Stage of the ethical supply chain journey
Implement ethical supply chains
Regular monitoring is conducted relative to the time-bound targets associated with each commitment (see Core Principle 3.2). Monitoring follows suitable methods for assessing social, environmental, and land-use outcomes related to the commitment scope. Fulfilment of commitments (and progress toward such fulfilment) is validated through verification processes conducted according to norms of good practice for credibility, rigor, and independence. This Principle applies to all companies, with monitoring and verification scope and roles differing based on position in the supply chain.
Monitoring and verification (M&V) assesses compliance with company commitments and obligations. If full compliance has not yet been reached, it also assesses progress towards compliance, for instance as measured by quantitative performance levels and/or implementation of improvement plans.
M&V for commodity buyers assesses performance across the buyer’s supplier portfolio. It also assesses effectiveness of the buyer’s supplier management system and other mechanisms for identifying and addressing non-compliance or adverse impacts (see Core Principle 6).
M&V is based on clearly-defined metrics against which compliance or performance may be assessed; these metrics are based on common definitions (Core Principle 3.3) where appropriate.
M&V methodologies use recognized and technically-sound approaches (e.g., land cover change analysis based on satellite imagery, field observations, document review, stakeholder engagement, interviews with affected people or groups, community-based monitoring, and other effective techniques) to ensure the credibility and comparability of observations and findings across different contexts.
M&V processes incorporate relevant information and perspectives from local stakeholders to assess risks and performance levels. Effective mechanisms are established to facilitate the sharing of such information in a manner that protects the confidentiality and safety of persons providing information.
Verification follows good practice norms for sampling and audit intensity; methods for detecting risks, harms, and non-compliance with commitments; competence and independence of the assessment team; stakeholder participation; and transparency regarding the verification scope, metrics, process, and results.
Independent, third-party verification is conducted to the extent necessary to validate compliance and performance levels and provide the requisite level of independent assurance to substantiate communications and claims.
Third-party verification reports (or summaries thereof) are made publicly available.
The company utilizes M&V results to help inform learning, decision-making, and continuous improvement.
Apply the Principle
Monitoring and Verification
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