Sources: UNGP 16; UNGPRF C4.2: HRIB, 8.1.1; FLA, I.ER.24 

The company ensures coherence between its purchasing policies and practices and its human rights commitment(s)and pays suppliers in line with agreed timeframes and for the amount agreed in the payment terms as well as communicate production needs to suppliers ahead of time. The company also mitigates negative human rights impacts of its purchasing practices in planning, merchandising and costing. 

Note: This indicator is related to indicator B.1.7 but focuses on different aspects of human rights impacts in supply chains. This indicator focuses on how the company’s actions can impact human rights in the supply chain while B.1.7 is about how the suppliers’ actions (should) influence the company’s actions.