Definitions

The date from which deforestation or conversion associated with a given area or supply chain is measured and/or managed.

Terms used interchangeably or in combination with one another to refer to both the process of providing redress for a negative impact and the substantive outcomes that can counteract, or make good, the negative impact. These outcomes may take a range of forms such as apologies, restitution, rehabilitation, restoration, financial or non-financial compensation, and punitive sanctions (whether criminal or administrative, such as fines), as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition.^*

^{* Adapted from the UN Guiding Principles Reporting Framework}

Conveyance of information on compliance, performance, or actions from one party to another.

• Sustainability-related reporting is typically from suppliers to buyers, supply chain companies to financial institutions, and all types of companies to external stakeholders (eg, government, civil society, and the general public). Reporting can be public (see definition of disclosure) or private (eg, internal, bilateral party-to-party, or one-to-many via supplier reporting platforms).

Recruitment carried out within the law, in line with international labour standards, and with full protection of workers from abusive situations. It applies to recruitment both within and across national borders.^*

• The process of recruitment includes advertising, information dissemination, selection, transport, placement into employment and – for migrant workers – return to the country of origin where applicable. It applies to both jobseekers and those in an employment relationship.
• Responsible recruitment aims to address abuses found in recruitment, including deception about the nature and conditions of work; retention of personal documents or property; illegal wage deductions; payment of recruitment fees or costs; and restrictions of workers’ movement or ability to leave a job. It is recognised that a combination of these abuses can amount to human trafficking or forced labour.

^{* Adapted from ILO}

The process of assisting the recovery of an ecosystem, and its associated conservation values, that has been degraded, damaged, or destroyed.

• This definition refers to restoration as a means to remedy environmental harms or reverse the loss of environmental values. The term ‘restoration’ is also used in the context of remediation of human rights harms, for which restoration may come in many forms (eg, restoration of benefits, employment, or access to lands). See the Operational Guidance on Remediation and Access to Remedy.

A company that sells products directly to individual consumers. This includes supermarkets, convenience stores, lumber and home improvement stores, home furnishings stores, online retailers, restaurant chains, and the like.

A stakeholder whose human rights may be put at risk or impacted by company operations, supply chains, or financial investments.^*

^{* Adapted from the OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector}

The probability of a potential adverse impact combined with its potential seriousness.

A systematic process of evaluating risk in a company’s current or future operations, supply chains, and investments.

• In the context of the Accountability Framework, this term refers to the assessment of risk of non-compliance with company commitments, policies, or other obligations related to the Accountability Framework’s scope, including adverse impacts to internationally recognised human rights. This is different from the use of the term in a general business context, where it refers to the assessment of financial risks and the drivers of such risk (eg, legal risk, credit risk, reputation risk, and others). Risk of adverse social and environmental impacts, including non-compliance with company commitments, policies, or other obligations, can be an important element of broader business risk.