Unified Metrics Library - Lack of a supplier code of conduct

Helper question

Did the company have supplier code of conduct (against unsafe working conditions, precarious work, child labour and forced labour), during the period?

Summary

The supplier code of conduct refers to a set of standards and guidelines that spell out both ethical and business practices that suppliers need to follow if they wish to conduct business with a company. It adresses issues like unsafe working conditions, precarious work, child labour and forced labour in supply chain.

Unit

Boolean: Yes or No

Description

The indicator seeks to evaluate the organization's commitment to ethical practices within it's investment portfolio, ensuring that investee companies uphold responsible and humane standards in their supply chains. Responsible Business Alliance (RBA) provides online self-assesment questionnaires for supply chain evaluation https://www.responsiblebusiness.org/tools/saq-faqs/

Regulatory definition

According to the (EU) 2022/1288 of 6 April 2022, it is defined as "Share of investments in investee companies without any supplier code of conduct (against unsafe working conditions, precarious work, child labour and forced labour)"

Sources

Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of do no significant harm. ANNEX I (Table 3, Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery matters, Indicator 4 under Social and employee matters]

Examples

In the absence of a supplier code of conduct, an investee company's suppliers might employ child labour and/or forced labour in violation of international laws and ethical standards.

Employee turnover rate
Lack of grievance/complaints handling mechanism related to employee matters