ESR Standard (Fairness, Solidarity and Responsibility) - Ecocert

ECOCERT ENVIRONNEMENT ESR standard V3 – June 15th, 2013

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ECOCERT ENVIRONNEMENT – French Société par actions simplifiée (simplified joint stock company) with €37.000,36 capital – RCS Paris 409 982 709 36, boulevard de la Bastille – 75012 Paris - France

ESR Standard (Fairness, Solidarity and Responsibility) Standard on Social Responsibility and Fair Trade

ECOCERT ENVIRONNEMENT ESR standard V3 – June 15th, 2013

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This standard is the property of ECOCERT ENVIRONNEMENT (ECOCERT). It is protected by the French Intellectual Property Code, the legislative and regulatory provisions of all countries and international agreements, notably by the provisions relating to literary and artistic property and author's rights. These rights are the exclusive property of ECOCERT. Any reproduction and/or representation, in whole or in part, by any means whatsoever, which is not authorised by ECOCERT or its beneficiaries, are strictly prohibited. Only ECOCERT shall be authorised to have the standard approved by the competent authorities of a given country, through deposit or any other procedure provided by the local regulations or customs. Comments and requests for information concerning this standard can be sent to the following address: [email protected] The ESR standard is accessible online on the website: www.ecocert.com The original version and the reference for this document is the French version.

mailto:[email protected]

http://www.ecocert.com/


ECOCERT ENVIRONNEMENT ESR – Preamble V3 – June 15th, 2013

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CONTENTS

PREAMBLE........................................................................................................................................................ 7

LIST OF ABBREVIATIONS ................................................................................................................................. 10

DEFINITIONS .................................................................................................................................................. 11

GENERAL DEFINITIONS ............................................................................................................................................ 11

FAIR TRADE CERTIFICATION SPECIFIC VOCABULARY ...................................................................................................... 13

PART 1. INTRODUCTION ................................................................................................................................. 15

1.1 SCOPE .................................................................................................................................................... 16

1.1.1 Operators and products .................................................................................................................. 16

1.1.2 Countries ......................................................................................................................................... 16

1.2 CERTIFICATION OPTIONS............................................................................................................................. 16

1.3 ELIGIBILITY CRITERIA .................................................................................................................................. 18

1.3.1 Corporate ethics .............................................................................................................................. 18

1.3.2 Proximity (Fair Trade certification) ................................................................................................. 18

1.3.3 Priority to small producers system (Fair trade certification) ........................................................... 18

1.4 STANDARD CONTEXT AND REFERENCES .......................................................................................................... 19

1.5 MODIFICATIONS TO THE STANDARD .............................................................................................................. 19

PART 2. AUDITING PROCEDURES .................................................................................................................... 20

2.1 INTRODUCTION ........................................................................................................................................ 21

2.1.1 Subject and content of the procedure ............................................................................................. 21

2.1.2 Inspection within Fair Trade Supply Chains ..................................................................................... 21

2.1.3 Audits of operators applying for the Social Responsibility certification only .................................. 22

2.2 AUDIT TYPES ............................................................................................................................................ 22

2.2.1 Full audits ....................................................................................................................................... 22

2.2.2 Other audits .................................................................................................................................... 22

2.3 CERTIFICATION PROCESS ............................................................................................................................. 23

2.3.1 Different steps of the process .......................................................................................................... 23

2.3.1.1 Application receipt/Application review .................................................................................................. 23

2.3.1.2 Contractual commitment ....................................................................................................................... 24

2.3.1.3 Documentary review .............................................................................................................................. 24

2.3.1.4 Audit ....................................................................................................................................................... 24

2.3.1.5 Corrective action plan ............................................................................................................................ 25

2.3.1.6 Action plan assessment and certification decision ................................................................................. 25

2.3.1.7 Monitoring .............................................................................................................................................. 25

2.3.2 Frequency of full audits ................................................................................................................... 28

2.3.3 Scoring of standard criteria and certification requirements ........................................................... 28

2.3.3.1 The four criteria levels ............................................................................................................................ 28


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2.3.3.2 Criteria scoring ....................................................................................................................................... 28

2.3.3.3 Compliance and performance percentages ........................................................................................... 29

2.3.3.4 Certification requirements ..................................................................................................................... 29

2.3.4 Certificate of compliance ................................................................................................................. 30 2.3.4.1 Content and notification ........................................................................................................................ 30 2.3.4.2 Validity of the certificate ........................................................................................................................ 31

2.3.5 Withdrawals and suspensions ......................................................................................................... 31

2.3.6 Use of logos and reference to the standard .................................................................................... 32

2.3.7 Appeal, and complaint procedures .................................................................................................. 32

2.3.8 Voluntary termination of contract .................................................................................................. 32

2.3.9 Special case : non-committed operator .......................................................................................... 32

2.4 FAIR TRADE REGISTRATION PROCESS ............................................................................................................. 33

2.4.1 Presentation .................................................................................................................................... 33

2.4.2 Eligibility and registration conditions .............................................................................................. 33

2.4.3 The different steps of the registration process ................................................................................ 33

2.4.3.1 Application review .................................................................................................................................. 33

2.4.3.2 Commitment .......................................................................................................................................... 34

2.4.3.3 Documentary review .............................................................................................................................. 34

2.4.3.4 Registration decision .............................................................................................................................. 34

2.4.3.5 Monitoring .............................................................................................................................................. 34

2.4.4 Confirmation of registration ............................................................................................................ 35

2.4.4.1 Content and notification ........................................................................................................................ 35

2.4.4.2 Date of issuance and of renewal ............................................................................................................ 35

2.4.5 Conditions for denial or non-renewal .............................................................................................. 35

2.4.6 Use of logos and reference to the standard .................................................................................... 36

2.4.7 Appeal and complaint procedures ................................................................................................... 36

2.4.8 Voluntary termination of contract .................................................................................................. 36

2.4.9 Special case: non-committed operator ............................................................................................ 36

PART 3. AUDIT CRITERIA................................................................................................................................. 37

INSTRUCTIONS ....................................................................................................................................................... 38

3.1 QUALITY ASSURANCE ................................................................................................................................ 39

3.1.1 Conditions for audit and activity statements .................................................................................. 39

3.1.2 Contractual obligation to respect the standard .............................................................................. 39

3.1.3 Managing the compliance of operations and products .................................................................. 39

3.1.3.1 Compliance control and monitoring ....................................................................................................... 39

3.1.3.2 Producer groups' internal control system .............................................................................................. 39

3.1.4 Communication and advertising ..................................................................................................... 40

3.1.5 Withdrawal or suspension ............................................................................................................... 40

3.1.6 Traceability and separation measures ............................................................................................ 40

3.1.7 Compliance of suppliers and subcontractors ................................................................................... 40

3.1.8 Respect of minimum thresholds of fair trade ingredients ............................................................... 41

3.2 GOVERNANCE .......................................................................................................................................... 42

3.2.1 CSR Policy ........................................................................................................................................ 42

3.2.2 Production groups' Fair trade policy ............................................................................................... 42

3.2.3 Discrimination and insertion within producer groups ..................................................................... 43


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3.2.4 Democracy and participation within producer groups .................................................................... 43

3.2.4.1 Producer organisations ........................................................................................................................... 43

3.2.4.2 Contract production companies ............................................................................................................. 44

3.3 HUMAN RIGHTS ....................................................................................................................................... 45

3.3.1 Discrimination and inclusion of vulnerable workers ........................................................................ 45

3.3.1.1 At central level ........................................................................................................................................ 45

3.3.1.2 At the individual producer level ............................................................................................................. 45

3.3.2 Fundamental rights to work ............................................................................................................ 45

3.3.2.1 At central level ........................................................................................................................................ 45


3.4 WORK RELATIONS AND CONDITIONS ............................................................................................................. 47

3.4.1 Employment and employee-employer relations .............................................................................. 47

3.4.1.1 At central level ........................................................................................................................................ 47


3.4.2 Working conditions and social protection ....................................................................................... 47

3.4.2.1 At central level ........................................................................................................................................ 47


3.4.3 Social dialogue ................................................................................................................................ 49

3.4.3.1 At central level ........................................................................................................................................ 49


3.4.4 Health and safety at work ............................................................................................................... 49

3.4.4.1 At central level ........................................................................................................................................ 49


3.4.5 Human resources development ....................................................................................................... 50

3.5 THE ENVIRONMENT .................................................................................................................................. 51

3.5.1 Synthetic chemical products and GMO ........................................................................................... 51

3.5.2 Pollution prevention ........................................................................................................................ 51

3.5.2.1 Processing/marketing units .................................................................................................................... 51

3.5.2.2 Primary production units ........................................................................................................................ 51

3.5.3 Sustainable use of water resources ................................................................................................. 51



3.5.4 Alleviation of climate change and adaptation ................................................................................ 52



3.5.5 Protection and restoration of surrounding environment ................................................................ 52



3.5.6 Eco-packaging policy ....................................................................................................................... 53

3.6 GOOD BUSINESS PRACTICES & PARTNERSHIPS ................................................................................................ 54

3.6.1 Access to resources .......................................................................................................................... 54

3.6.2 Procurement policies ....................................................................................................................... 54

3.6.2.1 Buyers ..................................................................................................................................................... 54

3.6.2.2 Production groups .................................................................................................................................. 55

3.6.3 Justified Fair Trade profit margins................................................................................................... 55

3.6.3.1 Buyers ..................................................................................................................................................... 55



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3.6.4 Fair Trade contracts ........................................................................................................................ 56

3.6.4.1 Fair trade buyers .................................................................................................................................... 56


3.6.5 Pricing policy and terms of payment ............................................................................................... 57

3.6.5.1 Buyers ..................................................................................................................................................... 57


3.6.6 Fair practices ................................................................................................................................... 58

3.6.6.1 First Buyers ............................................................................................................................................. 58


3.6.7 Quality of the Fair Trade partnership .............................................................................................. 58

3.6.7.1 Buyers ..................................................................................................................................................... 58


3.6.8 Development support ...................................................................................................................... 59

3.6.8.1 First Buyers ............................................................................................................................................. 59


3.7 CONSUMERS ............................................................................................................................................ 62

3.7.1 Protection of consumer health and safety ...................................................................................... 62

3.7.2 Education and awareness about Fair Trade (Brand owners) .......................................................... 62

3.8 COMMITMENT TO SOCIETY AND DEVELOPMENT .............................................................................................. 63

3.8.1 Territorial anchorage....................................................................................................................... 63

3.8.2 Education and culture ..................................................................................................................... 63

3.8.3 Creation of local employment ......................................................................................................... 63

3.8.4 Development and access to technology (Production groups) ......................................................... 63

3.8.5 Creating wealth and revenue (Production groups) ......................................................................... 63

PART 4. APPENDICES ...................................................................................................................................... 64

APPENDIX 1. LABELING AND COMMUNICATION RULES - ECOCERT FAIR TRADE CERTIFICATION ............................................ 65

APPENDIX 2. RULES FOR EXTERNAL CERTIFICATION - ECOCERT RESPONSIBILITY CERTIFICATION .......................................... 710

APPENDIX 3. RULES FOR THE COMPOSITION OF FAIR TRADE PRODUCTS ............................................................................. 72

APPENDIX 4. INTERVIEWS WITH WORKERS AND PRODUCERS: SAMPLING, PROCEDURES ...................................................... 743

APPENDIX 5. RULES FOR THE COMPOSITION OF PACKAGES FOR FAIR TRADE FINISHED PRODUCTS .......................................... 754

APPENDIX 6. ORGANIC AND NATURAL STANDARDS RECOGNIZED BY ECOCERT .................................................................. 76

APPENDIX 7. DESCRIPTION OF FAIR TRADE PROJECTS ..................................................................................................... 77

ECOCERT ENVIRONNEMENT ESR - Preamble V3 – June 15th, 2013

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ECOCERT ENVIRONNEMENT – French Société par actions simplifiée (simplified joint stock company) with €37.000,36 capital – RCS Paris 409 982 709

36, boulevard de la Bastille – 75012 Paris - France

PREAMBLE

Considering:

- The complementary aspect and close links existing between the principles of fair

trade and those of organic agriculture;

- The necessity of associating the concept of fair trade with the concept of social

responsibility extended to all parties involved in the supply chains, whether they are

producers, buyers or processors;

- The universality of fair trade principles;

- The quest of consumers for improved guarantees and transparency in light of the

increasing diversification of fair trade models.

The goals of this standard, with regards to the natural products and craft supplies industry

are:

- To vouch for projects combining organic agriculture and fair trade;

- To define a social responsibility process allowing businesses and organizations to

position themselves with respect to their impact on society and the environment;

- To define a fair trade process applicable to both the producers of developing

countries and the producers in developed countries.

- Enhance business accountability of fair trade for consumers and provide more

transparency with regard to the process.

In order to achieve these goals, the ESR standard provisions for specific social, economic

and environmental criteria divided into seven major topics. The seven topics are inspired by

the ISO 26000 standard guidelines.

1. Organizational governance

- Coordinated CSR (Corporate Social Responsibility) policy

- Clear and non-discriminatory membership rules (Producer groups)

- Democratic and participatory operation (Producer groups)

- Fair trade (Production groups):

o Coordinated Fair Trade policy

o 3-year development plan

2. Human Rights

- No discrimination

- No forced labor

- No child labor


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3. Employment relations and working conditions

- Formalized and regular work

- Adequate salaries, social benefits and working hours

- Freedom of association and collective bargaining

- Staff health and safety

- Staff training

4. Environment

- Good production practices

- Adequate waste, disposal and wastewater management

- Adequate water resource management

- Adequate energy resource management

- Respect for surrounding ecosystems

- Eco-packaging policy

- Fair trade:

o Organic or ecological certification

o Prohibited materials in packaging of finished products

5. Good commercial practices and partnership

- Respect for the rights of indigenous and tribal people

- Responsible procurement policy

- Fair trade:

o Justifiable fair trade profit margins

o Clear sales contracts

o Long-term partnership contracts

o Compliance with payment terms

o Agreed fair prices

o Context-related guaranteed minimum prices

o Respect for freedom of sale

o Pre-financing solutions on request

o Constant dialogue between partners

o Development support (provision of a Development Fund (DCs); direct support)

o Transparent and participatory management of the Development Fund (DCs)

6. Consumers

- Protection of consumer health

- Fair trade:

o Fair trade information and awareness campaign

7. Social commitment and development

- Support to community projects

- Promoting education and culture

- Generating local employment

- Technical support to producers

- Actions to increase the local added value


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Among all criteria, 10 are absolutely critical (or "Knockout – K.O.") and will prevent any

certification:

THE 10 "K.O." CRITERIA OF THE ESR STANDARD

- Human Rights

1. No staff discrimination

2. No forced labor

3. No practices violating human dignity

4. No child labor

- Relationship and working conditions

5. No obstacle to the freedom of association and collective bargaining

6. No discrimination with regards to unionized employees

7. No working conditions endangering staff health and safety

- The Environment

8. No actions threatening endangered species or deteriorating endangered habitats

9. No destruction or conversion of nearby natural ecosystems

10. No illegal forms of production and no trade in protected plants or animals


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LIST OF ABBREVIATIONS

ODA: Official Development Assistance

DAC: Development Aid Committee

HPC: Household and Personal Care products

ESR: Equitable, Solidaire, Responsable (Fairness, Solidarity, Responsibility)

FINE: FLO (Fair Trade Labeling Organizations International), IFAT (International Fair

Trade Association), NEWS! (Network of European Worldshops) and EFTA

(European Fair Trade Association)

FOB: Free On Board

ISO: International Standards Organization

GMO: Genetically Modified Organism

ILO: International Labor Organization

NGO: Non-Governmental Organization

UNO: United Nations Organization

PVC: Polyvinyl Chloride

DCs: Developing Countries

SA 8000: Social Accountability 8000

ICS: Internal Control System

CSR: Corporate Social Responsibility


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DEFINITIONS

The following are understood as: General definitions a) "operator", the physical or legal persons responsible for ensuring compliance with the

requirements of this standard within the activity that is under their control;

b) "commitment", contractual act by which an operator agrees to comply with the criteria that are under his responsibility and to accept the terms of the inspection procedure;

c) “eligibility criteria”, the criteria added to the inspection criterion that will be checked before

any commitment from the operator to the scheme, and then, by a monitoring system, throughout the certification process. They could lead to the refusal / withdrawal of certification;

d) "certificate of compliance", the document certifying the conformity of the products and/or

the operations to the Standard; e) "technical committee", the committee comprising representative experts or professionals

consulted by ECOCERT on technical points related to the development of the Standard or its interpretation;

f) "certification supervisory committee", the committee comprising persons independent of

ECOCERT consulted with the aim of guaranteeing the independence and impartiality of ECOCERT operations and its decisions on certification;

g) "production group", a formally and legally constituted company or organization engaged in the primary production of a natural raw material or a craft object and places it on the market. This is either a producer group or a plantation;

h) "producer group", a group of persons or separate legal entities (producers) whose production processes are organized through a common structure. Depending on the type of structure organizing the producers, it will either be a producer organization or a contract production company. Furthermore, there will be a distinction between classic groups, where the raw material is provided by the producer group members, and "processor or artisan groups", where the raw material is provided by external entities.

i) "plantation", a company engaged in the primary production of the product and who is not member of a producer group. The working relations are based on hiring agricultural workers and/or on the family. Whether they comprise one or several sites, a single management unit is responsible for the working conditions of the employees of the relevant sites.

j) "producer organization", a group of producers formally organized to sell their product in common (typically: a cooperative); the organization is normally responsible for the ICS. So-called 1st degree organizations are democratically controlled by their producers (legally affiliated members). 2nd degree organizations are democratically controlled by their 1st degree organizations (legally affiliated members).


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k) "contract production company", a company, an NGO or a public establishment that places contracts with producers (sometimes through sub-groups), buys their products, organizes and supports them, and is normally responsible for the ICS ;

l) “producer”, a farmer, harvester, handcrafter…member of a producer group or sub-group;

m) "transnational company", a company implanted in more than one country and operating through at least one local subsidiary or unit;

n) "large company", a company that employs over 250 people with an annual turnover greater than 50 million Euros or with a total annual balance sheet greater than 43 million Euros (according to the definition of Small and Medium Enterprises by recommendation no. 2003/361/CE);

o) "indigenous communities", tribal people or those considered as indigenous because they descend from populations that inhabited the region or country, who are different from other parts of the national community by their social, economic and cultural conditions and whose status is totally or partially governed by customs or traditions specific to them or by special laws or regulations. (Adapted from the International Labor Organization – ILO 169);

p) "labeling", the terms, wording, statements, trademarks or trade names, images or symbols bearing and appearing on any package, document, notice, label, panel, ring or collar accompanying a product or referring to it;

q) "advertising", any representation aimed at the public, by any means other than labeling, that aims or is of a nature to influence and shape the attitude, opinions and behavior in order to directly or indirectly promote the sale of the products.

r) "internal control system" (ICS), a documented quality assurance system that permits the inspection body to delegate the inspection of individual members of a group to the group manager. It comprises the internal verification methods used (procedures, records, internal specifications...);

s) "ecosystem", the dynamic set of living organisms (plants, animals and micro-organisms) that interact between themselves and with the environment (soil, climate, water, light) in which they live;

t) "old secondary forest", a secondary forest (forest naturally or artificially regenerating from native forest vegetation) aged over 20 years and denoting marked differences in the structure of the forest and/or the composition of the cover species relative to younger adjacent forests;

u) "child", any person aged less than 15 years old, unless local legislation stipulated a higher age for compulsory schooling or employment. The ILO states that in certain developing countries, the minimum age could be 14 years old;

v) "worker", any person employed to perform temporary, seasonal or permanent work. The staff of a producer organization responsible for administrative issues are considered as employees, as well as the agricultural workers employed by the producers;

w) "permanent worker", any worker working more than eight months of the year within the same entity;


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x) "young worker", any worker older than a child (as defined by the ILO), and being at least 18 years old;

y) "decent income", the income permitting a person to cover the basic needs of half an average sized family. Basic needs include essential expenses such as food, drinking water, clothing, housing, transport, education, compulsory legal social benefits when they exist. Basic needs are calculated on the basis of local prices;

z) “large unit”, a production unit where more than 15 permanent workers are employed OR where more than 40 temporary workers are employed during more than 2 months in the year. For groups of handlers/artisans, a large unit is a unit where more than 80 people work in the unit (artisans as well as handlers);

Fair Trade Certification specific vocabulary aa) "fair trade product", the finished or intermediate product that is certified as fair trade

according to the ECOCERT standard;

bb) "fair trade supply chain", the succession of activities and exchanges undertaken by the operators to produce, prepare and/or distribute a fair trade product;

cc) "fair trade ingredient", the original fair trade raw material, from the Production group, used in the finished fair trade product;

dd) "finished product", the product ready to be sold to the final consumer;

ee) "intermediate product", a raw material, a semi-finished product, that must undergo processing or packing before being sold to the final consumer;

ff) “single products”, products composed of only one ingredient, that can be either processed (e.g. wheat flour, tinned green beans,...) or not (e.g. apples, tomatoes, honey, ...);

gg) "brand owner", an operator who sells one or more fair trade products under its own

brand; hh) "project sponsor", an operator who pays for certification of the Production group;

ii) "first buyer", an operator negotiating fair trade prices with a Production group, and

responsible for the long term commercial relations with the latter; this can be a trader, a manufacturer, an importer, an exporter...

jj) "conveyor", an intermediary between an operator negotiating prices with the Production

group (the First Buyer) and a Production group. This intermediary buys the merchandise from the Production group but obeys the orders of the First Buyer in terms of price setting;

kk) "intermediate buyer", a manufacturer or trader who buys a fair trade product and who is not a first buyer, nor a conveyor, nor a brand owner;

ll) "subcontractor", a third party under contract with a partner (generally a brand owner or a production group), who processes, packs and/or stores the fair trade ingredients on behalf of their partner. A subcontractor does not buy fair trade products, but his partner supplies them to him. He invoices his partner for a service provision;


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mm) "retail distributor", an operator specializing in providing finished products, not

undertaking preparation activity and not being a brand owner; nn) "development fund", a fund enabling the financing of social, technical and organizational

development actions in Production groups (collective infrastructure, technical equipment, collective equipment, social, education and health services, aid to the organization, ...);

oo) "purchase price", the price paid by an operator to another for the fair trade product

considered, whatever the location of the transaction; pp) "guaranteed minimum price", a minimum price that an operator agrees with another,

serving as a floor price in case of a fall in market prices; qq) "small producer", a producer:

- for whom the production unit size can be considered as "small" considering available statistical data;

- who uses mainly, outside seasonal activity peaks, his own work, that of his family, or help from the community. This condition will be adjusted for labor-intensive production and in specific cases related to the personal situation of the producer;

- if there are other local parameters for defining a small producer, these could be taken into account;

rr) "craft", manual or small-scale activity, using simple tools and possibly, for certain specific tasks, machines, permitting the manufacture of products that are not reproducible on a large scale. These products are non-food products that have a practical, personal or decorative use, and that have a cultural or artistic value. A completely automated or industrialized activity cannot be considered as a craft activity.

ECOCERT ENVIRONNEMENT ESR – Part 1 - Introduction V3 – June 15th, 2013

15 – Part 1



Part 1. Introduction


16 – Part 1



1.1. Scope

1.1.1. Operators and products

The standard makes provisions for the certification of companies, organizations, as well as

products.

Companies and organizations willing to commit must be involved in the production,

processing or trade of products from farming, aquaculture, stock rearing, harvesting or craft

work.

For product certification, eligible products are as follows:

o Food products

o Cosmetic and aromatic products

o Textiles

o Detergents

o Home perfumes

o Craft objects

Application to other types of operations and products could be considered, provided that this

requires only minimal adjustments to the original standard.

1.1.2. Countries

In principle, the standard applies to all countries. However, for better adjustment to the socio-

economic realities of the various countries, distinctions are sometimes made between

developed countries and developing countries.

The reference list of developing countries used is as defined by the Development Cooperation Directorate, available at http://www.oecd.org/dac/. Developed countries are those not belonging to this list.

1.2. Certification options

The ESR program is based on two certification schemes:

Compliance

Compliance

SOCIAL RESPONSIBILITY

FAIR TRADE

Criteria of the

ESR standard

Fair Trade certificate, exchange of

fair trade products within supply

chains

External communication on products

Social Responsibility certificate,

corporate social responsibility

Communication at corporate level

http://www.oecd.org/dac/


17 – Part 1



Table: Presentation of both certification schemes

SOCIAL RESPONSIBILITY Certification

Company/Organization

FAIR TRADE Certification

Product/Supply chain

Objectives

Demonstrate involvement in and/or social

responsibility improvements made: ethical

practices, responsible procurement policy, positive

impact on the local community, etc.

Demonstrate that in addition to operating as per

procedures promoting corporate responsibility,

the company/organization takes part in the

development of fair trade industries: long term

partnerships, fair prices, financing development

projects, etc.

Applicable criteria Compliance with the "Social Responsibility" criteria

as defined in the standard.

Compliance with the "Social Responsibility"

criteria and "Fair Trade" criteria as defined in the

standard.

Certification type and

communication

"SYSTEM" certification, enabling external

communication on the commitment of the

company/organization in a CSR procedure.

The company/organization and its practices are

certified as "Responsible", but not the products.

"PRODUCT" certification, enabling external

communication on fair trade products traded.

The products are certified as "Fair Trade", but

not the company/organization.

Requirements in relation to

"ORGANIC" certification

Organic and ecological certifications are not

required; however sustainable production rules

must be complied with.

Organic or ecological certifications are required

for products to be certified, except in specific

cases (harvesting plants for cosmetic products,

crafts).

Supply chain inspection

N/A: operators willing to communicate on the

Responsibility process must be certified for the

relevant sites and operations. Inspection of the

supply chain upstream and downstream is not

required.

For finished products to be certified, all operators involved in the supply chain, from Production group to Brand owner, must be inspected. Inspection of Distributors-Retailers is optional. Operators not willing to communicate externally on Fair Trade procedures may be REGISTERED instead of CERTIFIED. They do not hold any certification but are authorized to trade in fair trade products. Registration is subject to conditions and is only possible in specific cases. Please refer to Inspection Process section.


18 – Part 1



1.3. Eligibility criteria

Reminder: Those criteria will be checked on before any formal commitment of the operator to

the scheme, and subsequently monitored on a continuous basis throughout the certification

process.

1.3.1. Corporate ethics

ECOCERT will always ensure that ESR certification is under no circumstances used as a

cover for unethical practices. ECOCERT reserves the right to refuse operators whose

practices or those of affiliated bodies have proved to be incoherent and conflicting with

process and core values set by the standard. Special attention to this aspect will be paid with

regards to the application of Large Transnational Enterprises.

No. Eligibility criteria on ethical values

Gov 0-a

There is no violation of human rights and of the fundamental rights of workers, destructive environmental practices, corruption, etc. both at the committed operator and affiliated bodies levels (subsidiaries, parent companies or other units belonging to the same group).

1.3.2. Proximity (Fair Trade certification)

The fair trade program as defined in this standard intends to promote local procurement:

- As far as possible, international fair trade must not contribute to competition between

countries producing the same raw materials.

- As far as possible, national fair trade must promote short supply chain.

No. Eligibility criteria for “Proximity”

Trade0-a

The export of a single product towards a country that already produces this product is possible

if one of the following conditions is satisfied:

- In the country of destination, the production level is too low to be able to meet national demand;

- It is demonstrated that the product has specific intrinsic qualities (e.g. "terroir" effect);

- It is demonstrated that setting up the supply chain will have significant impacts on small,

disadvantaged producers.

Trade 0-b

If the operator gets his supply of raw materials directly from the country of production, the

production area that is geographically closest is favored, provided the raw materials are available in

adequate quality and quantity.

1.3.3. Priority to small producers systems (Fair trade certification)

The fair trade program as defined in this standard aims at promoting production systems

operated on a human scale by small producers, regardless of their organizational structure

and legal form.


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Producer groups where Small producers represent more than 60% of the area and/or

quantities are eligible without restrictions. Other Producer groups (not achieving the above

60% criteria) and plantations are eligible under certain conditions.

Other parameters such as: the type of production, the size of the Production group, the social

and economic organization, the source of the capital, the land rights, the shareholder

structure etc.… may be reviewed for assessment and ECOCERT reserves the right to decide

that a Production group is to become eligible under certain conditions.

No. Eligibility criteria “Priority to small producers systems”

Gov0-b

The Production group (Plantation / Producer group) subject to eligibility:

- Demonstrates, if there are some small producers organized or being organized present in the

same production basin, that it has integrated those small producers in its development project,

and that it works in synergy with them;

- Describes the potential needs in terms of development support and maintenance of the rural

fabric (empowerment, technical and commercial support, socio-economic,

participatory and community-based projects...);

- Justifies that it will need the support of fair trade buyers to develop projects responding to these

needs, because they cannot be completed solely under its CSR policy;

- Describes how this support could shape up, based if possible on exchanges already started with

potential fair trade buyers.

1.4. Standard context and references

This standard refers to standards and laws that must be complied with, such as the ILO

(International Labor Organization) international conventions and other external standards -

as specified in this document -.

The ISO 26000 standard guidelines, SA 8000 standard, FINE consensus, the 10 principles

defined by the WFTO, the UEBT standard, and the existing fair trade standards (supported

by the Soil Association, IMO, Naturland, Bio Partenaire, FLO e.v, Fundeppo) have also been

reviewed.

1.5. Modifications to the standard

ECOCERT reserves the right to modify the content of the standard upon request of the Technical Committee monitoring the management of the ESR Standard; committee members are professionals involved in the Fair Trade industry. Further to any modification of the standard, the Certification Supervisory Committee will ensure that operators have being given reasonable deadlines to achieve compliance. ECOCERT will notify the operators on modifications and deadlines for the implementation of new requirements.

ECOCERT ENVIRONNEMENT ESR – Part 2 – Auditing procedure V3 – June 15th, 2013

20 – Part 2



Part 2. Auditing procedure


21 – Part 2



2.1. Introduction

2.1.1. Subject and content of the procedure

This chapter aims to define the auditing procedure applicable to all operations. More specifically, it provides clarifications on the relationships to be established between ECOCERT and the operators: the documents and information to be provided, the different stages of the certification process, the compliance assessment process, etc.

2.1.2. Inspection within Fair Trade Supply chains

All operators involved in the supply chain, from Production group to Brand owner, must be audited by ECOCERT. Small Distributors-Retailers may apply for certification; the audit of their operation will be optional. Operators may commit to a certification process or to a registration process, in accordance

with the company profile, their needs in terms of external communication and the operational

risk assessment.

At the final stage of the certification process, operators will be issued with a certificate of

compliance, authorizing external communicate on Fair Trade & Social Responsibility

certification in compliance with ECOCERT communication rules.

At the final stage of the registration process, the operator will be issued with a registration

confirmation statement, authorizing external communication only via labels, invoices and

delivery receipts, and for the sole purpose of ensuring traceability of fair trade products within

the supply chain, in compliance with ECOCERT communication rules.

Table: Comparison between Certification and Registration processes

Certification Registration

Main auditing methods

Renewal of annual documentary

reviews and complete and regular full

onsite inspections

Renewal of annual documentary

reviews

Possible onsite inspections, depending

on the risk analysis report

Statement issued Certificate of compliance Confirmation of fair trade registration

External communication External communication on the process External communication for the purpose

of product traceability only


22 – Part 2



Table: Who is audited in fair trade supply chains, and as per which process?

Obligation of certification Eligibility for registration

Production group All cases N/A

First Buyer All cases N/A

Transporter

- Complex cases

- Risks related to traceability and to social and

environment context

-Simple cases (all required data to be audited is

available at First Buyer level)

- Low risks in terms of traceability and social and

environmental risks.

Intermediate buyer - Fair Trade turnover ≥10%

- Fair Trade turnover≥ EUR 200 000

- Risks related to traceability and to social and

environmental context

- Fair Trade turnover < 10%

- Fair Trade turnover< EUR 200 000

- Low risks in terms of traceability and social and

environmental risks. Subcontractor

Brand owner All cases N/A

Distributor-retailer Optional, no obligation of certification N/A

2.1.3. Audits of operators applying for the Social Responsibility certification only

Operators applying only for Social Responsibility certification scheme have to undergo the certification process. At the final stage of the process, they are issued with a Certificate of compliance - Responsibility, authorizing external communication on the Responsibility certification scheme in respect of ECOCERT communication rules.

2.2. Audit types

2.2.1. Full audits

During a full audit, all the applicable ESR requirements are assessed by the auditor. Full audits are carried out during the optimum audit period, defined with the operator at the beginning of the process. The optimal audit period is defined as the most relevant time to perform the audit; it is to be planned according the type of operation, assessed risks, seasonality of operations, etc. The full initial audit is different from the full surveillance audit.

The full initial audit is the first ESR audit of the operator, or the audit taking place after an interruption (greater than a year) in the certification process.

The full surveillance audit is carried out during the subsequent audit cycles. Particular

attention is paid to non-compliances that were identified during the previous audit and to the efficiency and implementation of corrective actions and preventive measures listed in the operator's action plan.

2.2.2. Other audits

Different types of audits can be carried out in addition to the full audits:


23 – Part 2



A complementary audit is required in case the results of the full audit (whether it is an initial or surveillance audit) are inconclusive and insufficient for the issuance of the certificate based only on the documentary review of corrective actions. During the complementary audit, the auditor will focus on checking the implementation of actions taken to correct the non-compliances as listed during the previous audit. The complementary audit must be carried out within a maximum of six months after the previous full audit. If no additional audit has been performed within 6 months, another full audit will be required. In case the additional audit fails to provide conclusive results, another full audit will also be required.

A random audit is an audit that can be scheduled by ECOCERT on the basis of a

general assessment of the risk of failure to meet the requirements. Random inspections

are generally unexpected. In such cases, a notification should be issued at least 48

hours in advance. ECOCERT will decide of the items to be audited and set the duration

of the audit accordingly.

In certain cases, when significant modifications to the scope of certification imply a

mandatory onsite inspection, an extended audit may be performed. ECOCERT will

decide of the items to be audited and set the duration of the audit accordingly. At the

end of the audit, the process is the same as for a full audit.

An additional audit is an audit that comes in addition to the audit cycle. For example, it

may take place when the time spent on-site has proved to be insufficient during the full

audit, or to confirm the assessment further to the receipt of complaints or any relevant

information related to the operation or supply chain.

2.3. Certification process

2.3.1. Different steps of the process

The certification service is provided as indicated on the following diagram:

2.3.1.1. Application receipt / Application review

The operator provides ECOCERT via the application form, with all information required for

the application review. More specifically:

- A description of the project and operation (sites, relevant processes and products);

- Documentary evidence required to assess the eligibility;

- If applicable, a list of fair trade suppliers and subcontractors.

Application receipt /

Application review

Contractual commitment

Documentary review

Audit Certification review and

decision Monitoring


24 – Part 2



This information will enable ECOCERT to assess the project feasibility and inform the

operator accordingly.

2.3.1.2. Contractual commitment

ECOCERT works out a price quote based on the information provided by the operator. The

quote is sent to the operator with attached Terms and Conditions of sale. The signature of

the quote formalizes the acceptance of the general Terms and Conditions of sale and the

contractual commitment of the operator to ECOCERT; more specifically the operator

commits to:

- comply with the ESR standard;

- agree to audits scheduled by ECOCERT and provide access to the all sites, premises,

data, processes, procedures and personnel;

- agree to any additional audits and other investigations that ECOCERT may deem

necessary, more particularly when a reassessment of the operator’s compliance is

required;

- provide and update data required for the certification before a valid certificate of

compliance or statement has been issued.

2.3.1.3. Documentary review

The documentary review is an opportunity to highlights potential dysfunctions and failure to

meet the ESR requirements and to assess the audit feasibility.

Before the audit, the operator must review all ESR standard requirements in details and

check the compliance of the operation accordingly. The operator must return the documents

required for the documentary review, including the self-assessment form duly completed.

A mock audit can be scheduled upon request.

2.3.1.4. Audit

Once the operator is ready (documentation is complete and potential correctives measures

have been implemented) and has paid for the service as per the conditions set by the

quotation, ECOCERT assigns a qualified auditor.

The audit encompasses the following five items:

- a kick-off meeting,

- an assessment of the management system based on a documentary review,

- an on-site inspection and interviews with personnel and/or members,

- audit conclusions,

- a closure meeting.


25 – Part 2



The operator must assist the auditor during the audit. It is recommended that the company or

organization managers be present at the kick-off and closure meetings so that any non-

compliance may be addressed during the audit.

During the audit, in addition to the documentary reviews and interviews with the managers, a

minimum number of interviews with the producers (for producer groups) and staff is required

(please refer to conditions set in Appendix 4). During interviews, managers may be asked not

to be present.

At the closure meeting, the auditor provides the operator with a report for signature. The

report is to include the conclusion against the audit check-list and a list of potential non-

compliances, with at least the non-compliances noted as “major” and “K.O” criteria.

A full audit report is to be provided to the operator, either during the closure meeting or within

3 weeks after the audit.

2.3.1.5. Corrective action plan

The operator commits to enforce the preventive and corrective action plan, at the time of the

closure meeting if possible. This action plan outlines the operator’s commitments with

regards to the non-compliances noted during the audit, on the basis of a review of the non-

compliance origin and scope. The plan must describe the corrective actions considered,

assign responsibilities for implementation, and effective implementation dates for the

corrective actions.

2.3.1.6. Action plan assessment and certification decision

ECOCERT must review the corrective action plan presented and associated evidence

(registrations, procedures...) in terms of the relevance and coherence. ECOCERT and the

operator are to correspond actively in order to solve non-compliances within the set deadline,

until minimum requirements for ESR certification are met.

2.3.1.7. Monitoring

In the approval stage, ECOCERT sets a renewal date of the certification process applicable

to the operator. Renewal date should be at least = (equal) to the anniversary date of the start

of the optimal time for auditing – (minus) 2 months.

For example: If the start date of the optimal time for auditing is May 1st, renewal date of the

process should be at least March 1st of the following year.

On the monitoring side, in order to ensure that the process is renewed, the following

conditions have to be complied with at the time of the renewal date:

- The operator sent updated information on his operation when applicable;

- ECOCERT sent the operator a suitable price quote;

- The operator has paid for the service provided as per the conditions associated to the

quote.


26 – Part 2



For example: On March 1st, if all three conditions are met, the subsequent steps of the

certification may apply and ECOCERT can assign an auditor.

The implementation of the corrective action plan is monitored from one audit to another. It is

the operator's responsibility to ensure correct implementation, complying with the approved

set deadlines and procedures.

In order to assess and monitor the continuity of the compliance with the standard, ECOCERT

is to implement a monitoring plan consisting of various monitoring / assessment actions,

notably:

- Additional audits to be carried out;

- Additional documentary review.

The surveillance plan is defined according to the previous yearly audit results, risks identified

on the operation, any modification to the requirements of the standard, the evolution of the

context, etc.

IMPORTANT

Throughout the process, the operator has to notify ECOCERT of: - all risks of impact on the operational compliance with the requirements, - all changes in the operation and the scope of certification; - all manufacturing operation of fair trade products performed by a third party

(subcontractor, supplier,…).


27 – Part 2



Summary diagram of certification process

1. Request for information on fair trade

certification

2. Dispatch:

of standard including certification

process / logo charter

of request forms

3. Transmission of completed forms (for an

initial request or for continuous information

updating)

4. Study of your request for

commitment/renewal

If request not acceptable, information in return.

Sending a contract proposal (provisional quote

+ General Conditions of Sale)

5. Commitment (by signing the quote)

6. Document review

Sending forms to be completed to prepare the

audit

7. Transmission of information needed for

document review

9. Onsite audit

Complete evaluation.

Co-signed closure report and

list of non-compliances

8. Audit feasibility study (complete file,

auditor available…) and assignment of the

auditor

11. Action plan assessment

-Evaluation of relevance and completeness of

action plan and associated evidence

-Exchanges with the operator in order to reach

the certification thresholds (100% of major

criteria compliant, compliance percentage of

80% -initial audit-)

10. Dispatch of corrective action plan and

information needed to remove discrepancies

12. Certification decision

Award / Continuation,

Refusal / Withdrawal,

Suspension of the certificate

Dispatch of certification You must inform ECOCERT of any changes to

the process, sites, formula, labelling: return to

stage 3

13. Monitoring

Annual contract review: return to stage 3

OPERATOR ECOCERT

A. Application

review

B. Commitment

C. Documentary

review

D. Full audit

E. Certification

decision

F. Monitoring


28 – Part 2



2.3.2. Frequency of full audits

Full audits are generally carried out annually (following the initial audit, a surveillance audit is scheduled every year). Based on the results of the initial audit and the risk analysis, ECOCERT may decide to lower the frequency of full audits (once every 2 years, 3 years ...). In such cases, a documentary assessment or a random audit shall take place in the years where no full audit is scheduled.

2.3.3. Scoring of standard criteria and certification requirements

2.3.3.1. The four criteria levels

There are four criteria levels (or inspection points): - K.O. (Knock Out) Requirements, - Major Requirements, - Minor Requirements, - Recommendations.

2.3.3.2. Criteria scoring

For each criterion, the auditor will assess the level of performance of the operator as per the following score list: - "0": the criterion is not met (Not done) - "1": the criterion is partly met (Partly done) - "2": the criterion is met (Compliant) - "3": the criterion is met, with high performance (Does better, anticipates) - "4": the criterion is met, with exceptionally high performance (Excellence) Maximum scoring is defined for each criterion. Indeed for certain criteria, the auditor may not allocate a higher score than 2 or 3 (high performance not possible). A score of 0 or 1 by the auditor is considered as a noncompliance. When auditors believe that a criterion is not applicable to the operation audited, they can apply to following score: N/A -not applicable-, with a brief explanation in the audit report. Criteria marked N/A are to be excluded from the final score. Each criterion is evaluated as follows:

Level No. Inspection point Max Score

Minor Gov-21

An Annual General Meeting, clearly announced to the

members, is scheduled. General Meeting minutes and

signed attendance lists are kept.

4

Max = Maximum number of points that can be reached for the criterion Score = Actual number of points obtained


29 – Part 2



2.3.3.3. Compliance and performance percentages

The criterion scoring enables the calculation of two percentages:

a) Compliance (%): = Total number of points obtained on applicable criteria, excluding recommendations / (Total number of applicable criteria, excluding recommendations*2)

The operator therefore scores an overall compliance percentage of 100% if the score is 2 (compliant) on all criteria (KO / Major / Minor Requirements + Recommendations as applicable). Score is over 100% if the operator scores more than 2 on all applicable requirements.

b) Performance (%):

= Total number of points received on applicable criteria/ Sum of Max for applicable criteria

The operator therefore scores an overall performance percentage of 100% if top score is achieved on all criteria (KOs / Majors / Minors + Recommendations as applicable). Score is less than 100% if the operator did not achieve top score on all applicable requirements.

2.3.3.4. Certification requirements

During the audit, if a KO requirement is not met, the complete process is disrupted: i.e. denial / immediate withdrawal of the certification.

IMPORTANT

The operator is certified when: - all potential major non-compliances are resolved; - the compliance percentage is greater than or equal to 80% (until year 2); - the compliance percentage is greater than or equal to 100% (from year 3).


30 – Part 2



Table: Consequences of non-compliances on the certification process

Compliance level on criteria

Status after audit

ECOCERT actions

Initial audit Surveillance audit

≥1 KO with score of 0

Certification denied. Another full audit upon operator request.

Withdrawal of certification Another full audit on operator request. -

≥1 KO with score of 1

OR ≥1 Major with score of 0 or 1

Warning: Corrective actions and associated evidence to be transmitted within 4 months after notification. If missed deadline and/or corrective actions not satisfactory: certification denied. New full audit upon operator request.

Warning: Corrective actions and evidence associated to be transmitted within 2 months after notification. This deadline could be reduced in case of non-compliance requiring immediate correction) If missed deadline and/or corrective actions not satisfactory: partial or total suspension of certification for a set duration. Corrective actions and associated evidence to be sent within the deadline set by ECOCERT before withdrawal.

- Review of the relevance and coherence of the corrective action plan - Complementary audit, if appropriate, focused on checking the corrective action plan - Certification decision - Removal of any discrepancies, if appropriate - Any sampling audits

No KO, no Major AND

minimum % of compliance* not

achieved

No KO, no Major AND

% minimum

compliance* achieved

Certification awarded Certification renewed

Review of the relevance and coherence of the corrective action plan

* Years 1 and 2: 80%; from year 3: 100%

2.3.4. Certificate of compliance

2.3.4.1. Content and notification

The operator is issued with a certificate of compliance. The certificate includes the designated sites and/or processes and/or products. It specifies:

- the last annual audit date - the date when the certification was finalized (date of issue) - the date when the process needs to be renewed (anniversary date of renewal) It also states the level of performance reached by the operator: “Commitment”, “Mastery”, or “Excellence”.

“COMMITMENT” “MASTERY” “EXCELLENCE”

Performance (%) ≤50% Between 50 and 75% Above 75%


31 – Part 2



IMPORTANT

The certificate of compliance of the committed operator is a document that may be disclosed to the general public. In all cases, ECOCERT may provide a list of certified committed operators and associated certification status (certified, suspended…) Without any valid certificate of compliance, the operator may not market the fair trade products making references to the certification, nor use the logo and/or references to ECOCERT approval in external communication material and product labels.

2.3.4.2. Validity of the certificate

Approval: The initial certificate of compliance is issued on the date of the final certification decision, once all blocking non-compliances have been resolved and compliance requirements are met within set deadlines. There is no expiry date. Surveillance: The certificate may be updated upon request, and at least once a year, after the surveillance audit.

2.3.5. Withdrawals and suspensions

The certification may be temporarily (suspension) or definitely (withdrawal) suspended.

Reasons why certification may be totally or partially suspended (non-exhaustive list):

- Proven participation in illegal activities; - Unethical practices, that fail to comply with human and environmental rights; - No update of the operation description/no payment before the renewal anniversary date; - No reply to a corrective action request, following a warning notice; - Impossible to perform the audit during the audit optimal time period, through the

operator’s fault; - Decision after a warning notice, claim, complaint, fraud; - Decision after an additional audit; - Cases of force majeure: impossible to perform the service due to external context

(conflict zone, etc.); - Self-suspension by the operator (temporary suspension of certification, requested by the

operator). Reasons why certification may be withdrawn (non-exhaustive list):

- Repeated failure to comply with the contractually defined requirements related to the certification;

- Certification cancelation or definitive cessation of activity; - Non-compliance with a KO criterion or non-compliance not resolved with set deadlines; - Fraudulent use of the certification; - Repeated failure to comply with external communication rules related to the certification;


32 – Part 2



IMPORTANT

Any suspension or withdrawal of the certification will imply the end of validity of the certificate of compliance with immediate effect. The operator is to be notified in writing that he must with immediate effect: - stop using the logo and/or references to the ECOCERT approval on all external

communication materials and product labels; - stop the manufacturing and/or the sale of products making reference to the certification

and/or ECOCERT; - inform their clients of the situation; - return to ECOCERT the original certificate of compliance.

2.3.6. Use of logos and reference to the standard

The ECOCERT communication rules and graphic charters must be complied with (see Appendices 1 and 2) for any use of the logo and/or reference to the standard.

2.3.7. Appeal and complaint procedures

ECOCERT may provide a copy of the appeal and complaint procedure upon request.

2.3.8. Voluntary termination of contract

In the case of a voluntary termination of contract (cancelation), the operator must notify ECOCERT in writing; the notice period set by the general terms and conditions of sale will apply. At the end of the notice period, the contract will be terminated, implying the withdrawal of the certificate of compliance. Impacts on the remaining stock of fair trade products: Consequently, as off the termination date, the operator shall not manufacture or market products referring to the certification and/or to ECOCERT. Nevertheless, in cases where the operator is willing to clear the remaining stock of compliant fair trade products, the contract and certificate may be extended to date as required for stock clearance. After the notice period and until the extended date: - No new products may be manufactured, making reference to the certification and/or to

ECOCERT will be permitted; - only the sale of stocks of compliant fair trade products will be authorized;

- an annual inspection of stocks and flows is to be carried out, charged at the current rate. In all cases, the operator is requested to contact ECOCERT to know the exact conditions of termination according to its organization/activity.

2.3.9. Special case: non-committed operator

An operator may pay for the certification on behalf of another operator, the latter being considered as a “non-committed operator”. In such cases:


33 – Part 2



- the non- committed operator agrees to comply with the applicable criteria of the standard and to accept the terms of the audit procedure; - at the final stage of the procedure, the certificate will be issued in the name of the committed operator in addition to the name of the non- committed operator; - Restrictions on external communication apply to the non- committed operator (see the external communication rules) - the name of the non- committed operator and associated certificate will not be displayed online by ECOCERT, unless requested by the committed operator.

IMPORTANT An operator may not have more than two third party operators paying for the cost of the certification. Beyond that, he must be directly committed with ECOCERT. The committed operators are accountable to ECOCERT for the compliance of the designated non- committed operators. They must coordinate with these operators to ensure that the corrective actions, the compliance with deadlines and implementation of ECOCERT requirements, are monitored.

2.4. Fair Trade registration process

2.4.1. Presentation

Registration is an inspection scheme that is possible within fair trade industries, reserved for operators not willing to communicate externally about the ESR procedure. This scheme is only possible under certain conditions (see 2.1.2). It does not imply a cycle of complete audits of the operator and is essentially based on a documentary review, with the possibility of carrying out random audits, depending on the risk assessment. At the final stage of the registration process, the operator will receive a written confirmation of fair trade registration. This confirmation does not allow him to communicate externally on the inspected operations. It only authorizes him to buy, sell or handle fair trade products whilst ensuring their traceability.

2.4.2. Eligibility and registration conditions

If registration requirements described in paragraph 2.1.2 are not met, the operator may not be registered and must be certified. These conditions will be checked via a monitoring system throughout the process. An operator who is already registered may be required to undergo the certification process.

2.4.3. The different steps of the registration process

2.4.3.1. Application review

The operator provides ECOCERT via the application form, with all information required for

the application review. More specifically:


34 – Part 2



- A description of the project and operation (sites, relevant processes and products);

- Documentary evidence required to assess the eligibility;

- If applicable, a list of fair trade suppliers and subcontractors.

This information will enable ECOCERT to assess the project feasibility and inform the

operator accordingly.

2.4.3.2. Commitment

ECOCERT works out a price quote based on the information provided by the operator. The

quote is sent to the operator with attached Terms and Conditions of sale. The signature of

the quote formalizes the acceptance of the general Terms and Conditions of sale and the

contractual commitment of the operator to ECOCERT; more specifically the operator

commits to:

- comply with the ESR standard;

- agree to audits and other investigations that ECOCERT may deem necessary,

- provide and update data required for the certification

- only refer to compliance once a valid confirmation of registration has been issued.

2.4.3.3. Documentary review

The operator must send to ECOCERT any documents required for the registration, including a registration form and forms used to monitor traceability. 2.4.3.4. Registration decision ECOCERT will review the documents and answers provided and exchange information with the operator until the confirmation of registration can be issued. The confirmation of registration will be issued once the services have been paid for as per conditions set in the quotation.

2.4.3.5. Monitoring

During the approval stage, ECOCERT defines a renewal date of the process applicable to the operator. On the monitoring side, in order to ensure that the registration process is renewed, the

following conditions have to be complied with at the time of the renewal date:

- The operator sent updated information on his operation and updated documents required

for the documentary review;

- ECOCERT sent the operator a suitable price quote;

- The operator has paid for the service provided as per the conditions associated to the

quote.


35 – Part 2



The surveillance plan is set by ECOCERT to determine whether investigations need to be

conducted and/or additional audits need to be scheduled. The plan is defined according to

the risks identified on the operation, more specifically with regards to the product traceability

and working conditions.

IMPORTANT

Throughout the process, the operator has to notify ECOCERT of: - all risks of impact on the operational compliance with the requirements, - all changes in the operation and the scope of certification; - all manufacturing operation of fair trade products performed by a third party

(subcontractor, supplier,…).

2.4.4. Confirmation of registration

2.4.4.1. Content and notification

The operator is issued with a confirmation of registration listing the relevant operations and products and stating:

- the date when the certification was finalized (date of issue) - the date when the process needs to be renewed (anniversary date of renewal) This confirmation authorizes the operator to supply fair trade products. Under no circumstances the operator should communicate externally about the process (B to B only). Restrictions on external communication apply (please refer to the communication rules).

IMPORTANT

The confirmation of registration of the committed operator is a document that may be disclosed to the general public; ECOCERT may display the document online for authentication purpose. In all cases, ECOCERT may provide a list of registered committed operators.

2.4.4.2. Date of issuance and of renewal

The confirmation of registration is issued and renewed every year or upon request, and at least once on the anniversary date of the decision of registration.

2.4.5. Conditions for denial or non-renewal

Reasons why the conformation of registration may not be renewed (non-exhaustive list): - No update of the operation description / no payment before the renewal anniversary date

(see below);


36 – Part 2



- Results of a random audit / information proving that the products are no longer compliant (including if this information is collected at the registered operator’s client/supplier);

- Repeated failure to comply with the external communication rules associated with registration;

- Self-suspension by the operator (temporary suspension of the confirmation of registration requested by the operator).

2.4.6. Use of logos and reference to the standard

The ECOCERT restrictions on Fair Trade communication rules must be complied with (see Appendix 1).

2.4.7. Appeal and complaint procedures

ECOCERT may provide a copy of the appeal and complaint procedure upon request.

2.4.8. Voluntary termination of contract

In the case of a voluntary termination of contract (cancelation), specific procedures will apply, depending on the deadlines requested by the operator for the purpose of stock clearance.

2.4.9. Special case: non-committed operator

An operator may pay for the registration cost on behalf of another operator, the latter being considered as a “non-committed operator”. In such cases: - the non-committed operator agrees to comply with the applicable criteria of the standard and to accept the terms of the audit procedure; - at the finale stage of the procedure, the confirmation will be issued in the name of the committed operator in addition to the name of the non- committed operator; - the name of the non-committed operator and associated certificate will not be displayed online by ECOCERT, unless requested by the committed operator.

IMPORTANT An operator may not have more than two third party operators paying for the cost of the certification. Beyond that, he must be directly committed with ECOCERT. The committed operators are accountable to ECOCERT for the compliance of the designated non-committed operators. They must coordinate with these operators to ensure the implementation of ECOCERT requirements.

ECOCERT ENVIRONNEMENT ESR – Part 3 – Audit criteria V3 – June 15th, 2013

37 – Part. 3



Part 3. Audit criteria

ECOCERT ENVIRONNEMENT ESR – Part 3 – Audit criteria V3 – June 15th, 2013

38 – Part. 3



Instructions Part 3 is a presentation of the various audit criteria, applicable to operators as follow:

All criteria are broken down by certification type (Fair Trade/Social Responsibility) and by Operator profile (Production Group/Buyer-Processor). Reminder: Operators willing to be Fair Trade certified shall be controlled according to both Social Responsibility and Fair Trade criteria. For social criteria (Human rights, Work relations and conditions), two levels are available, one applying to all operators, the other one to producer groups only: - Central level: All sites of buyers, processors and plantations; collective facilities (processing plants/offices) of producer groups. - Individual producer level: Production units of producer members of the group. For specific cases such as groups of artisans or processing groups where members work in a central processing unit, only the first level will be considered. For environmental criteria, two levels are available, one applying to all operators, the other one to Production Groups only: - Processing/Marketing units: All sites of buyers and processors; processing plants/offices of Production Groups. - Primary production units: the parcels for the Plantations, the individual production units of producer members of the group. For the specific case of groups of artisans or processing groups where members work in a central processing unit, only the first level will be considered. For certain criteria please refer to specifications to find out whether they apply or not depending on the unit size and the type of operation (Large units; Offices…), or according to the sub-category the operator belong to (Brand Owner, Plantation…). ABBREVIATIONS USED IN THIS SECTION:

FT: Fair Trade RESP: Social Responsibility PROD: Production Groups PO: Producer Organization CP: Contract Production Company Pl°: Plantation Art-Proc groups: Groups of artisans or Processing groups 1st Buy: First Buyer Brand: Brand owner

Lev. Nb Control points MAX Guide FT/

RESP PROD HANDLERS

Minor Work-

19

LARGE UNITS: Wage deductions for payment in kind shall be fair and reasonable (for example deduction for accommodation corresponds to market prices).

2 Criterion not checked at offices level.

RESP X X

ECOCERT ENVIRONNEMENT ESR - Part 3 - Audit criteria V3 - June 15th, 2013

3.1. Quality Assurance

FT/RESP PROD HANDLERS

RESP X X

RESP X X

RESP X X

RESP X (PO, CP)

RESP X X

RESP X X

EQU X X

EQU X X

EQU X X

3.1.1. Conditions for audit and activity statements

Lev. Nb MAX Guide FT/RESP PROD HANDLERS

Major Qual-01 2 RESP X X


Major Qual-03 2

A specific form is set up by ECOCERT to describe the

activity subject to inspection. In particular, all stages of

production, storage and processing carried out by the

operator are to be notified to ECOCERT, as well as all

subcontracted activities.

RESP X X

Major Qual-04 2A specific form is set up by ECOCERT for audit

preparation and self-assesment.RESP X X

3.1.2. Contractual obligation to respect the standard


Major Qual-05 2Signing the quote confirms acceptance of the general

terms and conditions of sale.RESP X X

Major Qual-06 2

Such commitments can be included in a contract, a list of

specifications, etc.

Reminder: Registered operators, whether they are directly

committed with ECOCERT or not, cannot communicate

publicly on the scheme, and shall restrict their

communication solely for traceability purposes. See

labeling and communication rules.

RESP X X

3.1.3. Managing the compliance of operations and products

3.1.3.1. Compliance control and monitoring


Minor Qual-07 2 RESP X X



3.1.3.2. Producer groups' internal control system


Minor Qual-10 3

If the producers do not hire any workers, the list of social

specifications only needs to cover issues related to the

health and safety of producers.

RESP X (PO, CP)

- ECOCERT communication rules are respected. In particular, the "Responsible" appellation is used only for institutional communication and the "Fair Trade"

appellation is used only for communication on products;

The operator appoints a contact person who will be the

ECOCERT primary contact for any ESR certification issues. This

contact person (or his representative) will be present during the

audit.

There is an internal list of specifications that covers the main

social and environmental requirements applicable, depending on

the context, to each producer in the group (health and safety of

producers and workers, child labor, payment of seasonal

workers...)

SUMMARY OF CRITERIA RELATED TO QUALITY ASSURANCE

- Minimum resources are implemented to facilitate the audit process: appointment of a special interlocutor, up to date document management system, availability

of premises and resource personnel;

- Full product traceability is guaranteed: registration, separation measures, specific labeling...;

- When referring to the certification, the operator has a valid certificate, which has not been withdrawn or suspended;

- Each operator has contractually accepted the control process according to the ECOCERT standard;

- The operators' suppliers and subcontractors have been controlled;

The operator allows free access to all documents, records or

premises required to carry out the audit.

Control points

- A control system is set up to follow up and manage compliance of operations and products;

- The Internal Control System of the Producer group is expanded to monitor producers' social and environmental practices;

- Minimum threshold of fair trade ingredients are reached for each multi-ingredient product.

The operator shall notify ECOCERT of his activity or any

changes to his activity.

An up to date version of the technical standard is kept and the

basic requirements are known, at least among managers.

Control points

Control points

Control points

The operator has correctly prepared his audit by undertaking a

self-assessment against the ESR standard.

If the operator covers the costs of his own certification, he has

accepted the ESR general terms and conditions of sale.

If the operator covers the certification costs for another operator,

he gets that operator to commit to carry out the following:

- meet ESR standard applicable expectations;

- accept any ECOCERT audits;

- communicate on ESR standard only to ensure product

traceability;

- request prior approval from the payer if he wants to use the

logo / the reference to ECOCERT for other purposes (possible

only in case of certification, see guide).

The operator has a system to register and monitor non-

compliances observed during ESR audits.

There is a system in place to check compliance with the specific

ESR standard requirements using appropriate procedures

and/or monitoring for compliance control.

ECOCERT ENVIRONNEMENT French Société par actions simplifiée (simplified joint stock company) with €37.000,36 capital RCS Paris 409 982 709

36, boulevard de la Bastille – 75012 Paris - France 39 – Part 3


Minor Qual-11 3 RESP X (PO, CP)

Major Qual-12 3

In so far as possible, the list shall also include information

on: other sources of income, their level of mechanization,

the number of permanent workers they hire, the number

of seasonal workers they hire and the length of

employment, ...

RESP X (PO, CP)

Minor Qual-13 4 RESP X (PO, CP)

3.1.4. Communication and advertising


Major Qual-14 2

See Appendix 1 and 2.

Particularly, ECOCERT needs to ensure that in its

general communication, the operator only refers to the

ECOCERT "Social Responsibility" approach in relation to

relevant sites and activities (system certification) and to

the ECOCERT "Fair Trade" approach only in relation to

relevant products (product certification).

RESP X X

3.1.5. Withdrawal or suspension



3.1.6. Traceability and separation measures


Major Qual-16 2 FT X X



Major Qual-19 2 See appendix 1. FT X X

Major Qual-20 2 See appendix 1. FT X X

Major Qual-21 2

See appendix 1.

Whenever possible, it is for the Brand Owner to provide

the label for validation.

FT X X

3.1.7. Compliance of suppliers and subcontractors


Major Qual-22 2

This criterion is applicable to the following:

- all fair trade buyers and handlers;

- production groups using handlers and/or buying fair

trade ingredients from other entities, except for producer

groups of processors and artisans.

FT X X

The compliance of labels on finished products is checked:

validation by ECOCERT and/or effective and efficient internal

verification.

Flows of products are fully traceable from procurement to

delivery.

There is a full list of producers which includes, at the very least,

for each producer:

- the year of registration/membership;

- the name;

- the gender;

- the location (of the production unit/of the producer);

- the annual volume for the fair trade product considered;

- the size of the production unit.

Control points

The fair trade nature of the product/service is clearly mentioned

on invoices and delivery notes.

An internal control system is set up, which includes the following:

- a summary of the relevant data for each producer on social

and environmental issues;

- an annual internal inspection, with sampling based on a risk

analysis;

- the monitoring of corrective actions for non-compliant

producers;

- qualified and competent internal auditors.

Control points

Control points

The compliance of suppliers, subcontractors and of the

ingredients is proved by sufficient guarantees (valid certification

of compliance or confirmation of valid registration, reference on

invoice, labels and delivery notes).

The operator has all the records needed to monitor the

traceability of products delivered by his possible registered

suppliers and subcontractors. These records are consistent with

the data available at the operator's level.

Labels on intermediate products adhere to labeling rules. The

wording can also be shown on an enclosed technical sheet.

Certified products are separated from non-certified products

during procurement, processing, storage and sale.

Producers are familiar with this internal list of specifications.

They are informed and aware of the relevant social and

environmental improvements to be made.

If the operator's certificate has been suspended or withdrawn, he

shall delete all references to the approach and to ECOCERT on

the products sold, the commercial documents and the

advertising from the date of application of the sanction.

Control points

The compliance of promotional and commercial material

(brochures, websites, leaflets...) that refer to ESR standard is

checked: validation by ECOCERT and/or effective and efficient

internal verification.




3.1.8. Respect of minimum thresholds of fair trade ingredients



Major Qual-24 2 See Appendix 3. FT X X

Control points

For each product, the composition rules as well as the relevant

label category have been checked.

There are full recipe sheets or content sheets for all composite

products. They clearly indicate whether each ingredient is fair

trade or not.




3.2.


RESP X X

FT X

RESP X (PO, CP)

RESP X (PO, CP)

RESP X (CP)

FT X (CP)

3.2.1. CSR Policy


Major Gov-01 4

This policy can be defined within a charter, internal rules

and regulations, etc.

For Production groups which have chosen the Fair Trade

certification, this CSR policy will include the fair trade

program rules: fair trade/CSR common policy.

RESP X X

Minor Gov-02 3

Besides members and employees, the stakeholders can

be: shareholders, clients, consumers, suppliers, the

media, the local community, NGOs, etc.

For Production groups who have chosen the Fair Trade

certification, this point is checked for the fair trade/CSR

common policy.

RESP X X

Minor Gov-03 4 RESP X X

Recommendation Gov-04 4 RESP X X

Minor Gov-05 3

For Production Groups who have chosen the Fair Trade

certification, this point has been checked for the fair

trade/CSR common policy.

RESP X X

Minor

(Major Yr. 2)Gov-06 2 RESP X X

3.2.2. Production groups' Fair trade policy


Major Gov-07 4

The main aspects of this policy will be included in the

CSR policy. Related documents (procedures, regulations,

...) could be added to provide further explanation.

FT X

Major Gov-08 3 FT X

A continuous improvement approach is set-up for follow-up and

evaluation of the CSR strategy (regular monitoring, adjustments

in function of results/feedbacks from stakeholders etc.).

Control points

In order to identify the stakes of its CSR policy, the operator has

carried out a diagnosis based on:

- the identification of its key stakeholders;

- the consideration of their expectations for the

company/organization.

At the very least, the operator will interact and establish a

dialogue with its members and employees.

The Production group adds to its CSR policy a Fair Trade policy

which establishes the main rules/long-term

commitments/development aims in terms of fair trade (capacity-

building, development of social and community projects,

technical, commercial and quality support…).

If the operator is part of a big transnational company, he will

have to be signatory of the UNO Global Compact. In some

cases, ECOCERT may require the parent company to be

signatory itself.

Governance

- The Production Group adds to its CSR policy a Fair Trade policy, which clearly identifies the beneficiaries of the program. This policy is targeted on fair trade

priority areas (capacity-building, empowerment, technical, economic and social development, etc.);

- Formal commitments have been made by Management/managers in terms of corporate social responsibility (CSR): a policy is in place, and a management

system ensures its monitoring;

Members and employees of the company/organization are

aware of the main aspects of the CSR policy.

The Production Group includes in its initial diagnosis the

identification of the expectations of the different stakeholders

(the Group, its members, employees, local community and, if

necessary, its suppliers) with regards to the fair trade program

to come.

Control points

SUMMARY OF CRITERIA RELATED TO GOVERNANCE

- The Contract production company implements an organizational strengthening plan aiming to improve democracy and participation among producers;

- The Producer group works in a democratic and participatory way, without any unbalanced power relations in decision-making;

The operator has defined a CSR policy which establishes the

main rules/long-term commitments/development aims in terms

of social and environmental responsibility. The commitments

include key aspects of the CSR approach (human rights,

working relations and conditions, environment, social

engagement, good business practices, ...). The policy clearly

includes a purpose of constant improvement in well-being at

work.

- The Producer group has clear and non-discriminatory membership rules, and welcomes disadvantaged groups and women within the group;

The operator shall define a CSR action plan that clearly identifies

the following:

- the various actions to carry out;

- the time frames;

- the resources mobilized;

to implement the CSR policy.

- If the producers wish it so, the Contract production company shall support the development of commercially independent organization(s).




Major Gov-09 3

• Farmers/Harvesters groups:

Normally the beneficiaries of the development fund are

the growers members of the group. If workers involved in

the group (workers hired by producers, workers in

processing units) are in a similarly disadvantaged

situation, it is recommended that they be integrated as

additional beneficiaries.

• Processor and artisan group:

Normally the beneficiaries are the

Handcrafters/Processors members of the group. If the

suppliers of the group who are geographically close are in

a similarly disadvantaged situation, it is recommended

that they be integrated as additional beneficiaries.

• Plantations:

Normally the beneficiaries are the agricultural workers. If

workers in processing units are in a similarly

disadvantaged situation, it is recommended that they be

integrated as additional beneficiaries.

FT-South X

Major Gov-10 3 FT-South X

Minor

(Major Yr. 2)Gov-11 4 FT X

Minor Gov-12 4 FT X

Minor Gov-13 4 FT X

3.2.3. Discrimination and insertion within producer groups


Minor Gov-14 2 RESP X (PO, CP)

Major Gov-15 2 RESP X (PO, CP)

Minor Gov-16 2

Minority groups: groups with their own national, ethnic,

linguistic or religious identity, different from that of the

majority population.

RESP X (PO, CP)




3.2.4. Democracy and participation within producer groups

3.2.4.1. Producer organizations


Minor Gov-20 2 RESP X (PO)



Minor Gov-23 2 RESP X (PO)Members have access to the annual accounts.

The fair trade development plan is approved by the managers of

the Production group and by the existing democratic and

participatory bodies.

In practice, there are no obstacles to the participation and

membership of minority groups and economically disadvantaged

groups within the producer group.

Appropriate programs are set up to improve the social and

economic position of women within the producer group or

associated communities, and to facilitate their participation and

representation within decision-making bodies.

In practice, there are no obstacles to the participation and

membership of women within the producer group.

A continuous improvement approach is set-up for the follow-up

and evaluation of the Fair Trade strategy (regular monitoring,

adjustments in function of results/feedbacks from stakeholders

etc.).

Appropriate programs are set up to improve the social and

economic position of disadvantaged groups within the producer

group or associated communities, and to facilitate their

participation and representation within decision-making bodies.

Control points

The organizations' articles of association make provision for a

General Meeting as the highest decision-making body, with

equal voting rights for all members. A system of elected

delegates can also be set up.

Rules on membership do not set out any discrimination in terms

of participation, voting rights, access to markets, training,

technical support or to any other advantage related to

membership.

Control points

The Group shall define a fair trade development plan for a

minimum length of 3 years. This plan shall clearly identify the

following:


- the time frames;

- the resources mobilized (direct support from fair trade buyers,

external NGO, other partners, ...);

to implement the fair trade policy.

In developing countries, the fair trade policy will define how the

development fund will be managed, and through which decision-

making bodies.

In developing countries, the diagnosis will include a brief analysis

of the socio-economic situation of the different stakeholders.

This will allow the identification of the potential beneficiaries of

the development fund, and the justification of the options taken

(see guide).

Clear, written rules define who can become a group member

(memberships, extensions, ...).

During the Annual General Meeting, the annual report, the

budget and accounts are submitted for approval.

An Annual General Meeting, clearly announced to the members,

is scheduled. General Meeting minutes and signed attendance

lists are kept.






3.2.4.2. Contract production companies


Major Gov-26 2 RESP X (CP)

Major Gov-27 3 RESP X (CP)

Major Gov-28 3


certification, this plan is included as part of the fair trade

development plan.

RESP X (CP)

Major Gov-29 3

ECOCERT recommends that where there is no producer

structure, the time frame should be of 3 years, and where

there is already a form of structure among producers

(village associations, ...) the time frame should be of 2

years.

RESP X (CP)

Major Gov-30 4


certification, this point is verified at the same time as for

the fair trade development plan follow-up.

RESP X (CP)

Minor Gov-31 4


certification, this point is verified at the same time as for

the fair trade development plan follow-up.

RESP X (CP)

Minor Gov-32 4 RESP X (CP)

Minor Gov-33 4 RESP X (CP)

Major Gov-34 2 FT X (CP)

Major Gov-35 4 FT X (CP)

Major Gov-36 4

Once the commercially independent organizations have

been legally created and are operational (after the 1st

General Meeting has taken place) the company is no

longer responsible for covering the costs of such

resources.

FT X (CP)

If the initial diagnosis reveals that producers wish, at a later

stage, to structure themselves within one or more commercially

independent organization, the company shall not prevent the

development of such structures.

Producers with responsibilities within the organization represent

the global situation of producers (gender, location, belonging to

a community, volume of activity, ...).

The application of the organizational strengthening plan has

positive impacts on the following:

- the communication and exchange system between the

company and producers;

- the bargaining power of producers with the company;

- capacity-building among producers.

A continuous improvement approach is set up for the follow-up

and the adjustment of the organizational strengthening plan

(regular monitoring and evaluation, adjustments in function of

results/feedbacks from producers…).

In that case, the organizational strengthening plan will be

adjusted (legal status of the organization, transfer of relevant

technical, commercial and financial capabilities, coordination with

other producer organizations...).

In that case, the company shall set up the financial, technical

and human resources required for producers to acquire

economic and commercial independence, until all producers are

grouped under commercially independent organizations.

Once the deadline defined is reached, the participatory

body/bodies is/are operational:

- regular meetings;

- non-discriminatory, written membership rules;

- written representation rules, planning for a renewal of leaders

and the right for all members to elect their representatives;

- adequate by-laws, adapted to the body's functions.

The company sets up the financial, technical and human

resources required to implement the organizational

strengthening plan.

Producers feel involved in their organization and are kept

informed of decisions taken at central level.

Control points

The initial diagnosis will focus on the existing organization

dynamic(s) in the area. The diagnosis:

- describes the current level of formality among producers;

- identifies, following consultations of representative producers,

the wishes and possibilities regarding organizational

strengthening;

- identifies the existing incentives and constraints for reaching

the desired degree of organization.

Based on this diagnosis, the company shall establish an

organizational strengthening plan, which specifies:


- the time frames;

- the resources mobilized;

for strengthening or creating the producers' representation

structures.

The plan specifies a time frame to implement structures

operating according to a democratic model, with representatives

elected by all members ("participatory bodies"). This timeframe

is realistic, and takes into account the initial level of formality

among producers, the existing incentives and constraints etc.

(see guide)

The company includes in its CSR/Fair Trade policy the outcome

sought and specific targets in order to strengthen the producers'

structures.




3.3.


RESP X X

RESP X X

RESP X (PO, CP)

3.3.1. Discrimination and inclusion of vulnerable workers

3.3.1.1. At central level


KO Hum-01 2 RESP X X

Recommendation Hum-02 4 RESP X X

3.3.1.2. At the individual producer level


KO Hum-03 2 RESP X (PO, CP)

3.3.2. Fundamental rights to work



KO Hum-04 2 Criterion not checked at offices level. RESP X X

KO Hum-05 2 RESP X X

Major Hum-06 3 RESP X X

KO Hum-07 2 Criterion not checked at offices level. RESP X X

Major Hum-08 2 Criterion not checked at offices level. RESP X X

Minor Hum-09 2 Criterion not checked at offices level. RESP X X

Major Hum-10 2 Criterion not checked at offices level. RESP X X




There is no indication that the operator is involved, supports or

accepts any practice against human dignity and human rights

(corporal punishment, physical or mental coercion, sexual

harassment, verbal violence).

There is no indication that any form of forced labor is used

(retention of original official documents, withholding of wages,

high level of debt, etc.). Workers are free to leave their work at

any time, after an appropriate notice period, as specified in their

contract.

Control points

- The Producer group ensures that its members apply the same principles towards their own workers.

There is no systematic discrimination against workers based on

gender, race, color, sexual orientation, disability, marital status,

age, religion, political opinion, national or social origin, for the

recruitment, and promotion, access to training, remuneration,

task allocation, termination of employment, retirement, ...

There is no systematic discrimination against workers hired by

producers (based on gender, race, color, sexual orientation,

religion, social origin, ...) and no indication of abusive behavior in

terms of sexual harassment.

There is no evidence that producers rely on forced labor.

Partners of workers hired by producers do not have to work in

the same place. There is no retention of official records or wage

retention and workers are free to quit their job.

If children have been employed in the past, the operator shall set

out a rehabilitation policy or program ensuring that the children

are educated until they are no longer children, by definition.

There is no evidence that children are employed.

LARGE UNITS: Working hours for young workers still enable

them to continue education. Studies, work and transport do not

take them more than 10 hours per day.

Control points

LARGE UNITS: The employer creates jobs, sets up specific

training or adjusts workstations for particularly

discriminated/disadvantaged groups.

Control points

Human Rights

- The company/organization does not discriminate against the workers it employs, and on the contrary, it seeks to encourage disadvantaged workers;

- The company/organization does not use any form of forced labor, of child labor, and provides young workers with good working conditions;

SUMMARY OF CRITERIA RELATED TO HUMAN RIGHTS

Young workers do not engage in work which may be dangerous

for their health, their safety, and they do not work at night.

There is no excessive disciplinary action. Any non-statutory

wage deduction can only be applied with the express consent of

the relevant worker. All significant disciplinary actions are

registered and recorded in the personnel files.

Control points





KO Hum-13 2Producers employing children under 12 years of age are

suspended.RESP X (PO, CP)


Major Hum-15 2

Producers who make children work on a regular basis

without meeting these conditions are suspended.

Light work: appropriate for their age, in non-hazardous

conditions.

RESP X (PO, CP)

Major Hum-16 2

Producers who make children work on a regular basis

without meeting these conditions are suspended.

Light work: appropriate for their age, in non-hazardous

conditions.

RESP X (PO, CP)

Major Hum-17 2 RESP X (PO, CP)

There is no evidence that children under 12 years of age are

EMPLOYED by the producers.

Children between 12 and 15 years of age EMPLOYED by

producers carry out light work outside of school hours, on an

occasional basis, to earn pocket money. They work no more

than 2 hours a day. During school holidays, 14 year old children

can exceptionally work more, not exceeding 7 hours a day.

Young workers (between 15 and 18 years of age) EMPLOYED

by producers or HELPING THEIR PARENTS do not carry out

work which endangers their health, safety or personal

development. They do not work more than 8 hours a day. The

accumulated time for studies, work and transport does not

exceed 10 hours per day.

Children between 12 and 15 years of age HELPING THEIR

PARENTS carry out light work outside of school hours. This

work remains occasional and does not last more than 3 hours a

day.

There is no evidence that producers apply disciplinary measures

that violate human dignity. The disciplinary measures that they

apply on their workers are fair and transparent or non-existent.

There is no wage deduction without the worker's consent.

Children under 12 years of age HELPING THEIR PARENTS

carry out light work, supervised by their parents, outside of

school hours. This work remains occasional and does not last

more than 2 hours a day.



ECOCERT ENVIRONNEMENT ESR - Part 3 - Audit criteria V3 -June 15th, 2013

3.4.


RESP X X

RESP X X

RESP X X

RESP X X

RESP X X

RESP X (PO, CP)

3.4.1. Employment and employee-employer relations



Minor

(Major Yr. 2)

Work-

013 RESP X X

MinorWork-

023 Criterion not checked at offices level. RESP X X

MinorWork-


MajorWork-


MinorWork-

052

Registration to social security scheme, pension scheme,

insurance policy, ... accepted.

Criterion not checked at offices level.

RESP X X

MinorWork-


MinorWork-




MinorWork-

083 RESP X (PO, CP)

MinorWork-

093 RESP X (PO, CP)

3.4.2. Working conditions and social protection



MajorWork-

104 RESP X X

MajorWork-


MajorWork-

122 RESP X X

Wages of temporary workers are equal or higher than the

minimum official wages. This principle is also respected and

applied for work paid by task.

Wages of permanent workers are equal or higher than the

minimum official wages or the wage as defined by the sector

(depending on which one is higher).

The operator complies with the relevant local legislation,

collective conventions or past agreements with workers in terms

of social benefits (maternity leave, social security, employment

severance pay).

There is a contract/written agreement system defining working

conditions (function, remuneration, social advantages - if

relevant -, working hours, leave, accommodation - if provided)

for all permanent workers.

Control points

In as much as possible, the operator shall provide regular

workers (working almost all year long) the status of permanent

worker.

LARGE UNITS: Employees working more than two months in

the organization are legally registered, if that is required by the

law.

Control points

- The company/organization provides, as much as possible, formal and regular work to workers it employs;

- The company/organization respects the ILO rules, the relevant local legislation or the collective conventions regarding wages, social advantages and working

hours;

- The company/organization guarantees freedom of association and collective negotiation to all workers;

- The company/organization provides working conditions that are as safe as possible for the health and safety of workers, by minimizing the inherent sources of

danger in the workplace;

- The company/organization encourages its workers' continuous or professional training;

LARGE UNITS: When the operator subcontracts to a temporary

employment agency, the working conditions put forward by the

temporary employment agency are more or less the same as

those put forward by the employer to their workers in direct

contract.

Control points

The terms of employment (function, remuneration, social

benefits - if relevant -, working hours, leave, accommodation - if

provided) are clearly defined and communicated to permanent

workers, even if that is only done orally.

For equivalent work, there is no major difference between the

regular temporary workers (working almost all year long) and the

permanent workers, in terms of wages, social benefits, leave, ...

- The Producer group ensures that its members apply the same principles towards their own workers.

SUMMARY OF CRITERIA RELATED TO WORK RELATIONS AND CONDITIONS

The wage and working hours are clearly defined and known by

temporary workers, even if that is only done orally.

No indication that the employer seeks to avoid providing regular

employment and fails to meet his legal obligations (for example,

payment of social security) by relying on subcontracting, working

from home, apprenticeships, ...

LARGE UNITS: When the operator subcontracts to a temporary

employment agency, there is an agreement and/or inspection

system on working and employment conditions put forward by

the temporary employment agency.

Work relations and conditions




RecommendationWork-

134 RESP X X

MinorWork-

144

The decent income enables a worker to cover half of the

requirements of an average-sized family. The basic

requirements include food, drinking water, clothes,

accommodation, transport, education, as well as the

legally required social benefits, If the work is paid by

piece/task, see website

http://www.fairtradecalculator.com/.


RESP X X

RecommendationWork-

154 RESP X X

MinorWork-

163 RESP X X

RecommendationWork-

174 RESP X X

MinorWork-


MinorWork-


MajorWork-

203 RESP X X

Minor

(Major Yr. 2)

Work-

212 RESP X X

RecommendationWork-

224 RESP X X

MinorWork-

233 RESP X X

MajorWork-

243 RESP X X

MajorWork-

253 RESP X X

MajorWork-

263 RESP X X

RecommendationWork-

274 RESP X X

MajorWork-

284 RESP X X

RecommendationWork-




MajorWork-

304

If the work is paid per task, calculate the wage for a

normal day of work, without any overtime.RESP X (PO, CP)

MajorWork-

314 RESP X (PO, CP)

Training, time wasted due to machines not working and any

other machine malfunction beyond the control of the employee,

will be remunerated at the same rate, at least for permanent

workers.

Temporary workers are paid at least at the local rates.

Permanent workers are paid at least the minimum applicable

wage, or at the local rates (if no minimum wage has been

defined or if those rates are higher).

Control points

LARGE UNITS: Wages paid (including social benefits and

bonuses) cover the basic requirements of a family and constitute

a decent income. If there is any doubt, the operator shall be

required to present a study estimating this decent income at a

local level.

LARGE UNITS: There is a reliable system which registers

normal working hours and overtime.

LARGE UNITS: Wage deductions for payment in kind shall be

fair and reasonable (for example deduction for accommodation

corresponds to market prices).

LARGE UNITS: Temporary workers have paid leave according

to the time spent in the organization.

The normal length of weekly work does not exceed 48 hours

(ILO limit), except if national rules and regulations or industrial

standards foresee a more beneficial length. In this case, this is

the latter length that applies. At least one day of rest every 7

days is granted and guaranteed, even during activity peaks.

Bonuses, reward payments or allowances are given to workers

according to a transparent and fair system.

The total work (normal hours + overtime) does not exceed 60

hours a week. If the activity is highly seasonal, workers are able

to work more than 60 hours a week during activity peaks. In that

case:

- a formal agreement with the workers on overtime will be

signed;

- the 60-hour rule is respected when we calculate the average

over 2 months.

LARGE UNITS: The employer makes additional social services

available to its employees (nursery, transport for workers, grants

for children of workers, ...).

LARGE UNITS: There is some degree of flexibility in the working

hours to enable workers to reconcile their personal life with their

professional life (part-time work, flexible hours, assistance with

childcare, ...).

The wages are paid regularly, on fixed days.

LARGE UNITS: The operator supports employee financial

participation (profit-sharing and share ownership).

Overtime is voluntary, not required regularly, and paid at the rate

set by local legislation.

LARGE UNITS: The operator provides other social benefits in

addition to those provided by local legislation (leave for

weddings, paternity leave, private pension scheme, ...).

Annual paid leave as specified by local legislation is granted.

If part of the wage can be received as payment in kind (such as

accommodation) this will take place with the express consent of

the worker, who can choose how they wish to be paid (for

example cash instead of accommodation).

Upon each payment, workers receive pay slips containing the

payment details (wage, contribution to social benefits, possible

wage deductions).




MinorWork-

322 RESP X (PO, CP)

MinorWork-

333 RESP X (PO, CP)

Minor

(Major Yr. 2)

Work-

343 RESP X (PO, CP)

MinorWork-

353 RESP X (PO, CP)

MinorWork-

363 RESP X (PO, CP)

Minor

(Major Yr. 2)

Work-

373 RESP X (PO, CP)

3.4.3. Social dialogue



MinorWork-

382 RESP X X

KOWork-

392 RESP X X

KOWork-

402 RESP X X

MajorWork-

413 RESP X X

MinorWork-

423 RESP X X

RecommendationWork-

433 RESP X X



MinorWork-

442 RESP X (PO, CP)

3.4.4. Health and safety at work



MajorWork-


KOWork-

464

In particular, dangerous machines and equipment have

safety measures in place and the mobile parts are

protected, protective barriers are erected where required.

RESP X X

MajorWork-


MajorWork-


The payments to workers are recorded, at least for permanent

workers.

If the law limits the right to freedom of association and to

collective negotiation, the employer shall allow the workers to

freely elect their own representatives.

Permanent workers benefit from a basic social coverage

(insurance, retirement, social security) if that is required by the

local legislation.

Neither the workers nor their representatives will be subject to

any discrimination because they organize or belong to an

organization of workers.

The operator provides a safe and healthy workplace and takes

the appropriate measures to avoid any accidents or health

problems due to the working environment and to any dangers

specific to the activity (see guide).

Pregnant or nursing women, or any other person at risk

(disabled persons or persons with a condition which presents a

risk for the relevant activity, ...) shall not be engaged in

dangerous work and not be working at night. They will be offered

alternative work.

The operator makes appropriate personal protective equipment

(PPE) available to workers exposed to chemical products, noise,

dust, light... Such equipment will be in good condition and the

operator shall ensure that they are used OR that such

equipment is not necessary.

The employer shall encourage feedback from workers regarding

any suggestions for improvements (aside from grievances) and

shall take into account this feedback.

Control points

Any risks arising from work processes, locations, machines and

equipment are known. A risk analysis will have been carried out.

Producers shall enable associative activities and collective

negotiation, and shall not discriminate against organized

workers.

Control points

Overtime for permanent workers is voluntary (can be demanded

during limited and known periods of peak activity) and

remunerated or compensated.

Wages are paid regularly to all workers, within the agreed time

frames.

Annual paid leave as specified by local legislation is granted to

permanent workers.

Procedures are in place to appropriately gather and deal with

serious grievances from workers and any disciplinary issues

they face.

Control points

LARGE UNITS: The employer effectively informs the members

of staff that they are free to join any organization of their choice,

and that by doing so, there will not be any negative

repercussions or reprisal from the company towards them.

Working hours and days of rest for permanent workers are in

line with local legislation.

The employer respects rights of all members of staff to create or

join organizations of their choice as well as collective

negotiation. He will not interfere, for any reason, with the

development, running or management of the organization of

workers or collective negotiation.




MajorWork-


MajorWork-


MajorWork-


MinorWork-


MinorWork-


MinorWork-


Minor

(Major Yr. 2)

Work-

554

Appropriate and suitable accommodation: Hygienic

accommodation (dry, with daylight and enough

ventilation), clean enough sanitary facilities (1 for 15

workers, on average) enough space to sleep in and to

store personal belongings, kitchen and laundry facilities if

necessary.


RESP X X

MajorWork-


MinorWork-

573 RESP X X

Minor

(Major Yr. 2)

Work-


MajorWork-

593 RESP X X

MajorWork-

603 RESP X X

MajorWork-

613 RESP X X



MajorWork-

623 RESP X (PO, CP)

MajorWork-

633 RESP X (PO, CP)

MinorWork-

642 RESP X (PO, CP)

MinorWork-

652 RESP X (PO, CP)

3.4.5. Human resources development


RecommendationWork-

664 RESP X X

RecommendationWork-

674 RESP X X

Workers have access to drinking water nearby.

LARGE UNITS: There is a fire protection system in place,

appropriate to the size and the nature of the activity:

- appropriate fire equipment, regularly inspected and operational;

- alarm system;

- known fire procedures;

- For over 50 workers: adequate number of fire detectors, fire

drills at least once a year or more if required by law.

LARGE UNITS: Fire exits which are not obstructed and which

are clearly identified.

LARGE UNITS: There is a representative responsible for health

and safety issues, with adequate training and qualification. He

has the necessary management powers to raise any information

to management/managers and to implement any necessary

measures.

Workplaces have first aid equipment which is appropriate to the

type of risks and which is easily accessible.

Workers have access to clean anough sanitation facilities, with

separate facilities for women and men if required by law.

There are enough first aid trained personnel during working

hours.

Control points

Dangerous chemical products are stored separately, kept

hermetically sealed and identified with specific labeling.

Workers are informed of risks involved in their occupation and

are aware of the good working practices to follow. They regularly

receive health and safety training; when required, information

and instructions will be put up, clearly visible and easy to

understand OR there are no major risks requiring such

information or training.

LARGE UNITS: Efficient and appropriate emergency procedures

are set out and known by workers.

If accommodation is provided, it is appropriate and suitable

according to the local context.

Control points

Machines and equipment used by producers do not represent

any danger to users.

LARGE UNITS: Work-related accidents and illnesses are

recorded and monitored.

LARGE UNITS: Workplaces which are covered are light, warm

and ventilated enough, according to local weather conditions.

Workers and family members are kept informed of any major

risks related to the activity and of all good practices to follow OR

there are no major risks.

LARGE UNITS: A training plan is set out and updated annually.

Producers are equipped with first aid kits which are appropriate

to the type of risks and which are easily accessible.

Adequate protection equipment, appropriate to any potential risk

(noise, dust, light, other health risks, accidents, ...) are available

at producer level and are used OR there are no risks requiring

such protection.

LARGE UNITS: The operator ensures that ongoing or

professional training is available to its employees.




3.5.


RESP X X

FT X X

RESP X X

RESP X X

RESP X X

RESP X X

RESP X X

FT X X

RESP X

3.5.1. Synthetic chemical products and GMO


Major Env-01 2

For non-certified organic or natural operators, specific

rules regarding sustainable practices, as defined by

ECOCERT, will need to be applied (prohibition on the

production or diffusion of GMOs, on the use of chemical

products banned by international conventions...). Those

rules will be covered by an additional module.

RESP X X

Major Env-02 2

See Appendix 6.

Exceptions: In both cases, specific rules regarding

sustainable practices, as defined by ECOCERT, will need

to be applied.

FT X X

3.5.2. Pollution prevention

3.5.2.1. Processing/marketing units


Major Env-03 3

Identification of dangerous wastes, specialized collection

service, controlled landfill, controlled incineration. Open-

air waste incineration only for biodegradable materials

without any toxic emissions (no plastics, for example).

RESP X X

Minor Env-04 4 RESP X X

Minor Env-05 4 Criterion not checked at offices level. RESP X X

3.5.2.2. Primary production units


Major Env-06 3

Identification of dangerous wastes, specialized collection

service. Appropriate waste center. Open-air combustion,

monitored so as not to impact on health and the

environment.

RESP X

Minor Env-07 4 RESP X

Major Env-08 4 RESP X

3.5.3. Sustainable use of water resources



Recommendation Env-09 2 Criterion not checked at offices level. RESP X X

Minor Env-10 4 Criterion not checked at offices level. RESP X X

Making appropriate efforts towards source reduction, waste

sorting and recycling.

Discharges and waste water generated from production units

are treated in an appropriate manner, without incurring any risks

for water quality, the environment and health (food safety).

- The Production group makes sure that those good practices are applied to workplaces/premises as well as production units.

The operator does not take part in GMO contamination of supply

chains and applies responsible practices in terms of using

synthetic chemical products (see guide).

Control points

Water usage practices are sustainable, without any apparent

waste (managing any losses during the process, rational use).

- The company/organization has responsible practices in place related to the use of GMO and chemical products;

- The company/organization checks and minimizes any impacts from waste, gaseous and liquid discharges and waste water on the environment and on health;

The quantities of water used for the activity are regularly

recorded and monitored.

The Environment

SUMMARY OF CRITERIA RELATED TO ENVIRONMENT

- The company/organization is certified organic or natural for the products to be certified;

- The company/organization makes the effort to minimize fossil fuel energy consumption and to maximize the use of renewable energy;

- The company/organization minimizes volumes and limits impacts of packaging used;

Control points

- The company/organization is aware and manages the quantities of water used for production;

- The company/organization does not use materials forbidden by standards for packaging of final products to be certified;

Each product to be certified is certified according to an organic

or natural standard recognized by ECOCERT.

Exceptions:

- Plants issued from harvesting and destined for cosmetic

products;

- Craft objects.

- The company/organization protects and if possible improves the sustainability of surrounding ecosystems (actions on biodiversity, soil, ...);

Control points

Waste disposal is appropriate, without any risks for the

environment and for health.

At production unit level, appropriate efforts are made towards

source reduction, waste sorting and recycling.

Waste disposal at production unit level is appropriate, without

any risks for the environment and for health.

Liquid and gaseous discharges and waste water are treated in

an appropriate manner, in order to limit risks for the environment

and health (water quality...).

Control points






Minor Env-11 4 With efficient irrigation techniques, for example. RESP X


3.5.4. Alleviation of climate change and adaptation



Recommendation Env-13 4 RESP X X

Minor Env-14 4

Appropriate efforts to carry out the following:

1/ Reduce energy consumption (insulation of buildings,

turning machines off, rational use of air conditioning,

choice of machines)

2/ Reduce consumption of non-renewable/high carbon

footprint energy resources (gas, fuel, wood from

unmanaged forests, coal...)

3/ Research on renewable sources of energy (solar, wind,

geothermal, biomass)

RESP X X

Minor Env-15 4

Regards all types of goods transported by the

company/organization (products, inputs, materials…).

Environmentally friendly means of transport: alternatives

to air transport and road-only transport such as combined

transport, train transport, canal transport, sea transport...

RESP X X





Recommendation Env-18 4 RESP X

Recommendation Env-19 4 RESP X

3.5.5. Protection and restoration of surrounding environment



Major Env-20 3 Criterion not checked at offices level. RESP X X




KO Env-22 2 RESP X

KO Env-23 2 RESP X

The operator neutralizes its climatic impact by funding external

projects that reduce emissions or sequester greenhouse gases

(carbon compensation mechanism).

LARGE UNITS: The operator shall look for and implement

measures aiming to optimize journeys linked to work activities

(commuting, business trips, visitor's journeys) by favoring the

use of more environmentally friendly means of transport.

Control points

The production activities do not cause any degradation or

conversion of the natural ecosystems nearby (destruction of

primary and secondary forests, introduction of invasive species,

moorland conversion, aquatic ecosystem conversion, ...) The

Production group and its members have not been involved in the

destruction of any primary or old secondary forest in the last 10

years prior to the start of the certification.

Efforts are made to maintain the biodiversity of the areas

impacted by the activity (in or near sites)

The production activities cause no threat to any endangered

species or habitats.

Control points

The operator has implemented a system for assessing its

greenhouse gas emissions.

The activities of the operator do not cause any threat to

endangered species or habitats. They do not cause any

degradation of natural ecosystems nearby.

Additional efforts are made to reduce greenhouse gas emissions

(CO2, NO2, methane) and to increase carbon sequestration

(fertilization practices - organic compost, farming, ...)

Efficient energy usage practices and replacement of non-

renewable sources with renewable energies are implemented

across production units.

The operator shall look for and implement measures aiming to

reduce the impacts of freight: rationalization, pooling, use of the

more environmentally friendly means of transport etc.

Control points

Irrigation: The quantities of water used are regularly recorded

and monitored.

The operator shall look for and implement efficient energy usage

practices and replacement of non-renewable sources with

renewable energies.

Control points

Water usage practices at production unit level are sustainable,

without any apparent waste (rational use).

Control points




KO Env-24 2

http://www.iucnredlist.org/

Hunting and collecting protected species are only

tolerated if:

- they are carried out for subsistence

- the relevant animals and plants have not been classified

by IUCN under one of the three categories of endangered

species (In critical danger of extinction/In

danger/Vulnerable).

RESP X




3.5.6. Eco-packaging policy


Recommendation Env-28 4Regards both intermediate packaging and packaging of

delivered products.RESP X X

Major Env-29 2

See Appendix 5.

The validation is carried out either by the packaging

manager or the brand owner.

EQU X X

Adequate efforts are made to maintain or increase the

biodiversity of the areas impacted by the activity (in or near

sites). Promoting biodiversity by:

- choosing native species which require a minimum amount of

external input;

- the agriculture model chosen (limitations of solely monoculture

and polyculture farming or agroforestry).

Producers or workers are not involved in hunting, harvesting,

production or trafficking of all or part of animals or plants

protected by the IUCN. Hunting and harvesting could possibly be

tolerated, but under certain conditions (see guide).

A policy/procedure to limit the quantity and impacts of the

packaging of products is implemented and followed up (no over-

packaging, maximizing the use of recycled products, choice of

ecological materials, ...)

Validation by ECOCERT of content of packaging of finished

products to be certified. A technical sheet/drawing on the

packaging must be supplied, specifying all materials included. In

the case of cosmetic products, textiles, detergents and room

fragrances, the organic or ecological certificate can be accepted

if related standards include the same requirements.

Control points

Appropriate action taken and followed up to combat erosion.

Appropriate action taken and followed up to maintain fertility.




3.6.


RESP X

RESP X X

RESP X

RESP X (PO, CP)

RESPX (Art-Proc

groups)

FT X X

FT X

FT X (1st Buy.)

FT X (Brand)

FT X (CP)

FT X (1st Buy.)

RESP X (CP)

FT X

RESP X (PO, CP)

FT X (1st Buy.)

FT X

FT X (PO, CP)

FTX (Art-Proc

groups)

FT X (1st Buy.)

FT X

FT X (1st Buy.)

FT-South X

3.6.1. Access to resources


MajorTrade-

012 RESP X

MajorTrade-

023

Application of the Nagoya protocol. Current patents, if

applicable; proof of shared benefits (financial, technical,

commercial support, etc.)

RESP X X

3.6.2. Procurement policies

3.6.2.1. Buyers


MinorTrade-

034

This is a specific policy and/or procurement procedure

that has been formally established. Part of the policy can

also be included in the research and development policy

of the company (development of supply chains).

RESP X

- The First Buyer maintains a constant dialogue with Production Groups, in order to ensure the balance of the partnership. He grants them pre-financing of up to

60% of the contract value upon request;

- The Production group maintains a constant dialogue with First Buyers, to ensure a transparent management of all Fair Trade benefits and to sustain a long-

term partnership;

- The First Buyer supports the development of the Production Groups. For "Southern" suppliers, this assistance will be made through the provision of a

development fund used to finance community actions. For "Northern" suppliers, this assistance will be direct development assistance of a technical, financial or

human nature;

- In the "South", the Production Group will manage the development fund transparently, involving the project beneficiaries as much as possible in the choice of

projects funded.

The operator has defined a responsible procurement policy, for

ethical sourcing with respect for people and the environment.

This policy lays down the following:

- the main rules to follow in order to choose suppliers and to

develop supply chains;

- commitments over the long-term and development objectives

for responsible procurement (direct procurement from

Production Groups, reduction of intermediaries, seeking small

producer groups, maximizing certified purchases -Fair

Trade/ORGANIC/other CSR scheme...-).

If the operator obtains commercial benefits from any added-

value on ingredients from indigenous communities (research and

development action, filing of a patent referring to a property of

the ingredient, etc.) the advantages related to the use of

biodiversity or traditional know-how need to be shared fairly with

indigenous communities, based on commonly agreed criteria.

- First Buyer guarantees a minimum price to the Production Groups, and offers them fair and remunerative enough prices;

- The First Buyer has fair practices, not seeking to mislead the Production groups on the price paid, and protecting freedom of sale;

- The buyer pays his fair trade suppliers within the agreed time frames;

Control points

The Production Group has all the legally required installation

permits, and has settled without creating any forced,

uncompensated population displacement. In particular, it has

property rights and rights to use the land, which are legally

recognized. It shall deal with any complaints in a responsible

manner, through transparent communication and negotiation

with local communities.

Control points

- The buyer defines the fair trade purchasing terms within clear and adapted sales contract;

- In addition, the First Buyer sets up long-term partnership contracts with the Production Groups;

- In long supply chains, the Brand Owner sets up long-term partnership contracts with the First Buyers ;

SUMMARY OF CRITERIA RELATED TO COMMERCIAL GOOD PRACTICES & PARTNERSHIPS

- In the event of commercial use of biodiversity resources or traditional knowledge, agreements are made with the related communities for recognition and

adequate compensation of this use;

- The Production Group has all the required legal permits for the setting up of the activity, particularly regarding land rights;

- The buyer defines and implements a responsible procurement policy for ethical sourcing. He is vigilant regarding the social and environmental practices of his

suppliers;

- The Producer group favors procurement from the most disadvantaged producers;

- The Artisan processor group ensures that his key suppliers adhere to good social and environmental practices. He does not use raw materials that have

contributed to the degradation of the surrounding ecosystem or heritage;

Good business practices & Partnerships

- A policy for margin moderation is set up, so that the margins applied on fair trade products remain reasonable;

- The Producer group establishes clear rules for buying from producers. He pays producers in a reliable and timely manner;

- The Production Group determines his sustainable costs of production in order to reach a fair minimum price with his buyers;

- The Contract production company has practices that protect the producers' freedom to sell;

- The Producer group guarantees a minimum price to his producers members, and offers them fair and remunerative enough prices;

- The Contract production company defines the fair trade purchasing terms within clear and adapted contracts;

- The Processor and artisan group establishes fair commercial partnerships with his nearest suppliers of agricultural products;




MinorTrade-

043

These aspects shall be checked with the submission of

examples of supplier contracts, minutes of supplier

visits/audits which will show that the operator assesses

his suppliers ethically.

RESP X

MinorTrade-

053 RESP X

3.6.2.2. Production groups

a. Producer groups


MinorTrade-

063 FT X (PO, CP)

b. Processor and artisan groups


MajorTrade-

072 RESP

X (Art-Proc

groups)

MajorTrade-

082 See: http://www.iucnredlist.org/ RESP

X (Art-Proc

groups)

MajorTrade-

092 RESP

X (Art-Proc

groups)

3.6.3. Justified Fair Trade profit margins

3.6.3.1. Buyers


MinorTrade-

103 FT X



MinorTrade-

113 FT X

If the Producer Group cannot buy all of the production from its

members, it will give preference to the most disadvantaged

producers.

The Production group registers the profit margins it applies on

the Fair Trade products. The profit margins shall not be higher

than those in the area, for similar activities, or a justification shall

be provided.

The operator has adopted relevant indicators in order to ensure

that he doesn't apply higher margins on fair trade products than

on non-Fair Trade products (comparison with other similar

conventional product, competitive intelligence system...).

Control points

Control points

Control points

Control points

The origins of the raw materials used are known and recorded,

as well as their manufacturing processes.

The operator shall find out about existing social and

environmental conditions of his product suppliers. He has

developed sustainable development criteria in order to choose

and assess his suppliers.

If he imports food products from developing countries, the

operator seeks information on the induced impacts on food

security of local population. He takes measures to eliminate the

induced negative impacts.

The raw materials of the product are not:

- from any endangered species;

- from metallic materials produced for the sole purpose of

creating the object (i.e. if metals are used, they shall be

recycled);

- from archaeological or historical monuments;

- from leather treated using products which are highly harmful for

people or for the environment.

Suppliers of the producer group:

- which are companies or organizations formally constituted AND

with over 50% of their production destined for the group;

OR

- who are farmers or harvesters located in an area close to the

producer group;

... will be subject to a social and environmental inspection

(integration in the ICS of the group and efficient monitoring, or

inspection by third-party accepted by ECOCERT). If that is not

possible, ECOCERT will be able to demand certain restrictions

in terms of communication.




3.6.4. Fair Trade contracts

3.6.4.1. Buyers

a. All


MajorTrade-

122

For First Buyers/Brand owners, certain general terms

could be defined in the framework contracts.FT x

b. First Buyers


MajorTrade-

133 FT X (1st Buy.)

c. Brand owners (long supply chains)


MajorTrade-

143 FT X (Brand)



Minor

(Major Yr. 2)

Trade-

152 FT X (CP)

Control points

A contract/agreement system links the company to the

producers or to their representative structures. Those

contracts/agreements mention:

- the type of product and quality required;

- the contract term;

- payment procedures and time frames;

- agreed volumes;

- the commitment on a guaranteed minimum price;

- the purchase price mechanism;

- any pre-finance mechanism;

- the inputs and services provided and any deductions that may

be relevant as a result of this provision;

- the cases in which producers are able to terminate the

business relationship and the conditions of termination;

- procedures and mechanisms to resolve any dispute/conflict.

The First Buyer shall set up a long-term contract, of at least 3

years, with each of his fair trade suppliers. This contract shall

clearly define the commitments of both parties and include at

least the following:


- the commitment on a guaranteed minimum price;

- the commitment on minimum volumes;

- commercial support procedures;

- procedures for development support (direct support,

development fund);

- methods for paying for the organic and fair trade certification

costs;

- contract termination procedures, with a mediation mechanism.

When the Brand Owner is not the First Buyer, he shall set up a

long-term contract, of at least 3 years, with the First Buyer, even

if there are intermediaries between them. This contract shall

clearly define the commitments of both parties and include at

least the following:


- the commitment on minimum purchase volumes;

- contract termination procedures, with a mediation mechanism.

Control points

Control points

For each purchase of fair trade product, the following shall be

clearly defined in a commercial contract:

- the type of product and quality required;

- logistical responsibilities;

- payment procedures and time frames;

- agreed volumes;

- the purchase price;

- procedures and mechanisms to resolve any disputes and

complaints regarding the quality and quantity of the product

received;

- if relevant, the amount to allocate to the development fund;

- the original supply chain(s) (including the name of the

Production group and/or of the Project Sponsor).

Control points




3.6.5. Pricing policy and terms of payment

3.6.5.1. Buyers

a. All


MajorTrade-

162 FT X

b. First Buyers


MajorTrade-

173 FT X (1st Buy.)

MajorTrade-

183 FT X (1st Buy.)

MinorTrade-

193

Conventional standard price: World prices, if they are

defined (e.g. prices of cocoa and sugar on the New York

Stock Exchange), national/local databases, other sources

(competition watch…). Prices are those of the product in

non-fair trade and non-organic quality.

FT X (1st Buy.)

MinorTrade-

203 FT X (1st Buy.)


a. Producer groups


MajorTrade-

214 RESP X (PO, CP)

MinorTrade-

223 RESP X (PO, CP)

MinorTrade-

233 RESP X (PO, CP)

Minor

(Major Yr. 2)

Trade-

244

The PRODUCER GROUP guaranteed minimum price

takes into account:

1/ the average sustainable costs of production for

producers (workforce - including family - goods, services,

capital and investment, and coverage of an adequate

profit margin, of 10% minimum);

2/ the necessary costs to run the producer group

(processing, administrative, infrastructure costs, ...). An

adequate profit margin of at least 10% is also taken into

account;

If there are any intermediaries buying the raw materials

from sub-groups, cost calculations shall be transparent

and shall include the margins of the intermediaries.

FT X (PO, CP)

Minor (PO)

Major (CP)

Trade-

252 FT X (PO, CP)

MajorTrade-

264 FT X (PO, CP)

Control points

Producers are paid immediately on delivery.

The producer group sets up and regularly updates a study of its

costs of production, which is used as the basis for minimum

price negotiation. The study identifies the sustainable costs of

production at both group and producer levels, and the adequate

margin to enable future investments (see guide). It is validated

by group managers and existing democratic and participatory

bodies.

Control points

There are rules on how prices paid to the producers are

determined. These rules explain possible price differences

(quality premium, organic premium) and guarantee a standard

price for the same quality. These rules are distributed to

producers and adhered to. Producers are made aware of any

changes.

The First Purchaser agrees with his fair trade supplier on a

guaranteed minimum price, through transparent negotiations.

The established minimum price level is justified and supported

by argument, and is the result of a consensus between the

partners. It is based on the sustainable cost study conducted at

Production group level once the latter is achieved.

Prices actually paid to the producers shall never be lower than

the "producer" guaranteed minimum price, once defined.

Payments to producers are clearly recorded (name of individual

member, purchase date, product name, volume, price received).

A producer guaranteed minimum price is determined in

consultation with producers, through transparent negotiations.

The established minimum price level is justified and supported

by argument, and is the result of a consensus among the

partners. It is based on the sustainable cost study once the latter

is achieved. This criterion is major for contract production

companies. This criterion is minor for producer organizations.

The purchase prices to fair trade suppliers are always equal or

higher than the minimum prices, once they are defined.

The payment time frames specified in the contracts with fair

trade suppliers are complied with.

The prices paid to fair trade suppliers are at least 10% higher

than conventional standard prices (on average over a year, pro-

rata to the volume bought). Otherwise, an explanation shall be

provided (mainly accepted in case of structurally high market

prices, enabling a fair remuneration).

When there is a conventional standard price for the relevant

product, it is recorded (see guide).

Control points




MinorTrade-

273

Conventional standard price: World prices, if they are

defined (e.g. prices of cocoa and sugar on the New York

Stock Exchange), national/local databases, other sources

(competition watch…). Prices are those of the product in

non-fair trade and non-organic quality.

FT X (PO, CP)

MinorTrade-

283 FT X (PO, CP)

b. Plantations


Minor

(Major Yr. 2)

Trade-

294

The PLANTATION guaranteed minimum price is based on

an assessment of the average production costs

(workforce - including family - goods, services, capital and

investment) and takes into account an adequate profit

margin, of 10% minimum.

FT X (Pl°)

c. Processor and artisan groups


Minor

(Major Yr. 2)

Trade-

303 FT

X (Art-Proc

groups)

3.6.6. Fair practices

3.6.6.1. First Buyers


MajorTrade-

312 FT X (1st Buy.)

MinorTrade-

323 FT X (1st Buy.)



MinorTrade-

332

Example of acceptable restriction: the producer needs to

grow the crop 2 years out of 3 in order to remain in the

group.

RESP X (CP)

3.6.7. Quality of the Fair Trade partnership

3.6.7.1. Buyers

a. First Buyers


Minor

(Major Yr. 2)

Trade-

343 FT X (1st Buy.)

MinorTrade-

353 FT X (1st Buy.)

The prices paid to producers are at least 10% higher than

conventional standard prices (on average over a year, pro-rata

to the volume bought). Otherwise, an explanation shall be

provided (mainly accepted in case of structurally high market

prices, enabling a fair remuneration).

Control points

Control points

If producers refuse to plant the certified annual crop, they shall

not be immediately excluded from the group. Restrictions can be

made, but they remain limited.

The Plantation sets up and regularly updates a study of its costs

of production, which is used as the basis for minimum price

negotiation. The study identifies the sustainable costs of

production at Plantation level, and the adequate margin to

enable future investments (see guide). It is validated by

Plantation managers and existing democratic and participatory

bodies.

If the producer group has primary suppliers who are farmers or

harvesters located in a nearby area, they shall ensure that these

producers benefit from fair prices, which cover their production

costs and are in line with market prices. In order to determine

this fair price, a cooperation and negotiation mechanism is set

up between the group and the primary suppliers.

Control points

When there is a conventional standard price for the product paid

to individual producers (other buyers, global price, ... ) it is

recorded (see guide).

Control points

If the buyer purchases both certified and non-certified products

from the same Production Group, he will not offer to purchase

the certified products provided that he purchases the non-

certified products at a clearly unfavorable price for the

Production Group.

Control points

When the buyer pays for the Fair Trade certification costs of the

Production Group, and when he cannot purchase from him all of

its volumes, the Production Group shall be free to sell to other

buyers, including in fair trade quality. In that case, all possible

solutions will be considered in order to share the certification

costs.

The First Buyer is in direct contact with his fair trade suppliers,

and has visited each of them at least once.

Each year, the First Buyer conducts a situational review together

with the fair trade Production Group in order to assess whether a

modification of the framework contract is necessary. The

situational review shall focus at least on the following:

- minimum price adjustment based on the evolution of

production costs;

- minimum volume adjustment based on the real volumes

ordered.




MinorTrade-

364 FT X (1st Buy.)

MinorTrade-

373 FT X (1st Buy.)

MajorTrade-

383

Pre-financing may be granted in the form of an advance

on purchase (down payment) to the production groups if

the latter make a motivated and justified request for it. It

mainly aims, for producer groups, at financing the buying

operations from member producers. It could also be used

for covering the transport, export or packaging costs.

FT X (1st Buy.)

MinorTrade-

393 FT X (1st Buy.)

MinorTrade-

403 FT X (1st Buy.)

MinorTrade-

412 FT X (1st Buy.)

RecommendationTrade-

424 FT X (1st Buy.)


433 FT X (1st Buy.)

b. Brand owners (long supply chains)


Minor

(Major Yr. 2)

Trade-

443 FT X (Brand)



MinorTrade-

454

For example, when there are problems related to time

frames which are too tight and which do not enable it to

fulfill its responsibilities to provide good working

conditions.

FT X

MajorTrade-

464

See Appendix 7. The "Description of fair trade project" will

be made publicly available by ECOCERT, and used by

the concerned brand owner(s) in its communication.

FT X

MinorTrade-

474 FT X

MinorTrade-

484

The Production group, if it needs a pre-financing, presents

a justified request to its First Buyer. The request will

mention the purpose for which the pre-financing will be

used, and the desired payment periods.

FT X

3.6.8. Development support

3.6.8.1. First Buyers


MajorTrade-

493

Minimally processed products: the cost of the raw

material represents 75% or more of the price of the

product sold.

Highly processed products: the cost of the raw material

represents less than 75% of the price of the product sold.

FT-South X (1st Buy.)

When the Brand Owner is not the First Buyer, the Brand Owner

conducts each year, a situational review together with the fair

trade supplier in order to assess whether a modification of the

framework contract is necessary. The situational review shall

focus at least on the adjustment of minimum volumes, based on

the real volumes ordered.

Control points

If a Production group requests pre-financing, it shall be granted.

The Production group can request up to 60% of the contract

value. If interest rates are received by the buyer, they shall be

mutually approved by the Production Group and the buyer, and

they shall not exceed the cost of borrowing of the buyer

(including administrative costs).

The First Buyer shall send a procurement plan to his fair trade

suppliers at least at the start of the year/at the beginning of the

campaign.

In case of any dispute or complaint related to the quality/quantity

of the product received, the partners shall find common

solutions, such as those stipulated in the contract.

Control points

The Production group maintains regular communication with his

fair trade buyers which makes it possible to adjust any terms of

the contract.

The Production group provides ECOCERT and the First Buyer

with clear and detailed information through a "Description of fair

trade project" intended to be publicly available: description of its

organization, of the conditions of production, information on fair

trade prices, summary of development actions carried out as a

result of the fair trade partnership...

In case of any dispute or complaint related to the quality/quantity

of the product received, the partners shall find common

solutions, such as those stipulated in the contract.

If the Production Group requests it, the First Buyer shall provide

it with a summary of his Fair Trade sales, and with a description

of the supply-chain (main distribution channels...).

If the partnership is terminated, the supplier shall be notified a

long time in advance so that he may adjust.

Control points

The First Buyer shall provide commercial support to his fair

trade suppliers, through regular communications, market

information, contributions towards continuous improvement of

product quality, ...

In addition to the Fair Trade price, the First Buyer pays his Fair

Trade suppliers from developing countries an amount intended

to cover a "development fund", which shall correspond to a

minimum of:

- 5% of the price paid to the Production group for minimally

processed products (see guide);

- 3% of the price paid to the Production group for highly

processed products (see guide).

The First Buyer shall buy a large part of the volume produced by

his suppliers at fair trade conditions OR he will make every

possible effort to increase the volumes purchased at fair trade

conditions.

If pre-financing has been obtained, the Production group shall

use it for the reasons put forward on the request (purchasing

raw materials, pre-financing for processing, export costs, ...) or

for any other justified reason.

The First Buyer shall encourage his fair trade suppliers to find

other buyers and new market opportunities in order to minimize

their dependence.




MajorTrade-

502 FT-South X (1st Buy.)

MajorTrade-

513 FR-North X (1st Buy.)


524 FT-South X (1st Buy.)

3.6.8.2. Production groups (Developing countries)

a. All


Minor

(Major Yr. 2)

Trade-

533 FT-South X

b. Producer organizations


MajorTrade-

543 FT-South X (PO)

Minor

(Major Yr. 2)

Trade-

553 FT-South X (PO)

MajorTrade-

563

Financial support used as an individual bonus: ECOCERT

shall examine the situations on a case-by-case basis and

take into account the social and economic situation of the

area, the spread of producers, the financial volume

represented by the fund, ...

FT-South X (PO)

c. Contract production companies


MajorTrade-

573 FT-South X (CP)

Minor

(Major Yr. 2)

Trade-

583 FT-South X (CP)

Decisions regarding the use of funds shall be taken through one

or more identified decision-making bodies (Committees set up

for that purpose or participatory bodies once created). The

representatives of the beneficiaries - as defined in the fair trade

policy - have the majority vote. If there are representatives of the

company, they do not have the veto right, unless the decisions

taken are clearly opposed to the company's interests. Rules

define the functioning of these decision-making bodies. Minutes

confirm any decision taken.

The development fund shall be used for community and social

projects, or to fund collective infrastructure/equipment, or to

strengthen the organization. In no instance shall it be used to

permit the normal operation of the activity (payment of wages,

...) or to comply with local legislation.

If the producers so decide, and if the context warrants it (see

guide), the financial support could be distributed as an individual

bonus.

Decisions regarding the use of funds shall be taken in a

collective manner through one or more identified decision-

making bodies (General Meeting or Committees set up for that

purpose). The body/bodies responsible for decisions about the

fund operate(s) in a balanced manner, where representatives of

the beneficiaries - as defined in the fair trade policy - have the

majority vote. The functioning and composition of these bodies

are documented. Minutes shall confirm any decision taken.

The amounts of the development fund are specified in

contracts/invoices and are recorded. They are known and can

be traced. They are transferred to a separate account. At least

one representative of the producers is a cosignatory on the

account.

If warranted, other modes of management could be considered,

as long as the fund management entity (an NGO, the company

itself) recognizes in writing that it does not own the money but

the beneficiaries do.

Control points

The amount intended for the development fund is paid at least

once a year. If it is paid at the same time as the merchandise, it

is clearly distinguished from the purchase price in the

contracts/sales invoices.

An annual report shall confirm that the development fund was

used for projects identified by the beneficiaries. The report shall

specify the amount received, the decisions taken and the actual

usage. This report could be included in the annual fair trade

activity report. The Production Group shall transmit it, upon

request, to the First Buyers.

Control points

Control points

The First Buyer shall provide his fair trade suppliers from

developed countries with direct technical, commercial or

organizational support, on-site. The support provided will be

focused on technical and organizational capability transfer to

ensure the sustainability of the project, enable the improvement

of results, etc...

The First Buyer shall provide his fair trade suppliers from

developing countries with direct technical, commercial or

organizational support, on-site, which will complement the

development fund. The support provided will be focused on

technical and organizational capability transfer to ensure the

sustainability of the project, enable the improvement of results,

etc...

The amounts intended for the development fund are specified in

contracts and/or invoices and are recorded. They are known and

can be traced.




MajorTrade-

593

Financial support used as an individual bonus: ECOCERT

shall examine the situations on a case-by-case basis and

take into account the social and economic situation of the

area, the spread of producers, the financial volume

represented by the fund, ...

FT-South X (CP)

d. Plantations


MajorTrade-

603 FT-South X (Pl°)

Minor

(Major Yr. 2)

Trade-


MajorTrade-


The development fund is used first and foremost for social or

environmental community projects, or social projects for workers

and their families. It cannot normally be given as an individual

bonus to workers, unless an explanation is provided (seasonal

workers who cannot benefit from social projects in the

community). In no instance shall it be used to fund infrastructure

belonging to the company.

The amounts of the development fund are specified in

contracts/invoices and are recorded. They are known and can

be traced. They are transferred to a separate account. At least

one representative of the workers is a cosignatory on the

account.

Decisions regarding the use of the development fund are taken

in a collective and balanced manner through a Plantation

Committee. The committee is composed of workers'

representatives elected through a General Meeting of the

beneficiaries -as defined in the Fair Trade policy-. The

Committee may include representatives from management,

provided the latters do not have the majority vote. They won't be

able to use their veto right, unless the decisions taken are clearly

opposed to the company's interests. Procedures shall describe

decision-making mechanisms. Minutes shall confirm any

decision taken.

Control points

The development fund is used first and foremost for social or

environmental community projects. The fund can also be used to

finance technical infrastructure or equipment for the benefit of

producers. In no instance shall the company own such

investments. If the producers so decide, and if warranted (see

guide), the financial support could be distributed as an individual

bonus.




3.7.


RESP X X

FT X (Brand)

3.7.1. Protection of consumer health and safety


MinorCons-

013 RESP X X

3.7.2. Education and awareness about Fair Trade (Brand owners)


MinorCons-

022 See Appendix 7. EQU X (Brand)

RecommendationCons-

034 EQU X (Brand)

- The Brand Owner shall carry out actions in order to raise awareness and increase knowledge on Fair Trade issues.

The operator organizes, participates or relays campaigns aimed

at raising awareness and educating the target audiences

(people, companies, policy makers...) on the Fair Trade issues.

The operator provides a detailed description of each of his fair

trade supply chains via his website or any other kind of media

enabling easy access for the consumer to this information.

Control points

Consumers

SUMMARY OF CRITERIA RELATED TO CONSUMERS

- The operator shall ensure that he provides products which are not harmful for consumer health;

Control points

The operator ensures that he provides products which are not

harmful for the final consumer's health by complying with the

regulations.




3.8.


RESP X X

RESP X X

RESP X X

RESP X (PO, CP)

RESP X (PO, CP)

3.8.1. Territorial anchorage


RecommendationSoc

com-014 RESP X X

3.8.2. Education and culture


RecommendationSoc

com-024 RESP X X

3.8.3. Creation of local employment


MinorSoc

com-034 RESP X X

3.8.4. Development and access to technology (Production groups)


RecommendationSoc

com-044 RESP X

MinorSoc

com-054 RESP X

RecommendationSoc

com-064 RESP X

3.8.5. Creating wealth and revenue (Production groups)


MinorSoc

com-074 RESP X

RecommendationSoc

com-084 RESP X (PO, CP)

MinorSoc

com-094 RESP X

Local technical know-how is identified and relevant added-value

actions are carried out.

Control points

Commitment to society and development

SUMMARY OF CRITERIA RELATED TO SOCIAL COMMITMENT & DEVELOPMENT

- The Production Group coordinates technical support actions, which ensure that the supply chain remains sustainable;

- The operator supports projects promoting education and culture;

Control points

Actions are carried out to train technicians and local managers in

cultural techniques (improving productivity, ...) and quality

control.

- The operator supports projects which have an impact on the local community;

- The operator creates new jobs at a local level;

The operator promotes and supports education, carries out

actions to improve quality and access to education, promotes

local knowledge and literacy.

- The Production Group coordinates actions in order to contribute to value creation locally (processing, diversification, local markets...).

Control points

The operator supports social, cultural, environmental or

educational projects at the local community level (support of

local associations, schools, health centres, grants, social

inclusion organizations...).

Control points

Possibilities to improve processing on-site are examined, and

relevant optimization actions are implemented.

Control points

Programs are implemented to provide support to the

organization, to assist with management and supervision.

The operator shall contribute to long-term employment at the

local level, by offering new opportunities for population in the

area, and by favoring collaboration with local partners.

Efforts are made to promote diversification of products and

activities.

Programs are implemented to educate producers on cash and

budget management.



ECOCERT ENVIRONNEMENT ESR – Part 4 – Appendices V3 – June 15th, 2013

64– Part 4

ECOCERT ENVIRONNEMENT – French Société par actions simplifiée (simplified joint stock company) with €37.000,36 capital – RCS Paris 409 982 709 – 36, boulevard de la Bastille – 75012 Paris - France

Part 4. Appendices


65– Part 4


Appendix 1. Labeling and communication rules ECOCERT Fair Trade Certification

This appendix is associated with and partly restates the identification rules for products inspected in accordance with the ESR standard, including the graphic charter for the logo.

1. Labels

1.1. Labels for finished products The labels for finished products are those that are presented to the final consumer during the act of purchase. They must be submitted to ECOCERT for approval before printing. Table No. 1 shows the product labeling rules to be applied in relevance to the 3 following

types of certification labels: - "Fair Trade" (Case 1): The product can be identified as fair trade. The logo can be

used. - "Fair Trade", X Supply Chain, (Case 2): Only fair trade ingredients can be

identified as Fair Trade. The logo can be used, but in relation to fair trade ingredients only.

- "Mention of the ingredient only" (Case 3): The logo cannot be used. Only a reference to the ECOCERT approval may be associated with the list of ingredients.

The distinction made between these cases is based on the percentage of fair trade ingredients contained in the finished product (see the composition rules for finished products). For crafts, the possible references shall be confirmed according to the context.

All mandatory references must be visible at the time of purchase, hence must be clearly

displayed on the packaging when applicable.

1.2. Labels for intermediate products The following items must be displayed on the label of intermediate products or an

attached technical datasheet: o The reference to the approval o For processed products:

the identification of fair trade ingredients the percentage of fair trade ingredients

For service provision, the reference to the approval is to be replaced by: "Fair Trade

service provision approved by ECOCERT Environnement according to the ESR standard available at www.ecocert.com".

2. Invoices and delivery receipts The designated products are to be identified as fair trade on the transaction document.

Product invoices must display the following reference "Fair Trade approved by

ECOCERT Environnement". For service provision, the following reference must be displayed: "Fair Trade service

approved by ECOCERT Environnement according to the ESR standard".



66– Part 4


3. External communication materials Materials issued for external communication purpose may include catalogues, samples, instructions, advertisements, websites… If such materials display any type of references to the ESR process (logo, reference to ECOCERT approval, specifications…), they must be submitted to ECOCERT for approval before release. These documents must comply with the rules set in tables 1 and 2, if they include the logo or the above references or any other reference to fair trade. They may not include sensitive claims (see part 4).

4. Sensitive claims Certain statements are not permitted on both labels and external communication materials: Rules set in articles 3, 5 and 6 of the product identification rules must be complied with,

more specifically:

- The logo referring to ECOCERT approval and/or references to ECOCERT may only be associated with products approved as compliant;

- The words “certification", "accreditation", "approval" and their derivatives are not to be used in relation to the logo referring to ECOCERT approval and/or references to ECOCERT.

For texts containing a reference to the status or type of a Production Group, there must

not be any ambiguous content (e.g. production contract companies or industrial plantations may not be referred to as "cooperatives" or "grower groups").

When operators are members of a collective brand through the ESR certification, they must ensure that they do not present the product or the process as "[Name of the collective brand] certified / inspected / approved "1.

5. Special cases and restrictions with regards to external communication

5.1. Registered operators

Whether they are directly committed with ECOCERT or not: registered operators may only use the logo and/or references to ECOCERT approval on labels, for the sole purpose of ensuring product traceability. This may only be displayed on transaction documents such as: labels, technical datasheets, instructions, invoices, delivery receipts, etc. issued exclusively for their fair trade customers. They may not communicate externally on the certification process under any circumstances.

5.2. Non-committed operators

If certified operators, who are not directly contracted with ECOCERT, wish to communicate externally on the process, hence using the logo and/or references to ECOCERT approval for other purposes than ensuring product traceability, they may only do so upon direct authorization of the related operator directly contracted with ECOCERT (committed operator).

1 This is the case for the collective brand "Organic Fair Trade", awarded by the BIO PARTENAIRE association.

This collective brand can be granted to its members providing the designated products are certified by ECOCERT according to the ESR standard.


67– Part 4


6. Translation for references and statements

Table No. 2 list the translation for main references and statements. For finished product labels:

- mandatory references must be displayed at least once in the same language; - If one or more references are translated into another language, it should be a

suitable translation of the full reference; - Translations are available in Spanish, English, German and Italian. For all other

languages, ECOCERT will require a written certification of the translation compliance.

7. Sample label for finished products

CASE 2 - "Fair Trade, X Supply Chain" designation, for a cosmetic product

DAY CREAM containing fair trade Argan

INGREDIENTS: argania spinosa (argan) kernel oil*(1); opuntia ficus-indica (prickly pear) seed oil*; caprylic/capric triglyceride; phoenix dactylifera (date) seed extract; opuntia ficus-indica (prickly pear) flower extract; tocopherol; glycine soja (soybean) oil; perfume (fragrance); limonene.

(1) Fair trade ingredient

93 % of the total ingredients from Fair Trade "Fair Trade approved by ECOCERT Environnement according to the ESR standard available at www.ecocert.com

Argan Supply Chain

More information on our Moroccan Argan fair trade supply chain on: www.arganworld.com

No other logo than the ESR approval logo must be printed close to the reference to ECOCERT approval

Supply Chain Appellation: The name of the designated supply chain(s) is displayed under the logo

Supply Chain Designation: The fair trade reference is only associated to the fair trade ingredient

Cosmetic product: Fair trade percentage in the "total ingredients". Refer to the composition rules for the calculation methods.


http://www.arganworld.com/


68– Part 4


Table No. 1: Rules for labeling Fair Trade finished products

(a) Depending on the context, simplified formulas, combining references II and III may be possible. Please contact us. (b) Waivers possible for small packages, please

contact us. (c) Wording on two lines maximum, Verdana font of the same colour as the logo circle. Size less than 10% of logo height, and at 150% of the logo length.

Case 1: Fair Trade Case 2: Fair Trade, X Supply Chain Case 3: Mention of the ingredient only

I. Reference to ECOCERT approval

"Fair Trade approved by ECOCERT Environnement according to the ESR standard available at www.ecocert.com"

"Fair Trade approved by ECOCERT Environnement according to the ESR standard available at www.ecocert.com"

Full reference to ECOCERT approval is not authorized.

II. Reference to fair trade % (a)

Food: "XX % of the agricultural ingredients come from fair trade"

Cosmetics / HPH: “XX % of the total ingredients come from Fair Trade”

Textiles: “XX % of the total fibres come from Fair Trade”

Not compulsory if XX= 100%







III. Identification in the list of ingredients (a)

Asterisk (or other symbol) referring to: "Ingredients coming from fair trade"

Not compulsory if XX= 100%

Asterisk (or other symbol) referring to: "Ingredients coming from fair trade"

Asterisk (or other symbol) referring to: "Ingredients coming from fair trade approved by ECOCERT Environnement"

IV. Link to on-line information

Reference to the Internet site where the project description(s) can be found

Reference to the Internet site where the project description(s) can be found

Optional

V. Geographic origin of the ingredient

Minimum requirement : country Minimum requirement : country Minimum requirement : country

VI. ESR logo See product identification rules, including graphic

charter See product identification rules, including graphic

charter Use of ESR logo is not authorized

VII. Other logos (b) No other logo than the ESR approval logo must be

printed close to the approval reference. No other logo than the ESR approval logo must be

printed close to the approval reference. N/A

VIII. Reference to fair trade (sales name, text…)

Reference can be associated to the product. See Part 4 "Sensitive claims"

Reference associated to fair trade ingredients only. See Part 4 "Sensitive claims"

Reference associated to fair trade ingredients only. See Part 4 "Sensitive claims"

IX. Other conditions

Directly under the logo, reference "X Supply Chain(s)" ("X": as a minimum, name of the main fair trade ingredient. Up to 3 fair trade ingredients can be mentioned) (c)

Font used for the reference is not more visible than that font used in the list of ingredients.




69– Part 4


Table No. 2: Translations of main Fair Trade wordings and statements

2 French legal framework defines Fair Trade as a "South-North" initiative. Hence, for products sold on the French market where a majority of fair trade ingredients come from

developed countries a) "Solidaire" logo to be used instead of “Equitable” logo ; b) Reference to ECOCERT approval : "Démarche Solidaire contrôlée par ECOCERT Environnement selon le référentiel ESR disponible sur www.ecocert.com". c) The word "Equitable" and the expression "Commerce Equitable" cannot be used with reference to fair trade ingredients from developed countries and must be replaced by the word “Solidaire” and the expression "Démarche Solidaire".

French2 English German Spanish Italian

Approval wording

Commerce Equitable contrôlé par ECOCERT Environnement selon le référentiel ESR disponible sur www.ecocert.com

Fair Trade approved by ECOCERT Environnement according to the ESR standard available at www.ecocert.com

Fairer Handel nach dem ESR Standard durch ECOCERT Environnement kontrolliert, Standard verfügbar unter www.ecocert.com

Comercio Justo controlado por ECOCERT Environnement según el referencial ESR disponible en www.ecocert.com

Commercio equo e solidale controllato da ECOCERT Environnement secondo il disciplinare ESR disponibile su www.ecocert.com

Mention of fair trade %

Food: XX % des ingrédients d’origine agricole sont issus du commerce équitable Cosmetics / HPH: XX % du total des ingrédients sont issus du commerce équitable Textiles: XX% du total des fibres sont issues du commerce équitable

XX% of the agricultural ingredients come from Fair Trade XX % of the total ingredients come from Fair Trade XX% of the fibers come from Fair Trade

XX % der Inhaltsstoffe landwirtschaftlichen Ursprungs sind aus fairem Handel XX % der gesamten Inhaltsstoffe sind aus fairem Handel XX % der gesamten Fasern sind aus fairem Handel

El XX % del total de los ingredientes agrícolas procede del comercio justo El XX % del total de los ingredientes procede del comercio justo El XX % del total de las fibras procede del comercio justo

Il XX % del totale degli ingredienti agricoli proviene dal commercio equo e solidale Il XX % del totale degli ingredienti proviene dal commercio equo e solidale Il XX % del totale delle fibre proviene dal commercio equo e solidale

Identification in the list of ingredients

*Ingrédient issu du commerce Equitable

*Ingredient coming from Fair Trade

*Inhaltsstoff aus fairem Handel

*Ingrediente procedente del comercio justo

*Ingredienti provenienti da commercio equo e solidale

“Supply Chain”

Filière

Supply Chain Vermarktungskette Canal Filiera

Invoices, delivery notes

Product: Commerce Equitable contrôlé par ECOCERT Environnement Service: Prestation de service Equitable contrôlée par ECOCERT Environnement

Fair Trade approved by ECOCERT Environnement Fair Trade service provision checked by ECOCERT Environnement

Fairer Handel durch ECOCERT Environnement kontrolliert Faire dienstleistung durch ECOCERT Environnement kontrolliert

Comercio Justo controlado por ECOCERT Environnement Prestación de servicio de comercio justo controlada por ECOCERT Environnement

Commercio equo e solidale controllato da ECOCERT Environnement Prestazione di servizio controllata da ECOCERT Environnement







70– Part 4


Appendix 2. Rules for external communication ECOCERT Social Responsibility Certification

This appendix is associated with and partly restates the identification rules for activities and organizations inspected in accordance with the ESR standard, including the graphic charter for the logo. External communication may only be permitted on communication materials (website, etc), and under no circumstances via product labeling. Indeed, the use of the ECOCERT approval logo and/or references to ECOCERT is restricted, with regards to the Social Responsibility Certification, to a "System" type of communication at institutional level.

1. General information The ECOCERT approval logo and/or references to ECOCERT may under no

circumstances be associated with products that are manufactured or marketed by the contracted entity (including product ranges, large product ranges…).

Rules defined in articles 3, 5 and 6 of the operations and organizations identification rules

must be complied with in all external communication material, more specifically: o The ECOCERT approval logo and/or references to ECOCERT may only be

associated with the inspected sites and operations; o The words "certification", "accreditation", "approvals" and their derivatives are

not to be used in relation with the approval logo and/or references to ECOCERT.

For texts containing a reference to the status or type of an organization contracted with ECOCERT, there must not be any ambiguous content (e.g. production contract companies or industrial plantations may not be referred to as "cooperatives" or "grower groups").

The full reference "Responsible approach approved by ECOCERT Environnement

according to the ESR standard available at www.ecocert.com" may be used.

2. Special cases

Certified operators, who are not directly contracted with ECOCERT, may only use the ECOCERT logo and/or references to ECOCERT they may only do so upon direct authorization of the related operator directly contracted with ECOCERT (committed operator).


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Appendix 3. Rules for the composition of fair trade products

1. Preamble on the incidence of labeling rules The composition of each product shall be reviewed individually to determine the percentage of fair trade ingredients and the relevant category of certification label. "Fair trade ingredient" means the raw material from the production group, whether the group is located in a developed country or in a developing country. The thresholds defined in this appendix can thus be achieved by combining fair trade ingredients of different origins. Depending on the percentages of fair trade ingredients obtained, the label is divided into 3 categories: - Case 1: Fair Trade - Case 2: Fair Trade, X Supply - Case 3: Mention only of the ingredient

Special case: products sold on the French market

In France, the logo and approval reference that can be used, differ according to the origin of

fair trade ingredients:

- Majority from developing countries: logo and reference to approved as "Equitable";

- Majority from developed countries: logo and reference to approved as "Solidaire”.

2. Minimum requirement for mass percentage of fair trade ingredients

Table: Minimum requirement for mass percentage of fair trade ingredients

* Cosmetic products not intended to be removed after application (oils, butters, creams, milks…). ** Cosmetic products intended to be removed after application (lotions, shampoos, gels…).

3. Calculation methods for extracts (Cosmetics / HPH)

For aqueous or non-aqueous extracts, the fair trade percentages calculated according procedures defined in the COSMOS standard. The percentage of fair trade ingredients in fresh plant equivalent will thus be obtained. If that is not possible, the calculation method as defined in the relevant standard will be used.

Case 1: Fair Trade Case 2: Fair Trade, X Supply Chain

Case 3: Mention only of the ingredient

Food 95% of agricultural ingredients

20% of agricultural ingredients

Thresholds not met

Cosmetics 95% of total of ingredients

Leave-on products* (except fragrances) : 5% of total ingredients Fragrances and rinse-off products** : (Fair trade ingredients / Plant ingredients) > 25% AND (Fair trade ingredients / Total ingredients) > 1%

Textiles 95% of total fibers 70% of total fibers

Detergents /

Home perfumes

95% of total ingredients 5% of total ingredients


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4. Absence of duplicates The finished product cannot contain the same ingredient in fair trade and non-fair trade qualities. An exception could be made in the case of technical constraints (ingredients with particular characteristics not available in Fair Trade Supply Chains) for non-food products (cosmetics, textiles, detergents and home perfumes).

5. Special cases : crafts The calculation will take into account factors such as the geographic origin of the component / accessory used, and the level of social and environmental control in production for the designated component / accessory. ECOCERT may impose restrictions on external communication, depending on the context.

Case 1: Fair Trade Case 2: Fair Trade, X Supply Chain Case 3: Ingredient only

80% of components can be considered as "Fair Trade"

20% of components can be considered as "Fair Trade"

Thresholds not met


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Appendix 4. Interviews with workers and producers: sampling, procedures

1. Interviews with workers

Interviews with workers will generally be carried out individually. The name of the workers interviewed shall not be divulged to the managers and the content of the interviews shall remain confidential. The risk level will be determined for sampling depending on: - Sector and country-related risks (health and safety of workers, freedom of association and expression, child labor...); - Results obtained on social aspects in previous audits.

Table: Minimum number of interviews with workers according to n, total number of workers, and according to the risk level.

Low risk Medium risk High risk

n ≤ 300 3% * n, at least 3 4%* n, at least 4 6% * n, at least 6

n > 300 (√n)/2 (√n)/1,5 √n

2. Interviews with producers (groups)

Interviews with producers could take place in two forms: - Collective, via the organization of "focus groups" - Individual, at the producers' premises Each "focus group" will comprise a minimum of 5 producers and a maximum of 20 producers. The choice of areas where the focus groups will take place and the producers taking part in them will depend on their representativeness. The minimum proportion of producers to visit shall be determined by the auditor, depending on risk factors such as: - The average number of workers hired by the producers - The complexity of the production systems - The known social and environmental risks in the area - The quality of the internal control system Once the minimum proportion has been determined, the choice of producers to visit will be made depending on the assessed risk at each farm. Table: Minimum number of interviews with producers according to n, total number of producers

n ≤ 300 6% * n, at least 1 focus group

n > 300 √n, at least 2 focus group


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Appendix 5. Rules for the composition of packages for fair trade finished products

The use of the following materials in the packaging of fair trade finished products is

forbidden:

- Polyvinyl chloride (PVC) and other synthetic chlorinated materials;

- Polystyrene;

- Materials or substances that contain, are derived from, or manufactured, using genetically

modified organisms.


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Appendix 6. Organic and natural standards recognized by

ECOCERT

1. Food products

Products have to be certified according to a regulation about organic farming checked by an

authorized or licensed certification body.

2. Cosmetics products

Fair Trade products have to be organic or natural certified according to one of the following

standards:

- ECOCERT standard (http://www.ecocert.com)

- COSMOS standard (http://www.cosmos-standard.org/)

- BDIH standard (http://www.kontrollierte-naturkosmetik.de)

- SOIL standard (www.soilassociation.org)

- ICEA standard (http://www.icea.info)

- QUALITE France standard (http://www.qualite-france.com)

- NOP – USDA standard (http://www.ams.usda.gov)

3. Textiles

Fair Trade products have to be organic certified according to GOTS Standard

(http://www.global-standard.org/).

4. Detergents

Fair Trade products have to be organic or natural certified according to ECOCERT standard

(http://www.ecocert.com)

5. Home perfumes

Fair Trade products have to be organic or natural certified according to ECOCERT standard

(http://www.ecocert.com).

6. Acceptance of other standards

For cosmetics, textiles, detergents, and home perfumes, other natural or organic certification can be accepted with waiver. ECOCERT will study the standard and may require complementary guarantees on the product.


http://www.cosmos-standard.org/

http://www.kontrollierte-naturkosmetik.de/

http://www.soilassociation.org/

http://www.icea.info/

http://www.qualite-france.com/

http://www.ams.usda.gov/

http://www.global-standard.org/




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Appendix 7. Description of fair trade project

Information to be sent to ECOCERT by the Project Sponsor is as follows, accompanied by a

map of the area or country and photos.

General information

- Name of project sponsor - Project location

- Fair trade program start year - Number of beneficiaries

- Type of Production group

- Main products sold

- Cultivated area

Project history

- Presentation of the project, its history and objectives - Presentation of fair trade partners in the supply chain (as a minimum the First Buyers)

Description of Production Group

- Presentation of Production Group: history, method of organization, number of employees/members, production methods etc.

Context and stakes

Presentation of stakes and local context (environmental, social and economic, development

of the supply chain...)

Benefits of fair trade

- Presentation of the main accomplishments of the project - Description of the fair trade price policy and indicators (guaranteed minimum price,

relative difference between the conventional price and the fair trade one, other relevant indicator)

- Developing country: summary of projects financed by the development fund.

Documents

ESR Standard (Fairness, Solidarity and Responsibility) - Ecocert