Retail–NC-v2009 IPpc91: Social equity within the supply chain

  • Strategies to promote social equity

    Encourage any and all members of the project team to promote and further social equity by integrating strategies that address identified social and community issues, needs and disparities among those affected by the project by:

    • Promoting fair trade, respect for human rights, and other equity practices among disadvantaged communities
    • Creating more equitable, healthier environments for those affected by manufacturing of the materials created for the project.
  • USGBC

    Excerpted from LEED 2009 for Retail: New Construction and Major Renovations

    IP Pilot Credit 91: Social equity within the supply chain

    Intent

    Encourage any and all members of the project team to promote and further social equity by integrating strategies that address identified social and community issues, needs and disparities among those affected by the project by:

    • Promoting fair trade, respect for human rights, and other equity practices among disadvantaged communities
    • Creating more equitable, healthier environments for those affected by manufacturing of the materials created for the project.

    Requirements

    This credit addresses social equity for those involved in the production of materials and products used in the project, including the stages of raw materials extraction, processing, manufacturing, and assembly of final components and products.

    Projects must use permanently installed products1 from at least 10 different manufacturers that meet one of the following options2.

    Option 1 – Supplier Assessment

    Establish and distribute supplier assessments or scorecards, which may include self-assessments, and document return of completed assessments from Tier 1 suppliers (or suppliers further up the supply chain) comprising 75% of each manufacturer’s total direct material spend for a consecutive 12-month period within the previous 2 years. Qualifying assessments must be from the manufacturer’s Tier 1 suppliers directly responsible for extraction of raw materials or the processing / manufacturing / sub-assembly of materials and products in the manufacturers’ supply chains. Brokers, distributors, inventory management providers, etc. to the manufacturer are not counted towards the credit, however, assessments may be passed through them to qualifying suppliers.

    The assessment must address at minimum the following social responsibility elements below3 :

    • No child / forced / bonded labor
    • Health and safety procedures and training
    • Right of freedom of association
    • Non-discrimination
    • Discipline / harassment and grievance procedures
    • Fair working hours and compensation
    • Anti-corruption and bribery

    Each assessment must be signed by the CEO or CFO of the qualifying supplier company (or the CEO/CFO’s designee) or must be verified by a third-party.

    Manufacturer must also complete an assessment that is signed by the CEO or CFO of the company (or the CEO/CFO’s designee) or complete an assessment that is verified by a third-party.

    OR

    Option 2: Code of Conduct

    Document completion and acceptance of a Supplier Code of Conduct, based on criteria from an internationally recognized social responsibility guideline or standard, by Tier 1 suppliers comprising at least 50% of each manufacturer’s total direct material spend1 for a consecutive 12-month period within the previous 2 years. Qualifying Tier 1 suppliers are those that are directly responsible for the extraction of raw materials or the processing / manufacturing / sub-assembly of materials and products in the manufacturers’ supply chains. Brokers, distributors, inventory management providers, etc. to the manufacturer are not counted towards the credit, however, assessments may be passed through them to qualifying suppliers.

    This Code of Conduct must address the total supply chain and the Tier 1 suppliers must require those in their supply chains to comply with this Code. The Code of Conduct must include at minimum the following social responsibility elements4 :

    • No child / forced / bonded labor
    • Health and safety procedures and training
    • Right of freedom of association
    • Non-discrimination
    • Discipline / harassment and grievance procedures
    • Fair working hours and compensation
    • Anti-corruption and bribery

    Each Code of Conduct must be signed by the CEO or CFO of the qualifying supplier company (or the CEO/CFO’s designee).

    Manufacturer must also complete a Code of Conduct that is signed by the CEO or CFO of the company (or the CEO/CFO’s designee) or must complete a Code of Conduct that is verified by a third-party.

    Submittals

    General

    Register for the pilot credit

    Credits 83-103

    Documentation / Submittals

    Option 1 (Supplier Assessment) – the following are required to document achievement of this credit
    1. For each manufacturer,

      1. a spreadsheet that lists:

        1. All Tier 1 suppliers
        2. Spending for each supplier (or percentage of total)
        3. Indication of whether or not supplier has submitted signed Assessment
        4. Total spending (for calculating 75% of total)
        5. AND

      2. 5 signed assessment documents that address criteria listed in the credit (additional assessments may be requested) AND
      3. Manufacturer’s signed assessment document
    2. OR

    3. For each manufacturer, documentation of certification under ANSI/BIFMA e3-2014e Furniture Sustainability Standard, including achievement of Section 8.7.2.1 plus submittal of a manufacturer policy on freedom of association.
    4. OR

    5. Other program approved by USGBC
    Option 2 (Supplier Code of Conduct)

    The following are required to document achievement of this credit

    1. For each manufacturer,

      1. a spreadsheet that lists:

        1. All Tier 1 suppliers
        2. Spending for each supplier (or percentage of total)
        3. Indication of whether or not supplier has submitted signed Code of Conduct
        4. Total spending (for calculating 50% of total) AND
      2. 5 signed Code of Conduct documents that address criteria listed in the credit (additional Code of Conduct documents may be requested) AND
      3. Manufacturer’s signed Code of Conduct
    2. OR

    3. For each manufacturer, documentation of certification under ANSI/BIFMA e3-2014e Furniture Sustainability Standard, including achievement of Section 8.7.2.2 plus submittal of a manufacturer policy on freedom of association.
    4. OR

    5. Other program approved by USGBC
    Survey Questions for Project Teams:
    1. What aspects of the credit were easiest? Most difficult? Impossible? What revisions would you recommend to address these shortcomings?
    2. Where is your project located? Did location make a difference in compliance with the credit requirements?
    3. Did location of suppliers make a difference in compliance with manufacturers’ requests for self-assessments or Codes of Conduct? Were manufacturers successful in obtaining these documents from suppliers in social equity “hot spots”?
    4. Were manufacturers already collecting any of this information? If so, for internal purposes or for other reporting (include other certifications, compliance with laws or regulations, etc.)?
    5. In addition to BIFMA standard with inclusion of freedom of association, are there other comparable standards that USGBC should consider as alternative compliance paths?
    6. If projects chose not to attempt this credit, was it because it was deemed to be too difficult or because it did not reflect their project’s goals or some other reason?

    1 This credit is consistent with definitions in the MR section. “Permanently installed building products” are defined as products and materials that create the building or are attached to it. If furniture is included in MR credit calculations, it may be included in this credit. Some specific products that are part of MEP systems but are “passive” (meaning not part of the active portions of the system) may be included in credit calculations. This allows flexibility for the optional assessment of piping, pipe insulation, ducts, duct insulation, conduit, plumbing fixtures, faucets, showerheads, and lamp housings. Special equipment, such as elevators, escalators, process equipment, and fire suppression, systems, is excluded from the credit calculations. Also excluded are products purchased for temporary use on the project, like formwork for concrete.

    2 Development of this credit was informed by ANSI/BIFMA e3-2014e Furniture Sustainability Standard.

    3 See definitions appended to the credit.

    4 See definitions appended to the credit.

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Feb 25 2017
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