The report highlights the industry’s progress in promoting respectful and secure work environments while urging more companies to embrace converged assessments and abandon proprietary audits.
The non-profit’s Converged Assessment Framework (CAF), a tool for harmonising audits, has experienced rapid scaling. The report reveals that the number of facilities completing an SLCP assessment surged by 65% from 2021, reaching over 7,250 facilities worldwide in 2022.
In collaboration with Manaus, a social impact research consultancy, SLCP conducted research to review its methodology for calculating savings generated by the adoption of the assessment tool. After conducting an extensive data review, in-depth interviews, and surveying over 400 factories, the updated methodology revealed that SLCP adoption in 2022 saved facilities $23m in duplicative audit costs.
The SLCP Impact Report emphasises various other significant impacts resulting from the adoption of the organisation’s converged assessments. Among these findings, over 50% of SLCP signatories reported that the ownership of data in the SLCP model has fostered stronger buyer-supplier relationships.
Manufacturers highlighted that the savings achieved through SLCP adoption were primarily directed towards workplace investments, new programmes or services for workers, and advancements in technology. Furthermore, SLCP data is instrumental in supporting supply chain finance programmes that incentivise robust performance in terms of human rights criteria.
In addition to the economic benefits, the report sheds light on key working condition trends identified through SLCP assessments. Over 91% of assessments conducted in 2022 revealed at least one legal non-compliance, averaging 8.7 non-compliances per assessment. This data underscores the urgent need for stakeholders to prioritise efforts towards improving working conditions rather than squandering resources on redundant audits, SLCP says.
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By GlobalDataThe publication of SLCP’s Impact Report coincides with the Global Fashion Summit in Copenhagen, amplifying the message of progress made and encouraging more companies to adopt converged assessments. The Global Fashion Agenda (GFA) Monitor 2022 previously called for audit harmonisation as a crucial step towards establishing respectful and secure work environments.
SLCP launched a toolkit at the beginning of May, to mitigate human rights risks in supply chains.