Process requirement 7
Excerpt from the contract clause
Supplier shall, if Supplier has caused or contributed to actual adverse impact, provide for remediation by
a) to the extent possible, restoring affected rights-holders to the situation they would have been in had the adverse impact not occurred and enabling remediation that is proportionate to the significance and scale of the adverse impact,
b) engaging in meaningful consultation with affected rights-holders or their representatives on appropriate remedy and
c) assessing whether affected rights-holders are satisfied with the process and outcome.
Remediation
If you have caused or contributed to actual adverse impact, you shall provide for remediation.
"Remediation and remedy refer to both the processes of providing remedy and the substantive outcomes that can counteract, or make good, the adverse impact. These outcomes may take a range of forms, such as apologies, restitution, rehabilitation, financial or non-financial compensation, and punitive sanctions (criminal or administrative, such as fines), as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition."
Even with the best policies and processes in place, you may cause or contribute to an adverse impact that was unforeseen or impossible to prevent. If such a situation arises, you shall actively work towards remediation—either independently or in collaboration with other actors.
However, if you have not caused or contributed to the adverse impact but are still linked to it, you are not expected to provide for remediation. Instead, you should use your leverage to influence the entity causing the adverse impact to remedy it, for example by asking questions.
Below is an illustration of this responsibility:
You shall have processes in place that enable remediation in cases of actual adverse impacts. Some companies have processes designed to address specific actual adverse impacts. The drawback of this approach is that it may lack a clear framework for less predictable situations. Therefore, it is beneficial to have a comprehensive remediation process across all areas of operation, which can be broken down into separate processes for, for example, employees and external rights-holders.
The appropriate procedure in a given case depends on several factors, including legal obligations, rights-holders’ preferences, access to remediation procedures, the nature of the impact, and whether the adverse impact occurs within your own operations or in the supply chain.
We have developed a template for mapping remediation procedures, which can be found below under Templates process requirement 7. It is not a requirement to use this template, just support.
In certain circumstances, it may also be most appropriate for the remediation process to be handled by a party other than the one causing or contributing to the adverse impact.
Restoring affected rights-holders
You shall, to the extent possible, restore affected rights-holders to the situation they would have been in had the adverse impact not occurred and enable remediation that is proportionate to the significance and scale of the adverse impact.
Restoring affected rights-holders to the situation they would have been in had the adverse impact not occurred is equivalent to remedying the adverse impact.
The phrase "to the extent possible" acknowledges that some harms — such as loss of life or limb due to corporate actions or omissions — cannot be fully restored.
What constitutes a proportionate remedy, in relation to the significance and scale of the adverse impact, must be assessed on a case-by-case basis in consultation with the affected rights-holders.
In the supply chain risk assessment template we have developed, which can be found below under Templates process requirement 7, we help you establish a remediation plan. We have also developed a corresponding template for your own operations. There is no requirement to use these templates. You can demonstrate that you meet the requirement to restore affected rights-holders in other ways.
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Instructions describing your remediation processes, either covering all areas of operation or divided between your own operations and the supply chain.
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Remediation plans for sample products.
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Meeting minutes where decisions on remediation have been recorded, for sample products.
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Remediation agreements for sample products.
Engaging in meaningful consultations
You shall engage in meaningful consultation with affected rights-holders or their representatives on appropriate remedy. The following can serve as guidance when assessing suitable remedy:
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Existing standards – In some cases, national or international standards and laws define what constitutes appropriate remediation.
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Precedents – If no specific standards exist, you can refer to previous similar cases and adapt your measures accordingly.
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Stakeholder preferences – The perspectives of affected individuals are crucial, particularly in cases of human rights violations. Listening to their needs and expectations can help ensure more relevant and fair remediation.
When existing standards, precedents and stakeholder preferences are not aligned, stakeholder preferences should be prioritised.
One example of an area where precedents exist is the reimbursement of recruitment fees to migrant workers, as a measure to remediate debt bondage. Below are two relevant guidelines:
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Instructions describing the consultations with rights-holders in the remediation process.
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Meeting minutes from consultations with rights-holders, for sample products.
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Documentation from mediation or rulings, for sample products.
Assessing satisfaction
You shall assess whether affected rights-holders are satisfied with the process and outcome.
The purpose of the evaluation is to ensure that the adverse impacts have been addressed and to gather lessons for future remediation efforts. The evaluation also sends an important signal to affected rights-holders that their opinions matter, which can foster dialogue and help prevent future issues from escalating or complaints from worsening.
Examples of methods that can be used to assess satisfaction include surveys and interviews. We have developed a survey template, which can be found under Templates process requirement 7. It is not a requirement to use this template. You can demonstrate compliance in other ways.
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Instructions describing the assessment of rights-holders' satisfaction with the process and outcome.
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Summaries of or reports from conducted assessments, for sample products.
