The ways in which a company specifies its goals and commitments can strongly affect the success of its efforts to achieve ethical supply chains.
Commitments that are sufficiently broad, clearly defined, and time-bound enable a company to convey its intentions to address social and environmental impacts, drive effective action, and facilitate monitoring and accountability.
Core Principle 3.1 Scope
Commitments apply broadly across the company to address social and environmental risks that may arise as a result of the company’s operations, supply chains, and financial investments related to agricultural and forestry commodities.
Core Principles 3.1.1 to 3.1.3
3.1.1 Commitments apply to all business units defined to be part of the corporate group.
3.1.2 Commitments apply to all segments of the company for which agricultural and forestry commodities may pose environmental or social risks; their scope is not limited to specific commodities, supply chains, or sourcing origins.
3.1.3 If commitments do not apply to the entire business related to these commodities, then they clearly specify the products, operations, and financial transactions that are included in and excluded from the scope. The defined scope is justified by a credible risk analysis demonstrating that the excluded portions are not subject to environmental or social risks.
Core Principle 3.2 Verifiable actions and time-bound targets
Commitments include publicly stated time-bound targets and milestones that reflect the urgency of addressing the subject environmental and social issues.
Core Principles 3.2.1 to 3.2.6
These targets and milestones are specific, quantitative, and can be objectively evaluated and verified.
3.2.1 For each aspect of its commitments, the company publicly specifies time-bound and geographically-specific targets and milestones.
3.2.2 Company commitments to halt deforestation and conversion specify a target date for fulfilling those commitments. Target dates are as ambitious as possible, while also recognising differing capacities for implementation and the importance of emphasising inclusion (especially of smallholders) to achieve scale and ensure lasting change. Company target dates reference and align with applicable broader goals, targets, or sector-wide commitments, except that if the company has already set earlier target dates, these earlier dates are retained.
3.2.3 Company commitments related to human rights recognise the obligation to fully respect human rights at all times. Where certain human rights may require progressive realisation, the company identifies these circumstances and specifies time-bound milestones for the implementation, monitoring, and full respect for these rights.
3.2.4 If implementation will be phased across different product groups, business segments, or levels of suppliers (eg, direct and indirect), a time-bound implementation schedule is specified per segment. This sequencing prioritises areas for which adverse environmental and social impacts are likely to be the most significant. Prioritisation may also consider where there is the greatest potential for positive impact.
3.2.5 Stated targets, milestones, and associated indicators and metrics are specific enough so that progress and claims can be objectively assessed, both internally (within the company and its supply-base) and by external parties.
3.2.6 Targets, milestones, and indicators are reviewed periodically with relevant stakeholders and revised if necessary (but not weakened) so that they continue to define meaningful progress trajectories in the present context. In the case that time-bound targets or milestones are not being or have not been met, the company should continue to reference such targets, work expeditiously to fulfil them, and monitor and report progress as specified in Core Principles 11 and 12.
Core Principle 3.3 Terminology and definitions
Commitments reference and apply common terminology and definitions.
Core Principles 3.3.1 to 3.3.2
3.3.1 Commitments reference and utilise the common definitions of the Accountability Framework and, where applicable, contextualised definitions that are aligned with the Framework.
3.3.2 These common definitions are applied in all relevant aspects of business and supply chain management, such as supplier contracts and oversight, procurement, monitoring, and reporting.
Core Principle 3.4 Relationship between company commitments and applicable law
In addition to their voluntary commitments, companies comply with applicable law. Where there are discrepancies between voluntary commitments, applicable law, and instruments related to internationally-recognised human rights, the highest standard is the reference point for fulfilling company obligations around ethical supply chains.
Additional detail related to Core Principle 3 is available in the following Operational Guidance: