Radar Guidance A practical guide to using Radar, the Sedex risk assessment tool

March 2020 – Copyright Sedex sedex.com

Table of ContentsIntroduction ................................................................................................................................................................................. 3

What can I achieve with Radar? ................................................................................................................. 3

How does Radar fit into the risk assessment process? ............................................................4

Key tips for using Radar ....................................................................................................................................7

Pre-screen: Country and Sector Risk .......................................................................................................................9

Pre-screen: Data Upload ................................................................................................................................................13

Pre-screen: Commodities ............................................................................................................................................. 16

Risk Assessment Matrix ..............................................................................................................................................N/A

Risk Assessment: High-Risk Issues ....................................................................................................................N/A

Risk Assessment: Vulnerable Workers ............................................................................................................N/A

Vulnerable Workers: Women .................................................................................................................N/A

Vulnerable Workers: Migrants ...............................................................................................................N/A

Vulnerable Workers: Employment Terms ....................................................................................N/A

Risk Assessment: Basic Sites ..................................................................................................................................N/A

Site Assessment: Overview ......................................................................................................................................N/A

Site Assessment: Management ............................................................................................................................N/A

Site Assessment: Audit ................................................................................................................................................N/A

Site Assessment: SAQ ..................................................................................................................................................N/A

Site Assessment: Benchmarking .........................................................................................................................N/A

Site Assessment: Product Risk ..............................................................................................................................N/A

Site Assessment: Product Risk ..............................................................................................................................N/A

Site Assessment: Subnational Risk .....................................................................................................................N/A

Glossary of Key Terms ......................................................................................................................................................18

Please Note: Radar will be released in phases, with the Pre-screen tool launched first. This guidance document will be updated to include extra chapters covering the Risk Assessment and Site Assessment tools as soon as they are released.

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IntroductionThis guide takes you step-by-step through the first of the three sections of Radar, the Sedex risk assessment tool: Pre-Screen.

Each report within Radar’s Pre-Screen tool has a chapter within this guide; read the chapter as you explore the corresponding report, and it will help you to navigate the features, understand what actions to take and what outputs to expect. This guide is designed to be read alongside the following documents:

●● Risk assessment tool methodology: Briefing note for Radar users – use this to understand the methods used to create risk scores in Radar

●● A guide to risk assessment in supply chains – read this before using Radar to understand how to conduct a risk assessment, and the content of the broader risk assessment and due diligence process

What can I achieve with Radar?Radar enables you to conduct a risk assessment of your business or supply chain, assessing risks by country and sector, and also by site. The tool allows you to analyse and compare not only your supplier risk, but also the management performance at a site. This means Radar enables you to design action plans, to mitigate risk and to support supplier efforts to improve their management systems.

The tool contains risk data based on independent and reputable sources that assess risks in the four SMETA pillars and 14 risk topics. Radar also includes site data that is based on information uploaded by suppliers, in their profile and Self-Assessment Questionnaire (SAQ), and from third-party audit reports. You can learn more about the data used in Radar in the methodology briefing note.

Radar consists of three sections, or tools:

1. Pre-screen: The pre-screen tool provides an initial risk assessment prior to sites being registered on Sedex. It is particularly useful for those beginning a risk assessment of their suppliers, or who want to start assessing risks beyond their first tier.

2. Risk assessment: This tool combines inherent (country and sector) risk information with data from suppliers connected to your business within the Sedex platform. It helps you to identify suppliers operating in high risk environments or with workers more vulnerable to labour exploitation.

3. Site assessment: This is where you can analyse and understand the complexity of risk associated with a single site. This is a useful tool for new and existing Sedex members who want to better understand and support specific sites.

Each Radar tool consists of several reports. Which reports you use will depend on the outcomes you are looking for.

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These are summarised in Fig.1 below and expanded upon in each chapter. This guidance document covers the Pre-screen tool only.

Fig 1. What you can achieve with Radar

Radar tool Reports Task Results

Pre-Screen 1.1 Country and Sector Risk

1.2 Country Comparison

1.3 Country and Sector Risk: Upload

1.4 Commodity Risk

●● Compare country and sector risk;

●● Upload supplier data and receive risk scores

Spreadsheet with a framework to collect and organise supplier data

Risk assessment

2.1 Risk Assessment Matrix

2.2 High-risk Issues

2.3 Risk Analysis: Women

2.4 Risk Analysis: Migrants

2.5 Risk Analysis: Employment Terms

2.6 Basic sites: Country and Sector Risk

● Risk assess all suppliers by site, country and sector risk;

● Prioritise suppliers by high-risk issue and vulnerable workers

Risk assessment spreadsheet, combining supplier data and Radar data

Site assessment

3.1 Site Overview

3.11 Site Management

3.12 Site Audit

3.13 Site SAQ

3.14 Site Benchmarking

3.15 Site Product Risk

3.16 Site Product Risk: Country Comparison

3.17 Site Subnational Risk

● Assess a single site by risk, management performance, audit data, and SAQ response

Site assessment spreadsheet, combining site and Radar data

How does Radar fit into the risk assessment process?Radar is designed to support your journey through the risk assessment process. If you are in the early stages of developing a risk assessment strategy, make sure you first read our Guide to risk assessment in supply chains, which explains what risk assessment involves and why you should do it. Radar can help you carry out the key stages of a risk assessment within the human rights due diligence process, helping to inform your next steps: validating whether the risks are occurring in practice, and developing action plans to manage and mitigate them.

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Human rights due diligence processFig 2. Overview of risk assessment process, adapted from the Sedex Risk Assessment in Supply Chains guide

Stakeholder engagement

Grievance and remedy

Policy commitment

Identify and

assess risks

Co

mm

uni

cate

an

d r

epor

t

Track and monitorTaking ef e

ctive

action

● Identify suppliers and locations

● All tiers if possible

● Identify contractors and service providers

Map supply chain

● Country risks

● Sectoral risks

● Tier risks

Review high level

risks

● Site profile and management

● Workforce profile

● Commercial relationship

Understand supplier profile

● Rank by severity and likelihood

● Consider leverage

Assess and prioritise

● Validate the risks

● Investigate particular situations

● Analyse root causes

Follow-up

● Actions for supplier

● Actions for buyer

● Timelines

● Collaboration

Develop action plan

Radar helps businesses to carry out the key initial stages of a risk assessment process, within the broader

human rights due diligence process.

Once risks have been identified, businesses can follow up to validate them, investigate situations and

d1evelop action plans to mitigate their risks.

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The figure below indicates how the Radar sections align with the stages outlined in our risk assessment guidance.

Fig 3. Radar tool alignment with the Sedex Risk Assessment in Supply Chains guide

Radar tool Risk assessment stage Informs next steps

Pre-screen

Map supply chain

Review high level

risks

Map supply chain

Assess and prioritise

●

Risk assessment

Assess and prioritise

●

Review high level

risks

●

Understand supplier profile

Follow-up

Develop action plan

Site assessmentUnderstand

supplier profile

Follow-up

Develop action plan

Your Radar risk assessment should also inform next steps: Practical follow-up, to validate and analyse your risks, and action plans, to mitigate those risks and remediate any harm done. Improving your management system and that of your suppliers is key to these steps. We recommend using the Sedex Supplier Workbook which explain how to build a management system and provides advice for each SMETA pillar and risk topic.

Further reading

A guide to risk assessment in supply chains: This document explains how to conduct a risk assessment

Sedex Supplier Workbook: This document explains how to build a management system for each SMETA pillar and topic risk

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Key tips for using RadarThere are some standard features in Radar that allow you to customise and sort your data and to explore it in a variety of ways.

Select what you want to analyse

A set of basic filters at the top of the page in Radar allow you to customise your analysis by country, sector, customer and supplier. The filters vary by report, but may include the following options in the dropdowns:

Basic filters

Country: Choose ‘all regions’, ‘all countries,’ or a specific country.

Sector: Click a sector (e.g. Transportation and Storage), a division (e.g. Land transport and transportation via pipelines) and an activity (e.g. Freight transport by road). If you enter the activity, the other categories will automatically populate.

Customer: Click ‘Customer’ to select the relevant account you wish to review. For most companies, this will be a single account; for larger organisations, you may have different accounts for subsidiaries within a group.

Supplier: Click ‘Supplier’ to select the group of suppliers you wish to analyse. Click My Suppliers (for your supply chain) or My Company (for your own operations).

Use ‘criticality’, ‘proximity’ or ‘spend’ to assess your leverage.

By using advanced filters, you can select a specific site, or type of site, and set your own priorities. These options are always the same, and include the following:

Advanced filters

Site: Filter to select sites by name, type (direct or indirect), or by primary production to show only producers of primary materials such as agricultural sites and mining sites.

Your priorities: Use the three customer filters to add filters of your choosing. For example, add in filters for spend and volume, whether a supplier is active, the name of a colleague who manages the relationship, or the length of the commercial relationship.

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Exploring the Radar reports

You can explore information in Radar in multiple ways:

Map view: Explore risk data on a global map and click on a country to zoom in, or adjust your view using the filters.

Data tables, charts and graphs: The table on the map page will adjust to reflect your selections on the map or in filters. Try clicking within charts to see the relationship between different data sets.

Data sheets: Analyse an online data sheet and download it as a spreadsheet. Click the ‘Download’ button at the top of the page at any time and select the ‘Crosstab’ option.

Reported evidence: See reports of labour and environmental violations and learn more about the root causes of risks in a country by reading the expert reports and media articles listed here.

Tooltips: Wherever you see a tooltip icon, click to find out more information about the report or specific section.

You will notice these icons through this guide to demonstrate which section of the report the guidance relates to. The following additional icons are used within this guide to help you make the most out of the Radar reports.

FAQs: Read simple answers to common challenges faced by Sedex members using the tool.

Tips: Pick up tips about how to use the tool and its features.

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Pre-screen: Country and Sector RiskRadar Report IDs:

1.1 Country and Sector Risk 1.11 Explore the data 1.2 Country Comparison

The Pre-Screen tool allows you to compare risks across the world, by country and also by sector (e.g. Manufacturing) – and if you have the data – by division (e.g. Manufacture of textiles) or activity (e.g. Manufacture of carpets and rugs). This tool is especially useful for new Sedex members and those starting the risk assessment process.

●

●●TIP: You can use the Pre-Screen tool without uploading supplier data. Explore risks using the map and data sheet, and compare specific countries. If you want to upload supplier data, go to the Country and Sector Risk: Data Upload.

In the Pre-screen tool you can do the following:

●● Compare risks across all countries, by sector, division or activity;

●● Compare risks in two countries, by sector, division or activity;

●● Analyse risks in one country, by sector, division or activity;

●● Explore contextual subnational data in a country;

●● Identify high risk products in a country

FAQ: Where do I start?

Question: I’m a new Sedex member and my company have asked me to prepare our data to go into Radar. I don’t know where to start.

Action: Explore the map and table, clicking on countries and scores, and filter boxes to get to know the data. Notice how the data table is organised in 4 pillars and 14 risk topics. Spot how the risk map changes when you click on an issue, or filter by sector. Click on the Data Sheet to compare all countries and get a sense of what a risk spreadsheet contains.

Next step: Go to our Country and Sector Risk: Data Upload tool and download the Excel template. The pre-set categories in this spreadsheet will help you organise your supplier data.

●

●●TIP: If you click Reset Map, it saves your filters, but returns the map to the global view. If you click the Revert button, it resets the full report, including removing all filters.

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How to compare country and sector risk

Map: Inherent risk

Compare the risk map to see how risks compare by country and sector (the lighter the colour and lower the score, the lower the risk). The global map gives you a high-level overview of risk in a country: the overall risk score tells you how effective that country is at protecting labour rights and standards, health and safety, the environment and enforcing business ethics.

●

●TIP: Hover over a country to see the risk score and risk category.

Table: Inherent risk

Explore the table to get familiar with Radar’s 4 risk pillars at the top (labour, health and safety, environment and business ethics), and the 14 risk topics that sit below and within those pillars.

The 4 pillars align with the SMETA audit and the 14 risk topics shape the context in which your business and suppliers operate.

Click on any country in the map and the table will show you the data for that country; click on the global map and it will show you a global average.

●

●●TIP: Click a pillar in the table (Environment), and you’ll see its topic risks highlighted below (Biodiversity, Energy and Climate Change, Waste and Pollution, and Water).

Data Sheet: Inherent risk

Compare all countries by overall risk score and risk category and then look for the variation across risk topics. Where does the country perform better or worse than its overall risk score?

●

●●Tip: Filter using the column headings in order to view countries from high to low risk for an issue.

Reported evidence

Learn more about the root causes of risks in a country by reading expert reports listed here.

●

●●Tip: Hover over the risk topic names to see a short definition of the topic; hover over the score to see the data sources. Go to the methodology document for more in-depth explanation of the risk data in Radar.

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FAQ: How can I assess risks for my ‘indirects’?

Question: I want to check my cleaning service provider risks in five countries. How do I do that in the pre-screen?

Action: Click on ‘Cleaning activities’ in the site activity filter, and the division (Services to buildings and landscape activities) and sector (Administration and support service activities) will automatically populate. The map and table will now show the risk score for each country for cleaning providers. Using the table or the data sheet, you can explore how these suppliers vary by risk, looking at pillar and topic risks.

Next step: Collect and upload supplier data for your service providers. You can then progress this set of suppliers through the risk assessment.

How to compare two countries

Map and table: Inherent risk

Click on the Compare button in the top right corner of the Country and Sector Risk report to compare two countries and inherent risks scores. After you select your countries of interest and their sector, the data table adjusts so that you can compare and contrast the pillar and topic risks of the two sourcing locations with the same activity.

●

●●TIP: To access the country comparison feature, you first need to a select a country by clicking on the map. Then click the compare button in the top right-hand corner and a new view will appear.

High-risk icons: high risk products

Look in the bottom left-hand corner after clicking a country from the map, and you can see four icons representing ‘high risk’ products in certain countries. The tool flags a product or commodity as ‘high risk’ if production in that country is formally linked to child labour, forced labour, deforestation or conflict minerals. If these icons are flagged, it means sourcing this product from this country will require careful due diligence.

●●

●●●●●●●●●●

●●●●●●●●● ●●●●●●●●●●●●●● Forced labour Child labour Deforestation Conflict minerals

●

●●TIP: To read more about how risk assessment relates to due diligence, read our guide to risk assessment in supply chains.

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FAQ: How can I compare sourcing countries?

Question: We have been buying products from a trusted footwear manufacturer in Thailand but we’re expanding and I’ve found two suppliers in India. I’d like to check how the risk environment compares.

Action: Use the Pre-Screen Country Comparison report to compare two countries. In the filters at the top of the page, select Thailand and India. Then enter the site activity for footwear (‘Manufacture of footwear’) and the correct division and sector will automatically populate. Now the table shows you a comparison of the pillar and topic risks in the two countries for footwear. It will also flag if this is formally a ‘high risk product’.

Next step: Analyse how the risks vary by topic between Thailand and India. Do the risks in Thailand align with the issues you’ve come across with your existing supplier? Are the risks similar for the two new suppliers in India? Could you leverage existing work to support all suppliers, e.g. a gender risk or living wage program?

Key takeaways

One country can vary widely in how it manages different pillar (i.e. labour, health & safety, business ethics, and environmental) risks. Click on each pillar in the table to see how the global pattern of risk changes.

Topic risks can vary within one country. Click on any country and the table reveals they perform better on some topics than others. For example, perhaps the country is working hard to promote gender equality but struggling to manage energy and climate change risks.

Filter the map by sector and you’ll notice large changes in the global risk map: for example, the world looks much less risky if you select ‘education’ than if you select ‘construction’. Radar makes assumptions about the character of an industry globally: For example, construction is higher risk than education because it relies upon complex subcontracting, low-skilled labour, high labour intensity, physical labour and hazardous tasks.

Key message

Overall country risk scores are useful starting points, but you need to unpack the data to understand the risk environment in which your business or supplier operates.

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Pre-screen: Data Upload Radar Report IDs:

1.3 Country and Sector Risk: Upload 1.31 Explore the data

The Country and Sector Risk: Upload report allows you to compare supplier or business risks across the world, by country and sector, and by your leverage with a supplier. This is an essential step for new and existing Sedex members who have collected, or are starting to collect, supplier data in order to conduct a risk assessment, but have not yet asked their suppliers to register on the Sedex platform and complete an SAQ.

●

●●TIP: This section helps you prepare your supplier data to conduct an initial risk assessment of your supply chain.

With the Country and Sector Risk: Data Upload, you can do the following:

●● Prepare your supplier data in a Sedex template spreadsheet

●● Prioritise and analyse suppliers by criticality, proximity and spend

●● Compare supplier risks by sector, division and activity across all countries

How to upload your data

In order to analyse your supplier data, you need to enter it in a template and upload it. You can access the Excel template via the Download Template button in the report. This spreadsheet is a framework you can use to collect and organise your supplier data. You can add or remove information depending on what data your business collects about suppliers.

Step 1: Compare

At a minimum, to compare supplier risks, you need this data:

●● Supplier reference/ID (such as a reference number from your own system; or simply label 1,2,3… etc.)

●● Supplier country of operation;

●● Supplier sector (chose from the drop-down list). For a more detailed risk assessment, add the division or activity if known.

With this data, you’ll be able to compare all your suppliers by country and sector risk.

●

●TIP: The ID number that you enter in the data sheet corresponds to the ID number you see on the map.

Step 2: Prioritise

To exploit Radar fully, filter and prioritise your suppliers by adding this data:

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●● Spend (e.g. annual cost of purchasing avocados from Supplier X and Y)

●● Criticality (e.g. if Supplier X supplies 90% of your avocados, they may be a ‘critical’ supplier)

●● Brand proximity (e.g. if Supplier X supplies an ‘own brand / private label’ product it has closer brand proximity to the business, than Supplier Y, which supplies ‘branded’ items. This helps you to consider risks to workers and the environment alongside business risks.

●

●●TIP: Complete Step 2 to make your risk management process easier and more robust. Speak to buying teams to understand how they measure how valuable a supplier is to them.

Adding this data allows you to focus on suppliers that are most critical to your business and where you have the leverage to support improvement. For example, you will have more influence or ‘leverage’ over a direct supplier, where you spend a significant budget and have a long-term commercial relationship.

Map: Inherent risk and supplier data

Explore the dots on the map and the data table to compare risks and prioritise your suppliers.

●● In the global view, without any filters, you will see your entire supply chain and the table will summarise the average risk across all those suppliers.

●● In the global view, the dot represents all suppliers in one country; click on the dot, and you will zoom in to see individual sites and their risks.

●● Apply your filters at the top of the page (click on Criticality and Proximity categories, or slide to increase the Spend threshold), and you will see only your priority suppliers. The table will summarise their average risk.

●

●●TIP: Hover over the dot on the global map and it will tell you how many suppliers are in that country and their average inherent risk score.

Data Sheet: Inherent risk and supplier data

Download your Excel data sheet which contains all your supplier data (uploaded in the template) and all the inherent risk data (country and activity) for the 4 pillars and 14 risk topics. With this data, you can identify your priority suppliers that you want to complete the Sedex SAQ.

●

●●TIP: Don’t forget to download the Data Sheet during your session otherwise you will lose the data when you log out.

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FAQ: How do I prepare my supplier data for upload?

Question: I’ve been asked to map our supply chain to conduct a risk assessment. We have data for 500 suppliers, but it is not organised.

Action: Download the template from Download Template and enter your data. Give every supplier an ID and register its country of operation and activity. Collaborate with colleagues in procurement, contracts and health and safety, to work out what you buy from a supplier, how much you spend each year, your commercial relationship and how reliant you are on this supplier for business continuity. Enter this data in the spreadsheet, and then upload to Radar.

Next step: Use the map to filter and prioritise your suppliers and the table to analyse risks by pillar and topic. Download your data sheet which combines your supplier data with Radar risk data. Setting your own internal thresholds, you can organise your suppliers into groups designated with specific risk management actions (e.g. you may ask top priority suppliers to join Sedex and complete the SAQ).

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●●TIP: If you don’t know all the data for your suppliers, complete this exercise for your key suppliers and expand the exercise as you gather more information over time.

Key takeaways

Click on each supplier dot in the map to see how the risk scores adjust in the table. Don’t presume that a supplier in a lower risk country will always be low priority: It might engage in a higher risk activity. For example, an ‘own brand’ textile factory in the United Kingdom might be a greater risk priority than a call centre in India.

The better data you collect about suppliers, the easier it is to prioritise – if you have hundreds or thousands of suppliers you need to know where to start. By prioritising, you focus first on suppliers where the risks are greatest, and where you can be most effective in supporting improvement.

Key message

Invest time and effort to collect and prepare your supplier data because in the long-term, this data will make your risk management process both easier and more effective.

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Pre-screen: Commodities Radar Report IDs:

1.4 Commodity Risk

The Commodity Risk Tool is where you compare the risk of sourcing a specific good or commodity from different countries. It also provides support for businesses who are in the processing of mapping beyond their Tier 1 suppliers but have not yet identified where their commodities originate.

●

●●TIP: This tool helps you to identify four risks: child labour, forced labour, deforestation and conflict minerals risks – associated with producing a good or commodity in a certain country.

With this tool, you can do the following:

●● Explore whether 4 risks (child labour, forced labour, deforestation and conflict minerals risks) are associated with producing commodities in certain countries

●● Compare countries by commodity, export value (top-ten only) and by risk

●● Identify the risk of sourcing any goods or commodities (out of a list of over 160)

FAQ: Why do you only flag four risks for commodities?

We flag these risks because they can have severe negative impacts on people and planet, taking years to remedy. Forced labour and child labour are prohibited forms of labour which can result in severe and long-lasting harm to victims. The deforestation rate is key indicator of how a country protects the environment and is tackling climate change. Conflict minerals extraction is linked both to prohibited forms of labour and environmental harm. Identifying where these four risks might impact your commodity supply chain helps to ensure you are aware of the most salient risks in your supply chain.

How to compare commodity risks

Map: High-risk commodities

Hover over a country and a text pop-up will tell you whether that country exports any commodities categorised as ‘high risk’. To investigate, click on that country. If you select Bolivia, for example, the data table will update to list commodities exported by Bolivia – and the total value of exports if Bolivia is in the top ten world exporters of a commodity. Next to each commodity, the word RISK will flag whether that commodity production is associated with child labour, forced labour, deforestation or conflict minerals.

●

●●TIP: Export data is taken from the UN Comtrade database. The tool lists the top-ten exporters of a commodity. A country will be risk-flagged regardless of how much it exports.

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Table: High-risk commodities

Using the filters at the top of the page, select one or more commodity to analyse (e.g. coffee and cattle), and select, ‘all’ countries. The table will update to list the value of exports for the top-ten exporters of coffee and cattle, and any other countries where the four key risks apply to coffee or cattle production.

You can now see how the risk profiles of your commodities vary: for example, coffee production is most heavily linked to child labour, whereas cattle production is linked to multiple risks, including child labour, forced labour and deforestation.

●

●●TIP: The four risk flags in this tool are based on commodity-specific evidence specific. The data is based on public reports by international authorities such as the OECD, US DOL, Global Canopy and the Seafood Slavery Tool.

FAQ: How can I manage my commodity risks?

Question: We use blueberries in our yoghurts, but we don’t know which countries they come from yet. I know most come from Latin America – can I use the tool to check my potential risks?

Action: Using the filter at the top of the page, select blueberries in the commodity drop down list and click ‘all’ in the country drop down list. The data table will now list all countries that export blueberries – you can identify any exporting countries in Latin America and check if they receive a RISK flag for child labour, forced labour, deforestation and conflict minerals.

Next step: If the tool highlights a risk flag for blueberries produced in a Latin American country, you know that you need to prioritise mapping your Latin America blueberry suppliers, and once done, you need to prioritise risk assessing suppliers in the country that has a risk flag.

Key takeaways

If you identify a risk flag in a commodity you source, prioritise that commodity in your supplier mapping and risk assessment. Explore ways you can help to manage and mitigate the risk identified by supporting your suppliers, once identified, and by collaborating with local experts and organisations.

If a commodity receives multiple risk flags, this suggests the challenges in a country are more systemic. Managing your risks will be more challenging, but you can work closely with your supplier and also join existing work being done by other business, non-governmental organisations (NGOs) and governments in the area.

Key message

It can take time and resources to map the lower tiers of your supply chain and knowledge gaps are a risk. By helping you identify four key labour and environment risks, the tool helps you to prioritise where to map first and what issues to investigate.

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Glossary of Key TermsActivity: The economic or productive activity of the Sedex site, as entered by the site within the Sedex platform. Activities are taken from the International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 4 (UN DESA), which subdivides economic activities in a hierarchical, four-level structure.

Site activities are selected at the ISIC class’ level, which provides the greatest level of detail. In certain cases, Sedex has adapted the class level list to allow a greater level of detail to be captured.

Division: The second-highest level of classification within the ISIC structure. See ‘Activity’.

Human rights due diligence: An ongoing risk management process that a reasonable and prudent company needs to follow in order to identify, prevent, mitigate and account for how it addresses its adverse human rights impacts. It includes four key steps: assessing actual and potential human rights impacts; integrating and acting on the findings; tracking responses; and communicating about how impacts are addressed. (Source: Shift and Mazars LLP)

Inherent risk score: Inherent risk scores, produced on a scale of 0-10, where 10 is high risk, are a combination of Country, Sector and ‘High Risk Goods’ scores.

Mitigate: The act of preventing the impact from occurring or the likelihood of its occurrence, or reducing the impact or likelihood to acceptable levels.

Pillar: The four categories covered within the scope of Sedex: Labour standards, Health and Safety, Business Ethics, and Environment.

Radar: The brand name of the Sedex risk assessment tool.

Radar Report IDs: The name of the corresponding report(s) within Radar.

Risk: In human rights and environmental terms, risk refers to identifying adverse human rights or environmental impacts (e.g. forced labour, a pollution incident) and the probability that these impacts might occur. A risk is theoretical – it is something that may potentially occur - rather than a negative impact that has already occurred.

Risk assessment: The process of identifying possible risks, grading them and prioritising them by their relative importance.

Risk score: A score provided on a scale of 1-10 (where 10 is the highest, and worst score) with Radar to help users to conduct a risk assessment.

Risk topic: The risk scores in Radar cover 14 topics derived from the Sedex / SMETA clauses. Each topic falls under an overarching pillar. Risk topic is synonymous with risk issue.

Remediate: Where there are concrete examples of human rights abuses or environmental impacts, steps should be taken to put the situation right through remediation. This might involve apology, compensation, changing practices, or protection from further harm.

Salient risks: Those issues that should be seen as the highest priority.

SAQ: The Sedex Self Assessment Questionnaire – a set of questions completed by suppliers in the Sedex platform.

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Sector: The ISIC section; the highest level of classification within the ISIC structure. See ‘Activity’.

Site: A place that a company owns or rents for their company and where their employees work. Within the Sedex platform, users create a Site Profile which details the location of their sites and other key information, such their worker numbers.

Site risk score: A score derived from a subset of SAQ and Site profile information that provides data on physical characteristics of the sites and the types of workers present.

SMETA: The Sedex members’ ethical trade audit

Vulnerable workers: The most groups of people who might be impacted most by environmental or human rights abuses, in other words, groups that lack power or agency and therefore are most open to abuse or exploitation.

Radar Guidance v1.0

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