Ethical sourcing of products and materials

Scope

The Owner shall strive to source products and materials used in construction and/or operations and maintenance that are free from human rights violations such as forced labor, child labor, and unsafe working conditions. Based on the previously conducted risk assessment, the Owner shall enact the established action plan to address identified high-priority human rights risks. A mechanism for tracking responses and compliance shall be instituted. Ongoing adjustments of the action plan are outside the scope of this Activity.

Requirements

Act to Avoid Harm

01.

Comprehensive records of all products and materials from the high-priority list created in HRa1.2, which are used in construction and/or operations and maintenance, including their sources.
02.
For products and materials with high-priority human rights risks, verification that manufacturers are compliant with human rights standards by at least one of the following:
1. a.
  ensuring manufacturers possess relevant certifications or declarations concerning human rights (see Additional Resources below)
2. b.
  adopting technologies or systems to trace the origin of materials and ensure ethical sourcing
3. c.
  acquiring third-party verified documentation affirming materials are free from forced, bonded, or child labor connections

Benefit Impacted Parties

03.

Impacted Party engagement with NGOs, local communities, and workers to gather insights on identified manufacturers' practices, observable changes, and any concerns related to material sourcing.
04.

A mechanism to track responses, including periodic reviews, shall be established to monitor and continuously review compliance with human rights standards.

Contribute to Solutions

05.

Collaboration with industry peers, NGOs, and human rights organizations to share best practices and drive collective action against human rights violations in the supply chain.

Indicators

The performance indicator is the percentage of ethically sourced products and materials. The first context indicator is total number of products and materials ethically sourced. The second context indicator is the total number of workers positively impacted by ethical sourcing decisions.

To calculate the performance indicator:

The performance indicator is calculated as follows:

Identify and list all high-priority products and materials identified in the risk assessment in Activity HRa1.2.
Determine the number of high-priority products and materials that have been verified as ethically sourced.
Calculate the percentage of ethically sourced high-priority products and materials.

This is expressed mathematically as:

(Number of ethically sourced High-Priority items / total number of High-Priority items) x 100

Scoring

Outcome threshold

The objective is to achieve total elimination of child and forced labor in sourcing practices. Recognizing the current state of industry standards and inherent complexities within global supply chains, interim targets are established to acknowledge and incentivize incremental progress. It is understood that complete realization of this objective is a long-term endeavor, and these phased targets facilitate a structured approach towards its eventual achievement.

Points assignment

Points	Percentage Ethically Sourced
0 points	0-10% ethically sourced
3 points	11-30% ethically sourced
6 points	31-50% ethically sourced
9 points	51-70% ethically sourced
12 points	71-100% ethically sourced

Documentation

01.

List of financial, human, and material resources utilized for this activity.
02.

Detailed inventory logs of all identified high-priority products and materials used in construction and/or operations and maintenance, including their sources and accompanying certifications or declarations.
03.

Documentation or evidence of technologies, systems, or third-party verifications used to trace and ensure the ethical sourcing of high-priority materials.
04.

Records of interactions, communications, meetings, or consultations with NGOs, local communities, workers, industry peers, and human rights organizations.
05.

A system or tool used to track responses, compliance, and periodic reviews undertaken to ensure ongoing compliance with human rights standards.
06.

A list of all high-priority products and materials identified in the risk assessment, evidence of their ethical sourcing, and calculations demonstrating the percentage ethically sourced.
07.

Documentation showing total number of products and materials that have been ethically sourced and total number of estimated workers affected by ethical sourcing with an explanation of how it was estimated.

Guidance

On definition of ethically sourced

For the context of the SEAM Standard, ethically sourced is the deliberate selection and use of products and materials for which comprehensive records have been maintained and verified, ensuring their compliance with recognized human rights standards. This includes validation that manufacturers of said products and materials have no associations with practices like child labor, forced labor, and other human rights abuses. The sourcing process actively incorporates insights from NGOs, local communities, and workers and is continuously monitored and reviewed for adherence to these standards. The following certifications and third-party assurances are SEAM-approved:

SA8000® Standard (2025)
BRE: BES 6002 Ethical Labour Sourcing Standard (v1)
Cradle to Cradle Certification (v4.0) Social Fairness category
Forest Stewardship Council (FSC), FSC Chain of Custody certification
Initiative for Responsible Mining Assurance (IRMA-STD-001)
Copper Mark Certification
ResponsibleSteel Certification (v3.0)
Natural Stone Sustainability Standard (ANSI/NSC 373)
Fair Stone Standard (4th Edition)
Global Organic Textile Standard (GOTS)
World Fair Trade Organization’s Fair Trade Standard (v4.2)
Fair Rubber
Better Brick Nepal
Concrete Sustainability Council
Xertifix Standard, Plus, and Plus Factory Only Certification
SMETA Third-party social audit

Referenced Source

UN Guiding Principles on Business and Human Rights (2011)