Information on HREDD approach in Fairtrade Standards
Fairtrade and HREDD
Respect for human rights is central to Fairtrade. Trade will not be fair until everyone involved cooperates and practices HREDD. While voluntary certification does not absolve companies of their own responsibilities, Fairtrade helps them build awareness of human rights, assess environmental risks, and ensure farmers and workers have a meaningful place at the table and are part of the solution.
If conducted fairly, HREDD can fundamentally shift human rights and environmental sustainability in global supply chains. However, if the costs of due diligence are pushed on smallholder farmers and workers, HREDD can deepen poverty and actually aggravate risks. Fairtrade calls for fair due diligence, based on dialogue with rights holders, fair cost sharing, collaboration and continuous improvement.
HREDD and Fairtrade Standards
Fairtrade has long supported and expected certified producer organisations to take some due diligence measures. The current consultation - which runs from 19 June to 17 August 2023 - covers our proposal to include the HREDD cycle in the Fairtrade Trader and Hired Labour Standards. We expect to follow this in 2024 with proposed changes to the Small Producer Organisations and Contract Production Standards.
- The revised Standards are intended to strengthen our due diligence expectations. The proposals put forward in consultation with all Fairtrade stakeholders aim to encourage dialogue, information sharing and collaboration. If agreed, we will implement them together with capacity building, training and programmes for farmers, workers and management.
- We have already published HREDD guiding documents for SPOs, HLOs and traders. Fairtrade is aware that establishing, implementing and maintaining HREDD systems comes at a cost, and we will strive to facilitate access to HREDD funding, including public and private funding and corporate partnerships. Future reviews of Fairtrade Premiums and Minimum Prices will also take the additional costs for HREDD into account.
- As is the case with any changes to our Standards, the consultation is public, inclusive and open to all stakeholders, and we will the publish summary results. Following the consultation, our Fairtrade Standards Committee - which includes producer, worker, trader and market representatives - will meet to agree any changes to the Standards.
Fairtrade’s inclusive bottom-up process ensures that any changes to Standards are in response to the realities experienced by producers, workers and traders. We understand that traders and producers want realistic, sustainable requirements which genuinely contribute to the protection of both people and planet and which encourage them to remain certified and improve their HREDD.
How we implement HREDD in Fairtrade supply chains
Fairtrade has a holistic approach to implementing HREDD in supply chains. We advocate for fair funding and cost sharing; we provide support, guidance, training and project work; and we include due diligence requirements in our Standards. Recently, we have:
- Included HREDD requirements in our Tea Standard for HLOs and a full HREDD cycle into the new Fairtrade Cocoa Standard and are now starting to incorporate HREDD into all our generic standards launched HREDD guides for small-scale farmers, plantations and traders.
- Published new independent research confirming that our approach to HREDD in supply chains is valuable and promotes multiple human rights.
- Developed a detailed digital risk map for companies to better understand HREDD challenges in their specific regions and supply chains.
- Lobbied the EU to adopt robust HREDD requirements into the Corporate Sustainability Due Diligence Directive (CSDDD).
The Trader and HLO Standard reviews focus on new and improved HREDD requirements. These changes could significantly affect you or your organisation.
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Key points Trader - HREDD
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Key points Hired Labour - HREDD
Why is my feedback important for Fairtrade and how do I get involved?
Your views are important! We invite you to participate in either or both of the surveys, depending on your role in the supply chain.
The Trader and HLO Standard reviews focus on new and improved HREDD requirements. These changes could significantly affect you or your organisation. It’s important your opinions are heard.
You are invited to participate in either or both of the surveys, depending on your role in the supply chain.
Trader, SPO and HLO representatives are all invited to contribute to the Trader Standard consultation. Feedback from pure traders is essential because they are directly affected; feedback from HLOs and SPOs is also important because they might sometimes also act as traders. In addition, it is likely the requirements for pure traders will also impact HLOs and SPOs as supply chain partners.
Feedback from HLO managers is key for the Hired Labour Standard consultation, as they are best placed to know what is feasible for their businesses. We also want to hear from workers and workers’ representatives who, as rights holders, can best judge if their rights have been adequately considered in the proposals.
Public Consultation - Fairtrade Standards Review on HREDD
19 Jun 2023
Fairtrade International’s Standards & Pricing kindly invites you to participate in the consultation on the Human Rights and Environmental Due Diligence (HREDD) in Fairtrade Standards for Hired Labour and for Trader organizations. For more informtion, please refer to the announcment letter below:
Consultation Period: From June 19 to August 17, 2023.
Synopses of Fairtrade Standards Review on HREDD
The following synopses documents aim to present the outcome of the consultation in the most transparent way possible without disclosing confidential stakeholder information:
EN | Synopsis HREDD in the Trader Standard
Revised Standards for Traders and Hired Labour Organizations on HREDD 2024
16 Apr 2024
During its meeting in November 2023, the Fairtrade International Standards Committee decided on a revised version of the Fairtrade Standards for Traders and Hired Labour Organizations which will be applicable as of 1 January 2025.
The revised Standards have increased their focus on human rights and environmental due diligence (HREDD) measures for companies to protect Human Rights and Environmental practices and to build a path of continuous improvement and collaboration among supply chain actors.
For more details, please see the announcement letter:
EN| Standards Announcement Letter
SP| Carta de anuncio de Criterios
Updated Interpretation Notes to the Hired Labour and Trader standards
15 Oct 2024
The Standards Unit at Fairtrade International seeks to inform you regarding the updates in the Interpretation Notes to the Hired Labour and Trader Standards.
For more details, please see the announcement letter:
EN| Standard Announcement on updated Interpretation Notes
ES| Anuncio estándar sobre notas interpretativas actualizadas
FR| Annonce standard sur la mise à jour des notes d'interprétation