STTI - Sustainable Terms of Trade Initiative

🗞️ Key Outcomes of LIC Community Reveal Lessons on Purchasing Practices🗞️ The Learning and Implementation Community (LIC) has been addressing industry-wide challenges through practical group discussions and collaborative feedback sessions involving manufacturers and brands. Recent evaluations reveal that the insights gained from these sessions have been equally valuable for all participants, including brands, retailers, and manufacturers.   Check out the concrete key outcomes in the latest STTI press release, available under: https://lnkd.in/dzbahCWf   Building on the success summarized in the press release, the community will now focus on finalizing the Accountability Framework on Responsible Purchasing Practices in collaboration with STTI and other sector stakeholders. #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #SupplyChainAct #accountabilityframework

⏱️Last Chance to help shape the Accountability Framework⏱️ The Accountability Framework for Responsible Purchasing Practices is being developed to provide sector stakeholders with industry-wide, accepted guidance for holding brands and retailers accountable for RPP. To ensure the framework aligns with the needs of manufacturers, MSIs, regulators, and retailers, we invite you to help shape this future industry reference point. Until next Monday, you can contribute to the development of this new standard for implementing responsible purchasing practices. This includes establishing benchmarks that inform existing accountability mechanisms and their success indicators. Don’t miss the chance to make an impact—share your feedback on the document below by emailing info@cfrpp.org. #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #SupplyChainAct #PublicConsultation

🧩Action to Prevent Labor Abuse Left to Industry Actors 🧩 Labor abuse cases can be a difficult bottleneck on the path to commercial compliance. A recent report by Transparentem sheds light on the hazards of labor abuse and highlights the risks posed by inadequate due diligence. While the article emphasizes the importance of brands understanding their production lines, the author delves deeper into corporate responsibility in cases of abuse. They quickly uncover the role of brands in contributing through harmful purchasing practices. Practices such as pushing down prices, delaying payments, or demanding unrealistic production lead times can pressure suppliers to cut costs or source materials from sub-suppliers. To protect manufacturers and their employees, STTI provides a list of recommendations designed to ensure smooth production and payment processes. For actionable steps, such as requiring capacity availability confirmations or managing order modifications effectively, view our key recommendations here: https://lnkd.in/dZQQCuwg #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #SupplyChainAct #Keyrecommendations #action #calltoaction #labourrights #compliance

📝 Accountability Framework – Invitation for Public Consultation 📝 In collaboration with STTI, the working group on Responsible Purchasing Practice has drafted an Accountability Framework which aims to set clear expectations for what constitutes responsible purchasing. At STTI, we were happy to join a valuable discussion on this through the LIC event of last week and we are busy working on our feedback on the document. Now, we would like to invite you to further shape the framework, and thus, the future of responsible purchasing with your feedback! Until the 16th of December, you can submit your opinions to the website below and ensure that the proposed efforts are actionable and aligned with the current industry needs. All necessary information can be found under: https://lnkd.in/eQv9Pwmy Please don’t hesitate to reach out to info@cfrpp.org, who provide guidance on the feedback process. #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #SupplyChainAct

🥇Responsible Purchasing Practices - Event Recap 🥇 Last week, the Responsible Purchasing Practices (RPP) Learning and Implementation Community (LIC) shared their knowledge after two years of collaboration, engagement, and cross-party discussions between brands and manufacturers.   During the event, both sides expressed feeling empowered by their participation. Brands gained awareness of suppliers’ challenges and the impacts that last-minute changes, delayed payments and discounted pricing have on individuals in the supply chain. Conversely, manufacturers developed a better understanding of brands’ perspectives, market trends, and the demands of today’s customers. They discussed practical solutions together and a number of brands shared stories of the positive changes they had made to their purchasing practices in response. These adjustments ultimate help bridge gaps between the two parties, building more trust and partnership. For more information on the framework, check out: https://lnkd.in/eMdmY7Yi #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #CorporateResponsibility #SustainableSupplyChain #LessonsLearned #LearningandImplementationCommunity #LIC #CFRPP

⏰ Last Chance to Register ⏰ This Wednesday, the Learning and Implementation Community (LIC) is finally sharing their knowledge and best practices for improving purchasing practices.   During this unique event, local industry actors will share the expertise they have gained through two years of working towards responsible purchasing practices. If you want to learn from them, you can still register here: ➡️ https://lnkd.in/evih7HRv ⬅️ Starting at 3pm CET (8pm Dhaka Time), LIC is inviting you to learn from each other and discover realistic and actionable steps towards responsible purchasing practices. The actors that are revealing their practices on Wednesday have approached sector challenges using the “Common Framework for Responsible Purchasing Practices”. This framework has been developed based on the recommendations of STTI and other Networks.   If you are not able to attend, please check out the Framework below. #STTI #STTInow #SustainableTermsofTradeInitiative #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #LessonsLearned #EventInvitation #Expertopinion #Learnings #Challenges #KnowledgeSharing

⚖️ Compliance to German Supply Chain Act Still Hard to Examine, Leaving Industry Actors to Implement Responsible Purchasing ⚖️ A recently published article by the German independent newspaper TAZ reports on the implementation and challenges of the German Act on Corporate Due Diligence Obligations in Supply Chains. The law aims to improve human rights and environmental standards across various industries and applies to companies with headquarters or branches in Germany. Since January 2023, buyers must ensure that their supply chains meet due diligence requirements. Despite the law’s intention, NGOs fear that it may not lead to significant change, as companies largely continue to self-regulate, leaving industry actors with the responsibility for adhering to the law. Although responsible purchasing should be a universal concern, two German NGOs and a Bangladeshi workers' association had to file the first complaint just three months after the law's enforcement. Together, they accused two major brands of failing to improve their safety standards; the brands, in response, claimed they had their own standards. To minimize the disadvantages for all parties involved, it is crucial to implement responsible purchasing practices collaboratively and prior to violating the law. While the German act has motivated some companies to engage with relevant associations for the first time, adhering to the countries due diligence obligations still appears intimidating to others. Fortunately, manufacturers and associations within STTI have collaborated to make responsible purchasing practices realistic and straightforward. STTI offers a range of resources, such as online training videos, papers, and a simple list of recommendations, all of which can be found on the STTI website and enable the sector to improve collectively. If you would rather learn directly from industry experts who have implemented STTI's recommendations and are sharing their insights and challenges, you are invited to register for next week's online event here 📫https://lnkd.in/evih7HRv 📬 #STTInow #STTI #SustainableTermsofTrade #PurchasingPractices #ResponsiblePurchasing #ResponsiblePurchasingPractices #CommercialCompliance #Sustainability #GlobalSupplyChains #LkSG #CorporateResponsibility #SupplyChainAct #LessonsLearned #Invitation

🎯 Join us on the 13th of November to learn about the best practices of successfully implementing Responsible Purchasing Practices! 🎯 📫Register here: https://lnkd.in/evih7HRv 📬 Implementing and managing tools for more responsible purchasing practices can be a tedious process. The Responsible Purchasing Practices Learning and Implementation Community (LIC) has been working on guiding the industry towards practical and realistic solutions. For this, they are making use of the Common Framework on Responsible Purchasing Practices which functions as a reference point for improving current approaches and is based on recommendations made by STTI and other organizations. LIC attempted to further refine the shift towards responsible purchasing by creating a peer-learning community that fosters collaboration and knowledge-sharing. For this, they have brought together 35 experts, brands, retailers and manufacturers, who shared the ambition to actualize their beliefs and create realistic tools. For two years they continuously came together to exchange their successes and challenges, develop assessment strategies and finally, streamline their efforts. Now, this journey is coming to an end and the group is coming together one last time to share their best practices in a public online event. On November 13th from 3pm CET, you can receive crucial know-how from industry insiders, who share their most efficient tools, recent progress and lessons-learned from implementing responsible purchasing practices over the past two years. Registration is mandatory to don’t forget to Register through the link above❗   #STTInow #PurchasingPractices #CommercialCompliance  #ResponsiblePurchasing #Sustainability #GlobalSupplyChains   #CorporateResponsibility #Supplychainact #LkSG #CSDDD #bestpractices #lessonslearned #CFRPP    

📬 “$10 million remains unpaid since April 2020“– Those are not the purchase practices that we hope to see! 📉 A recent article by The Business Standard reported on a legal dispute between a group of Bangladeshi garment exporters, called the Debenhams Vendors Community and their shipping carrier Expo Freight Limited (EFL). The Debenhams Vendor Community claims that EFL owes them over $10 million in unpaid dues for clothes that they exported to Debenhams retailers in the UK. Debenhams had filed for bankruptcy back in April 2020 and initially owed their suppliers about $70 million. Since they paid around $60 million back, but $10 million is still outstanding to Bangladeshi suppliers. During a time when responsible purchasing practices are more crucial than ever, we at STTI are disappointed to see bills from over four years ago have yet to been paid. Suppliers that are part of STTI have formulated realistic responsible purchasing practices that were designed to avoid situations like this. Brands that implement, for example, standard payment timeframes, clear procedures on order modifications, and transparent forecasting have the power to keep all parties on the safe side. STTI is calling on the sector to educate themselves on how to apply commercial compliance and thus foster level-headed relationships within the industry. Our White Paper below offers straightforward recommendations to reach this common goal. If you would like to have a quick look at key recommendations, please check out the resource page on our website: https://lnkd.in/dZQQCuwg #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #GlobalSupplyChains #CorporateResponsibility #Supplychainact #LkSG #purchasingpractises

📊 Survey Delivers Mixed Results on the implementation of the Supply Chain Act 📊      In August, the Chamber of Commerce and Industry (IHK) in Düsseldorf, Germany presented the results of their second survey, investigating the implementation of the German Supply Chain Act (LkSG). The LkSG aims to prevent human rights violations and environmental harm in companies with at least 1000 employees and their suppliers. The initial first survey revealed that not only large, but also many small and medium-sized companies perceived the LkSG as a burden.     One and a half years later, the second survey, which involved approximately 170 companies, reports on a similarly mixed picture. 🔍     Challenges/Key Findings:  Implementation Status: Over 2/3 of the surveyed companies feel like they have mostly fulfilled LkSG requirements  Compliance: Nearly 90% of the companies with under 1000 employees also aim to meet requirements, this is largely due to their consumer demands for more sustainable practices as well as preparation for the CSDDD  Burden Perceptions: Many companies view the LkSG as a bureaucratic burden, citing high costs and administrative challenges  Staffing Needs: Almost 50% of the larger companies had to create at least 2 additional full-time positions for managing LkSG implementation    While challenges in implementation dominate, many continue to see positive opportunities in the implementation of the LkSG. Here, the focus is on reputation and corporate values, as well as showing responsibility and managing suppliers more efficiently. 💡  To ease the implementation of the LkSG, there are continues efforts to simplify reporting, organize training and encourage collaboration among industry stakeholders.   An especially strong driver for this is the implementation of responsible purchasing practices. For concrete recommendations of those, check out our STTI Resources on: https://lnkd.in/gWkuuChB , where we introduce different measurements as well as training videos and other actionable steps!  For a more detailed assessment of the survey: https://lnkd.in/gZQVPt96 #STTInow #PurchasingPractices #CommercialCompliance #ResponsiblePurchasing #Sustainability #GlobalSupplyChains #CorporateResponsibility #Supplychainact #LkSG #STTI