SLCP 2023 Annual Impact Report | Collecting Trusted Data to Drive Industry Change

In recent years, global uncertainty, economic turbulence, and supply chain disruptions caused by them have become persistent trends. These challenges increase the risk of human rights violations in the supply chain and also increase the demand for trustworthy data. At the same time, regulatory authorities are increasingly pushing companies to address human rights issues, coupled with rapid technological progress, providing opportunities for large-scale improvements in working conditions.

In this context, SLCP reviewed its progress in 2023 and released an impact report. The editor has organized relevant content for everyone, let's take a look together.

The adoption rate of SLCP has significantly increased

In the past 5 years, the adoption rate of SLCP has increased by 20 times. In 2023, more than 9000 assessments were conducted, covering 6.6 million workers worldwide and releasing potential resources of $26 million.

As of the end of 2023, 74 world leading brands, retailers, and standard holders have publicly pledged to accept SLCP data. More than 80% of contracted brands and manufacturers are able to replace proprietary tools with CAF.

Global applicability of SLCP

The Integration Assessment Framework (CAF) is regularly updated to meet stakeholder expectations and regulatory requirements, and its global applicability makes comparable data between supply chains possible. In the coming years, aligning with International Labour Organization conventions and national labor laws will continue to be a key priority for SLCP.

In 2023, 52% of evaluations were completed by small and medium-sized enterprises, reducing the audit burden on small facilities that often lack resources.

The applicable industries of SLCP have expanded, exploring the applicability of neighboring industry facilities (non clothing and footwear/leather) and the secondary industry, such as luggage and electronics.

The global coverage of SLCP has expanded, adding four new countries: Czech Republic, Japan, Lithuania, and South Africa.

Engage employees in accelerating change

In 99% of the facilities, the number of worker interviews conducted reached or exceeded the minimum number of worker interviews proposed in the Verification Agreement.

Half of the facilities involve worker representatives and/or workers in the self-assessment process, compared to only a quarter (24%) in 2022.

In July 2023, SLCP launched the Worker Involvement Technology Program (WE Tech), which allows businesses to further involve workers in the evaluation process.

Overview of SLCP 2023 Facility Evaluation

1. Non compliant data points

In 2023, most evaluations were conducted using CAF 1.5 version. Overall, there has been a 5% increase in legal non-compliance compared to the previous year. Health and safety remain the most illegal areas in CAF.

Compared to large facilities, small and medium-sized enterprises (SMEs) have more legal violations.

Compared to new facilities, the average number of users who reuse them does not comply with legal regulations is lower.

Enterprises that pay wages digitally are more in line with social and labor standards.

Not following working hours is a well-known issue in the global supply chain, and according to the survey results in 2023, it has not been resolved or improved.

The most common legal non-compliance data points for 2023 are shown below.

2. Step selection and facility compliance

Of the facilities evaluated in 2022, 75% underwent another SLCP evaluation in 2023.

In 2023, 49% of facilities underwent the Step 2 evaluation of SLCP. In addition to the International Labour Organization's core labor standards and national laws covered in Step1, Step 2 also includes management systems. Therefore, the analysis of Step 2 evaluation helps us to gain a better understanding of facilities with management systems.

33% of facilities have completed the SLCP assessment for Step 3, an increase of 7 percentage points from 2022.

Although Step 1 remains a key focus of social compliance coverage, more and more facilities are choosing to share more information in management systems (Step 2) and worker well-being and community impact (Step 3).

Partnership of SLCP

SLCP collaborates with numerous partners to achieve a greater shared vision.

1. International Trade Centre

SLCP collaborates with the International Trade Center (ITC) to enhance transparency and traceability in the sustainable value chain of the clothing and footwear industry.

2. Fair Wear Foundation

SLCP and Fair Wear have developed a joint activity checklist to improve working conditions in the supply chain, including upcoming work, to enable the Fair Wear Human Rights Due Diligence (HRDD) center to use SLCP data as a source.

3. Cascale

Cascale (formerly known as the Sustainable Clothing Alliance SAC) has fully accepted the Integration Assessment Framework (CAF) of SLCP. CAF is the backbone of Cascale's Higg FSLM module.

4. Better Buying Institute (BBI)

SLCP and BBI jointly provide data on social assessment convergence, and key issues related to the integration of social assessment and the implementation of CAF are included in the Better BuyingTM Procurement Practice Index every year.

5. Global Fashion Agenda (GFA)

SLCP has been an influential partner of the Global Fashion Agenda (GFA) since 2021, working together to leverage collective strength and promote industry integration.

Drive policy and brand influence

In May 2023, SLCP successfully launched the Human Rights Due Diligence Toolkit (HRDD), aimed at helping companies understand how SLCP evaluates how to support their implementation of mandatory HRDD and respect for human rights in the supply chain.

SLCP is considered a useful organization for policy implementation, with contracted brands using SLCP to identify human rights risks in the supply chain, monitor and track related progress, and conduct sustainable reporting.

SLCP was invited to attend the European Parliament and is considered one of the existing credible and effective MSIs in the textile industry to support the implementation of HRDD.

The emergence of mandatory HRDD and forced labor legislation means that different stakeholders are eager to find credible and actionable social and labor data, and SLCP can add value in the Corporate Sustainability Due Diligence Directive (CSDDD).

SLCP provides insights for Cascale and the policy center of EU advocacy work, by combining a set of social and labor data from SLCP with Cascale's overall industry experience and supply chain expertise, helping EU decision-makers understand the key challenges in the textile and clothing industry. Their cooperation has brought a unified voice and promoted meaningful policy changes. The new name "Collective Action at Scale" for Cascale is an example.

The 2023 SLCP signatory survey results showed that 96% of signatories supported the mission of the plan, and 92% of signatories used CAF. 88% of brand signatories used SLCP data from over 10 facilities.

Through this report, we can see that SLCP has a wide-ranging impact in reducing social audit duplication and unlocking resources, and the use of a common framework plays an undeniable role in promoting the improvement of global supply chain working conditions. The adoption of SLCP evaluation in factories is a global trend. Let's take action together and drive this industry transformation!