Adoption of its tool, the Converged Assessment Framework (CAF), in 2022 saved facilities $23 million in duplicative audit costs, the Social & Labor Convergence Program (SLCP) has said in its 2022 Impact Report.
- Yet, the data continues to show that a very high number of facilities are still not legally compliant. As last year, 91% of all assessments included at least one legal non-compliance in 2022.
- Overall, the number of facilities completing an SLCP assessment increased by 65% from 2021 to over 7,250 facilities worldwide in 2022.
- The report showcases the progress made to reduce audit duplication, key trends in working conditions, and an enhanced methodology for calculating the savings unlocked through converged assessments.
- The research was conducted on behalf of SLCP by Manaus, a social impact research consultancy, to review the methodology the multi-stakeholder initiative uses to calculate the savings generated through adoption of SLCP’s tool.
- Building on the previous methodology, calculating the cost of an SLCP assessment included data such as initial start-up costs, verification days, language, geographic differences, facility size, as well as other additional costs.
Benefits of Convergence: In addition to highlighting the total resources unlocked, the SLCP report demonstrates other key impacts of SLCP adoption, including:
- Over 50% of SLCP signatories reported that facility ownership of data in the SLCP model has enabled better buyer-supplier relationships;
- Manufacturers reported that savings generated through SLCP adoption are most likely to be redirected to investments in the workplace, new programmes or services to workers, and investments in new technology.
The Other Numbers: The report threw up lots of numbers:
- 92% of SLCP signatories are now using the CAF, with 87% reporting using the tool in place of proprietary tools;
- 70% of signatory manufacturers reported a reduction in the total number of audits thanks to use of the CAF;
- 42% of brands reported that at least half of their Tier 1 suppliers used SLCP, and 22% of brands reported that at least half of their Tier 2 suppliers used SLCP;
- 60% reported time saved on audits;
- 53% reported that facility ownership of data has enabled better relationships with partners;
- 58% reduced staff time devoted to auditing;
- 46.7% reported money saved in auditing expenses.
WHAT THEY SAID:
In this report, we present SLCP’s efforts to equip industry stakeholders with the necessary data to influence change within global supply chain networks. Looking back, 2022 was a year of significant momentum for SLCP. We saw growth in the number of assessments, increased industry acceptance, expanded into new sectors and regions, and continued progress towards convergence. The steady growth in adoption of the Converged Assessment Framework (CAF) has enabled us to shift focus to quality, insights, and the impact of our data. This last year served as a foundational year for SLCP in establishing our insights and policy work to further serve as a resource for credible supply chain data for stakeholders.
— Janet Mensink
Executive Director
Social & Labor Convergence Program
The potential to utilize the wealth of data now contained within the Gateway presents an enormous opportunity. Through an anonymized and aggregated analysis, we can, together and in partnership with research institutes, leverage this assessment data from thousands of factories to identify social and labour gaps, inform policymakers, and re-direct the money saved to improvement measures where they are most needed – data informed decision-making.
— Pamela Coke-Hamilton
Executive Director
International Trade Centre
