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Supply chain transparency

Transparency can bring significant benefits for business and drive better outcomes for workers.

Why transparency is important

For workers’ rights

Transparency holds businesses accountable by revealing what is – and isn’t - being done to respect human rights. ETI has seen firsthand that when businesses are required to publicly disclose their human rights due diligence (HRDD) processes, these processes receive more attention and investment. This often leads to meaningful improvements for workers across supply chains. 

It also enables faster, coordinated responses during crises, as businesses sourcing from the same regions can collaborate more effectively,  shortening response times when workers need urgent support and remediation. Transparency enables workers themselves to access grievance mechanisms and hold companies accountable for working conditions.

For businesses

Transparency is no longer optional – it’s a necessity. Regulatory frameworks such as the CSRDD and CSDDD increasingly require it. Done well, transparency can strengthen a company’s competitive edge and safeguard its reputation. 

It facilitates collective action with civil society, trade unions and fellow businesses. It builds trust with investors, improves access to capital and strengthens supplier relationships through more efficient and sustainable sourcing. Transparency enables companies to hold a mirror to their own practices and improve their approaches.

Then

Back in 2015, ETI integrated transparency into our Perspective 2020 strategy, marking the start of our formal work in this area. We published our first documentation on transparency including the Business case towards greater transparency developed under the supervision of a tripartite advisory group of companies, NGOs and trade unions. These publications laid the groundwork for future efforts, highlighting both legal compliance requirements and the benefits of greater  transparency for companies.

And now

In 2021, we launched our Corporate Transparency Framework (CTF) outlining public reporting requirements for all ETI company members. Members commit to meeting these requirements and improving their practices. We work closely with  members to support them to meet these requirements.

Minimum requirements of ETI's Corporate Transparency Framework

1.1 Publish a statement articulating your company’s commitment to respect labour rights...

1.1 Publish a statement articulating your company’s commitment to respect labour rights in its supply chain activities, in line with the ETI Base Code.

1.2 Set out internal governance and accountability structures for managing human rights in supply chains. 

1.3 Describe how you have identified and prioritised human rights risks in your operations or supply chains.

1.4 Include a description of your supply chains1, including the geographical spread of production and/or sourcing, and locations of highest risk, and a list of first-tier suppliers on the Open Supply Hub.

1.5 Describe the company’s approach with regard to respect for trade union rights, including respect for freedom of association and collective bargaining.

1.6 Report on salient risks identified and plans made to mitigate risk.

1.7 Information in the public domain should describe the most up to date information at the time of publishing on all of the above requirements.

Get the full framework

Since 2024, company members have been required to publish their tier 1 suppliers directly on Open Supply Hub.

Before CTF, we felt that our annual assessments were divorced from the real work we do in our supply chain, and that they were merely a separate entity to comply with, rather than complement that work.

Through CTF's guidance, resources, and networks, we have seen an approach that not only captures and assesses the actual work we do with our suppliers, but also enhances and strengthens that work.

Consequently, we have already observed improvements in our relationships with suppliers, as well as an overall sense of improving and strengthening our human rights work.

Ken Edgar, ONE+ALL

Case study

Reporting against the CTF: ONE+All

ONE+All reflects on their efforts to meet ETI's Corporate Transparency Framework requirements.
Read more

Partnership with Open Supply Hub

Since 2024, all full ETI company members have been required to share their tier 1 supplier data directly via the platform. This collaborative tool makes data more accessible and actionable — driving smarter, faster, and more collective responses to human rights risks worldwide. We have built a partnership with Open Supply Hub and are working together to continue to improve transparency and drive progress on human rights in global supply chains.

To build safe and sustainable supply chains, we need harmonized approaches that make collaboration easier and more effective. The way that data is shared and leveraged is a critical part of powering that harmonization. 

The Ethical Trading Initiative is leading the way in this regard by mandating company members share their supply chain data on Open Supply Hub. This is a tangible commitment to making their corporate members’ supply chain disclosures as impactful as possible by ensuring their data is open and accessible, easy to layer over one another to find overlaps and opportunity, and available to potential collaborators within and outside of the ETI community.

Natalie Grillon, CEO & Executive Director, Open Supply Hub

Publication of company member performance 

In 2025, ETI published the performance of company members against the Corporate Transparency Framework for the first time. This significant step forward enhances both our members’ accountability and ETI’s own transparency - reinforcing our commitment to continuous improvement and public accountability.

Blog post

Pulling back the curtain: How ETI members are reporting on human rights

Orange cotton thread spools
ETI publicly shares how our company members are performing against the Corporate Transparency Framework (CTF).
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File(s)

ETI's Corporate Transparency Framework

Details the public reporting requirements that have been set out for all ETI company members. Sets out the minimum that is expected and shows how to move towards better practices.
Read more

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  • Human rights due diligence
  • Gender equity
  • Supply chain transparency
  • Grievance mechanisms & remedy
  • Union rights at work
  • Migrant workers
  • Child labour
  • A living wage for workers
  • COVID-19
  • Company purchasing practices
  • Modern slavery

Related content

  • Pulling back the curtain: How ETI members are reporting on human rights
  • Responsible purchasing practices in European legislation
  • Framework on Meaningful Stakeholder Engagement
  • Human rights due diligence in challenging contexts: Joint ETIs report
  • Human rights due diligence
  • Meaningful Stakeholder Engagement (MSE) in HRDD: ETI position statement

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