1. Non-legislation / Market driven requirements Engineering
August 2014

2. Non-legislation / market driven requirements
What are market driven requirements? Social requirements Product safety Environmental requirements
Centre for the Promotion of Imports from developing countries

3. Non-legislation / market driven requirements
What are market driven requirements? Social requirements Product safety Environmental requirements
Centre for the Promotion of Imports from developing countries

4. Social accountability
Legislation
Consumer / User
Health and Safety
Environment
E.g. Packaging, WEEE,
RoHS, Cadmium
CE Marking/HACCP
Social / Fair
Trade labels
SA 8000 / OHSAS
Certificate
Codes of
conduct
ISO 9000 series
EN / IS0
norms
ECO Labels IS
Quality
Social accountability
Market driven
Centre for the Promotion of Imports from developing countries

5. Market access requirements
(EU) Legislation:
(EU) Buyer Requirements:
Consumer Health & Safety
Social issues
Environmental Issues Product / packaging
Environmental issues Manufacturing
Direct impact
in the EU
Impact abroad e.g.
exporting country 5
Centre for the Promotion of Imports from developing countries

6. Company values Black Box Company policy Governments NGOs Clients
Legislative compliance:
- Consumer health and safety
- Environment
Black Box
NGOs
Company
policy
Public pressure:
- Replace dangerous chemicals
- Brands: responsibility for
supply chain
Purchase
requirements:
Social
Product safety
Environmental
Quality
Clients
- Products according to specs
- High quality assurance
Consumers
Consumer products
Expect:
Safe products
Good circumstances
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7. Why comply? Minimum requirements for becoming a supplier
Preferred supplier & Niche markets
Preferred supplier main stream markets
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8. Non legislative requirements
Most non legislative requirements deal with:
Quality Product / market / buyer specific
Social issues
Product safety
Environmental issues
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9. Non legislative requirements
These requirements are included in:
Sector Codes
Company Codes of Conduct
Supplier Declarations
Management systems
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10. Examples
The Volvo Group prefers to work with component suppliers, consultants, distributors and other business partners that share the principles expressed in this Code of
Conduct.
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11. Examples
Dutch sector association for the Metal sector SMEs in the Netherlands A CSR monitor to assist their members in integrating CSR in their policies and operations
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12. Examples
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13. Example of non-legislative requirements
NSK
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14. Centre for the Promotion of Imports from developing countries

15. Centre for the Promotion of Imports from developing countries

16. Centre for the Promotion of Imports from developing countries

17. Centre for the Promotion of Imports from developing countries

18. References, Management and performance
ISO 26000
ILO
OECD
GRI
ISO 26000
ISO 14001
OHSAS 18001
GRI
SA 8000
labels
References
Management
Performance
Disclosure and compliance
What is CSR?
What to do and how?
Continuous improvement
Centre for the Promotion of Imports from developing countries | September 2010

19. CSR References Reference ISO 26000 The international guideline for CSR
ILO
The basis for most labour related CSR initiatives
OECD Guidelines
Expectations of governments with regard to the behaviour of multinational enterprises
Global Compact
An international CSR initiative which companies can join
Centre for the Promotion of Imports from developing countries

20. ISO 26000 – Guidance on Social responsibility
Developed by developed and developing countries
To be used as an international reference on SR
What is (C)SR?
What do the issues mean?
What is expected from companies?
To be used as a guidance document
How to identify stakeholders?
How to implement CSR in the organisation?
Not for certification (self declarations)
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21. Companies use ISO26000 to develop their CSR policy
Including requirements for suppliers
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22. Social requirements
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23. Social requirements
Social issues have become increasingly important in international trade
Negative publicity on labour conditions may have an impact on your clients’ reputation and sales → your sales
It is not just about buyers’ requirements!
Improved labour conditions will positively impact productivity, recrutement and retention of high quality personel
It is a part of a responsible / decent business
Centre for the Promotion of Imports from developing countries

24. Social requirements - ILO
ILO Conventions
UN organization dealing with aspects of work
International labour standards
Governments are obliged to implement ratified Conventions in their own national policies.
Many social requirements on labour conditions by the private sector are based on the ILO Conventions
Which of the (185) ILO Conventions are being used by the private sector as market access requirements?
Centre for the Promotion of Imports from developing countries

25. Social issues – 8 core ILO Conventions
Right to union membership and to negotiate
Non-discrimination
Forced labour
Minimum age
Working hours
Equal remuneration
Minimum wages
Occupational Health and Safety
Centre for the Promotion of Imports from developing countries

26. Social issues – example of BSCI
Business Social Compliance Initiative
Focus on social issues + Compliance with environmental legislation
Based on ILO
One auditing system for the European retail and brands based on a common code ; no certificate
Suppliers that are audited will be included in the CBI database
BSCI members can use this database
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27. BSCI Over 1000 members: retail, brands and manufacturers
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28. BSCI Use the code as a benchmark for your organisation
Also look at other codes of conduct!
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29. Social issues – Conflict minerals
Due diligence and traceability
Partners:
Nokia, Blackberry, Philips, HP, Motorola, Tata steel, etc.
Centre for the Promotion of Imports from developing countries

30. Managing social issues: OHSAS 18001
Occupational Health and safety Assessment Series
A framework for managing occupational health and safety responsibilities
Tools to identify elements of your business that have an impact on health and safety
Designed for all sectors
Non-accredited certificates
Implementation is structured along the lines of ISO 14000
It is a tool to improve on OHS and show commitment
Centre for the Promotion of Imports from developing countries

31. Performance on social issue: SA 8000
International standard for working conditions
The first auditable social standard / independent
Standards: what is considered social accountability? & Requirements for a management system: implementation of the standards in business policy
Certification by means of independent verification
Applicable to all industries
Centre for the Promotion of Imports from developing countries

32. SA 8000 Standards based on ILO and other human rights conventions
9 core areas:
1. child labour
2. forced and compulsory labour
3. health and safety
4. free association and collective bargaining
5. discrimination
6. disciplinary pratices
7. working hours
8. remuneration (compensation)
9. management systems
(incl. supplier control and stakeholder engagement)
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33. Product safety requirements
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34. Product safety
Companies tend to require more than what is legally obligatory: risk management
Longer lists of hazardous substances
More stringent requirements
Pro active on legislation (e.g. SVHC in REACH)
Codes of Conduct
Substances restrictions
Centre for the Promotion of Imports from developing countries

35. Product safety - example
“Policies can be developed that may go beyond legislative compliance based on scientific evidence
and stakeholder consultation”
“Each supplier is required
to ensure product compliance with this list”
Centre for the Promotion of Imports from developing countries

36. Environmental requirements
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37. Environmental requirements
Focus of buyers on products
Design for recycling / Reuse
Use of hazardous substances (also as a result of RoHS, REACH, CE)
Biobased / circular economy / Cradle to cradle
Packaging
Transport
Centre for the Promotion of Imports from developing countries

38. Environmental requirements
Focus of buyers on processes
Emissions of hazardous substances
Energy use
Water use
Impact on biodiversity
ISO26000:
Prevention of pollution
Sustainable resource use
Climate change mitigation and adaption
Protection of the environment, biodiversity and restoration of natural habitats
Centre for the Promotion of Imports from developing countries

39. Environmental issues - example
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40. Environmental issues – example Volvo
Suppliers also responsible for sub-suppliers
Comply with applicable legislation
Have knowledge of Volvo’s policy
ISO or EMAS
Able to report on environmental work
Maintain an open dialogue with Volvo for improvements
Environmental data must be available on request
Chemicals and materials involved must meet Volvo standard requirements
Comply with REACH
Minimize impact of packing materials
Handle excess and rejected materials with minimal impact
Consider use of recycled/recyclable materials
Supply specified chemical and material content on request according to the International Material Data System
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41. Environmental issues - Philips
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42. Environmental issues - Management
ISO 14001
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43. ISO 14001
Why ISO 14001?
Improved perception of the key environmental issues by employees and a better (greener) public image of the organization
An increase in the efficiency and use of energy and raw materials
Improved ability to meet compliance with environmental regulations
Dependence on a system rather than just the experience and capabilities of an individual to manage the environmental function of an organization.
But: No guarantee for good environmental performance!
Centre for the Promotion of Imports from developing countries

44. ISO 14001
Market Impact
The standard is widely used in many countries; also without actual certification
ISO required / preferred by some buyers
Integration in Public green procurement (certification not required)
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45. Showing performance: environmental labels
Communication tool: Business to business or consumer
Mainly niche markets, increasingly mainstream in food
Mostly on products, not on components
Some environmental product labels in the EU
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46. Environmental labels
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47. Labels… How to use them? To use to identify key issues & best in class
To benchmark your products / processes
To show compliance with specific social & environmental requirements in the supply chain (B2B)
To show that you perform better than the competition
Some labels required by legislation (like CE)
Centre for the Promotion of Imports from developing countries

48. How to keep track?
Check for your products and potential export countries! Use the CBI website
Centre for the Promotion of Imports from developing countries

49. So what to do? Select initiatives relevant to your product or sector
2. Use self assesments & audits to benchmark your performance
3. Assess CSR Position and ambition
4. Use the tools to improve, comply and market
Centre for the Promotion of Imports from developing countries

50. And…..
To prevent yourself from running from one buyer requirement to another… develop your own Code of Conduct! Make sure your workers understand why CSR is important and integrate it in business operations You are not just doing it for the market! Efficiency, productivity, innovation & You want to run a responsible business
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51. Centre for the Promotion of Imports from developing countries