rights Due Diligence Step
Establish due diligence policies and engage with supply chain partners to integrate due diligence systems throughout the supply chain
Companies can use information about the geographic footprint of their upstream suppliers to conduct a preliminary risk screen as a means of prioritizing and informing locations and worksites where on-the-ground risk and impact assessments are necessary. Hearing workers’ own voices and integrating their experiences and concerns into due diligence activities is the most credible way to design systems that address, prevent, and remediate harms to workers and communities in supply chains. In some locations or worksites with identified risk, companies may seek to implement a human-rights compatible grievance mechanism to ensure workers’ voices are heard and acted on. Understanding the footprint and identities of suppliers is a critical first step for supporting worker voice initiatives. (
Labor Rights Due Diligence Steps
: Understand the risks and root causes of forced labor, child labor, and other labor rights abuses facing workers in the supply chain; Actively address the risks and root causes of forced labor and child labor identified in the supply chain
If companies use traceability systems in concert with a certification or other sustainability scheme that includes robust labor rights standards and a credible mechanism for collecting information on labor and human rights conditions for workers (remembering that the most credible information comes from workers and their advocates themselves), companies can use findings on risks and impacts to inform efforts to address and prevent labor abuses. (
Labor Rights Due Diligence Steps
: Understand the risks and root causes of forced labor, child labor, and other labor rights abuses facing workers in the supply chain; Actively address the risks and root causes of forced labor and child labor identified in the supply chain; Close gaps in knowledge and continuously improve due diligence systems
Labor rights information associated with a traceability system can also be overlaid – potentially using visualization platforms – with supply chain information such as the identities of suppliers and the Chain of Custody documentation for specific batches of goods. This allows companies to integrate labor and human rights information into their business decision making processes and to set goals for ensuring their upstream procurement practices drive value to ethical suppliers and the workers they hire. (
Labor Rights Due Diligence Steps
: Establish due diligence policies and engage with supply chain partners to integrate due diligence systems throughout the supply chain; Close gaps in knowledge and continuously improve due diligence systems
If companies use traceability systems to collect Chain of Custody (transaction history) and/or origin information for specific batches of physical goods, they can use these systems to ensure their upstream supply chains and procurement practices are supporting production of goods and materials in less risky contexts. (
Labor Rights Due Diligence Steps
: Actively address the risks and root causes of forced labor and child labor identified in the supply chain
Chain of Custody information and/or information confirming the provenance of goods can also be used to confirm the geographic footprint of upstream supply chains, supporting more accurate risk screening and providing assurance that workers in high-risk areas or worksites aren’t being obscured from view. (
Labor Rights Due Diligence Steps
: Understand the risks and root causes of forced labor, child labor, and other labor rights abuses facing workers in the supply chain; Close gaps in knowledge and continuously improve due diligence systems
Companies can also use Chain of Custody information or origin information for specific batches of goods to offer assurances to regulators and consumers that a physical product was produced in lower-risk environments and to report on progress against their commitments. (
Labor Rights Due Diligence Steps
: Demonstrate and communicate compliance with laws and regulations as well as progress towards commitments to government officials and the public
The interactive section below starts with each labor rights due diligence step and describes how different traceability system insights and benefits can be used to achieve that step.
Traceability Goals
What are your goals?
What supply chain insight will be needed to meet those goals?
What traceability system elements and methods could surface that insight?
Interactive Exploration of Labor Rights Due Diligence Goals and Traceability Methods
The section below starts with each labor rights due diligence goal and discusses the ways in which different traceability approaches can support implementation of that goal.
Associated Due-Diligence Framework Language:
OECD Guidance: Embed responsible business conduct into policies and management systems
Comply Chain: Develop a code of conduct; communicate and train across supply chain
Supply Chain Traceability Insight Needed to Achieve Due Diligence Goal
Explore the table below to learn more about which elements of supply chain traceability insight are necessary to achieve this Labor Rights Due Diligence Goal.
Supply Chain Traceability Function
Needed to Meet Due Diligence Goal?
Notes
Provide information on origin of good or material in actual physical good
Not necessary for this due diligence step
Provide information on geographic locations of transit points of actual good along supply chain
Not necessary for this due diligence step
Provide information on transactions between entities along supply chain tied to specific good/batch of goods (Chain of Custody)
Not necessary for this due diligence step
Provide information on location and identities of entities along supply chain
Yes
Understanding the geographic location of supply chain entities can inform the need for tailored policies and management system procedures. For example, if a company knows they have suppliers in a country with a high presence of foreign migrant workers, and the company does not have a dedicated policy on migrant workers, knowing that they have suppliers in this country makes this an important policy to develop. Communicating and training around code of conduct expectations and best practices also requires insight into the slate of suppliers at various tiers of a company’s supply chain, both direct and indirect, as well as some understanding of the sourcing relationships.
Provide information on sourcing relationships between entities along supply chain
Not necessary, but can be helpful in some cases
Provide information on volume of certified or designated sustainable product supported by purchase
Not necessary for this due diligence step
Decrease market for unethical goods and increase market for goods produced with less FL/CL risk
Not necessary for this due diligence step
Provide structure to drive increased value to producers and suppliers, which may decrease reliance on vulnerable workers
Not necessary for this due diligence step
Facilitate increased engagement with supply chain actors
Yes
Any traceability system efforts that promote engagement with supply chain actors can be leveraged for further engagement specifically focused on promoting labor rights and responsible business practices.
Related Traceability System Methods
: Supply Chain Mapping; Identity Preservation; Bulk Commodity
Associated Due-diligence Framework Language:
OECD Guidance: Identify and assess actual and potential adverse impacts associated with the enterprise’s operations, products, or services
Comply Chain: Assess risks and impacts
Supply Chain Traceability Insight Needed to Achieve Due Diligence Goal
Explore the table below to learn more about how supply chain insight provided by traceability approaches can be leveraged to support risk assessment processes.
Note that supply chain traceability does not inherently provide information on labor rights conditions or access and reflect the voices, experiences, and needs of workers. In some cases, supply chain traceability efforts will operate in the context of a certification initiative or other effort that assesses working conditions at worksites against a set of standards. In these cases, companies should work with implementing partners – such as certification bodies – to ensure that information collected is directly informing prevention and remediation programming with participating suppliers and worksites.
Supply Chain Traceability Function
Needed to Meet Due Diligence Goal?
Notes
Provide information on origin of good or material in actual physical good
In some cases
Understanding the geographic origin of goods in a supply chain can help companies conduct a high-level risk screen on how labor risk is likely to manifest based on known contextual factors in regions of production. For example, supply chains with goods or materials produced, processed, or manufactured in regions strongly associated with risk factors may be prioritized for more intensive due-diligence efforts.
Understanding the origin of an actual physical good, or batch of physical goods, may be necessary when a company’s supply chains – whether direct or indirect – include the procurement of materials known to be produced with a high risk of labor abuses in some geographies. This is particularly important if a company wants to make claims about the materials in a specific material good, rather than claims about their broader supply chain. For example, when a government bans imports of raw materials produced in a specified geography, companies are likely to need to obtain and provide assurances to confirm the origin of goods in a specific import lot.
Provide information on geographic locations of transit points of actual good along supply chain
In some cases
Understanding the transit points of an actual physical good is necessary for companies to understand risks at specific worksites along a supply chain. As with understanding the origin of a raw material, some nodes along a supply chain (for example, processing, assembling, or logistics) may be located in geographic regions known to have a heightened risk for labor abuse. In such cases, companies will need assurance that mid-tier processing either did not occur in locations determined to have labor risk, or will need to undertake enhanced due diligence to assess and ensure decent work at these mid-tier nodes.
Provide information on transactions between entities along supply chain tied to specific good/batch of goods (Chain of Custody)
Not necessary for this due diligence step
Provide information on location and identities of entities along supply chain from origin to end company
Yes
When companies have insight into the geographic footprint and identities of upstream and downstream suppliers, from origin to first tier direct suppliers, they can use that information to conduct a high-level risk screen, allowing them to prioritize geographies and individual suppliers for heightened due diligence, including on-the-ground assessments, rights-compatible grievance mechanisms, or other efforts to capture and act on workers’ voices more directly.
An understanding of the country locations of supply chain entities can provide insight into the
national level risk factors as well as the typical labor rights abuses documented in target sectors
. The more granular and targeted the information on the suppliers’ identities and location, the stronger the understanding of potential risk can be. For example, a company who has identified a manufacturing footprint in a country with high rates of outsourced labor recruitment may choose to prioritize their assessment of resulting risks for foreign contract workers. Companies with more detailed insight into the locations and identities of specific suppliers in their supply chain are able to conduct
on-site assessments of labor conditions for vulnerable migrant workers
in those facilities, work with the supplier management to identify third-party labor providers utilized to recruit and/or manage workers on site,
assess the practices of those labor providers
, and even gain insight into the recruiting partners of those labor brokers.
Provide information on sourcing relationships between entities along supply chain from origin to end company
In some cases
Reliable information on the sourcing relationships between entities along the supply chain can provide some assurances to downstream companies that they are not losing visibility into the presence of risky practices related to unauthorized subcontracting.
Provide information on volume of certified or designated sustainable product supported by purchase
Not necessary for this due diligence step
Decrease market for unethical goods and increase market for goods produced with less FL/CL risk
Not necessary for this due diligence step
Provide structure to drive increased value to producers and suppliers, which may decrease reliance on vulnerable workers
Not necessary for this due diligence step
Facilitate increased engagement with supply chain actors
Yes
By participating in traceability efforts that promote engagement with suppliers, companies can lay the groundwork for future in-depth risk assessments. Workers have the most direct insight into the conditions and labor risks they face each day at a worksite. Conducting credible and robust assessments of conditions at specific worksites often relies on the willing participation of suppliers. Management staff at suppliers or other supply chain partners can also provide valuable information on business practices and pressures with implications for labor and human rights.
Related Traceability System Methods
: Supply Chain Mapping; Identity Preservation; Bulk Commodity; Mass Balance; Scientific Validation
Associated Due-Diligence Framework Language:
OECD Guidance: Cease, prevent, and mitigate adverse impacts; Provide for or cooperate in remediation when appropriate
Comply Chain: Remediate violations
Supply Chain Traceability Insight Needed to Achieve Due Diligence Goal
Explore the table below to learn more about how supply chain insight provided by traceability approaches can be leveraged to strengthen efforts to address and prevent labor risks identified.
Note that all efforts to prevent and address forced labor and child labor should be based on accurate and up-to-date information on the actual conditions and risks faced by workers in a supply chain. Supply chain traceability does not inherently provide this information or access and reflect the voices, experiences, and needs of workers. In some cases, supply chain traceability efforts will operate in the context of a certification initiative or other effort that assesses working conditions against a set of standards. In these cases, companies should work with implementing partners – such as certification bodies – to ensure that information collected is directly informing prevention and remediation programming with participating suppliers and worksites.
Supply Chain Traceability Function
Needed to Meet Due Diligence Goal?
Notes
Provide information on origin of good or material in actual physical good
Not necessary, but can be helpful in some cases
Knowing the origin of an actual physical good is necessary if a company wants to implement programming or remediation that can be linked to and communicated with relevance for an actual physical product.
Provide information on geographic locations of transit points of actual good along supply chain
Not necessary, but can be helpful in some cases
Understanding the transit points of an actual physical good is necessary for companies who want to link programming or remediation at downstream transit points/worksites to a specific physical product.
Provide information on transactions between entities along supply chain tied to specific good/batch of goods (Chain of Custody)
Not necessary, but can be helpful in some cases
Robust documentation of the chain of custody for a specific physical product or batch of products is not necessary to address labor rights risks or violations. Chain of custody information would be necessary if a company wants to link its programming or remediation to an actual physical product.
Provide information on location and identities of entities along supply chain from origin to end company
Yes
Information about the identities and locations of suppliers in upstream supply chains allows downstream companies to implement programs to prevent and address labor and human rights abuses at specific worksites in the supply chain. Even when information about individual entities is not available, companies with an understanding of the broader geographic footprint of their supply chains (i.e., the countries and regions of different types of production) can use that information to engage with stakeholders in those regions and design interventions that address risk on a more general level.
Provide information on sourcing relationships between entities along supply chain
Not necessary, but can be helpful in some cases
Understanding the sourcing relationships between entities in a supply chain can be helpful for developing ongoing monitoring protocols and relating ongoing compliance with human and labor rights policies to procurement decisions.
Provide information on volume of certified or designated sustainable product supported by purchase
No
When companies know the volume of certified or designated sustainable product supported by their purchasing practices (for example, when using a certificate trading platform), they can support producers that participate in sustainability efforts (which may or may not include robust labor standards). However, companies participating in these efforts do not gain any insight into the identities or practices of their actual suppliers. Therefore, these programs do not position companies themselves be able to conduct assessments or participate in prevention and/or remediation efforts that actively address risk.
Decrease market for unethical goods and increase market for goods produced with less FL/CL risk
In some cases
Governments and/or companies may be incentivized over time to adopt stronger labor standards and practices to gain market access, thereby addressing some risks to workers.
Provide structure to drive increased value to producers and suppliers
Not necessary, but can be helpful in some cases
Providing a market – and an economic incentive for lower-risk production – is a necessary component of a strategy to improve working conditions. Similarly, efforts that aim to decrease procurement of goods produced in countries with the highest risk may also encourage producers and governments in those producing countries to improve labor conditions.
It is important to note that efforts that primarily focus on “screening out” goods from the highest risk geographies miss the opportunity to engage in the robust due diligence efforts that can more directly lead to improved conditions for workers. These “screening-out” strategies make the most sense in geographic contexts where meaningful remediation is not feasible.
Traceability efforts that are designed to drive value back to small and medium size producers can contribute to an improvement in working conditions through the provision of resources that can be devoted to improvement of work practices.
Facilitate increased engagement with supply chain actors
Yes
Just as workers, managers and other supplier staff can provide important insight into the risks facing workers, they are also critical stakeholders in providing information on the best strategies to address these issues. Traceability efforts that facilitate increased engagement with supply chain actors can lay the groundwork for ongoing dialogues focused on steps forward.
Related Traceability System Elements & Methods
: Identity Preservation; Bulk Commodity; Mass Balance; Scientific Validation
Associated Due-Diligence Framework Language:
OECD Guidance: Track implementation and results
Comply Chain: Monitor compliance; Independent review
Supply Chain Traceability Insight Needed to Achieve Due Diligence Goal
Explore the table below to learn more about which elements of supply chain traceability insight are necessary to achieve this Labor Rights Due Diligence Goal.
Supply Chain Traceability Function
Needed to Meet Due Diligence Goal?
Notes
Provide information on origin of good or material in actual physical good
In some cases
For some companies, understanding the origin of raw materials linked to specific physical goods may represent a more advanced step in their due diligence maturity and a closing of a previous gap in knowledge or insight. However, the challenges inherent in understanding the origin of any individual physical product should not be a barrier for progress on other due diligence fronts.
Provide information on geographic locations of transit points of actual good along supply chain
In some cases
For some companies, understanding the exact transit points and worksites linked to specific physical goods may represent a more advanced step in their due diligence maturity and a closing of a previous gap in knowledge or insight. However, the challenges inherent in understanding the exact Chain of Custody of any individual physical product should not be a barrier for progress on other due diligence fronts.
Provide information on transactions between entities along supply chain tied to specific good/batch of goods (Chain of Custody)
No
If a company has other means of identifying the identities, locations, and business relationships between upstream suppliers, gaining access to Chain of Custody information for any specific product or batch of products.
Provide information on location and identities of entities along supply chain from origin to end company
Yes
Some understanding of the location and identities of entities along the length of upstream to downstream supply chains is a critical foundation for other due diligence steps. Companies should be continuously working to ensure they understand their upstream sourcing footprint as upstream supply chains are rarely static.
Provide information on sourcing relationships between entities along supply chain
In some cases
Understanding the sourcing relationships between entities in a supply chain may be helpful for follow-up monitoring and efforts at driving compliance. Collecting this information can be a potential next step for companies who have a solid understanding of the identities and locations of their universe of suppliers but have less insight into what business levers will be important for driving compliance.
Provide information on volume of certified or designated sustainable product supported by purchase
No
Decrease market for unethical goods and increase market for goods produced with less FL/CL risk
No
Provide structure to drive increased value to producers and suppliers
No
Facilitate increased engagement with supply chain actors
Yes
As a company’s due diligence commitments and strategies mature – and the regulatory and compliance landscapes evolve – companies will need to maintain collaborative working relationships with supply chain actors.
Related Traceability System Elements & Methods
: Supply Chain Mapping (including Mid-Tier Gatekeeper Due Diligence, Data Analysis and Visualization); Identity Preservation; Bulk Commodity; Mass Balance; Certificate Trading; Scientific Validation; Geospatial Analysis
Associated Due-Diligence Framework Language:
OECD Guidance: Communicate how impacts are addressed
Comply Chain: Engage partners and stakeholders, Report performance and engagement
Supply Chain Traceability Insight Needed to Achieve Due Diligence Goal
Explore the table below to learn more about which elements of supply chain traceability insight are necessary to achieve this Labor Rights Due Diligence Goal.
Supply Chain Traceability Function
Needed to Meet Due Diligence Goal?
Notes
Provide information on origin of good or material in actual physical good
In some cases
In an increasing number of cases, such as when imports of specific goods originating from high-risk countries have been banned under regulatory and legal frameworks in an importing country, companies are required to provide assurances on the geographic origin of a specific good or batch of goods and assurances that goods from high-risk areas were not produced with forced or child labor.
In other cases, understanding the origin of raw materials linked to specific physical goods may not be required by law, but may represent a more advanced step in a company’s due diligence strategy and an effort to close an identified gap in knowledge.
Provide information on geographic locations of transit points of actual good along supply chain
In some cases
When risk at various nodes is closely linked with geographic considerations (for example, when risk is much higher in one top producing country than in others) the ability to provide assurances around the geographic footprints of suppliers can be helpful in developing and externally communicating due diligence strategies in different sourcing locations.
Provide information on transactions between entities along supply chain tied to specific good/batch of goods (Chain of Custody)
In some cases
For some downstream companies, documenting all the transactions for a specific batch of physical goods may represent a more advanced step in their due diligence maturity and a closing of a previous gap in knowledge or insight. However, the challenges inherent in understanding the exact chain of custody of any individual physical product should not be a barrier for progress on other due diligence fronts. Significant progress can be made by identifying the geography and identities of suppliers throughout the length of the supply chain, even decoupled from a specific product or batch of product.
Provide information on location and identities of entities along supply chain from origin to end company
Yes
Understanding and communicating basic facts about upstream entities in a company’s supply chain – such as geographic footprint of suppliers – provides the framework for future due diligence communications. For example, by sharing the geographic footprint of suppliers at different supply chain tiers, a company sets the stage for later transparency on the type of risk assessments conducted in different regions and for different types of worksites, efforts to prioritize due diligence efforts based on risk assessments, and any steps taken to address risks in different locations. In cases where risk is extremely high in certain sourcing regions – and contextual issues would prevent meaningful steps to address risk – companies can share with the regulators and consumers how they are leveraging traceability to avoid procurement from these areas at highest risk.
Provide information on sourcing relationships between entities along supply chain
In some cases
Insight into sourcing relationships between entities in a supply chain can be helpful for follow-up monitoring and efforts at driving compliance. Collecting this information can be a potential next step for companies who have a solid understanding of the identities and locations of their universe of upstream suppliers but have less insight into what business levers will be important for driving compliance.
Provide information on volume of certified or designated sustainable product supported by purchase
No
Decrease market for unethical goods and increase market for goods produced with less FL/CL risk; Provide structure to drive increased value to producers and suppliers
Not necessary, but can be helpful in some cases
Regulatory frameworks increasingly require companies to provide chain of custody documentation for a specific batch of goods – and to provide evidence that specific batches of goods were not produced in regions where labor risk is highest and remediation is not possible. Traceability efforts that broadly provide increased market access for ethically produced goods – such as certificate trading systems – are not able to provide any such assurances for specific batches of goods. That said, incorporating traceability strategies that drive value to more ethical producers can be a valuable adjunct approach, particularly in contexts with less severe risks.
Facilitate increased engagement with supply chain actors
Not necessary, but can be helpful in some cases
With stronger relationships with supply chain actors comes a stronger ability to tell a coherent story about a company’s traceability and labor rights due diligence steps. Further, companies that build durable relationships with suppliers and invest in supplier ability to meet labor rights expectations can benefit from those investments in the form of increased transparency, communication, and a willingness to take on new systems.
Related Traceability System Methods:
Supply Chain Mapping (including Mid-Tier Gatekeeper Due Diligence, Data Analysis and Visualization); Identity Preservation; Bulk Commodity; Mass Balance; Certificate Trading; Scientific Validation; Geospatial Analysis
Funding is provided by the United States Department of Labor under cooperative agreement number IL‐35805. 100 percent of the total costs of the project or program is financed with federal funds, for a total of USD 4,000,000. This material does not necessarily reflect the views or policies of the United States Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the United States Government
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