The Global Organic Textile Standard (GOTS) Version 7.0 is only "partially aligned" with the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, a new report by the Organisation for Economic Co-operation and Development (OECD) has revealed. This finding suggests significant areas for improvement in how the widely recognised organic textile standard addresses human rights, labour, and environmental risks in global supply chains.
- The OECD conducted a "standards-only" assessment of the GOTS Version 7.0 to evaluate its alignment with the OECD Due Diligence Guidance. This assessment, carried out between September 2023 and August 2024, did not include an evaluation of GOTS' implementation of its standard or its internal governance.
- The overall conclusion of the assessment found GOTS Version 7.0 to be "partially aligned" with the OECD Due Diligence Guidance.
- The report, titled Alignment Assessment of The Global Organic Textile Standard with OECD Due Diligence Standards, was published by the OECD on 30 June.
OVERALL ALIGNMENT: The assessment determined that GOTS is "partially aligned" overall. Specifically:
- For "Overarching criteria," 44% were "fully aligned" and 56% were "partially aligned".
- For "Steps 1-6 + Additional Criteria (AC)," 69% were "fully aligned," 29% were "partially aligned," and 2% were "not aligned".
STRENGTHS OF THE STANDARD: The GOTS Standard includes expectations related to all six steps of the OECD Garment Guidance, showing a strong degree of alignment across many important elements of the due diligence process.
- It sets consistent due diligence expectations regarding labour, environmental, and integrity risks.
- Guidance documents like the "Manual for the Implementation of GOTS" and the "Due Diligence Handbook for Certified Entities" provide helpful clarification, with terminology closely aligned with the OECD Garment Guidance.
- The standard may promote due diligence uptake among suppliers, as companies throughout the supply chain are eligible for certification.
- It requires companies to prioritise due diligence based on severity and likelihood of risks, including in policy commitments and in-depth risk assessments of high-risk suppliers.
- The standard emphasises continuous improvement, requiring review and adaptation of policies, risk scoping, and action plans as contexts change and knowledge on risks expands.
- GOTS requires companies to tailor their due diligence processes to specific circumstances and contexts, such as sourcing locations and business models.
OPPORTUNITIES FOR IMPROVEMENT: Inconsistencies exist across GOTS's three key documents (the Standard, Implementation Manual, and Handbook for Certified Entities), with varying levels of detail and missing cross-references, potentially leading companies and auditors to overlook expectations.
- Some aspects of due diligence receive less focus or are not fully consistent with the OECD Garment Guidance, such as long-term prevention plans, impacts through purchasing practices, and the initiative’s own grievance mechanism.
- While the standard has expectations for grievance mechanisms where they exist, it does not explicitly require companies to establish them in their own operations and supply chains.
- GOTS's complaints procedure is not fully consistent with the UN Guiding Principles (UNGPs) effectiveness criteria, lacking specified timelines, limited detail on procedural steps, and insufficient ongoing engagement and information sharing between parties.
- The standard does not require companies to share assessment findings or recognise existing assessments to reduce audit fatigue.
