SLCP data critical to sustainable development report

SLCP's Convergence Assessment Framework (CAF) is one of the tools that multinational companies with global supply chains can use to provide investors with data on social and labor conditions in their supply chains. For companies that want to show their social performance to investors, CAF is a pioneering tool, mainly for two reasons: its strict verification process and comparability of data output.

For investors who want to invest in companies with global supply chains, obtaining appropriate report data in places where it is not easy to obtain will bring additional burden. This may cause a gap between needs and capabilities.

Especially those companies with complex supply chains, such as those common in the clothing and textile industries, need reliable tools across national borders to make operational disclosure. This shows the demand of investors, because their sensitivity to sustainability risk is increasing, but the supply of comparable and reliable data has not kept pace.

SLCP's CAF can be a solution for companies seeking reliable disclosure of their human rights risks. As revealed by SLCP's 2022 credibility survey, 79% of SLCP stakeholders, including brands, manufacturers, MSI, civil society and audit companies, believe that CAF's data are trustworthy.

The CAF of SLCP is non-judgmental and captures objective data. This allows comparability and creates greater use for global investors who rely on cross-regional social and labor trends to make investment decisions. In addition, as the tool is a broad social assessment, it is very useful for companies that want to conduct baseline human rights disclosure according to the requirements of the reporting framework and index. It is also useful for investors who can compare risk and performance indicators when analyzing disclosure.