1
ADDRESSING FORCED LABOUR AND
HUMAN TRAFFICKING IN UN SUPPLY
CHAINS
Guidance for UN Staff
19 September 2022
CEB/2022/HLCM/19
2
CONTENTS
Executive Summary ............................................................................................................................................... 4
1. About this Guidance .......................................................................................................................................... 8
1.1 Structure and logic of the Guidance ............................................................................................................
9
1.2 Who should use this Guidance? .................................................................................................................. 9
2. Background and concepts ................................................................................................................................ 12
2.1 Defining forced labour and human trafficking .......................................................................................... 12
2.2 UN commitments to combatting forced labour and human trafficking in its supply chains ..................... 14
2.3 Human rights due diligence and procurement .......................................................................................... 16
2.4 UN procurement objectives and values .................................................................................................... 18
2.4.1 Sustainable public
procurement
......................................................................................................... 18
2.4.2 Aligning UN procurement with UN commitments on forced labour and human trafficking .............. 20
3. Addressing Forced Labour and Human Trafficking in the Procurement Cycle .................................................. 24
3.1 Risk identification, assessment and management .................................................................................... 25
3.1.1 Identifying forced labour and human trafficking risks ....................................................................... 26
3.1.2 Assessing and mitigating risks ............................................................................................................ 29
3.2 Sourcing .................................................................................................................................................... 31
3.3 Supplier registration and the UN Global Marketplace (UNGM) ................................................................ 35
3.4 Requirements definition ........................................................................................................................... 36
3.5 Supplier
qualification
.................................................................................................................................. 40
3.6 Evaluation and award criteria ................................................................................................................... 42
3.7 Contractual provisions .............................................................................................................................. 46
3.8 Contract management .............................................................................................................................. 51
3.8.1 Supplier dialogue during contract implementation ........................................................................... 53
3.8.2 Supplier monitoring ........................................................................................................................... 54
3.8.3 Corrective action and
disengagement
................................................................................................. 59
3.9 Sanctions ................................................................................................................................................... 63
3.10 Actions to take when a forced labour or human trafficking issue arises ................................................. 65
4. Cross-cutting
considerations
............................................................................................................................. 67
4.1 Remedy for victims and survivors of human rights
abuses
........................................................................ 67
3
Note:
This Guidance and the resources contain examples of current practice and are not to be construed as an
endorsement of any nature nor are they intended to modify the existing commitments, responsibilities
and obligations of UN Organizations. This Guidance is designed to support UN Organizations and is not a
standard for UN Organizations to be measured on.
4.2 Supplier engagement and support ............................................................................................................ 71
4.3 Emergency procurement ........................................................................................................................... 77
4.4 Support for UN personnel ......................................................................................................................... 81
4.5 The role of donors and national stakeholders ........................................................................................... 84
4.6 Reporting................................................................................................................................................... 86
Annex 1 - Glossary of Terms ................................................................................................................................ 87
Annex 2 - Reporting ............................................................................................................................................. 89
Annex 3 – Additional resources ........................................................................................................................... 91
Annex 4 – Case studies ........................................................................................................................................ 95
Case Study 1 – A full procurement cycle approach in practice at the OSCE ..................................................... 95
Case Study 2 – Sustainable procurement at UNOPS ........................................................................................ 99
Case Study 3 – Social audits at the UNHCR .................................................................................................... 101
Annex 5 – Suggested
Clauses
............................................................................................................................. 103
End Notes .......................................................................................................................................................... 107
Acknowledgment
This Guidance document was developed by the UN High Level Committee on Management Procurement
Network (HLCM-PN) Task Force for the Development of a Joint Approach to Combatting Human Trafficking
and Forced Labour in Supply Chains, with the support of the Danish Institute of Human Rights (DIHR) and
University of Greenwich.
For the purposes of this Guidance, the term UN Organization(s) refers to all bodies in the UN system,
covering i) UN Funds and Programmes, ii) UN Specialised Agencies, iii) Other Entities and Bodies, and iv)
Related International and Regional Organizations.
Document Number: to be added
Copyright: to be added
4
Executive
Summary
The elimination of forced labour and human trafficking is a central challenge for the international
community. According to the International Labour Organisation (ILO) 40.3 million people are in modern
slavery, which includes those in forced and bonded labour, child labour, victims of human trafficking and
those subjected to domestic servitude and forced marriages. Forced labour and human trafficking are not
confined to some countries or sectors, they are a universal issue, and occur both behind closed doors and in
plain sight.
With United Nations (UN) procurement of goods and services (including works) totalling USD $22.3 billion in
2020 from suppliers in over 200 countries and territories around the world, the UN supply chains are at risk
of instances of forced labour and human trafficking. This risk is present throughout the procurement cycle
and should be addressed from the level of policy through to implementation.
The UN Security Council Resolution S/RES/2388 calls upon UN system organizations to enhance transparency
in their procurement and supply chains and step up their efforts to strengthen protections against trafficking
in persons in all UN procurement. The UN General Assembly Resolution 76/7 urges the Secretary-General to
ensure that UN procurement does not contain goods and services produced by trafficked persons, and
ECOSOC Resolution 2021/25 requests that UN agencies ensure that UN procurement is free from trafficking
in persons.
In order to have an effective impact in mitigating this risk of forced labour and human trafficking in
UN supply chains, UN procurement policy should reflect this responsibility throughout UN system
organizations. This Guidance has been developed on the basis of the UN recognition of the need to work
collaboratively with its suppliers and across all UN Organizations to effectively address the risks of forced
labour and human trafficking in its supply chains. This Guidance reflects the UN’s commitment to establishing
a common approach applicable to all UN Organizations and any entity contracting with an Organization
within the UN for the provision of goods or services to tackle the risk of forced labour and human trafficking
in UN supply chains in a collaborative manner. The Guidance is relevant for procurement staff, legal staff,
compliance and oversight staff, requisitioners/ contract managers, policy leads, and human trafficking and
forced labour experts.
The following sections highlight main points to guide staff through their efforts to address forced labour and
human trafficking in UN procurement.
Addressing risks of forced labour and human trafficking is integral to the role and mandate of the UN
The UN should serve as a role model with the duty to respect international human rights standards and
contribute to the protection of the rights of workers. In many contexts, UN Organizations have considerable
influence in certain markets due to the scale of their procurement activities.
Through their purchasing function, UN Organizations can not only promote UN values to the market, but also
support their implementation, thereby shaping business practices worldwide. By adopting forced labour and
5
human trafficking considerations when undertaking procurement activities, UN Organizations can contribute
to developing best practices. They too have significant leverage, i.e. the ability to influence the behaviour of
their suppliers and those in their supply chain. In other words, UN Organizations can and should require their
suppliers to contribute to UN efforts to combat forced labour and human trafficking. Find more details in
section 2 of the Guidance on Background and Concepts.
A process of human rights due diligence is central to addressing forced labour and human trafficking in UN
procurement
Human rights due diligence is a risk management process detailed in the UN Guiding Principles on Business
and Human Rights (UNGPs). By undertaking human rights due diligence, an organization can identify,
prevent, mitigate and account for human rights impacts that it may cause or contribute to through its own
activities, including those which may be directly linked to its operations, products or services via its
commercial relationships. Introducing measures to address the risk of forced labour and human trafficking
into risk management and procurement activities is one of the essential ways UN Organizations may conduct
human rights due diligence in their supply chains.
The risk of forced labour and human trafficking in UN procurement should be addressed across the
different stages of the UN procurement cycle from policy, through to planning, tendering, and contract
management
Having policies to address the risk of forced labour and human trafficking in UN supply chains is the first step
in responding to these challenges. These policies should include the identification and the assessment of
these risks specifically in relation to the UN Organization’s supply chain. Once this has been done, measures
to require suppliers’ respect for human rights can be defined, prioritised, and included in different stages of
the procurement cycle to prevent these risks from becoming realities.
Although certain parts of the procurement cycle can appear as the most appropriate phase for planning or
intervention, it is fundamental to consider the whole procurement cycle so that the different stakeholders
can be identified and engaged during the procurement process.
It is necessary to approach this strategically, so that forced labour and human trafficking risks are managed at
an early stage of sourcing and the most appropriate supplier can be selected through a competitive and
rigorous selection process.
It is important to implement approaches and requirements that respond to the forced labour and human
trafficking risks identified, and are appropriately weighted and communicated to the market. Furthermore,
consideration is to be given to how these requirements will be monitored and managed throughout the life
of the contract.
Ongoing engagement with suppliers through review meetings, progress reports, improvement
programmes, key performance indicators (KPIs), and in some cases site inspections and audits, allow for
forced labour and human trafficking risks to be identified at an early stage. Through monitoring, a UN
6
Organization can evaluate how a supplier is strengthening its own due diligence processes to address such
risks.
For more information on these points as well as examples of current practices in UN Organizations, see
section 3 on Addressing Forced Labour and Human Trafficking in the Procurement Cycle as well as section 4
on Crosscutting Considerations.
Cooperation and collaboration among UN Organizations is key to addressing the issue
Cooperation and collaboration are necessary to increase leverage, share costs, reduce administrative
burdens, realise economy of scale, and share good practice. UN Organization collaboration also means that
suppliers receive the same message and fair treatment from different UN Organizations promoting common
standards on forced labour and human trafficking for supply chains. Examples and guidance on this can be
found throughout the Guidance.
Victims and survivors should be at the centre of remediation efforts
Forced labour and human trafficking are serious human rights abuses which have profound and long-lasting
effects on victims and survivors. Those who suffered harm are to be at the centre of measures to address
forced labour and human trafficking, and efforts should be made to facilitate their access to effective remedy
where abuses occur, in line with international standards and the applicable referral procedures in the
concerned country.
Where suppliers to UN Organizations are found to have engaged in practices that may lead to forced labour
and/or human trafficking, continued engagement is preferable, because it allows for the instances of abuse
to be addressed and ideally would result in an improved situation for victims. However, where
a serious violation by the supplier is identified and/or there is no genuine interest from the supplier to
address the situation, then disengagement, contract termination and engagement with authorities on
remedy may be necessary. For more information, see the Background and Concepts section 2 of the
Guidance, as well as section 3 on Addressing Forced Labour and Human Trafficking in the Procurement Cycle
and section 4 on Crosscutting Considerations.
Long lasting change relies on capacity, knowledge, engagement and collaboration
Engagement, collaboration and capacity building and development are key to addressing the risk of forced
labor and human trafficking in UN supply chains. This is relevant for all actors involved:
- UN Organizations should provide support to suppliers on how to address the issue in their own
operations and with their suppliers and contractors;
- UN Organizations should provide personnel with the required knowledge and capacity to engage
with suppliers and other stakeholders on forced labour and human trafficking;
- UN Organizations should share good practice and collaborate with one another, communicating this
as a priority for the One UN to the market; and
7
- UN Organizations, as and where appropriate, should share costs and potentially reduce
administrative burdens and realise economies of scale.
Communication and transparency are central to learning and continuous improvement
Exercising human rights due diligence requires not only assessing and addressing human rights risks, but also
communicating the actions taken. Reporting and publicly disclosing a UN Organization’s actions and progress
in contributing to the fight against forced labour and human trafficking is a fundamental element of human
rights due diligence in supply chains. UN Organizations are encouraged to report annually on how they are
implementing human rights due diligence in their own procurement activities. Guidance on reporting can be
found in section 4 on Cross-cutting Considerations with the accompanying annex 2.
8
1. ABOUT THIS GUIDANCE
The elimination of forced labour and human trafficking is a central challenge for the international
community. Equally, the management of supply chains and their impact on human rights is key to making
progress towards the milestones established in the 2030 Agenda for Sustainable Development.
The 2020 Annual Statistics Report on United Nations Procurement highlights that collectively the 39 UN
Organizations which report procured goods and services (including works) totalling USD $22.3 billion. The
scope of goods and services purchased by UN Organizations varies widely, ranging from health and medical
equipment, food and farming, transportation and storage, IT and communications equipment, to a multitude
of different services. It additionally covers large scale infrastructure projects, the commissioning of niche
scientific testing equipment, the buying of common goods (such as stationery, furniture, and internet
services), as well as goods and services procured during emergencies.
Through its procurement, the UN can encourage and influence sustainable business practice and contribute
to the prevention of forced labour and human trafficking in its supply chain. As large consumers, UN
Organizations have the purchasing power to (i) set standards that encourage businesses to further respect
human rights, (ii) promote accountability, and (iii) support remedy for victims. Recognising this, in 2017 the
UN Security Council called upon United Nations system organizations to enhance transparency in their
procurement and supply chains and step up their efforts to strengthen protections against trafficking in
persons in all United Nations procurement.
This Guidance identifies how the risks of forced labour and human trafficking in UN supply chains can be
addressed across the different stages of the procurement cycle from policy, planning, and tendering through
to contract management. It provides a practical guidance to all UN staff on how to identify and take action on
forced labour and human trafficking in UN supply chains, supplemented by good practice examples of how
UN Organizations and others are currently addressing these issues.
The Guidance is part of the Policy Framework to Combat Forced Labour and Human Trafficking in UN Supply
Chains.
9
• In this section you can find guidance on how
to address forced labour and human
trafficking in the UN procurement cycle.
Addressing forced labour and human
trafficking in the procurement cycle
• There are several considerations which are
relevant across the whole procurement cycle,
at multiple stages. In this section you can find
further guidance on these considerations.
Cross-cutting considerations
Green boxes are policies, -
procedures and practices that
apply to all UN Organizations
Blue boxes are policies,
procedures and practices of
specific UN Organizations
Yellow boxes are policies,
procedures and practices from
other sources
Pink boxes include reference
to the most recent versions
other elements of the draft
Policy Framework to Combat
Forced Labour and Human
Trafficking in UN Supply
Chains
1.1 Structure and logic of the Guidance
This Guidance is structured as follows:
N.B. use the colors above to navigate in this Guidance. Each page of sections of the Guidance has borders
that are the same colors as indicated above.
Throughout the document text boxes have been included that provide the following content:
1.2 Who should use this Guidance?
This Guidance can be used by UN staff in different roles across the UN system. Given the specificities of each
UN Organizations’ procurement needs, the Guidance outlines a general approach intended to be relevant to
all.
UN Organizations may have their own institutional frameworks, policies, and/or requirements to address
human trafficking and forced labour in their supply chains. The suggestions and examples outlined in this
10
Guidance document are designed to be considered by Organizations when developing their own institutional
frameworks.
Considering the content of the full Guidance is recommended in order to gain a comprehensive
understanding of the overall issue of forced labour and human trafficking, and where steps to address forced
labour and human trafficking should be taken in the procurement process. That being said, there are certain
elements of the Guidance that may be of more relevance to some staff members due to their role and
mandate in their respective Organizations. The following table provides an overview of how the Guidance can
serve to support activities specific to these roles:
Role
How to use this Guidance
Specific sections of interest
Legal and
compliance staff
– staff with
policy/legal/over
sight/compliance
function of the
Organization as
appropriate
For legal, compliance and/ or oversight
staff, this Guidance can be used to
understand how UN Organizations can
address forced labour and human
trafficking in its supply chains and how
support from such staff could be
relevant in contracting and following-up
on performance and non-compliances.
The Background and Concepts section will provide
insights into the normative frameworks and
expectations on the UN. In addition, several parts of
the section on Addressing Forced Labour and Human
Trafficking in the Procurement Process, in particular
section 3.7 on Contract Provisions and section 3.8 on
Contract Management, will be relevant for legal,
compliance and/ or oversight staff to consider.
Finally, in the Crosscutting Considerations section,
section 4.1 on remedy for victims and survivors of
human rights abuses will also be of relevance to such
staff.
Procurement
staff – staff
responsible for
undertaking the
procurement
function
For procurement staff, this Guidance
provides concrete support and
examples of how to apply existing
procurement processes in a way that
supports efforts to combat forced
labour and human trafficking. Through
the examples and resources given, it can
also inspire new ways of addressing the
issue. Finally, the Guidance can provide
arguments for the prioritisation of
processes and resources to address the
risks of forced labour and human
trafficking in UN supply chains.
While the main source of useful guidance can be
found in the Addressing Forced Labour and Human
Trafficking in the Procurement Process and
Crosscutting Considerations sections, the
Background and Concepts section will also be useful
to procurement staff when seeking to understand
forced labour and human trafficking risks, how due
diligence processes can help identify and address
these risks, and how management of these risks ties
into the broader sustainability commitments of the
UN. This can be useful when discussing resourcing
and prioritisation within the Organization.
Requisitioner/
contract
manager - staff
responsible for
the contract
management
function and/or
budget holder
For the requisitioner/contract manager,
this Guidance can provide insights into
the risks of forced labour and human
trafficking as it relates to contract
implementation, and how to manage
such risks in consultation with
procurement staff.
The Background and Concepts section will provide
useful information on the issue of forced labour and
human trafficking, as well as how this ties into
broader sustainability commitments of the UN. In the
Addressing Forced Labour and Human Trafficking in
the Procurement Process, section 3.8 on contract
management will be especially relevant, however, it
is important to understand that steps to address the
issue of forced labour and human trafficking should
be taken already in the project planning phase.
Policy lead –
Authority
For the policy lead, this Guidance can
provide policy-based arguments for
The Background and Concepts section will further
clarify the issue of forced labour and human
11
responsible for
establishing
organizational
and
procurement
policy
Organizations to prioritise combatting
forced labour and human trafficking in
their supply chains. In addition, the
resources and examples provide
inspiration on how to implement
processes to identify, assess and
address risks of forced labour and
human trafficking and how these may
be included in organizational and
procurement policy.
trafficking, the concept of human rights due
diligence, and how these tie into broader
sustainability commitments of the UN. In the
Addressing Forced labour and Human Trafficking in
the Procurement Process and Crosscutting
Considerations sections, the policy lead can get an
insight into the more practical elements of the
procurement process and how considerations on
forced labour and human trafficking can be included.
Human
trafficking and
forced labour
experts – topical
experts within
the organization
in the area of
forced labour
and human
trafficking
For human trafficking and forced labour
experts, this Guidance can be used to
further understand the procurement
process within the UN and where their
expertise can be used and integrated.
This Guidance may also provide
inspiration for these experts in how to
support human trafficking and forced
labour being incorporated into their
organization’s procurement activities.
The Background and Concepts section will provide
insights into the normative frameworks and
expectations on the UN as it relates to procurement.
In addition, several parts of the section on
Addressing Forced Labour and Human Trafficking in
the Procurement Cycle, will be relevant for human
trafficking and forced labour experts to increase their
knowledge of the procurement process and to
support them in identifying where their expertise can
be applied.
12
2. BACKGROUND AND CONCEPTS
Before considering how to address forced labour and human trafficking in the context of UN procurement, it
is necessary to understand the background and key concepts on the issue and the context within UN
sustainable procurement and human rights due diligence. The following sections provide such an
introduction.
2.1 Defining forced labour and human trafficking
Labour exploitation and abuses of human rights are a reality of our current global production systems and
service delivery. Such situations of abuse are often referred to generally as modern slavery or contemporary
forms of slavery. Modern slavery or contemporary forms of slavery as such are not legal terms, however they
are used as umbrella terms to refer to situations of exploitation that a person cannot refuse or leave because
of threats, violence, coercion, deception, and/or abuse of power. According to the International Labour
Organisation (ILO) 40.3 million people are in modern slavery, which includes those in forced and bonded
labour, child labour, victims of human trafficking and those subjected to domestic servitude and forced
marriages. The ILO and UNICEF’s 2020 global estimate on the number of children in child labour highlights
that numbers have risen to 160 million worldwide – an increase of 8.4 million children in the last four years.
According to the ILO, women and girls are disproportionately affected by forced labour, accounting for 99%
of victims in the commercial sex industry, and 58% in other sectors. Illicit profit based on forced labour is
estimated by the ILO in 2014 at USD $150 billion a year.
Forced labour and human trafficking are not confined to isolated countries or sectors, they are universal
issues. They are serious human rights abuses constituting illegal activities in most countries, and
consequently abuses often occur behind closed doors. However, in some cases, especially regarding labour
exploitation, the abuse may be hidden in plain sight.
This Guidance focuses specifically on forced labour and human trafficking, which are defined by a range of
international instruments and authoritative intergovernmental bodies, including the ILO and regional human
rights treaty bodies.
This section aims to clarify the terminology and provide definitions to be used for the purpose of the
Guidance.
Forced labour: The ILO Forced Labour Convention (No. 29) defines forced labour as “all work or service which
is exacted from any person under the menace of any penalty and for which the said person has not offered
himself voluntarily”. This definition consists of three elements:
− Work or service, which refers to all types of work occurring in any activity, industry or sector
including in the informal economy.
− Menace of any penalty, which refers to a wide range of penalties used to compel someone to work,
for example through restriction of movement, loss of job, or reduction in pay.
13
− Involuntariness, which refers to the lack of free and informed consent of a worker to take a job and
their freedom to leave at any time. Involuntariness may exist, for example, when an employer or
recruiter makes false promises so that a worker takes a job they would not otherwise have accepted.
Although forced labour is often found in the private sector, it can also be imposed by state authorities. The
1957 ILO Abolition of Forced Labour Convention (No. 105) primarily addresses state-imposed forced labour.
This Convention prohibits specifically the use of forced labour:
− as punishment for the expression of political views;
− for the purposes of economic development;
− as a means of labour discipline;
− as a punishment for participation in strikes; and
− as a means of racial, religious or other discrimination.
Human trafficking: The United Nations Protocol to Prevent, Suppress and Punish Trafficking in Persons,
Especially Women and Children, supplementing the United Nations Convention against Transnational
Organized Crime defines human trafficking as:
“the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat
or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of
power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve
the consent of a person having control over another person, for the purpose of exploitation.
Exploitation shall include, at a minimum, the exploitation of the prostitution of others or other forms
of sexual exploitation, forced labour or services, slavery or practices similar to slavery, servitude or
the removal of organs.” (see Annex 1 Glossary of Terms for the full definition)
The main elements of this definition are:
− Act: the recruitment, transportation, transfer, harbouring or receipt of persons
− Means: threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the
abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits
to achieve the consent of a person having control over another person (it should be noted that the
‘means’ element does not apply to the definition of human trafficking in children).
− Purpose: exploitation, which includes sexual exploitation, forced labour and practices similar to
slavery and servitude, for example domestic servitude and forced marriages, and the removal of
organs.
There are large number of organizations working to combat forced labour and human trafficking which have
produced useful reports on key characteristics or ‘red flags’ to help identify what forced labour and human
trafficking looks like in practice. These indicators are highlighted in section 3.1 on risk identification,
assessment and management and in annex 3 which provides additional resources on risk assessment.
14
terms, UNICEF procured $4,468m compared to the United Nations Assistance to the Khmer Rouge Trials
(UNAKRT) which procured $0.5m.
The UN has over 300,000 vendors registered on the UN Global Marketplace (UNGM) and procures goods and
services from suppliers in over 200 countries and territories around the world operating in challenging
geographies and sourcing from sectors at risk of forced labour and human trafficking. UN supply chains are,
therefore, at risk of instances of forced labour and human trafficking.
The UN is to serve as a role model with the duty to respect international human rights standards and
contribute to the protection of the rights of workers. The values enshrined in the UN Charter of respect for
fundamental human rights, social justice and human dignity, and respect for the equal rights of men and
women are overarching values, which should guide actions to address risks of forced labour and human
trafficking in procurement. The UN commitment to enhancing transparency in UN supply chains and
strengthening protections against trafficking in persons and forced labour is clearly stated in UN Security
Council Resolution 2388, and is reiterated in subsequent resolutions by the UN General Assembly (Resolution
76/7) and the UN Economic and Social Council (Resolution 2021/25).
The UN HLCM-PN has publicly committed to combatting human trafficking and forced labour in UN supply
chains, as expressed in its recent Policy Statement:
The organizations of the United Nations system state their intention and commitment to continue
combating the risk of human trafficking and forced labour in UN supply chains, ensuring the respect of
human rights and exercising due diligence with a human-centered approach.
Answering the call of UN Security Council Resolution S/RES/2388, UN General Assembly Resolution 76/7,
and ECOSOC Resolution 2021/25, we recognize the need to enhance transparency in UN supply chains and
strengthen protections against trafficking in persons and forced labour in all UN activities. We intend to do
so by promoting due diligence and labour standards across UN supply chains, acknowledging this as
fundamental to sustainable development and the overall successful execution of the UN mandate.
We recognize the importance of embedding throughout the UN system measures to combat human
trafficking and forced labour in UN supply chains, while acknowledging the immense challenge of this
complex issue. As such, tackling this problem effectively requires the involvement and contribution of all UN
staff and departments, from policy creation through to implementation.
2.2 UN commitments to combatting forced labour and human
trafficking in its supply chains
Forced labour and human trafficking are prevalent in many supply chains, including those that produce the
goods and services the UN procures. The UN is a large consumer, with 39 UN Organizations collectively
procuring goods and services totalling USD $22.3 billion in 2020. According to the 2020 Annual Statistics
Report on United Nations Procurement, in that year, the 10 largest procuring Organizations accounted for
82.7% of the $22.3 billion procured and the 10 smallest procuring Organizations accounted for 0.4%. In real
15
The UN Supplier Code of Conduct outlines the UN’s expectations of its suppliers to support and respect the
protection of internationally proclaimed human rights and ensure that they are not complicit in human
The approach of the UN to the risks of forced labour and human trafficking in UN supply chains is based on
internationally recognised human rights and ILO International Labour Standards, and is guided by:
− The principles set out in the UN Guiding Principles on Business and Human Rights;
− The Ten Principles of the UN Global Compact;
− The 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals;
− The OECD Due Diligence Guidance for Responsible Business Conduct;
− The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social
Policy; and
− The ILO General Principles and Operational Guidelines for Fair Recruitment and Definition
of Recruitment Fees and Related Costs.
All UN staff must adhere to the UN values as explicitly stated in the Standards of Conduct for the
International Civil Service. As outlined in the Standards, UN values must guide international civil servants in
all their actions and include “fundamental human rights, social justice, the dignity and worth of the human
person and respect for the equal rights of men and women and of nations great and small”. Therefore, UN
staff are bound by these values, including when involved in and responsible for procurement and contracting
activities, and should use the UN procurement function to promote these values.
Specifically, as the UN Procurement Manual states, requisitioners, procurement officials and contract
managers are expected to encourage UN suppliers to adopt sustainable and socially responsible policies in
accordance with the UN Supplier Code of Conduct.
We remain committed to addressing the root causes of these challenges, and to working together to
ascertain common approaches that mitigate the risk of human trafficking and forced labour in UN supply
chains.
In this regard, the Procurement Network (PN) pledges its commitment to promote due diligence and
respect for human rights across procurement, legal, programming, and implementation operations, using a
human-centered approach to ensure continual improvement of conditions in UN supply chains.
This objective will be pursued through the adoption today by the HLCM-PN of a system-wide Policy
Framework to Combat Forced Labour and Human Trafficking in UN Supply Chains which includes a
comprehensive Guidance document for UN staff engaged in policy, procurement, and project
implementation with proposed methodologies and contractual clauses based on the best practices evolving
within the UN system.
All United Nations entities are encouraged to incorporate this Guidance into their respective institutional
frameworks and are encouraged to report on progress to the HLCM-PN on a regular basis to allow for
further UN system wide development in this area.
16
2.3 Human rights due diligence and procurement
Human rights due diligence is a risk management process detailed in the UN Guiding Principles on Business
and Human Rights (UNGPs) to operationalise corporate responsibility to respect human rights. It allows a
business (including suppliers to UN Organizations) to identify, prevent, mitigate and account for human rights
impacts that it may cause or contribute to through its own activities, including those which may be directly
linked to its operations, products or services via its commercial relationships. Human rights due diligence
should be supported by measures to facilitate access to an effective remedy for victims where harm has
already occurred. The process of due diligence elaborated in the UNGPs has been incorporated into the
Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises
and been further developed by the OECD into ‘Due Diligence Guidance for Responsible Business Conduct’,
which is being used by major businesses to assess and respond to their impact on human rights.
The UNGPs were endorsed by the UN Human Rights Council in June 2011 (A/HRC/RES/17/4) and are the first
widely accepted international framework articulating the responsibilities of businesses in relation to human
rights, drawing their authority from pre-existing international human rights laws. Currently, businesses do
not generally have direct legal obligations under international human rights law. Instead, businesses have a
‘responsibility to respect’ human rights, that is, to avoid infringing on the human rights of others and to
address adverse human rights impacts with which they are involved. The UNGPs articulate that all businesses
have a responsibility to respect human rights in the context of their own activities and to seek to prevent or
rights abuses. These expectations apply to all suppliers that are registered with the UN or with whom it
does business including their employees, parents, subsidiaries or affiliate entities, and subcontractors.
The Code refers to international labour standards, and addresses the payment of wages, working hours,
health and safety and other working conditions. It also includes a specific clause on forced labour:
5. Forced or Compulsory Labour: The UN expects its suppliers to prohibit forced or compulsory labour
in all its forms.
The Code encourages continuous improvement, and expects that suppliers encourage and work with the
suppliers in their own supply chain to ensure that they also strive to meet its principles.
The Code expects, at a minimum, that suppliers have established clear goals toward meeting the standards
set out in the Code. It sets out the expectation that suppliers will establish and maintain appropriate
management systems related to the content of the Code, and that they actively review, monitor and
modify their management processes and business operations to ensure they align with the principles set
forth in the Code. These principles align with the process of human rights due diligence as set out in the
UN Guiding Principles on Business and Human Rights (discussed further in the next section 2.3 on human
rights due diligence and procurement). Supplier participation in the UN Global Compact is strongly
encouraged to operationalise its principles and to communicate progress annually to stakeholders.
Certain provisions of the Code may be binding on a supplier in the event the supplier is awarded a contract
by the UN, depending on the particular terms and conditions of the contract.
17
Human Rights Due Diligence
mitigate adverse human rights impacts that are directly linked to their operations, products or services by
their business relationships, even if they have not contributed directly to those impacts. This means that
businesses have a responsibility to take action to respect human rights including in their supply chain and
other business relationships.
In order to meet their responsibility to respect human rights, businesses need to put in place the necessary
policies and processes, including a human rights due diligence process. The implementation of human rights
due diligence can be the single most important contribution by businesses to the realisation of the SDGs.
By undertaking human rights due diligence, an organization can identify, prevent, mitigate and account for
human rights impacts that it may cause or contribute to through its own activities, or which may be directly
linked to its operations, products or services via business relationships. The UNGPs highlight that human
rights due diligence:
- Should cover all potential and actual adverse human rights impacts;
- Will vary in complexity with the size of the business enterprise, the risk of severe human rights
impacts, and the nature and context of its operations - there is not a one-size fits all solution, but
there are common elements in finding a solution;
- Should be ongoing, recognizing that the human rights risks may change over time as the business
enterprise’s operations and operating context evolve; and
18
In annex 4 you can find case studies on how international organizations are applying human rights due
diligence in their procurement activities:
− Case Study 1 – A full procurement cycle approach in practice at the OSCE
− Case Study 2 – Risk management at UNOPS
− Case Study 3 – Social audits at the UNHCR
- Should consider all impacts on human rights, i.e. both impacts that the organization may cause,
contribute to or be linked to through its business relationships and supply chain.
Human rights due diligence is not a tick-box exercise. It requires substantive action, without which the steps
taken risk being labelled as ‘window-dressing’ or ‘green-washing’. Human rights due diligence should be
integrated coherently into existing risk management processes and systems throughout an organization, with
a specific emphasis on the risks to rights-holders and focused on a human-centred approach.
As a part of the human rights due diligence process, organizations should identify their ability to effect
positive change with regards to wrongful practices causing or contributing to a human rights abuse. One
method is to identify and exercise an organization’s leverage over a supplier, intended as the ability to effect
change in a particular context (see Annex 1 – Glossary). While leverage largely depend on the contract value,
it can be enhanced through contractual terms and conditions, as well as supplier engagement, dialogue,
international organization collaboration and collective action to effect change. When it comes to
procurement, leverage can be applied in both the relationship between the buyer and the supplier and by
the supplier towards its own supply chain.
Human rights due diligence is not only useful for business, but also for organizations which undertake
procurement. Introducing forced labour and human trafficking into risk management and procurement
activities is how UN Organizations can conduct human rights due diligence in their supply chains. This
Guidance explains how to introduce human rights due diligence at every stage of the UN procurement cycle
to address the risks of forced labour and human trafficking occurring in UN supply chains. It includes practical
steps and examples of how the UN can exercise its leverage over its suppliers and its supply chain to further
contribute to the elimination of forced labour and human trafficking.
2.4 UN procurement objectives and values
Through its procurement activities, the UN works to achieve a number of strategic objectives on
sustainability, including the protection of the environment, economic and specific social issues, such as
promoting gender equality and disability inclusion. Measures to address forced labour and human trafficking
in UN supply chains should be coherent with sustainable procurement approaches, building from current
measures, benefitting from lessons learned, and effectively adapting these approaches wherever possible.
2.4.1 Sustainable public procurement
In 2015, the UN General Assembly unanimously adopted the 2030 Agenda for Sustainable Development (the
2030 Agenda) as “a plan of action for people, planet and prosperity”. The potential of procurement is
19
highlighted in Sustainable Development Goals (SDG) 12. Target 12.7 calls on all states to “[p]romote public
procurement practices that are sustainable, in accordance with national policies and priorities”. The UN High
Level Committee on Management Procurement Network (HLCM-PN) defines sustainable procurement as
“practices that integrate requirements, specifications and criteria that are compatible and in favour of the
protection of the environment, of social progress and in support of economic development, namely by
seeking resource efficiency, improving the quality of products and services, and ultimately optimizing costs”.
Sustainable procurement provides an opportunity to prioritise procurement from suppliers that respect the
three dimensions of sustainable public procurement; economic, social and environmental. Addressing forced
labour and human trafficking is a key step in realising the social element of sustainable procurement. Policies,
tools, and guides to achieve sustainable procurement can provide many useful examples which can be
reproduced, or adapted, to address these violations in UN supply chains.
Procurement exercises can place a focus on procuring from suppliers that have effective measures in place to
prevent and address forced labour and human trafficking, in line with Target 12.7, but also as a means of
realising Targets 8.7 and 16.2 to end child labour, forced labour, modern slavery and human trafficking.
20
Addressing forced labour and human trafficking in UN supply chains is also a means to realise SDG 5 on
gender equality, as women and girls are disproportionately affected by forced labour.
2.4.2 Aligning UN procurement with UN commitments on forced labour and
human trafficking
Through their procurement activities UN Organizations can not only signal their values to the market, but
also support implementation, contributing to shaping business practices worldwide. By requiring their
suppliers to adopt forced labour and human trafficking considerations, UN Organizations can contribute to
developing best practices in this field, while at the same time respecting public procurement principles. In
other words, UN Organizations can and exercise their ability to influence their suppliers and their purchasing
power to contribute to the UN commitments on forced labour and human trafficking.
The procurement process of any UN Organization must respect the existing Financial Regulation 5.12. This
requires giving due consideration to the four general principles of UN procurement: (a) best value for money;
(b) fairness, integrity and transparency; (c) effective international competition; and (d) the interest of the UN.
The introduction of considerations regarding forced labour and human trafficking within the procurement
cycle not only aligns, but supports these principles, particularly the best interest of the UN. The following
sections describe some of the ways they align.
• Best value for money
Best value for money is the overarching procurement aim, found in national, regional and international public
procurement processes. The UN Procurement Manual defines it as “the optimization of the total cost of
ownership and quality needed to meet the user’s requirements, while taking into consideration potential risk
factors and resources available”. As such, this does not necessarily require awarding the contract to the
lowest offer by a supplier, but it allows for the introduction of other parameters, including social
considerations (such as the Sustainable Procurement Indicators, which include addressing forced labour and
human trafficking considerations in UN Supply Chains, see section 3.3 Supplier registration and the UN Global
Marketplace (UNGM)).
21
Best value for money in UN Organization Procurement Manuals
The principle of ‘best value for money’ is described in the Procurement Manuals of UN Organizations in
several complementary ways. A few examples of how manuals make direct reference between best value
for money and social criteria include, among others:
ILO Procurement Manual: ‘Value for money is measured by reference to the needs and interests of the
ILO’ (p. 5). ‘Best value for money may also be assessed by reference to inherent risk factors and any social,
environmental or other strategic objectives of the Organization’ (p. 13).
UNDP Procurement Manual: ‘This definition enables the compilation of a procurement specification that
includes social, economic and environmental policy objectives within the procurement process.’ (p. 14).
UNOPS Procurement Manual: ‘The purpose of public procurement is to obtain the best value for money
and to do this it is important to consider, among other factors, the optimum combination of the total cost
of ownership (i.e. acquisition cost, cost of maintenance and running costs, disposal cost) of a purchase and
its fitness for purpose (i.e. quality and ability to meet the contracting authority’s requirements). This
definition enables the compilation of a procurement specification that includes social, economic and
environmental policy objectives within the procurement process’ (p. 14).
…
‘the implementation of sustainable procurement not only does not hinder, but in fact it supports,
achieving its key procurement principles: best value for money; fairness, integrity and transparency;
effective competition; and best interest of UNOPS and its partners.’ (p. 5)
Forced labour and human trafficking have an important economic impact as well as a devastating human
cost. These abusive practices increase the revenues of transnational organised crime while there are
immense costs to implement policies and services for coordination, prevention, law enforcement, health and
social protection; lost economic output and revenue; and lost quality of life. What may appear as best value
for money on paper may have important hidden costs, not only for a procuring organization but for the entire
global economy.
• Fairness, integrity and transparency
Businesses taking advantage of workers to cut prices runs directly against the principle of fairness which
guides UN procurement. By having requirements of suppliers with regards to forced labour and human
trafficking, the principle of fairness is maintained for bidders competing for UN business opportunities,
including that all rules be clearly defined and applied in an unbiased manner.
The integrity principle requires all UN staff to perform their functions consistent with the highest standards
of integrity as required by the Charter of the United Nations. Integrating considerations to prevent and
respond to forced labour and human trafficking in UN supply chains directly supports the adherence to
ethical standards in UN operations.
By transparency the UN Procurement Manual means that all interested parties have access to relevant
information on procurement policies, procedures, and opportunities. Imposing obligations on bidders and
22
suppliers regarding forced labour and human trafficking contributes to transparency by clarifying, from the
start, that the UN is committed to identifying and addressing incidences of forced labour or human trafficking
in its supply chains. In order to enhance transparency, this Guidance suggests that UN Organizations report
on their actions to prevent and respond to forced labour and human trafficking (see section 4.6 and annex 2
for more information on reporting).
• Effective international competition on a level playing field
A UN wide approach to addressing forced labour and human trafficking in UN Supply chains helps to create a
level playing field for suppliers that strive to respect human rights. Human rights abuses disrupt international
competition. Fostering effective competition on a levelled playing field requires that suppliers to UN
Organizations do not benefit from forced labour and human trafficking, for example, to provide lower prices
or faster delivery conditions.
• Best interest of the UN
Addressing forced labour and human trafficking in UN supply chains is in the best interest of UN
Organizations: it is part of the values of the Organization and protects it from reputational risks. UN
Organizations should utilise procurement to require their suppliers to address the risk of human rights
violations, including by supporting suppliers to identify and respond to such human rights abuses.
• Cooperation and collaboration
Whilst cooperation and collaboration are not listed in the UN Procurement Manual as procurement principles
per se, they underpin the whole procurement process and are key for the development of procurement
activities. The UN Procurement Manual clearly states that cooperation in procurement among UN
Organizations can result in significant benefits due to economies of scale, reduced transaction costs, agility
and improved relations with suppliers (Chapter 14). This includes cooperation with UN Organizations as well
as non-UN organizations and with governments.
The 2020 Annual Statistics Report on United Nations Procurement notes that 34 of the 39 UN Organizations
which report engaged in collaborative procurement. Furthermore, there is a range of good practice examples
of how forced labour and human trafficking are currently addressed by UN Organizations. However, there is
still room for increasing cooperation. As the 2019 report by the OECD, The International Organization for
Migration (IOM) and UNICEF on Ending child labour, forced labour and human trafficking in global supply
chains states, “there is a need for greater international collaboration around responsible public procurement
in order to share learning and best practices, and to exchange tools and information on risks related to
certain products and markets and on follow-up and monitoring.”
It is important that good practice, challenges, and lessons learned are shared within and among UN
Organizations to promote a coherent approach and maximise synergies where they emerge, in line with the
UN Sustainable Development Cooperation Framework and the UN SDG Business Operations Strategy.
23
Sharing within the UN
The High-Level Committee on Management – Procurement Network (HLCM-PN) was established in April
2007. The Network’s mandate is to promote the strategic role of Procurement and Supply Chain
Management in programme and service delivery in a transparent and accountable manner. As of
September 2020, representatives from 40 organizations were members of the Procurement Network. The
Network is responsible for the UN Global Marketplace and works to improve the efficiency and
effectiveness of the procurement function within the UN System through working groups on:
- Harmonization
- Professional Development
- Sustainable Procurement
- Strategic Vendor Management
- Cognitive Procurement
The HLCM-PN liaises with other networks in the HLCM, including the Legal Network.
The Inter-Agency Coordination Group against Trafficking in Persons (ICAT) is a policy forum mandated by
the UN General Assembly to improve coordination among UN Organizations and other relevant
international organizations to facilitate a holistic and comprehensive approach to preventing and
combating trafficking in persons, including protection and support for victims of trafficking. As of
December 2021, ICAT had a membership of 30 UN entities and other international and regional
organizations.
The Common Procurement Activities Group (CPAG) is a voluntary inter-agency procurement network
composed of 20 Geneva-based UN and international organizations, which the UNOG is the Secretary of.
The objective of CPAG is to provide additional value and collaborative ideas to procurement activities in
order to achieve best value for money, not only in the solicitation process but also in the day-to-day
procurement functions, by identifying cost efficiencies and collaborative solutions to procurement
challenges. More info can be found in the 2020 CPAG annual report.
24
3. ADDRESSING FORCED LABOUR AND HUMAN TRAFFICKING
IN THE PROCUREMENT CYCLE
This section highlights measures to be taken relevant to the different stages of the procurement cycle in
order to exercise human rights due diligence in UN procurement, meaning: to identify, prevent, and mitigate
risks of forced labour and human trafficking in the UN supply chain. This should be read in conjunction with
section 4 on Crosscutting Considerations.
The section is structured to follow the procurement cycle, but all the measures detailed should be considered
already at the procurement planning stage.
Familiarity with the UN Procurement Manual and the UN Procurement Practitioner’s Handbook is advised
before reading further.
When addressing forced labour and human trafficking in UN supply chains (and throughout the procurement
cycle), the following key actions can be taken:
1. Learn what forced labor and human trafficking risks look like and conduct relevant research when
undertaking a risk assessment. Look as far down the supply chain as possible, and assess this risk based
on the severity of impacts to people using a human-centred approach. For more on risk identification,
assessment, and management see section 3.1 on risk identification, assessment and management.
2. Consider obtaining information (through surveys, interviews and other means) on how suppliers
currently address forced labour and human trafficking in the given market to assess the level of maturity
of the suppliers and the broader market. This can help identify the level of maturity of suppliers in the
operating context and accordingly, what level of requirements with respect to forced labour and human
trafficking should be introduced. For more on gathering information including through supplier
engagement, see sections 3.2 on sourcing and 4.2 on supplier engagement and support.
3. Design requirements and evaluation criteria to address identified risks of forced labour and human
trafficking, and:
a. Consider how to score or make mandatory these criteria, where possible
b. Consider how to turn requirements into performance indicators to monitor compliance
For more on designing requirements and criteria see section 3.4 on requirements definition.
4. Consider how to communicate new requirements to suppliers through the tender and during
contract implementation and provide supplier support in their efforts to address forced labour and
human trafficking. See sections 3.8 on contract management and 4.2 on supplier engagement and
support.
5. Identify, and where relevant consider establishing, a mechanism to receive complaints of forced labour
and human trafficking abuses in supply chains, as well as a process to verify and address the abuses. See
sections 3.10 on actions to take when a forced labour or human trafficking issue arises and section 4.1 on
remedy for victims and survivors of human rights abuses.
25
An example of UN cooperation in addressing risk management
Existing risk management procedures can also provide guidance on how to apply human rights due
diligence to relationships with external actors, including partnership and lending relationships.
For example, the UN Implementing Partner PSEA Capacity Assessment was published in September 2020
and provides a common baseline for UN funds, Agencies and programmes to have the necessary assurance
of partners’ organizational capacities on Protection from Sexual Exploitation and Abuse, and includes:
(1) partner self-assessment;
(2) UN entity review and preliminary determination of partner capacity;
(3) documented decision including capacity-strengthening implementation plan;
(4) appropriate monitoring and support activities; and
(5) final determination of partner capacity.
3.1 Risk identification, assessment and management
Identifying and assessing risks of forced labour and human trafficking in UN supply chains is a vital first step in
exercising human rights due diligence and addressing such risks. Once risks have been identified and
assessed, appropriate measures to encourage supplier respect for human rights can be defined and included
at different stages of the procurement cycle to try to prevent and/or mitigate risks of forced labour and
human trafficking becoming realities. This section provides guidance on identifying forced labour and human
trafficking risks (section 3.1.1) and assessing and mitigating such risks (section 3.1.2).
In this case, the risk focus should not be exclusive to large scale, high spend procurements, as monetary value
is not directly related to the risk of forced labour and human trafficking. Risks of this nature are dependent
on a multitude of factors, including industry and commodity/service type, supply chain complexity,
geographical spread, and workforce composition.
Risk identification and analysis for forced labour and human trafficking should ideally be conducted for every
procurement exercise or groups of similar purchases/markets, although the measures to respond to the risk
will naturally vary depending on the value of the procurement and risks identified. Since UN Organizations
may not have the capacity to address all risks at once, a risk assessment can also help decide what to
prioritise. It should be noted that human rights risks vary with changing circumstances on the ground and the
results of risk assessment processes will require periodic updating.
Several UN Organizations already undertake extensive risk management procedures related to human rights,
managing risk at many levels, including outcome level, country level, and project level. Procurement does not
take place in isolation and risk management at these upstream levels should lay the groundwork for
procurement-level risk management.
UN Organizations can, as and where appropriate, pool their resources to undertake joint risk assessments.
Where possible, UN Organizations should share and provide access to information, including risk
assessments, to UN Organizations and other organizations.
26
3.1.1 IDENTIFYING FORCED LABOUR AND HUMAN TRAFFICKING RISKS
A risk assessment is only as thorough as the information gathered. Key elements to consider when identifying
forced labour and human rights risk include:
- Knowing what risks to look for;
- Reliable sources of information;
- Supply chain mapping;
- Identifying related risks; and
- Adopting a life-cycle approach.
• Knowing what risks to look for
When identifying what forced labour and human trafficking looks like on the ground, a series of questions
can help guide a risk assessment. The questions listed below are only indicative, which means that a positive
answer does not equate necessarily to the existence of forced labour and human trafficking but, in
combination with the other elements of this section, they provide grounds to further consider whether
workers may be subject to abuse. As supply chains can cross borders, the questions below should be asked of
the country where the supplier is based, the country where the activities occur, and other countries known to
be in the related supply chain.
Country risk factors
- Has the country ratified relevant international instruments? Are there reports on the country failing to
implement international instruments it has ratified (e.g. reports part of the Universal Periodic Review
Process; communications from UN Treaty Bodies, national human rights institutions reports, civil society
organizations reports)?
- Are freedom of association and collective bargaining protected under national laws? Do national legal
regimes outlaw peaceful strike action? Are trade unions able to operate without interference?
- Does the country operate state-orchestrated programmes involving:
o Forced labour of administratively detained persons, prisoners in pre-trial detention, political
prisoners, persons detained for trade union activity or peaceful assembly?
o Mass mobilisation for large-scale national development programmes?
o Labour and/or vocational programmes targeted at persons belonging to minorities?
- Are there challenges conducting in-depth risk assessments in the national context, for example through
threats or enforced presence of government/employers or intimidation of human rights defenders?
- Is the country on either end of a labour migration corridor?
- Is the country ranked in the lower end of relevant indices, including, for example:
o Global Rights Index
o Fragile States Index
Working conditions risk factors
27
- Are there any concerns about the treatment of workers, including fair pay and working hours?
- Do workers appear to work or live in isolation? Are worker movements restricted by their employer?
- Are there concerns regarding the health and safety of workers, due to the nature of their job? Is it
possible to verify if safeguards have been implemented?
- Is there an absence of written employment contracts? Are indirect employment relationships favoured?
- Are workers subjected to intimidation and threats, physical and sexual violence, abusive working and
living conditions, excessive overtime and very low pay?
- Does the workplace rely on “labour discipline” for production, i.e. an obligation to work as a sanction for
violating company rules or failing to complete production quota?
Migration, informality or other vulnerable worker risk factors
- Is there a high proportion of migrant workers? Are they recruited through agencies? How regulated are
these agencies?
- Is there a high proportion of informal workers?
- Are worker accommodations provided by the employer?
- Could employers be taking advantage of specific vulnerabilities, such as migrant worker status, asylum
seeker or refugee status, irregularities in legal status, or social or personal circumstances, which restrict
their ability to change employers, to move within the country or to leave the host country without
permission of their employer?
Recruitment and debt risk factors
- Are workers getting their wages directly or are they subject to the use of irregular, delayed, deferred or
non-payment of wages as a means to bind them to their employment?
- Are there restrictions on the ability of workers to freely dispose of their wages (e.g. a disproportionate
portion of their wages is deducted for accommodation, uniforms, etc.)?
- Are wages being withheld in order to pay debts the worker has incurred during the recruitment process?
- Have workers been recruited with deception or other abusive or fraudulent means, including being
subject to recruitment fees and associated costs?
- Have workers’ identity and/or residency documents been withheld during the recruitment process or
during employment?
• Reliable sources of information
Many UN Organizations undertake extensive risk assessments at the country level and project level and these
risk registers. In addition, a large number of UN Organizations have projects and experts working directly on
forced labour and human trafficking at the country level. These colleagues can be a valuable source of
information to identify risks specific to a product or service, supply chain or industry. Annex 3 lists further
sources of information for risk identification and assessment, including sources from UN Organizations,
member states, non-governmental organizations, and the media.
28
Utilising potential suppliers as a source of information
In Yemen, the UN Office for Project Services (UNOPS) undertook a tender for waste management, an
environment where there were known human rights abuses such as child labour. To get a more in-depth
understanding of the local environment and associated risks, UNOPS undertook a data collection exercise
with stakeholders, including potential bidders. Potential bidders were assured that these sessions were not
intended to evaluate or shortlist them, but were purely a data gathering exercise. A risk register was
created and categorised according to different topics including safeguarding and the environment. The
register was then included in the overall UNOPS risk management system (see annex 4, case study 2 on
sustainable procurement at UNOPS).
Engagement with suppliers, local communities, trade unions, and workers’ groups can also provide useful
information on the types of risks specific to a certain supplier or factory especially in certain countries,
markets, or sectors, where it may be difficult to source relevant information on forced labour and human
trafficking from a desk-based exercise to inform a risk assessment. This can be conducted through
questionnaires, group interviews, conferences, or other events. Engagement with suppliers can help
understand supplier maturity and help to determine what may be reasonable expectations from suppliers
throughout the procurement process (see section 3.2 on sourcing and section 3.5 on supplier qualification to
find more details on the use of supplier questionnaires).
• Supply chain mapping
Supply chain mapping is a very useful method to identify and understand the risks that may arise or already
be present in supply chains. It should aim to create a map of the different supply chain tiers, across different
industries, sectors, and countries, and map relative characteristics and vulnerabilities. Understanding
different parts of a supply chain, the entities involved and the countries where they are located, is vital to
address risks thoroughly.
Global supply chains can be vast, complex and dynamic, and accordingly mapping the supply chain beyond
Tier 1 is challenging. A mapping exercise should begin with the higher tiers, moving into lower tiers as the
process is developed further. Market research (see section 3.2 on sourcing) and tendering criteria requiring
suppliers to preliminarily disclose certain pieces of information can be a helpful source of information in
developing a better understanding of a supply chain in a sector (see section 3.4 on requirements definition
and 3.5 on supplier qualification). Suppliers will have much more visibility over their supply chains than UN
Organizations. Equally, supply chains are dynamic and will change over time. Therefore, an effective mapping
exercise should continue after the award of a contract, and should involve the input and collaboration of the
winning bidder, which can be contractually required to cooperate on this matter.
• Identifying related risks
Forced labour and human trafficking abuses do not happen in isolation but are likely to occur alongside other
human and labour rights abuses, fraud, corruption and environmental damage. Addressing and managing the
risks of forced labour and human trafficking risks can therefore help address broader sustainability and
human rights risks. At the same time, the existence of fraud, corruption and other human rights violations
29
Fraud as a risk factor of forced labour and human trafficking
Underpaying beneficiaries is a risk indicator of forced labour and modern slavery. A 2020 analysis of fraud
cases at the ILO identified that 11% of identified cases of fraud related to support to beneficiaries, this
included underpaying beneficiaries the amounts due.
Life Cycle Impact Mapping at the African Development Bank
In 2015, the African Development Bank developed Sustainable Procurement Guidelines. One of the main
elements of the Guidelines is Life Cycle Impact Mapping. The stages analysed are the following:
- Impacts of obtaining raw materials;
- Impacts of manufacturing and logistics;
- Impacts during use of product/service;
- Impacts at end-of-life/disposal phase.
The results of the Life Cycle Impact Mapping are used to inform the risk identification, assessment, and
design of mitigation measures.
can be indicators of forced labour and human trafficking. Therefore, procurement processes may address
underlying and broader risks, to mitigate the specific risk of forced labour and human trafficking occurring,
and vice versa. If there are control weaknesses in contract management to address the risks of forced labour
and human trafficking, this could be indicative of larger risk management problems that need to be
addressed as an organization.
• Adopting a life cycle approach
In order to identify as many of the potential risks of forced labour and human trafficking as possible, a life
cycle approach should be adopted. This involves examining in detail the sustainability impacts associated
with every component and stage of the product or services ‘life’ (from raw material and manufacture to use
and disposal). Although this can be time consuming and expensive, a comprehensive analysis might be critical
where high risks are identified, so that any management action is planned with a clear view of how it might
impact risks.
Some UN Organizations mandate life cycle costing and highlight that upfront costs may result in reduced
operational costs in the longer term. However, it is important to note that life cycle analysis is more common
when considering the risks and impacts on environmental conditions and there is still little practice in
applying this approach to social and human rights risks. With respect to addressing forced labour and human
trafficking, costs associated with related measures should be weighed against the costs of suppliers not
having such measures. These include the occurrence of human rights abuses, remediation to victims, as well
as operational costs associated with delays in project delivery or re-tendering procurement exercises, for
example.
3.1.2 ASSESSING AND MITIGATING RISKS
Once risks of forced labour and human trafficking have been identified, an assessment should follow to
understand their likelihood, severity and consequences. This should be done to establish what risk
30
Prioritising risks: different approaches
In its Sustainable Procurement Guidelines, the African Development Bank describes its prioritisation
approach to identify areas to address in the short, medium and long term in the procurement of goods,
works and services. This is a “risk- and opportunity-based approach”, which uses the following criteria:
management actions to include across the procurement cycle, for example in the tendering requirements
and at the contract management stage.
Typically, where higher risks are identified, protection measures should be strengthened throughout the
procurement process. This is crucial to efforts to ensure that nonconformities are spotted and addressed
before they escalate from risks to realities.
Risk mitigation will be explored in greater detail in the following sections at the relevant steps of the
procurement cycle. However, the procurement planning stage should be used to identify the most
appropriate measures to address the risks are identified, and to include all relevant information is included
within tender documents, such as the means of implementing and verifying said measures (e.g. through the
use of tailored KPIs, or the possibility of inspection, as discussed in the following sections). At this stage, a
premortem approach can be a useful tool to identify what could go wrong by exploring various “worst case”
scenarios, and what requirements could be introduced in procurement to respond to identified risks. Staff
may find it useful to also develop a risk mitigation plan which includes actions taken throughout the
tendering process, and actions to be implemented at the contract management stage (e.g. collaborating with
suppliers).
Since it can be difficult to address all the identified risks all at once, it is crucial that UN Organizations
determine priority focus areas. This can include specific procurement exercises, categories of procurement or
industries, or geography, depending on capacity. Prioritisation can include several factors, but should at
minimum consider the following:
- Severity of the risk: To prioritise UN Organizations should first consider the level of risk of negative
human rights impact and how much harm such impact has on the rights of those affected. A severity
analysis should be used to prioritise risks of the greatest scale, scope, and irremediability, as well as
likelihood.
- Existing leverage: When deciding which risks to prioritise UN Organizations should also consider their
current ability to affect change in the behaviour of suppliers, this is to exercise leverage over such
suppliers. The leverage a UN Organizations has on the market is often related, but not limited, to the
value of the procurement. Identifying how much capacity to influence behaviour down the supply
chain, as well as existing leverage gaps early on (e.g. in consultations with partners/donors and at the
project development stage) can allow a UN Organizations to identify measures to implement its
purchasing power throughout the different procurement stages. These measures could be deployed
during selection and contract management, and by collaborating with other UN Organizations, as and
where possible and appropriate. UN Organizations should also consider potential ways to further build
and increase leverage, including through collaboration.
31
− Level of expenditure;
− Level of risk and opportunity against each sustainability objective;
− Scope for improvement; and
− Level of market influence.
The focus on these four criteria allows the Bank to use its resources efficiently, ensuring that its actions are
not only targeted towards high-risk scenarios, but that there can be a real impact.
The ILO has developed a detailed methodology to assist requisitioners in the identification, assessment
and mitigation of risks deriving from their procurement exercises, called ‘Managing Risk in Procurement
Guidelines’.
This measures risk based on likelihood of an event occurring combined with its consequence, both scored
between 1 and 5 and integrated in a Risk Rating Matrix. Results are categorised as high, medium and low
based on the compounded results.
This is followed by the preparation by the requisitioner of a Risk Register. This is intended to assist with the
identification of the appropriate mitigation strategies. The Risk Register includes the following:
- Risk (What would prevent procurement objectives being met?);
- Consequences (What would be the impact of the risk?);
- Extent of risk(s) (Likelihood, Consequence, Risk Rating); and
- Risk treatment (Action Plan).
The International Civil Aviation Organization (ICAO) determines the level of risk through a cumulative
analysis of likelihood and consequences, which are classified as extreme, high, moderate or low. Action
plans are then required for all risks except low. Risk management strategies include:
- Transfer (to a third party, from one area to another (e.g. schedule to cost));
- Acceptance (monitor, damage control);
- Avoidance (remove the threat, acting on the cause, triggers); and
- Mitigation (reduce impact or likelihood; introduce levers for causes and/or triggers).
While this risk assessment is not specific to forced labour and human trafficking, it provides a useful and
comprehensive framework with which to address the multitude of risks faced by ICAO, including those
addressed by this Guidance.
3.2 Sourcing
Planning the sourcing stage carefully can help UN Organizations understand market maturity, whether/which
specific sourcing methods are required, and inform the requirements at the next stage. Active steps should
be taken to engage diverse suppliers at the sourcing stage so that all perspectives are taken into account, and
to prevent the exclusion of micro, small and medium enterprises (MSMEs) by designing requirements they
may not be able to meet due to their size or capacity. This section addresses:
- Market research;
- Sourcing methods; and
- Piggy-backing.
• Market research
32
Collecting bidder data to inform future supplier selection
The United Nations Development Programme (UNDP) is implementing a phased approach to introduce
Environmental, Social and Governance (ESG) aspects in its supplier sourcing strategy. As a first step, an ESG
questionnaire has been developed, which is mandatory for all bidders to submit, but which does not yet
affect evaluation (please contact the UNDP for more information as this questionnaire is regularly
updated).
The social aspect of the questionnaire includes questions such as:
o Does your company use Risk Assessments in regards to Health and Safety?
o Does your company have Human Resource policies which inform workers of their rights and
conditions of employment?
o Does the company monitor and document incidents/accidents? (e.g. near misses, number of lost
days, frequency rates etc.)
Bidders can choose an answer from a drop down list and include relevant comments in a separate column.
The responses are being collected to understand market maturity in addition to market research, and will
inform future sourcing by setting a baseline for all suppliers to comply with.
Having identified potential forced labour and human trafficking risks, it is essential to determine the
knowledge, understanding and management of these risks in the supplier market. Through market research,
the buyer should seek to understand whether suppliers are aware of forced labour and human trafficking
risks, how they are addressing them, and their capability to implement further considerations in this area.
This can help in the drafting of tender documentation by supporting requisitioners in tailoring requirements
to the maturity of the market while also identifying where there is potential to enhance existing practices.
Further, market research can be useful in identifying practices that have been implemented by other buyers
procuring similar goods or services, which can be adapted to the procurement activity at hand.
Market research should be undertaken periodically to remain relevant and up to date, as requirements for
socially responsible procurement are rapidly spreading and evolving within different geographies and sectors.
It can be a desk-based research activity, or it can involve engaging with suppliers more interactively through
questionnaires or dialogues, and can be combined with supplier engagement and support measures (see
section 4.2 on supplier engagement and support).
UN Operational Management Teams (OMTs) can be a resource for specific country or regional contexts.
Information from other buyers can often be accessed by contacting them or their organization directly. Other
international organizations or large NGOs who are also procuring in the same context can be a useful
resource for information on the market.
A bidding process itself can be used to collect information for future tenders (see section 3.5 on supplier
qualification) and can serve to inform the market of the particular Organization’s forthcoming prioritisation
of forced labour and human trafficking related issues as an evaluation methodology.
For a detailed case study involving market research, see annex 4 case study 1 – a full procurement cycle
approach in the practice at the OSCE.
33
Responding to risks of unpaid wages through pre-qualification requirements
Unpaid wages is a labour rights violation and could be an indicator of forced labour. Thus, the ILO
supported a pilot project of Qatar’s Public Works Authority, Ashghal, which requires all bidders to present
a certificate of compliance from the national Wage Protection System (WPS) (of the Ministry of
Administrative Development, Labour and Social Affairs) in order to be eligible for a tender. The WPS is able
to monitor compliance of all companies in the private sector as they are required to pay workers through
banks, and this information is then transmitted to the Ministry.
Adapting existing sourcing methods
For some procurement activities, UNOPS conducts pre-qualification exercises. Potential bidders are asked
to show interest in working with UNOPS and are classified in different tiers based on their capacity. UNOPS
also informs prospective suppliers of how UNOPS operates and its tendering processes, including through
a mandatory online training called ‘Doing Business with UNOPS’. At present, these resources do not
contain specific forced labour and human trafficking content, but aspects of sustainable procurement
generally. These efforts represent a valuable mechanism for supplier evaluation and engagement, which
may be developed further to assess the market’s capacity to address these risks, and to inform bidders of
UNOPS prioritization of sustainability.
• Sourcing methods
Different sourcing methodologies can be utilised to identify suppliers that are already taking steps to identify
and address risks and impacts in their supply chains. At the same time, sourcing methodologies can be used
to decide on the appropriate solicitation method and type of competition.
A request for information (RFI), for example, can be used to assess the maturity of the market and where first
steps have been taken to implement human rights due diligence which can be included in a tender process. A
request for expression of interest (EOI) can be used to identify potential suppliers who already have human
rights due diligence measures in place. A pre-qualification requirement can be used to value and stimulate
businesses to take steps to implement human rights due diligence in advance of a tender.
Existing pre-qualification processes could also be adapted to address risks of forced labour and human
trafficking.
Benchmarking how other UN Organizations, national public procurement bodies, and NGOs procure in a
sector or country can be a useful exercise to select an appropriate sourcing method, and may provide data to
inform the requirements definition (see section 3.4 on requirements definition).
• Piggy-backing
Smaller UN Organizations may not have regular procurement activities and/or the resources to develop their
own criteria on forced labour and human trafficking. Instead, they can participate in and/or ‘piggyback’ the
tenders of other UN Organizations. This can minimise the risk of suppliers not answering a call for tender
because they do not wish to adapt to requirements in contracts with a relatively low value.
34
For resources on identification and assessment of risks of forced labour and human trafficking, see:
♦ ILO Forced Labour Indicators;
♦ The European Commission, Guidance for EU Businesses to Address the Risk of Forced Labour in Their
Operations and Supply Chains;
♦ OSCE, Model Guidelines on Government Measures to Prevent Trafficking for Labour Exploitation in
Supply Chains;
♦ OSCE, Combating Trafficking in Human Beings and Labour Exploitation in Supply Chains;
♦ The UNDP Practitioner’s Guide to Sustainable Procurement and the UN Procurement Practitioner’s
Handbook provide relevant information on general risk identification;
♦ UNODC, Human Trafficking Indicators.
For resources on assessing and mitigating risks, please see:
♦ Guidance on Due Diligence for EU businesses to address the risk of Forced Labour in their operations
and supply chains;
♦ OSCE Model Guidelines on Government Measures to Prevent Trafficking for Labour Exploitation in
The UNGM contains a repository of Long Term Agreements (LTAs) which can be piggy-backed by other UN
Organizations.
It may be useful to check the particular contract on UNGM to see if performance monitoring and evaluation
reviews for the LTAs are available, or obtain information from the other UN Organization through an HLCM-
PN endorsed LTA information sheet. Where such information is unavailable with regards to addressing the
risks of forced labour and human trafficking, a cost-benefit analysis should be undertaken.
Supply Chain;
♦ The UN Procurement Practitioner’s Handbook;
♦ UNDP and UNEP, Working Paper: A Sustainability-Weighted Procurement Portfolio Management
(PPM).
Further resources can be found in annex 3.
35
3.3 Supplier registration and the UN Global Marketplace
(UNGM)
UNGM is a database where suppliers can express their interest in doing business with UN Organizations and
further their understanding of how the UN procures. In order to do business with the UN, the UNGM requires
that suppliers ‘acknowledge’ the UN Supplier Code of Conduct (UNSCC) upon registration. The UNSCC
includes requirements in relation to combating forced labour broader labour standards. For more details on
how the UN Supplier Code of Conduct addresses forced labour and human trafficking, see section 2.2 on UN
commitments to combatting forced labour and human trafficking in its supply chains.
The UNGM also screens registered entities against the sanction lists of UN Organizations, the UN Security
Council Sanction Lists and the World Bank Debarred Firms and Individuals List. Businesses, organizations and
individuals are screened against these lists upon registration and the entire database is reviewed periodically
(for more on the UN vendor sanctions regime, see section 3.9).
In order to improve the UN wide tracking of sustainable procurement, the UNGM system allows for tenders
to be identified with a sustainable procurement label to show that they have embedded UN Sustainable
Procurement Indicators within the requirements. Due to this functionality and the availability of the
sustainable procurement indicator ‘human rights and labour issues’, tenders which include measures to
protect against forced labour and human trafficking can be captured.
36
3.4 Requirements definition
Requirements definition involves preparing the technical specifications and terms of reference for a specific
procurement exercise. Introducing considerations on forced labour and human trafficking at this stage is the
first step to allow for the assessment of related risks, to inform suppliers of the related requirements. This is
particularly relevant when defining technical specifications, i.e. the characteristics of the goods or services to
be supplied and delivered, and the related mandatory and preferred evaluation criteria.
The UN Procurement Manual states that factoring in sustainability considerations at the requirements
definition stage can provide added value by promoting resource efficiency, leveraging innovation and
advancing the SDGs, while noting that requirements must be transparent, measurable and proportionate to
what the market can reasonably offer and must not restrict international competition.
Defining requirements is an important stage and effort should be spent developing requirements relevant to
the procurement activity, which can effectively address the risks of forced labour and human trafficking
37
identified. Other tenders conducted in the same context can provide inspiration and guidance for developing
such requirements, but this should not be a copy and paste exercise.
Responsibility for defining requirements and subsequent contract management remains with the
requisitioner or budget-holder. In its capacity as a support service, in many UN Organizations, procurement
practitioners may be in a strategic position to provide guidance in identifying the most appropriate solutions,
by connecting colleagues procuring and contracting in similar circumstances, and by drawing from their
expertise and knowledge of the market and procurement processes. In parallel, a thorough sourcing exercise
can help identify the available options and set the requirements at a level where a sufficient number of
suppliers are considered eligible for the business opportunity, without affecting effective competition (also
see annex 4, case study 1 - a full procurement cycle approach in practice at the OSCE).
Consideration of how the requirements will be evaluated and scored should be done in parallel with the
development of each requirement. More information on evaluation criteria is included in section 3.6 on
evaluation and award criteria. Consideration should also be given to how these the requirements can be
integrated into performance monitoring or KPIs measured throughout contract management, as detailed in
section 3.8 on contract management.
Key elements to consider when designing requirements to address the risk of forced labour and human
trafficking in UN supply chains include:
- The type of specification;
- Supply chain mapping requirements;
- Financial criteria;
- Labels and certificates;
- International standards; and
- Requirements that ‘do no harm’.
• The type of specification
While high-level descriptive specifications requiring suppliers to address forced labour and human trafficking
give suppliers flexibility, the challenge they pose for buyers is that expertise on forced labour and human
trafficking and capacity are required to fairly and transparently assess and compare proposals, which may
articulate very different approaches to addressing risks of forced labour and human trafficking. That being
said, forced labour and human trafficking elements can be introduced in performance and functional
specifications. This could include, for example, a requirement that:
- Goods and/ or services do not contain forced labour and human trafficking in their supply chain;
- The supplier has an appropriate risk management strategy which encompasses risks of forced labour
and human trafficking;
- The supplier has a nominated person with responsibility for sustainability, human rights, or forced
labour and human trafficking;
38
Requiring a supply chain map
The United Nations Framework Convention on Climate Change (UNFCCC) secretariat’s sustainability
standard operating procedure requires that for “each solicitation exercise for goods and/or services, the
technical proposal shall include the vendor’s documented sustainability policy and operations, including
the vendor’s list of subcontractors and details of the supply chain for the specific requirement, where
applicable.”
- The supplier has an appropriate grievance mechanism (see section 4.1 on remedy for victims and
survivors of human rights abuses), which can be tailored further to the context; and/or
- The supplier demonstrates that they are aware of, and have appropriate procedures to address risks
of, forced labour or human trafficking, including but not limited to specific and named locations
where it has occurred previously.
Some of these requirements may also be applied through other UN documents, such as the UN Supplier Code
of Conduct, at other stages of the procurement process, or in contract conditions. A comprehensive approach
is needed to address forced labour and human trafficking risks so that eligible bidders are aware of the
importance the UN places on tackling this issue.
• Supply chain mapping requirements
Including a specification to require that bidders map and disclose their supply chain as part of their proposal
can be a useful tool to identify potential supply chains risks in the tender at hand, and help a buyer
understand supply chains in a specific sector for future tenders. In mature markets, it may be possible to
request supply chain mapping beyond the first tier. It is possible to combine this requirement with evaluation
criteria to give preferential points to suppliers who can map to lower tiers of their supply chain (see section
3.6 on evaluation and award criteria). This requirement can be included in tenders where it is not possible to
develop detailed tailored requirements to address forced labour and human trafficking specific to the
purchase.
• Financial criteria
Requesting detailed life-cycle costing in the solicitation documents can help identify risk of forced labour and
human trafficking. The UN Procurement Manual notes that the procurement exercise may choose to include
estimates of personnel and other input required in order to reach the expected results.
Detailed financial breakdowns can help identify risk factors of forced labour and human trafficking, such as
abnormally low financial offers. Where there is an abnormally low offer, or an element which is abnormally
low (e.g. transportation costs or labour costs), further documentation can be requested to clarify the
situation, for example, requesting a detailed breakdown including salaries/hourly rates. Where a proposal
does not provide a breakdown the costs to the required specificity, a supplier can be asked to provide the
clarification of a more detailed breakdown without changing the overall financial offer. It should be noted
that this should be tailored to the particular context for how salaries and associated social protection
benefits are structured in that market.
39
Integrating international standards
When developing a Long Term Agreement for desktops and laptops, the Organisation for the Prohibition
of Chemical Weapons included a section on social criteria in its technical specifications. This required
compliance with international standards as protected by the ILO Conventions on
- Freedom of Association and Protection of the Right to Organise (No. 87);
- Right to Organise and Collective Bargaining (No. 98);
- Forced Labour (No. 29);
- Abolition of Forced Labour (No. 105);
- Discrimination (Employment and Occupation) (No. 111);
- Equal Remuneration (No. 100); Minimum Age (No. 138);
- and Worst Forms of Child Labour (No. 182).”
Most importantly, these requirements did not only apply to direct suppliers, but explicitly cover the
OPCW’s supply chain, including Original Equipment Manufacturers (OEMs), Electronic Manufacturing
Services (EMS) firms and Original Design Manufacturers (ODMs), and contracted labour (contract
manufacturers) that may design, market, manufacture and/or provide goods and services that are used to
manufacture and supply the final product.
• Labels and certificates
While environmental labels and certifications are widely used, there are much fewer which address forced
labour and human trafficking. Therefore, while they can be considered a useful ‘add-on’, they should not be
relied upon as the only safeguard. Instead, UN Organizations should strive to engage in more in-depth
information gathering to confirm whether its supply base is committed to addressing forced labour and
human trafficking risks on a long-term basis.
• International standards
Requirements can draw a supplier’s attention to international standards on responsible business conduct
that the UN expects suppliers to meet as a minimum. Requirements can also make direct reference to
international standards on forced labour and human trafficking. A list of relevant standards can be found in
the ILO’s 2014 Guide to International Labour Standards, and a list is available in the resource section at the
end of this chapter.
• Requirements that ‘do no harm’
The UN should take steps to ensure its procurement activities ‘do no harm’. In the context of procurement
activities, requirements such as detailing large volumes at short notice and ‘just-in-time’ orders can
significantly increase the risk of abuses of workers’ human rights, via excessive hours, ‘lock-ins’ and increased
workplace injuries, for example.
Requiring information on workforce salaries
The African Development Bank request bidders indicate the salary of their employees and the statutory
benefits associated with the post.
40
Detailed qualification criteria
‘Region Stockholm’ in Sweden applies qualification criteria that its potential suppliers of rubber gloves
must be able to report on, including:
• The traceability of the rubber gloves to the factories where they are produced;
• The methods the supplier uses to follow-up on compliance with contractual clauses relating to health
and safety, working conditions, human rights and the environment at factories within its value chain;
• Whether migrant workers are present in factories within its value chain, and the percentage of migrant
workers at factories producing rubber gloves supplied to Region Stockholm;
• The supplier’s policies relating to forced labour and, if migrant workers are present, policies to ensure
there are no recruitment fees; and
• An action plan on how the supplier will work towards ensuring such policies are enforced, listing specific
steps to be taken.
UN Organizations purchasing practices should not exacerbate risks of forced labour and human trafficking by
exerting excessive pressure on pricing or delivery schedules, even in times of emergency. A site visit to the
premises as part of a tender validation process can provide assurances that a potential supplier has the
capacity to deliver on large just-in-time orders, for example (for more information on site visits see section
3.6 on evaluation and award criteria).
3.5 Supplier qualification
Supplier qualification criteria can be used to set the mandatory requirements every supplier will have to
meet to qualify for a bid. As these aspects are scored on a pass/fail basis, mandatory criteria send a clear
message to bidders regarding the minimum standards suppliers must comply with in order to work with the
UN. To ensure mandatory criteria do not excessively reduce competition or limit market access, they should
be based on market research.
Supplier qualification is especially important when using solicitation methods where it is not possible to use a
weighted analysis for evaluation, as is often the case with invitations to bid (ITBs) (see section 3.6 on
evaluation and award criteria).
In the context of forced labour and human trafficking, qualification criteria can identify the international
standards suppliers must agree to abide by, and also incorporate wider human and labour rights
considerations so that working conditions in the supply chain do not escalate to the level of forced labour
and human trafficking. Pass/fail criteria must be objectively assessed and verifiable. Bidders can be required
to provide evidence of implementation of policies or management systems. This can be used to confirm
whether suppliers are in a position to report on relevant information, such as their efforts to identify and
address risk in their supply chain, which can be essential during contract management.
During the coronavirus pandemic in 2020, the US banned the import of rubber gloves from certain
businesses in Malaysia after indications (which were later verified) that they were produced using forced
labour during a period of heightened demand.
41
The UNDP has recently developed a draft Supplier Sustainability Questionnaire and are developing tailored
questionnaires for certain markets and goods/services categories focused on sustainability. The standard
questionnaire contains questions on the social aspect of sustainability, including:
- Does your company participate in Corporate Social Responsibility initiatives?
- Does your company have Human Resource policies which inform workers of their rights and
conditions of employment?
- Does the company monitor and document incidents/accidents? (e.g. near misses, number of lost
days, frequency rates etc.)
And the following questions on the ‘governance’ aspect of sustainability:
- Does your company conduct regular training for employees to ensure business integrity and ethics
with all employees?
Requirements that could be mandatory qualification criteria, and which represent the minimum standards
expected from all suppliers, include:
− Compliance with all laws related to wages and working hours. Workers' compensation must be
guaranteed in accordance with national applicable laws and regulations.
− Compliance with local laws when establishing standardised ethical and moral conducts.
− Payment of statutory benefits on behalf of staff to relevant authorities.
− Elimination of all forms of forced or compulsory labour.
− Abolition of child labour i.e. protecting a child from performing any type of work that can interfere in
his/her education or that can be hazardous to the child’s health or physical, mental, spiritual, mental,
spiritual, moral or social development.
− Compliance with the Occupational Health and Safety Guidelines.
− Freedom of association and right to collective bargaining without fear of harassment or any type of
reprisal.
− Elimination of all forms of discrimination in respect of employment and occupation.
Similarly, to specification criteria, mandatory qualification criteria should be defined in reference to the
maturity of the market as identified during market analysis, while also taking into consideration industry
standards.
• Requiring suppliers submit a completed questionnaire
A number of UN Organizations require that bidders submit a completed supplier questionnaire to be included
in the tender. These questionnaires collect information to provide an insight into how suppliers identify,
manage and mitigate the risks of sustainability and human rights related issues. When analysed and used
proactively they can provide useful information on the status of the given market in these areas which is
relevant when assessing the tender in question and when planning for similar tenders in the future.
Questionnaire responses can also help tailor supplier support measures (e.g. training) to the needs of the
market or sector. The questionnaire response from the winning bidder can form the basis for an ongoing
dialogue on how they can improve.
42
• Exclusion grounds
Exclusion grounds are designed to prevent businesses with historical or ongoing problems in their operations,
including forced labour and human trafficking abuses, from tendering. The aim of including requirements
within procurement that suppliers respect human rights is not to exclude potential suppliers, but to
encourage them to address the risk of forced labour and human trafficking occurring in their activities and
supply chains. However, exclusions may be necessary and practical for those suppliers that do not meet legal
requirements or refuse to address forced labour and human trafficking in their activities and supply chain.
Excluding potential suppliers from participating in procurement exercises can have serious consequences for
these businesses and they may seek to challenge such exclusions. Although excluding a potential supplier
might damage a relationship with them, it clearly articulates the UN Organization’s standards to the market.
Exclusion grounds can also be an effective way of encouraging suppliers that are working to address forced
labour and human trafficking at an early stage of the procurement process.
To be effective in their aim, exclusions should include the possibility of reintegrating previously excluded
suppliers in the UN market, provided they have taken the necessary measures to remedy to previous
violations in a substantial and effective way, and they have put in place mechanisms to prevent further
violations from occurring, a practice called ‘self-cleaning’. Appropriate action will necessarily depend on the
context, but can include an adaptation of pre-existing policies and procedures to identify, assess, mitigate,
and monitor risk and to report and address potential violations. For a more in-depth discussion on remedy,
see section 4.1.
UNGM maintains the updated UN and World Bank Sanctions lists and periodically checks the list of registered
suppliers against this list (see section 3.3 on supplier registration and the UNGM). Since convictions on forced
labour and human trafficking offences are rare, UN Organizations should not rely entirely on exclusions to
address risks in their supply chains. Instead, they should include them in a series of applicable measures as
detailed in this Guidance.
3.6 Evaluation and award criteria
While the requirement definitions set the minimum requirements potential suppliers must respect to qualify
for a tender, the evaluation stage can be used to attribute additional weighting to aspects that exceed the
lowest acceptable bar, thus encouraging supplier development in the area of sustainability. This sub-section
is structured as follows:
- Solicitation method
- Evaluation criteria
- Is there formal guidance on the documentation of selection procedures for
contractors/subcontractors/outsourced work?
- Is there guidelines in reporting, investigating and addressing workplace harassment for your
company? If so, please specify the type of harassment awareness enforced in your company
(sexual, religion, power etc.).
43
- Verifying proposals
• Solicitation method
Within the UN system, the evaluation method depends on the solicitation method, and is typically as follows:
− Invitation to Bid (ITB) --> Lowest priced, technically compliant
− Request For Proposal (RFP) --> Cumulative weighted analysis
− Request For Quotation (RFQ) --> Lowest priced, technically acceptable
− Low Value Acquisition (LVA) --> Lowest priced, technically acceptable
The solicitation method can impact how forced labour and human trafficking related evaluation criteria can
be applied. The particulars of the context (e.g. relevant legal framework, certifications, monitoring
mechanisms, social protection, etc.) will have an influence on whether mandatory or preferred criteria is
appropriate for specific procurement exercise.
For example, if there is robust legislation and associated licensing/certifications, the inclusion of the relevant
documentation may be appropriately included as mandatory criteria.
The following section addresses how weighted scoring criteria can be used.
• Evaluation criteria
Like specification criteria, weighted scoring criteria at the evaluation stage should be clear and measurable,
and relevant to the specific product or service being procured.
Forced labour and human trafficking can be introduced within wider sustainability considerations, which are
weighted against other criteria such as quality, functionality and price. They may be used to require bidders
to provide substantive information, such as:
− Evidence of risk assessment exercises and supply chain mapping;
− Existence and implementation of appropriate policies to address forced labour and human trafficking
in the supplier’s own operations (e.g. by identifying any risks deriving from poor worker conditions,
and encouraging suppliers who have strong management systems in place to respect their workers’
rights);
− Existence and implementation of appropriate policies to address forced labour and human trafficking
in a supplier’s own supply chain (e.g. how they confirm that subcontractors do not engage in these
practices, including any verifications such as audits, or how this is implemented beyond Tier 1);
− Existence of an appropriate grievance mechanisms in place to report and address any potential
violation, including whistleblower protection; and
− Production locations throughout the supply chain.
Evaluation criteria can also directly refer to the technical capability and experience of suppliers, requiring
them to have previous experience in addressing forced labour and human trafficking in their supply chains.
44
Mandating a minimum amount of sustainability criteria
The UNFCCC mandates in their sustainability standard operating procedure that environmental and social
sustainability criteria should constitute at least 10 per cent of the weighting in the technical evaluation and
rating.
Monitoring implementation of relevant policies at the evaluation stage
The Organisation for the Prohibition of Chemical Weapons has developed a template for Requests for
Proposals which includes content on sustainability. Bidders are asked to demonstrate significant
commitment to human rights and labour issues, among other areas of sustainability. To do so, they can
provide a statement and, where possible, a progress report on the implementation of their policies and
processes.
Sensitising the market through evaluation criteria
The ILO conducted a procurement exercise for family hygiene kits and digital infrared thermometers to be
delivered to migrant farmer families in Turkey. The project was motivated to issue a sustainable tender
including environmental, social, and economic aspects, however there was a concern that the relevant
market was not yet developed in the area of environmental sustainability. In order to encourage this
aspect and to have a better understanding of the market’s development in the area of environmental
sustainability, the ILO included in the requested documents a company environmental sustainability policy
or similar. This was not a pass/fail element, as the market was relatively new to this concept, but it was
designed to show that the ILO places importance on sustainability and to sensitise the market to further
steps in the future.
Strengthening criteria over time
Aiming to improve supplier capacity over time, criteria can be progressively strengthened, so as to
encourage continuous improvement without overburdening bidders at the outset. For example, this was
Some UN Organizations mandate that sustainability criteria are scored in all technical evaluations.
In addition, a minimum price threshold, tailored to the local context on national minimum wage, for example,
could be used to prevent bidders from being awarded a contract by offering a very low price despite not
having adequate due diligence policies.
One of the advantages of introducing weighted scoring criteria related to forced labour and human trafficking
is their flexibility, as it allows tailoring of their relative scope and weight to the supply market. While an
advanced market may be able to meet more stringent requirements, a lower threshold may be considered
for an emerging market, as appropriate. In such a case, suppliers may be encouraged to develop beyond a
minimum requirement by introducing points for the fulfilment of additional criteria. For example, this may
entail requiring the suppliers to ensure that all workers to be paid the minimum wage, but assigning
additional points if a higher living wage is paid. While not being crucial to the contract award, using similar
practices will indicate a UN Organization’s values to the market, and prepare bidders for the progressive
introduction of more advanced requirements in sustainability in the future. UN Organizations can also
indicate in the tender that the criteria may be mandatory in the future, allowing the market to make the
necessary adjustments and prepare for this evolution.
45
Criteria which were too demanding
In 2018, a UN Organization introduced social considerations at the evaluation stage of an RFP for an LTA,
worth 100 points out of a total of 400. Of the five main elements considered, one indirectly addressed
forced labour and human trafficking risks by examining a bidder’s labour policies, including freedom of
association, working hours and grievance procedures. The UN Organization analysed similar tenders of
public procurement bodies within Europe to decide on the requirements and their weighting. However,
none of the RFPs received scored well on the social element and the UN Organization had to reduce the
sustainability criteria for future tenders to match the maturity of the market.
Document verification
The Asian Development Bank requires suppliers to submit the environmental safety conditions and
policies of the company, good social management certificate, and financial stability through submission of
financial documents and other related certificates to support their claim as part of the evaluation process.
A tiered approach to verification based on strategic nature, size, and risks in a procurement
The African Development Bank have established a post-qualification process of “verifying, validating and
ascertaining the genuineness of the statements made and information provided by the bidder(s). The
purpose of post-qualification is to protect the reputation of the Bank and minimize the risk of the bidder(s)
Introducing evaluation criteria that are too advanced for the market may result in a reduced number of
eligible offers being received or a failed tender. Such situations, as well as providing information on the
maturity of the market, can highlight areas to invest in for future tendering exercises, including more in-
depth market research to identify more appropriate evaluation criteria, and areas where suppliers may
require support (see section 4.2 on supplier engagement and support).
• Verifying proposals
Some UN Organizations take steps to validate the information contained within proposals and require that
bidders engage in verifications methods to submit the proposal. This can include a desk-based review of
policies, procedures, and standards to confirm they are genuine and up-to date. It may also include a site visit
to confirm that the bidder can deliver in practice what they committed to on paper.
In the same way as UN Organizations may not have the capacity to implement risk management measures for
each procurement exercises and require prioritisation of these elements based on risk, UN Organizations may
also need to prioritise verification of supplier documentation at the award stage. Such a prioritisation should
take into consideration any risks identified during the planning stage.
used by UNOPS for gender mainstreaming. Bidders were told that it would be desirable to have 20% of the
workforce as women, but that after six months this would become a mandatory requirement to participate
in UNOPS tenders. While this was a short timeframe, it was deemed appropriate because this was a
general requirement, rather than specific to a type of position within the company. Other gender-
mainstreaming requirements were given a longer timeframe of eight months to be introduced.
To ensure that an increase in women workers did not result in increased risks of gender-based
discrimination, UNOPS used pre-bid meetings to discuss gender-mainstreaming policies and to ensure
reasonable safeguards were in place. Refresher seminars for UNOPS contractors are also provided.
46
trafficking and/or adhere to specified labour standards are a useful means of encouraging suppliers’
performance on these issues.
Contractual obligations that include termination rights by UN Organizations based on non-compliance by
suppliers with sustainability aspects, even if not exercised, increase the leverage of UN Organizations and
provide an incentive for suppliers to engage with the UN on these issues. Contractual obligations giving the
UN rights of monitoring, audit and investigation which require contractor participation and provision of
requisite access can be additional means of increasing leverage and providing a mechanism to monitor
compliance.
For many UN Organizations, a team of procurement staff support other UN staff (‘requesting
unit’/‘clients’/‘contract owners’/‘budget-holders’). There should be ongoing dialogue between the different
actors involved in drafting, negotiating, monitoring and evaluating contract performance conditions to
facilitate coherence in delivering the contract in question, but also in facilitating continuous improvement.
This sub-section is structured as follows:
While site visits may be a method to check general supplier capacity and technical competency, they can also
be a useful tool to identify signs of forced labour and human trafficking.
3.7 Contractual provisions
Contractual clauses which require a contractor to identify and address risks of forced labour or human
Site visit to verify proposal content
As part of an ILO procurement process in Timor Leste, a site visit of a bidder for printing services was
conducted to confirm the businesses existed and had the facilities to deliver in the quantities required
during a sensitive election period. When the procurement office arrived at the address they identified the
use of child labour.
failure to deliver its contractual obligations.” The process "commences after technical and financial
evaluation but before a decision to award the contract is approved” and always includes a Supplier
Background Check.
A more in depth ‘Supplier Appraisal’ is required for strategic, large, and high-risk procurement. A supplier
appraisal includes checking policies concerning employee matters, social issues, health and safety,
corporate social responsibility or environmental management. This can be done by requesting certificates,
while in some countries the information is available online. It also requires a site visit to check that the
supplier has the capacity/ ability to meet the contractual outputs.
Background checks based on risk
At UNOPS, each procurement exercise includes background checks on the bidder recommended for
award. These are undertaken on a risk basis, with minimum requirements for all contracts, and advanced
checks for high-risk areas. For a more detailed explanation, see annex 4, case study 2 – sustainable
procurement at UNOPS.
47
- Approaches in UN contracts to address forced labour and human trafficking
- The UN Supply Chain
• Approaches in UN contracts to address forced labour and human trafficking
The existing UN General Conditions of Contract (UNGCC) includes essential terms requiring contractors to
provide warranties or take appropriate measures to address issues such as child labour and sexual
exploitation entitling the UN to terminate a contract if the supplier is in breach of these obligations. The UN
Procurement Manual states that “Procurement officials should bring [UNGCC] clauses to the attention of the
vendor at the time of signing the contract” (sub-paragraph 11.4.2 of General Conditions of Contract). Similar
provisions concerning forced labour and human trafficking can be included in such contracts. Please refer to
suggested clauses obliging contractors to exercise human rights due diligence and address forced labour and
human trafficking in annex 5.
The UNGCC also includes a requirement that contractors adhere to all “laws, ordinances, rules and
regulations bearing upon the performance of its obligations” under the contract as well as maintaining
compliance with obligations set out in UN vendor registration procedures, which, in turn, requires that
vendors acknowledge the UN Supplier Code of Conduct. See section 2.2 for further details regarding the UN
Supplier Code of Conduct.
While a requirement to adhere to applicable laws will include laws prohibiting forced labour and human
trafficking, complementing this obligation with clauses specifically requiring a contractor to engage with
forced labour and human trafficking issues can raise awareness of the issue, demonstrate UN commitment to
addressing these issues and require contractors to actively engage with these issues through implementation
of human rights due diligence processes.
Some UN Organizations, such as the ILO, have developed their own provisions requiring that contractors:
• support and respect the protection of internationally proclaimed human rights;
• observe the highest ethical standards; and
• adhere to international labour standards, such as freedom of association, collective bargaining, the
prohibition of forced or compulsory labour, equality of opportunity, age requirements, payment of
wages, health and safety, the provision of social security benefits.
The standard ILO Terms and Conditions also prohibit “proscribed practices and proscribed conduct” in line
with the UN Vendor Sanctions regime (see section 3.9 on sanctions).
Any contract clauses creating obligations on a supplier with respect to forced labour and human trafficking
should be designed so that the contract owner can monitor and evaluate a supplier’s performance. Staff
tasked with monitoring compliance with contractual clauses addressing forced labour and human trafficking
should have a level of understanding of forced labour and human trafficking sufficient to ascertain whether
measures taken by the supplier are acceptable (see section 4.4 support for UN personnel).
• The UN supply chain
48
Verifying sub-contractors
The Organisation for the Prohibition of Chemical Weapons scrutinises sub-contractors and checks them
against the UNGM ineligibility lists for high value contracts where sub-contractors are listed.
Responding to identified risks in a specific sector
As part of its due diligence to protect workers, the ILO Project Office in Qatar has developed a list of labour
rights requirements to be included in the procurement process for its tenders. The list, which is based on
Qatari labour laws and international labour standards, has become an integral part of its tenders and
resulting contracts. Among others, the list requires a Key Personnel clause within the contract where
cleaning staff names and their valid residency permits must be provided. In addition, all UN Organizations
in Qatar agreed to adopt this list and integrate it into the procurement process for security and cleaning
services in the new United Nations common premises.
The 2020 Annual Statistics Report on UN Procurement notes that 39 UN Organizations which report have
suppliers in over 200 different countries. A 2019 report by the OECD, IOM and UNICEF on Ending child labour,
forced labour and human trafficking in global supply chains further states that:
“Perhaps the most important challenge relates to how governments can ensure not only that
winning bidders address child labour, forced labour and human trafficking in their own operations,
but also that their suppliers and subcontractors do the same. Indeed, at present, most provisions
related to human and labour rights limit the bidders’ responsibilities to immediate contractors or
suppliers, and do not take into account adverse human rights impacts along the entire supply chain.”
Risks of forced labour and human trafficking may be greater in lower tiers of supply chains. Visibility of a
supplier’s subcontractors is critical to assessing and managing risks of this nature, as changes to sub-
contractual arrangements can significantly alter human rights risks. The UN General Conditions of Contract
includes a requirement for suppliers to obtain written approval from the UN before subcontracting the
performance of any obligations under the contract. UN Organizations should scrutinize any request to
subcontract with attention paid to any potential elevation of forced labour or human trafficking risks.
Establishing requirements that sub-contractors address forced labour and human trafficking is key to
unlocking the potential of procurement to advance protection against cases of forced labour and human
trafficking in UN supply chains.
Cascading requirements concerning forced labour or human trafficking to sub-contractors can be achieved
through various means. For example, tender documentation can include transparency requirements that
necessitate disclosure of the tiers of the supply chain or the terms of any sub-contracting.
The UN General Conditions of Contract specifies that the terms of any subcontract shall be subject to all of
the terms and conditions of the General Conditions of Contract. This means that provisions in contractual
clauses or codes of conduct requiring that the supplier exercise due diligence and provide warranties that
goods or services are not produced using forced labour or human trafficking, would also apply to
subcontractors. Suggested clauses set out in annex 5 include cascading clauses requiring a contractor to take
49
Cascading contractual obligations to subcontractors
A number of clauses set out in the ILO standard Terms and Conditions of Contract also apply to sub-
contractors. The ILO contract specifies that the terms of any subcontract are subject to and should be in
conformity with the provisions of the Contract with particular attention drawn to paragraphs 4.
(Performance), 9. (Intellectual Property), 10. (Data Protection), 11. (Confidentiality), and 12. (Responsible
Business Practices). The Contractor will be responsible for ensuring compliance with the above terms, as
for its own Personnel, and for any subcontractors and its Personnel who are performing any part of the
Contractor’s obligations.
Ensuring sub-contractor cooperation
UNICEF conditions of contract state:
“…The Supplier will require its sub-contractors and its agents, including, but not limited to, the Supplier’s
attorneys, accountants or other advisers, to provide reasonable cooperation with any inspections, post-
payment audits or investigations carried out by UNICEF.”
Centralising procurements
UNEP is in the process of reviewing and possibly centralising certain procurement awards, for example,
those that are of common interest to the wider organization such us, document translation services,
website development/maintenance services, IT equipment. This will allow UNEP to increase its contractual
leverage, have a UNEP-wide coordinated approach to quality control and risk management, and reduce
transactional costs. The saved capacity can be allocated on enhancing strategic procurement activities,
address sustainable procurement considerations and allocate more resources to programme
implementation.
reasonable measures to ensure its sub-contractors undertake due diligence and address forced labour and
human trafficking risks.
Contractual obligations can also be used to require that suppliers:
• provide compliance performance information and annual certifications; and/or
• cooperate with any audit or investigation, and also that they maintain cooperation from their own
suppliers.
Grouping procurement exercises can increase purchasing power and the ability to influence suppliers and
shape the market. This can be done internally within UN Organizations, in collaboration with other
Organizations, and/or through framework agreements (including LTAs and SLAs). This can be important when
dealing with a small pool of large suppliers, for example in some markets for electronic goods where the
supplier default position might be to insist on using their own code of conduct. Micro, Small and Medium-
sized Enterprises (MSMEs) may face difficulties in bidding for large procurement activities, so it is important
to consider how they can compete. Increased leverage can increase capacity for UN Organizations to engage
with suppliers on forced labour and human trafficking with a view that requirements on these issues are met.
For information on how donors and national stakeholders can help increase leverage and support measures
to address forced labour and human trafficking, see section 4.5.
50
For resources on using UNGM, please see:
♦ The UN Procurement Practitioner’s Handbook
♦ The UNGM website and knowledge center
For resources on requirements and evaluation and award, please see:
♦ The UNOPS Procurement Manual;
♦ UNOPS Sustainable Procurement Tender Criteria List (for most up-to date list, contact the
Sustainable Procurement Team);
♦ Ethical Trading Initiative Guide to Buying Responsibly;
♦ Buying for a Better World. A Guide on Sustainable Procurement for the UN System.
International standards on responsible business conduct and on forced labour and human trafficking
includes:
♦ The principles set out in the UN Guiding Principles on Business and Human Rights;
♦ The UN Global Compact’s Ten Principles;
♦ The 2030 Agenda for Sustainable Development and the 17 UN Sustainable Development Goals;
♦ The OECD Due Diligence Guidance for Responsible Business Conduct;
♦ The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social
Policy; and
♦ The ILO General Principles and Operational Guidelines for Fair Recruitment and Definition
of Recruitment Fees and Related Costs.
For additional resources on supplier questionnaires, please see:
♦ The UNOPS DRiVE Supplier Sustainability Questionnaire (contact the Sustainable Procurement Team
for more information);
♦ The UNDP Supplier Sustainability Questionnaire (the procurement team can share more
information).
Further resources can be found in annex 3.
51
A matrix to determine the contract management approach
The 2011 guide Buying for a Better World. A Guide on Sustainable Procurement for the UN System
provides a useful matrix to determine the most appropriate contract management approach depending on
the value (in relation to organizational spend) and the sustainability risk of the contract.
3.8 Contract management
The contract management phase is where a relationship can be built with a supplier and the greatest change
in supplier behaviour can occur. Ongoing engagement can help to identify emerging risks of forced labour
and human trafficking and monitor how a supplier is strengthening their due diligence processes to address
such risks. This engagement can be done through:
• review meetings;
• progress reports against agreed improvement programmes;
• KPIs and any identified issues; and
• site inspections and audits.
Where incidents of forced labour and human trafficking are found, continued engagement is preferred
because it allows for a situation of forced labour and human trafficking abuse to be rectified and ideally will
result in an improved situation for victims. However, where a violation is extremely serious and/or there is no
genuine interest from the supplier to address the situation, then disengagement and contract termination
may be necessary.
It is especially important to build trust so that suppliers feel comfortable to share any reports of forced
labour and human trafficking in their supply chains, so that it can be addressed as early as possible. At the
same time, ongoing engagement can be used to confirm whether suppliers are implementing their
contractual commitments and responsibilities. Without clear steps to monitor compliance, contractual
obligations may exist only on paper, revisited only when a serious problem arises. By this stage, damage may
already have been done.
As for risk management actions at other procurement stages, prioritisation is also crucial to determine the
frequency and level of engagement necessary during contract management. This will depend on the level of
risks identified and the strategic importance of a particular good or service. Developing a prioritisation matrix
may be helpful in streamlining a UN Organization’s approach, and promoting its consistency over time.
52
Contracts can fall in four different categories, which require a different contract management approaches
to address sustainability:
− Critical: “Closely manage, focus on driving value and minimising risk with the supplier but build an
effective working relationship”
− Secure: “Closely manage, consider paying cost premium to manage risks associated with the
purchase”. Since the leverage provided by the purchasing power may be low, the Guide highlights
that it is especially important to introduce other factors to ensure successful service provision. For
example, leverage may be increased through enhanced contractual conditions or supplier training.
− Cost-Driven: “Assertively manage, lever savings from suppliers and use savings to fund costs in
higher risk areas “
− Acquisition: “Put most efficient measures in place to manage these areas”
This approach could be adapted to include forced labour and human trafficking risks, such as those
identified in section 3.1.1 on identifying forced labour and human trafficking risks, which fall within the
social aspect of sustainable procurement. For example, critical and secure categories may require suppliers
to submit frequent progress reports on the implementation of their due diligence policies, and UN
Organizations may closely monitor suppliers’ actions through KPIs, and require on-site inspections and
third party engagement to verify the veracity of the information provided. For acquisition and cost-driven
categories, yearly meetings to address a supplier’s actions to address forced labour and human trafficking
in its supply chains may be sufficient.
Within the UN system, responsibility for contract management is with the requisitioners/contract owner and
service users, who should be provided training to have sufficient knowledge and capacity on how to monitor
the requirements in the contract. However, it is also essential that communication is maintained with the
procurement function, who can help identify the most appropriate approach of contract management, and
should be informed of any issues arising during the contract together with feedback on how to improve
future requirements for similar tenders. For further information on training and capacity building of UN
personnel, see section 4.4.
Given that contract management is primarily conducted by the contract owner, it is important that the
contract owner is involved in the negotiation of the contract and is aware of the clauses related to forced
labour and human trafficking and how to engage with suppliers and monitor compliance with such clauses.
This section is structured as follows:
53
Highlighting standards and expectations when onboarding suppliers
The Asian Development Bank has a contract administration team which onboards its suppliers and
conducts vetting as part of the onboarding process. During procurement, its sourcing team requires
suppliers to commit to the ‘Good Social Management’ clause within the contract in an effort to ensure
suppliers understand and intend to comply before and during contract implementation. Depending on the
contract, quarterly, bi-annual, and annual meetings are held with the supplier to discuss performance.
Receiving feedback from suppliers
The African Development Bank conducts 360 degree evaluations with its suppliers where the suppliers are
encouraged to provide feedback, including on ‘Timely payment of invoices in accordance with contract’.
Importance of Supplier Performance Evaluations
An example of Supplier Performance Evaluation (SPE) which takes into consideration sustainability can be
found at UNOPS. The UNOPS Procurement Manual says that, at a minimum, an SPE should include:
‘[…]
• Demonstrated commitment to sustainability (social, environmental and economic) and/or
innovation;
• Compliance with other contractual terms and conditions.’
In case of ‘significant or persistent deficiencies […] which led to early termination of the contract,
application of damages or similar actions’, a supplier may be suspended from doing business with UNOPS
3.8.1 Supplier dialogue during contract implementation
3.8.2 Supplier monitoring
3.8.3 Corrective action and disengagement
3.8.1 SUPPLIER DIALOGUE DURING CONTRACT IMPLEMENTATION
Onboarding and kick-off meetings allow the buyer to engage suppliers on risks and expectations, and to
discuss how suppliers intend to comply with obligations concerning forced labour and human trafficking set
out in contractual clauses. The contract owners can articulate how they envisage ongoing meetings and
progress reviews to be undertaken and how they intend to address risks of forced labour and human
trafficking. Onboarding meetings can also help gain an understanding of the supplier's maturity in working
with forced labour and human trafficking, and whether the supplier meets similar requirements from other
organizations. For contracts for one-off delivery, start-up meetings can be especially beneficial as they may
provide the only practical opportunity for supplier engagement.
Supplier feedback is an important source of information to identify issues and risks at an early stage. It allows
a contract manager to check that a contract ‘does no harm’ in practice (see section 3.5 on requirements
definition). Feedback received during the contract implementation phase, through for example specific
meetings or through regular informal dialogues, should be acted upon as and where appropriate. Feedback
can also be received when the contract is being closed out, although it may prove harder to address any
issues identified after the contract is completed.
Once a contract has been completed, an evaluation of the supplier’s performance throughout the contract
should be conducted.
54
3.8.2 SUPPLIER MONITORING
Contract management should include periodic reviews of supplier performance against clearly established
criteria addressing forced labour and human trafficking risks in UN supply chains. These are most often found
in the form of Key Performance Indicators (KPIs).
Relevant KPIs should be designed during requirements definition by the requisitioner, aided by procurement
personnel, in an effort to ensure they are the most appropriate for the type of goods or service being
procured. Good KPIs are SMART (Specific, Measurable, Achievable, Relevant, Time-phased).
KPIs usually focus on a supplier’s overall performance (e.g. adherence to specifications, delivery time, quality,
transportation time, etc.) and communication (e.g. responsiveness to requests and complaints, and timely
submission of requested documents).
Forced labour and human trafficking considerations can be integrated in tailored KPIs in several ways. KPIs
can be used to confirm that suppliers comply with relevant qualification criteria and contractual
requirements throughout contract implementation, rather than just at the outset. This is already done by
some UN Organizations when verifying a contractor’s workforce composition, for example, if parts of it are
reserved for specific target groups. At the same time, KPIs should be used to check that suppliers are also
engaging to address forced labour and human trafficking risks in their supply chains on an ongoing basis.
Overall, KPIs are a valuable means to identify risk factors early, and to address wider considerations needed
to prevent them from occurring. For example, they could monitor:
- Supplier compliance with wages required under the contract or under applicable laws or other legal
requirements.
- Supplier compliance with minimum labour standards, as required by the contract or national laws,
such as working hours and statutory benefits.
- The number of incidents and complaints received by a supplier, or the UN Organization itself,
concerning the supplier’s workforce and/ or working conditions.
- The implementation of corrective and preventative action plans when issues with the supplier’s
workforce and/ or working conditions are identified (see section 3.8.3 on corrective action and
disengagement).
- The implementation of the supplier’s own risk management actions and human rights due diligence
(e.g. supply chain mapping and engagement with lower tiers of the supply chain).
according to its Vendor Ineligibility regime. Previous SPEs are also checked at the evaluation stage, and a
bidder can be rejected on this ground if commensurate to the value and risk of the purchase.
The UN Office at Geneva (UNOG) requires corporate social responsibility to be considered in Vendor
Performance Reports.
55
Supplier performance monitoring
The African Development Bank has developed an advanced supplier performance evaluation
methodology. Sustainability is also covered, with scored criteria on:
− Compliance with local laws
− Compliance with contract clauses
− Compliance with TOR/Technical specifications
− Compliance of social aspects
As the RFP and contract contain requirements related to forced labour and human trafficking, this provides
the African Development Bank an opportunity to engage with the supplier on these issues during the
regular performance evaluations.
Monitoring supplier policies
At UNOPS, KPIs can be based on the information collected through the Delivering Responsibility in Vendor
Engagement (DRiVE) questionnaire. For example, they can be used to monitor compliance with the
supplier’s own policies and practices in managing human and labour rights risks in their supply chains. In
this respect, UNOPS may also indicate desirable qualities and content of the said policies that suppliers are
expected to fulfil during contract implementation.
Ongoing monitoring on the ground
The ILO’s Employment-Intensive Investment Programme (EIIP) in Lebanon monitors six main KPIs. One of
them is the following:
"Social obligations: Contractor consistently adheres to LRBT [Local Resource Based Technology], gender,
environmental & DW [Decent Work] principles and OSH [Occupational Safety and Health], including
employment generation targets and timely payment of labour and suppliers. Mandatory comment must
include information on employment generation and employment of women.”
While KPIs are formally monitored on a monthly basis, the program is designed to have a very strong on-
site monitoring system, to ensure requirements are complied with on an ongoing basis. This is made
- The implementation of the supplier’s own policies on addressing forced labour and human trafficking
in their supply chains. However, this can only be effective if such policies and processes are adequate
and should therefore include a review of their content and application, where possible. If policies are
absent, KPIs can be introduced to monitor policy creation and implementation, where necessary.
- Supplier responsiveness in disclosing to UN Organizations relevant information and documentation.
- Supplier responsiveness in engaging with the UN Organization and resolving any issue which may
arise.
The KPIs should be assessed periodically during contract management. However, when a UN Organization
has staff available on the ground, they can also be tasked with providing information on how suppliers are
performing, including on KPIs related to forced labour and human trafficking. This is valuable information
that can be taken up by the contract manager to further corroborate the information provided by the
supplier.
56
Using third parties to ensure the information provided is accurate
The ILO’s Employment-Intensive Investment Programme (EIIP) in Lebanon closely monitors worker wages.
Contractors are contractually required to submit wage certificates, including worker details, on a recurring
basis. Since 2020, to avoid receiving inaccurate or forged information, each contractor is required to pay
its labourers through a financial institution such as Online Money Transfer or Western Union, which also
submit statements to the ILO on the contractor’s practices.
Voluntary supplier engagement
One of the main pillars of the DRiVE programme implemented by UNOPS involves creating corrective
action plans (CAPA) for suppliers to address any issues identified. Supplier engagement is not contractually
required, but takes place on a voluntary basis, which has proven successful. For more information, see
annex 4, case study 2 - risk management at UNOPS.
Leverage through payment
When hiring service providers, such as cleaning security, or construction tenders, the UNHCR can decide to
pay suppliers in instalments to ensure adequate implementation of the contract. This can include checks
on whether social security has been paid to workers, for example. The payment for partial delivery is
applicable for certain types of contracts (i.e. partial delivery of the goods or upon completion of clearly
If monitoring on the ground is not possible, UN Organizations can consider verifying the accuracy of the
information received from suppliers through external third parties, or requiring suppliers themselves to work
with reliable external bodies.
Furthermore, collaboration with the supplier is essential to check that the monitoring of supplier
performance is effective in addressing risks and improving performance over time. Establishing a relationship
with a supplier and communicating the importance that the UN attaches to the management of human
trafficking and forced labour risks can encourage suppliers to actively engage as a partner in combating this
issue.
While voluntary engagement shows that suppliers understand the importance of such engagements, in cases
where securing voluntary participation is challenging, UN Organizations can increase their leverage by relying
on contractual clauses, paying in instalments, or payment schedules which require certain conditions to be
met.
possible by the presence of technical engineers and, most importantly, Social and Environmental
Safeguards Officers (SSO), who are on site and can observe any-non conformance on a day-to-day basis.
One of the purposes of the Social and Environmental Safeguards Framework, implemented in all
Employment-Intensive Investment Programmes (EIIP) since 2019, is to “establish mitigation practices and
policies to social and environmental risks which otherwise (without mitigation) could hinder or prevent the
implementation of the employment intensive projects”. At the same time, addressing these risks is also an
effective means to prevent forced labour and human trafficking from materialising.
The framework is based on UN and ILO Guidelines and International Conventions. Among others, it
monitors minimum wage, working hours, health, safety and security, and children’s rights.
57
• Social Audits
Audits are not unique to the human rights field and exist to monitor other dimensions of compliance, for
instance, compliance with financial or environmental standards which rely primarily on quantitative
indicators. Human rights audits are often different in nature to these more commonly understood forms of
audit, usually requiring reference to qualitative indicators which can make audits of this nature more
challenging. Additionally, human rights audits are most valuable when conducted during contract
implementation, rather than after contract completion, as they provide an opportunity to address some of
the identified issues through contract management and periodic supplier evaluation.
Audits focused on assessing human rights issues such as the risk of incidence of forced labour or human
trafficking can take several forms, including:
− Desktop-based assessment of documents shared by the supplier, for example, reviews of pay and
employment conditions applied by service providers;
− On-site inspections of supplier or sub-contractor facilities;
− Risk-specific audits targeting previously identified risks, such as child labour and human trafficking;
− A checklist to compare a business’ practice against a recognised standard (for example, SA8000) or
an individual business, sector- or product-specific code of conduct, or a more general audit of a
supplier’s approach with parameters set by the public buyer.
Audits of this kind can be conducted by different parties, such as:
− Third party specialists, resulting in an outcome report which can form the basis of a dialogue
between contracts managers and suppliers about how to address any issues identified in the report
and require that the supplier adopts a corrective action plan;
− The internal audit function or jointly with an external auditor. This approach allows for direct
dialogue between contract manager and supplier; can increase the influence over the supplier; and
defined milestones for services or works, provided adequate security for the advance or progress payment
is established).
Payments are only released once the supplier provides the evidence required. This is mentioned to bidders
at the tendering phase, but also included in the contract, which states that payments will be made at a
certain frequency upon release of relevant documents. This enables UNHCR to have sufficient oversight on
the supplier’s compliance with social security obligations, who have an interest in collaborating if they
want to be paid on time.
For service contracts requiring the hire of local personnel, the contract will refer to local standards and
legislation (e.g. working conditions, minimum wage). The contract manager will develop performance
measurement criteria to monitor performance in this regard. If there is observation of non-compliance in
this area, the contract manager and contract administrator will apply the different available tools or
remedies for corrective actions or in case of grave violation and continued non-performance, contract
termination. The payment instalment modality can be part of satisfactory delivery of services, but is not
the only measurement tool.
58
It is important to promote coherence between auditing requirements and consider grouping different kinds
of audits together to reduce auditing costs, overlapping requirements and supplier audit ‘fatigue’.
Site visits and social audits
Several UN Organizations are already engaged in site visits and audits, which could be expanded to include
forced labour and human trafficking risk management.
The United Nations Population Fund (UNFPA) LTA clauses allow UNFPA staff of representatives to visit the
factory and verify all the information and documentation submitted during the tender. This is used to
conduct pre-shipment inspections and testing.
The ILO encourages site visits to hotels which are to be engaged and have developed a standard operating
procedure for these visits including a checklist which focuses on a) rooms, b) conferences rooms, c)
restaurant(s), d) security system, and e) additional elements (e.g. labour conditions, recruitment policy
confirmation, and accessibility).
Different types of auditing at UNOPS
UNOPS has two different approaches to auditing, depending on the context:
− Some UNOPS projects include a requirement to have third party monitoring (TPM), funded by the
donor via the available budget for the project. UNOPS can contract a TPM consultant and require
they have in-country presence so they can conduct un-announced spot checks of suppliers. If
deemed necessary, the supplier is made aware of the contractual provision which covers TPM
checks and this is highlighted again while onboarding the supplier. The TPM reports are shared
with UNOPS and the donor. The donor wishes to see that UNOPS acts on the TPM reports.
− In-person verification of suppliers’ responses to the DRiVE Supplier Sustainability Questionnaire
are done by UNOPS staff.
Joint approaches to audits
Some UN organizations conduct auditing on suppliers with support from third party auditors.
UNICEF have an Office of Internal Audit and Investigations (OIAI) is responsible for assessing and
conducting investigations as it deems appropriate into possible misconduct or wrongdoing within and
associated with UNICEF. This includes allegations of fraud, corruption and other forms of misconduct or
wrongdoing involving UNICEF staff and non-staff personnel, institutional contractors, implementing
partners and other third parties. Information and contacts details of the OIAI is available online.
can focus on strengthening the supplier's ability to prevent human rights impacts more than audits
based on a third-party checklist can;
− Two or more public buyers jointly (UN Organizations and UN Organizations with external actors),
which, in addition to reducing the costs of audits by sharing them, can increase leverage and hence
the ability to influence positive change by the supplier.
UN Organizations can adopt joint approaches to auditing, pooling resources and engaging with a third party
auditor collectively.
59
Assessments of suppliers undertaking human rights due diligence should not be based on audits alone.
Silencing of workers is widespread and represents a significant challenge for audits, which, without worker
collaboration, ‘invisible’ violations such as retention of passports may not be identifiable. An increasingly
significant supplement to audit is worker-driven monitoring. Bottom-up approaches empowering workers
often succeed in identifying issues that are missed by third-party social audits.
Although there are limitations to social audits, not least the fact that they only provide a ‘snapshot’
examination which fail to reveal human rights abuses even in worksites audited with on-site inspections, it
currently remains a primary vehicle for monitoring corporate human rights performance.
3.8.3 CORRECTIVE ACTION AND DISENGAGEMENT
For forced labour and human trafficking considerations to be enforceable and effective, contract managers
need to have a range of actions available to pursue in the event of supplier non-compliance. The response
should depend on a multitude of factors, including the seriousness of the violation and its location in the
supply chain (i.e. the controllability of the risk). However, there are broadly two approaches available, which
can form a series of escalating actions:
− Continued engagement with actions agreed for the supplier to address the identified issue, and
potentially providing support in supplier compliance; or
− Disengagement (i.e. contract termination) with the supplier, activities, or subcontractor(s) where the
forced labour and human trafficking occur.
Continued engagement is preferred, because it allows for a situation that may lead to forced labour and
human trafficking to be rectified, and ideally will result in an improved situation for victims. Immediate
disengagement with a supplier could leave potential victims unsupported and potentially jobless. However,
where a violation is extremely serious and/or there is no genuine interest from the supplier to address the
situation, then disengagement, contract termination and engagement with authorities may be necessary.
Example clauses can be found in annex 5 (Suggested clauses on forced labour and human trafficking).
This sub-section is structured as follows:
- Identifying forced labour and human trafficking
- Continued engagement with corrective measures
- Disengagement and contract termination
UNHCR has developed a detailed methodology to conduct social audits, which also cover forced labour
and human trafficking risks. Audits are conducted by UNHCR staff, supported by an auditing service
provider. During the COVID-19 pandemic, UNHCR staff was not able to travel, but the joint approach
enabled continued auditing through the contracted third party. For more information, see annex 4, case
study 3 – social audits at the UNHCR.
60
Supplier support in identifying issues
In certain locations, the African Development Bank contracts out facilities management to a provider.
Meetings are held with the facility managers on a regular basis (often every 2 weeks). The facility
managers often have a good overview of, and dialogue with, other suppliers, sub-suppliers and their staff.
Consequently, facilities managers have identified where sub-suppliers were not being paid by suppliers
and have highlighted this to the African Development Bank, who contacted the supplier to ensure the
situation was rectified.
Reaching out to suppliers to verify actions
• Identifying forced labour and human trafficking
It is important for senior management and staff working with suppliers to consider as early as possible:
- How a breach would come to light (e.g. during performance monitoring, media, or via NGO reports);
- What channels exist to receive information on an alleged contract breach (e.g. a grievance
mechanism (see section 4.1 for information on grievance mechanisms) or supplier performance
meetings);
- Who is most likely to identify a breach (e.g. contract manager or procurement staff), and
- Whether there are clear processes on how to respond.
Often it may be the contract manager who identifies an issue, and subsequently procurement and/or legal
staff determine whether a breach has occurred and what should be the response. Therefore, clear channels
or processes should be in place and be made known to relevant colleagues (e.g. contract owners) to facilitate
a coherent and standardised approach is taken to dealing with alleged abuses of forced labour and human
trafficking (see section 4.1 on remedy for victims and survivors of human rights abuses).
At the same time, it is important not to discourage suppliers from self-reporting risks or instances of forced
labour and human trafficking in their activities. Instead, open communication and transparency should be
encouraged. This is especially important when looking to address violations which take place in lower tiers of
the supply chain.
• Continued engagement with corrective measures
If non-compliance is identified, there are several measures that the contract manager should consider before
resorting to contract termination.
Firstly, the supplier in question should be contacted, to verify the information provided. When considering
any contractual remedy, having appropriate and documented communication with the contractor is
especially important. The contractor should be given a reasonable opportunity to respond to the allegation,
and a reasonable opportunity to inform the UN Organization regarding remediation plans it may be in the
process of implementing.
61
Contractually mandated steps following identification of a violation can include an investigation and, if
human rights abuses are found, a requirement that the contractor undertakes a formal process to remedy
human rights abuses to the reasonable satisfaction of the contracting UN Organizations and prevent
reoccurrence. This may include the development of a corrective and preventative action report (CAPA report)
with monitoring requirements to confirm whether it is effective.
Working with suppliers to resolve issues
The African Development Bank has followed up on contractual requirements related to minimum wage by
asking suppliers’ employees if they are willing to share their pay slips. Where breaches come to light
(including through engagement with the supplier employees) the African Development Bank follows-up to
ensure that the correct salary is paid. AfDB’s first step is raising the problem with the suppliers through
ongoing and informal engagement channels, where the majority will make the necessary amendments and
provide the correct pay to their employees. If no action is taken, then the African Development Bank takes
corrective action and/or disengagement (see section 3.8.3).
Implementing a Corrective Action and Preventive Action Plan
In 2019, a major supplier of condoms to the United Nations Population Fund (UNFPA) and other
international organizations faced allegations of forced labour in international media. The Ethics Office at
UNFPA coordinated with other international organizations to reach out to the supplier regarding these
allegations. The supplier engaged their own consultant to investigate the allegations which was shared
with their customers. UNFPA and another international organization engaged an independent consultant
to undertake a separate investigation to interview workers and inspect facilities. These investigations were
aligned, identifying many migrant workers in the workforce with incidents of recruitment fees, debt
bondage, passports retained by the employer, poor accommodation provided by the employer which are
all signs of forced labour, alongside health and safety concerns in the workplace.
UNFPA suspended the contract and developed a Corrective Action and Preventive Action (CAPA) report
with the supplier. Actions included repaying recruitment fees, providing lockers for workers to store
personal items including their passports, and providing documentation of new contracts and suitability of
accommodation.
The supplier engaged in the CAPA implementation, and provided necessary documentation. The UNFPA
and another international organization conducted a 2
nd
inspection with UNFPA staff joining the consultant
in the onsite visits. The contract was resumed once the urgent actions in the CAPA plan were implemented
and the remaining actions were in the process of being implemented.
When preparing a tender to procure coffee, the OSCE came across media reports about child labour in the
supply chains of an international company, from which they were already procuring through a low value
contract with a local provider. The OSCE contacted the provider to understand the actions the company
was taking to address this, which was important to ascertain whether they would be able to continue the
current contract and consider the supplier for a forthcoming tender. The provider made OSCE aware of a
long-term remediation program in place, which was deemed satisfactory to continue engagement.
62
Collective action to address violations
The OSCE was approached by Electronics Watch regarding the discovery of human rights violations in the
supply chain of a well-known multinational electronics company. While the OSCE did not procure the
specific products, it supported demand for an investigation into the allegation by sending a letter drafted
by Electronics Watch to its distributors. The message, sent by several Electronics Watch affiliates,
eventually reached the multinational and spurred action. The OSCE received an official answer from its CSR
department and was asked to participate in a debriefing. This demonstrates that, although a public body
on its own may not have sufficient leverage to require substantive action, collaborative action increases
the chances of success.
Withholding payment without damaging workers
In its Employment-Intensive Investment Programme (EIIP) in Lebanon, the ILO undertakes measures to
ensure its contractors’ workers are paid. For example, its contract conditions include the right to deduct
payment from contractors and use this to pay workers directly. This ensures that workers are not affected
by withheld payments, and provides an incentive for suppliers to adhere to the contract.
Shortened termination period
As part of the ILO’s procurement of cleaning services in Qatar, the standard 60-day period for termination
was shortened to 5-days with a contractual clause. Suppliers were required respect labour rights, for
example paying workers according to their contracts, providing valid Qatari IDs, and not keep passports.
Where the UN Organization is a small part of a suppliers’ overall business, there may be a lack of market
influence for a supplier to take action. However, other UN Organizations may also buy from the same
supplier and it may be possible to work together to increase influence to motivate suppliers in taking actions
to combat forced labour and human trafficking.
If a supplier refuses to engage in remediation, introducing measures such as suspending a contract or
withholding payments, in line with the contract and applicable law, can provide the necessary leverage to
incentivise suppliers to implement the CAPA while at the same time protecting workers’ rights.
Stopping work and suspending the contract should be considered carefully, as it may jeopardise the
supplier’s business and cause greater harm to workers. Moreover, it may be appropriate to suspend the
contract only if the supplier itself is the source of the contractual violation. Otherwise, if violations are
identified in the lower tiers of the supply chain, this may not be an appropriate course of action.
UN Organizations can also consider including clauses on withholding final payment or payment rates,
whereby part of the contract sum is subject to the fulfilment of certain requirements, or penalties for not
providing documentation or addressing a default. However, this should be done carefully, because
withholding payment may have the opposite effect of further endangering workers, rather than encouraging
remediation.
In an effort to ensure any future violation is addressed in a timely and appropriate way by suppliers,
enforcement and escalation clauses may need to be amended or further developed in consultation with legal
staff. This is especially valuable if issues have already been identified in the sector, industry or local context.
63
• Disengagement and contract termination
Where no other options are viable, the contract managers can action provisions regarding termination of the
contract. Grounds for termination might include:
− A supplier’s non-compliance with requirements of the contract including, but not limited to, the
supplier’s unwillingness to implement corrective actions for identified violations;
− When severe human rights abuses are found, which would constitute grounds for exclusion had they
been known prior to awarding the contract;
− Repeated and/or ongoing violations of the terms of the contract.
Immediate grounds for termination could be considered when non-compliance involves documented
evidence of suppliers knowingly using forced labour and human trafficking, actively facilitating forced labour
and human trafficking, or where forced labour and human trafficking occurs on a large scale. Continued
engagement can also be challenging or impossible, for example, when forced labour is state-sponsored or
occurring at lower tiers of the supply chain where it is not possible to utilise contractual obligations or
leverage.
Forced labour and human trafficking are criminalised activities in most jurisdictions. Should allegations or
evidence be provided to the UN Organization, it is prudent and highly encouraged to consult legal staff on
reporting such allegations or evidence to relevant local authorities, including the police.
3.9 Sanctions
In 2011 the basic components of a model policy framework (MPF) for Agencies of the UN system to consider
for vendor sanction procedures within their respective governance frameworks and mandates was approved
by the UN’s High Level Committee on Management Procurement Network (HLCM-PN). As of September
2021, a total of 13 UN Agencies have developed their own Vendor Sanctions Procedures in line with the MPF.
The UN Agencies with Vendor Sanctions Procedures can place sanctions on a vendor where there is
conclusive evidence of proscribed practices including:
− Corruption
− Fraud
− Coercion
− Collusion
− Unethical conduct
− Obstruction
This clause was never exercised, but was designed to complement the escalation clause and indicate to
suppliers the importance of ensuring workers’ rights. This tendering process also included a bidders’
conference where the importance of respect for labour rights was emphasised.
64
Suppliers are not automatically excluded through the platform for performance issues. A note on the reason
for the sanction and contact information for clarification is included. This allows UN Organizations to make an
assessment of whether they will exceptionally engage based on various reasons, including where the supplier
is the sole source.
For additional resources on contract management, see:
♦ The UN Procurement Practitioner’s Handbook;
♦ Buying for a Better World. A Guide on Sustainable Procurement for the UN System;
♦ UNDP & UNEP, Working Paper: A Sustainability-Weighted Procurement Portfolio Model (PPM) 2021;
♦ OSCE, Combating Trafficking in Human Beings and Labour Exploitation in Supply Chains OSCE.
For additional resources on social audits, see:
♦ Electronics Watch’s worker-driven monitoring methodology;
♦ Issara Institute’s Inclusive Labour Monitoring;
Forced labour and human trafficking are currently included under unethical conduct.
Sanctions which can be imposed include censure and ineligibility/debarment, and others appropriate
sanctions such as suspensions, reimbursement or subjecting future contracts to special conditions.
These sanction(s) will be recorded in the UN Ineligibility List, which is maintained by the UNGM. This contains
three ineligibility lists: a) the UN Ineligibility List (established in accordance with the provisions of the MPF),
b) the Consolidated United Nations Security Council Sanctions List (CUNSCSL) and c) the World Bank’s Listing
of Ineligible Firms & Individuals. These lists are distinct and separate from each other.
♦ Workers' Rights Consortium, information on auditing.
Further resources can be found in annex 3
65
3.10 Actions to take when a forced labour or human trafficking
issue arises
In the event that a forced labour or human trafficking issue arises, immediate action should be undertaken to
document the incident and report to the relevant internal stakeholders to ensure that the UN Organization
remains in compliance with reporting requirements to relevant authorities in the particular context. In
addition, the following steps can be taken to identify the issue and assess what further action should be
taken to address it:
1. Reviewing contractual rights: Reviewing what contractual rights may be exercised should be an early
step to guide action taken to address an issue of forced labour or human trafficking. An instance of a
forced labour and human trafficking abuse is likely to give rise to a breach of contract and buyers should
identify what contract suspension and/or termination rights, or payment withholding rights, if any, exist
under the terms of the contract signed by the supplier. Even if not exercised, the existence of a robust
suspension, termination and/or withholding rights can increase leverage, encourage suppliers to engage
in dialogue and incentivise them to take corrective action. Other relevant rights may include rights to
conduct audits or investigations, contractual obligations on a supplier to cooperate or participate in any
such audit or investigation. Furthermore, the general conditions of contract require that suppliers
observe all laws, ordinances, rules, and regulations bearing upon the performance of its obligations,
which may include local laws related to forced labour and human trafficking. For guidance on using
contractual rights, see section 3.8. For guidance on disengagement, see section 3.8.3.
2. Dialogue with the supplier: Entering into dialogue with the supplier can help clarify an allegation of
forced labour or human trafficking and identify what actions can be taken to address the issue. Dialogue
should be undertaken in the spirit of continuous improvement, aiming to act cooperatively with a
supplier wherever possible. For guidance on engaging in dialogue with the supplier, see section 4.2. For
guidance on supplier engagement in the context of corrective action, see section 3.8.3.
3. Audits and investigations: Audits and investigations can be conducted to clarify an allegation of forced
labour and human trafficking and establish root causes and identify what action should be taken to
address the issue. As noted above, UN Organizations may have contractual rights to undertake such
audits or investigations. For guidance on using audits and investigations, see section 3.8.2. For an
example of using audits and investigations to address social issues including forced labour and human
trafficking, see Case Study 3.
4. Collective action with other UN Organizations: Acting collectively with other UN Organizations can be a
means of increasing leverage in circumstances where an individual UN Organization may not have
sufficient market influence alone to effect change. In certain circumstances, it may be possible to work
together to increase influence to motivate suppliers in taking actions to combat forced labour and
human trafficking, including by adopting joint approaches to auditing. For examples of collective action in
this context, see section 3.8.3.
66
given to alerting relevant authorities to situations of forced labour and human trafficking, as appropriate.
UN Organizations should aim to facilitate remedy to victims where an allegation is proven. For guidance
on remedy for victims and survivors of human rights abuses, see section 4.1.
7. Sanctions: In the event that an issue of forced labour or human trafficking arises, it may be appropriate
to apply vendor sanctions in accordance with the Model Policy Framework on vendor sanctions. This can
include censure, ineligibility or debarment, and others appropriate sanctions such as suspensions,
reimbursement or subjecting future contracts to special conditions. For guidance on sanctions and the
Model Policy Framework, see section 3.9.
5. Corrective and Preventative Action Reports: Wherever possible, where forced labour and human
trafficking issues arise, UN Organizations should aim to prevent reoccurrence, including through the
supplier’s development of a corrective and preventative action report. For guidance on corrective and
preventative action plans, see section 3.8.3.
6. Remedy: Victims should be at the centre of measures to address forced labour and human trafficking
and should have access to effective remedy where abuses occur. Corrective action and disengagement
measures should be supplemented with a victim-focused approach, must not jeopardize victims’ safety
and protection, and more broadly do no harm to victims and potential victims. Consideration should be
67
4. CROSS-CUTTING CONSIDERATIONS
There are number of considerations which are relevant across the whole procurement cycle, at multiple
stages, including:
4.1 Remedy for victims and survivors of human rights abuses
4.2 Supplier engagement and support
4.3 Emergency procurement
4.4 Support for UN personnel
4.5 Role of donors and national stakeholders
4.6 Reporting
This section provides further guidance on such cross-cutting considerations.
4.1 Remedy for victims and survivors of human rights abuses
Forced labour and human trafficking are serious human rights abuses which have profound and long-lasting
effects on victims and survivors. States have an obligation to ensure effective remedy for human rights
abuses which occur within their territory/jurisdiction. Buyers and suppliers can complement state-based
processes by providing access to grievance mechanisms to those impacted by human rights abuses in their
supply chains. Most importantly, those who suffered harm should be at the centre of measures to address
these abuses and have access to effective remedy where abuses occur.
An allegation of forced labour and human trafficking abuses may constitute a breach of contract, which
would require engagement with the elements outlined in the above section 3.8.3 on corrective action and
disengagement. However, corrective action and disengagement is focused on the supplier and might not
result in a remedy for a victim or victims. Accordingly, corrective action and disengagement measures should
be supplemented with a
victim-focused approach. In practical terms, this means that victims should be able
to access remedy and receive reparations where an allegation is proven. Remedy can take a variety of forms,
including:
- Cessation of any on-going abuse or violation;
- Restoration;
- Compensation;
- Disciplinary actions or punishment against those responsible;
- Access to relevant information;
- Public disclosure of the truth;
- Guarantees of non-repetition;
- Rehabilitation; and/or
- Symbolic reparations, such as an apology or public acknowledgment of their harm.
A holistic approach to remedy requires that systems and processes are established covering all procurement
activities in advance of allegations of forced labour and human trafficking arising. As such, this type of
comprehensive organizational approach requires senior management support. However, even without such a
68
Grievance Redressal Mechanism
UNOPS establishes a Grievance Redressal Mechanism (GRM) for all projects with a social element, or hubs
overseeing numerous social projects. A focal point, as well as a nominated email address and hotline
number, are identified. This information is displayed on relevant websites and on a billboard to be placed
on project site. Anonymous information can be submitted by anyone in relation to the project or
procurements conducted by UNOPS. UNOPS will investigate allegations and where breaches are identified,
engage with suppliers to remedy these, including requiring a supplier to remedy victims directly.
Complaints mechanism for violation of ILO Conventions
The ILO has a complaints procedure if there is a suspected violation of ILO Conventions, including those
related to forced labour and human trafficking. Worker representatives of victims of forced labour and
human trafficking in UN supply chains can make a complaint about the supplier and/or sub-suppliers. UN
Organizations can highlight that this complaint route is open for victims of forced labour and human
trafficking abuses in UN supply chains.
Channels to receive information
cross-organizational approach, there are steps that staff working with procurement and with suppliers can
take to support victims in accessing effective remedy which are detailed below. These steps should be
considered at the procurement planning stage.
• How can management establish a holistic approach to remedy?
A grievance mechanism is an important risk management tool that may allow a UN Organization to become
aware of and address human rights abuses at an early stage, prevent ongoing abuses, prevent abuses from
re-occurring, and provide remedy to victims and survivors.
UN Organizations can consider establishing their own grievance mechanisms and/or processes to receive
allegations of forced labour and human trafficking abuses in their supply chains, undertake investigations,
report crimes to the relevant authorities and provide remedy to victims in a structured manner. The UNGPs’
effectiveness criteria (Principle 31) should be considered when designing a grievance mechanism or requiring
suppliers to provide access to an effective grievance mechanism. These criteria establish that a grievance
mechanism should be: legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source
of continuous learning and based on engagement and dialogue.
• Focused and practical measures staff can take to facilitate remedy
A grievance or complaint mechanism does not have to be particular to a UN Organization. Overarching
complaint mechanisms focused on labour abuses, including forced labour and human trafficking are also
available and can be made accessible to UN suppliers and their employees.
A way to provide feedback or complaints safely, such as a hotline or dedicated email address accessible to
suppliers, sub-suppliers, workers and other relevant stakeholders has been established by a number of UN
Organizations to allow for allegations to be received and processed.
69
Remedying risks factors directly
In one of its member countries, the African Development Bank realised that a contractor was paying
salary to workers that, while within the national minimum wage, was not sufficient to sustain the
employees and their dependents to a standard of living in line with African Development Bank values. As a
result, the contractor’s employees had to work multiple jobs. The African Development Bank decided to
cover the amount necessary to raise their salary to not only ensure that the contractor’s staff were paid a
living wage, but that they were also able to more effectively perform their job. To establish the top up
amount, the African Development Bank examined the pay in previous contracts, similar organizations and
the industry standard.
Termination without harming the victims/supplier personnel
The ILO terminated a contract of a supplier providing cleaning services based on a wide range of issues,
including failure to provide a cleaner with contractually mandated social benefits and failure to rectify the
situation. The ILO contracted a new supplier and requested that the same cleaner was hired by them.
Given the flexibility in the cleaning sector and the country context, this was easily achievable and allowed
the ILO to disengage with a non-performing supplier while supporting the victim.
A UN Organization can demand that the supplier responsible for the abuse provides remedy to the victim.
However, this can be difficult in practice if there is no contractual obligation for suppliers to engage with such
a process (see Annex 5 - Suggested Clauses). Further, forced labour and human trafficking may occur at lower
tiers of the supply chain. In such cases, leverage can be used to encourage suppliers to engage with remedy
processes. Where a UN Organization cannot influence suppliers to establish, or engage with, a remedy
processes in a particular context, UN Organizations themselves can consider providing remedy for forced
labour and human trafficking abuses that occurred in their supply chains.
Remedy can take many forms and does not have to be in the form of financial compensation. Effective
remedy could involve all the measures listed above, including apologies, restitution, rehabilitation, non-
financial compensation, and punitive sanctions as well as the prevention of harm through injunctions or
guarantees of non-repetition. The UN can support victims in ways appropriate to the particular context of the
procurement.
• Can suppliers be required to have a grievance mechanism?
The UNGPs highlight that business enterprises have a responsibility to facilitate access to effective grievance
mechanisms. Suppliers can establish their own grievance mechanisms or join already established grievance
mechanisms. There are a range of industry and sector-based grievance mechanisms which suppliers can sign
All activities falling within the ILO Employment-Intensive Investment Programme (EIIP) in Lebanon have a
general hotline, which can be used to report complaints. This is shared with contractors, who are under
the obligation to share it on site so that their workers are aware of it, and also with the municipalities and
villages where the projects take place. The complaints received are channelled to the Chief Technical
Advisor, who is then able to refer them to the appropriate staff.
70
up to which can provide effective access to remedy. Examples of industry and sector-based grievance
mechanisms include:
- Fair Wear Foundation
- Bangladesh Accord Complaint Mechanism
- Aluminium Stewardship Initiative
Including measures to encourage and/or compel suppliers to have, establish, or join effective grievance
mechanisms to facilitate victims access effective remedy should be considered in advanced markets.
Requirements for suppliers to establish or demonstrate effective operational-level grievance mechanisms
need to be highlighted to suppliers at an early stage and communicated in tender documents. Such
requirements can be included in selection criteria, contract award criteria or conditions for performance of
contract, as long as the specific conditions of each method are adhered to.
For additional resources on remedy and grievance mechanisms, see:
♦ The UN Guiding Principles on Business and Human Rights (on remedy generally and on grievance
mechanisms in Principle 31);
♦ The Office of the United Nations High Commissioner for Human Rights, Accountability and Remedy
Project: Improving accountability and access to remedy in cases of business involvement in human
rights abuses;
♦ CSR Europe, Assessing the effectiveness of company grievance mechanisms;
♦ The Institute for Human Rights and Business, Remediation and Operational-Level Grievance
Mechanisms.
71
4.2 Supplier engagement and support
UN Organizations should support suppliers in their due diligence efforts. For structured and coherent supplier
engagement and support, it is important that senior management is involved.
The forms of supplier engagement should be considered as early as possible in the planning stage. This can
take a variety of forms including:
- Utilising market testing/requests for information to support the introduction of forced labour and
human trafficking requirements;
- Utilising regular supplier engagement to highlight risks of forced labour and human trafficking;
- Briefing potential bidders on specific forced labour and human trafficking requirements in a tender;
- Supporting suppliers with training on forced labour and human trafficking;
- Ongoing support and training tailored to support individual suppliers.
Supplier engagement and support for suppliers during contract implementation is included at relevant points
in the procurement cycle and in section 3.8.1 on supplier dialogue during contract implementation. The
forms of engagement and support detailed in this section are broader (i.e. not tied to a specific procurement
exercise) and are for group engagements relevant to multiple stages in the procurement cycle.
There is a large degree of crossover between these different forms of engagement and support. The
approach should be tailored to the particular context and specific attention is to be paid to ensuring that
suppliers are treated equally and receive the same information.
• Utilising market testing/requests for information to support the introduction of forced labour and
human trafficking requirements
Market testing and requests for information allow a buyer to inform and test the market on the UN’s
priorities and targets as they relate to forced labour and human trafficking. This is also an opportunity to
inform the market of what this will mean in practical terms for upcoming tenders. They give a buyer an
opportunity to hear suppliers’ reactions, gain an understanding of the maturity of the market, and identify
where progress can be achieved immediately and where it will take more time. Questions to be addressed
through market testing and engagement include:
- Is the market ready and capable to deliver what is required while still adhering to the UN’s requirements
on forced labour and human trafficking? Do potential suppliers have sufficient technical and
management capacity to deliver on relevant requirements?
- How many suppliers could meet the proposed terms and requirements; will the procurement be
sufficiently competitive? How can the terms and requirements be adjusted to the local context while still
adhering to the UN’s requirements on forced labour and human trafficking? It is important that
requirements do not implicitly single out one supplier, or unfairly impact specific suppliers or groups
suppliers (MSMEs, for example);
72
Continuous supplier development outreach
The African Development Bank engages in continuous supplier development outreach. As part of this, in
July 2018 the African Development Bank held a meeting for suppliers that the Bank has on-going contracts
with for provision of various services from hospitality, maintenance and HR consultancy. The meeting was
aimed at raising awareness on new policies that the African Development Bank is keen on implementing
and reminding suppliers of existing policies and highlighting how the African Development Bank can
continue to collaborate with them for effective contract management. The interactive session was
attended by more than 20 suppliers, from 13 different companies. The meeting involved going through the
Performance Evaluation, 360 Degrees feedback, Sustainable procurement and Post-Qualification
assessment (Due Diligence). The African Development Bank procurement team invited colleagues from the
security and finance departments to highlight the African Development Bank’s expectations in regard to
security and payment.
- Could the proposed approach encourage the progressive realisation of human rights, adherence to the
UN’s requirements on forced labour and human trafficking and development of the supplier base? Even
if the market is not yet ready to meet the requirements, is it possible to create awareness and incentivise
suppliers by including human rights considerations and minimum prohibitions on the use of forced
labour or human trafficking as award criteria?
- What support would be required or desirable, to help suppliers meet human rights requirements and
prohibitions on forced labour and human trafficking? What form should support take? Should support
should focus, for example, on micro, small, and medium enterprises (MSMEs), or other categories of
suppliers?
If buyers set requirements that are too demanding, no or few suppliers may answer a call for tender – or
suppliers may commit to terms that they cannot deliver. On the other hand, if requirements are set too low,
risks of forced labour and human trafficking may not be adequately addressed, and it may also fail to create a
level playing field. Market testing is especially important when a procurement involves new requirements,
when requirements which may entail significant changes to suppliers’ business operations, or when suppliers
may be uncertain how to comply with the requirements.
• Utilising regular supplier engagement to highlight risks of forced labour and human trafficking
When introducing considerations across all, or a range of tenders, UN Organizations can consider organising
meetings with a market and or sector to explain its approach to managing risks of forced labour or human
trafficking. It is important to remember that some markets are better able than others to manage these risks.
Regular supplier engagement (and market testing) can be particularly relevant when procuring in a new
country, market, or sector.
Supplier engagement meetings provide a good opportunity to include an agenda point on specific topics,
such as forced labour and human trafficking.
73
Pre-bid meeting conferences
The African Development Bank conduct pre-bid meeting conferences. As part of these conferences,
sustainable procurement considerations are highlighted. As part of the social element, the African
Development Bank highlights statutory benefits for a potential supplier’s employees, minimum wage
requirements, and how to include ‘disadvantaged’ persons within the company.
conferences are not typically mandatory, but give an advantage to those who attend as they are better
informed of what the buyer is looking for. These meetings help both the buyer and the potential bidders
establish the same understanding of the tender documents and can be a useful forum to explain the UN’s
expectations of suppliers with respect to forced labour and human trafficking. These expectations can be
communicated by reference to the UN Statement of Forced Labour and Human Trafficking, the UN Supplier
Code of Conduct and contractual expectations set out in the UN General Conditions of Contract (UNGCC), as
well as any specific requirements in the tender documentation.
• Supporting suppliers with training on forced labour and human trafficking
UN Organizations can utilise their websites to inform suppliers of their general expectations for suppliers
regarding forced labour and human trafficking.
• Briefing potential bidders on particular forced labour and human trafficking requirements in a
tender
Once a buyer has designed a tender with forced labour and human trafficking requirements, it can be useful
to present the tender in a bidder conference to explain these requirements to interested bidders. Pre-bid
Websites with information for suppliers
The International Maritime Organization (IMO) procurement page features ‘Important tips for vendors’
where the prohibition against sexual exploitation and abuse features prominently.
UNICEF has a page on its website to highlight relevant procurement policies to suppliers. The page also
includes a link to UNICEF’s the Children's Rights and Business Principles which sets out what suppliers
should do to respect children’s rights, including as it relates to human trafficking and forced labour, in their
activities and supply chains.
Agenda points in regular business seminars
The UN Secretariat regularly organises business seminars for vendors and participates in business
seminars held in cooperation with member states. These seminars are used as an opportunity to inform
the business community about the UN principles and values in procurement.
The ILO participates in regular meetings with commercial attachés of various missions to the UN in
Geneva. During these meetings, general information on how to do business with ILO/UN is provided, with
particular emphasis on the zero-tolerance policy on fraud and corruption.
74
Online supplier courses
Doing Business with UNOPS is an online course with the aim of improving the knowledge of current and
potential suppliers on how to do business with UNOPS, including UNOPS expectations on sustainability and
ethics, and information on vendor sanctions. This is supplemented with the UNOPS Possibilities Toolbox
which is a self-assessment tool for all suppliers to help determine readiness to become a UNOPS supplier.
Mandatory training
Since 2017, the ILO has been involved in 'The Employment Intensive Infrastructure Programme in Lebanon’
to create employment opportunities for Lebanese living in host communities and displaced Syrians
through infrastructure works. All new bidders are required to undertake the Local Resource Based
Technology training, which includes a module on decent work, occupational health and safety, strategies
to involve women and persons with disabilities, and employment monitoring. The training is conducted for
every procurement exercise, and bidders receive a certificate for its completion, which is mandatory to
qualify for the tender. Bidders who have previously completed the same training are exempt, however all
contract kick-off meetings include a training refresher.
Helpdesk
The ILO Helpdesk for Business on International Labour Standards is a one-stop shop for company
managers and workers on how to better align business operations with international labour standards and
build good industrial relations.
Continuous supplier improvement
UNOPS’ DRiVE programme is founded in the belief that a transparent and well informed dialogue with the
private sector is critical to achieving the changes and improvements needed for sustainable, inclusive and
resilient development. The programme revolves around the concept of continuous improvement, and
Introducing forced labour and human trafficking protections into procurement is designed to motivate the
market to address the issue. It is not intended to exclude or limit supplier access to UN procurement
contracts unnecessarily or permanently. To ensure that suppliers can improve and meet forced labour and
human trafficking requirements, UN Organizations should provide support in the form of training and/or
guidance to assist suppliers so that supplier can effectively undertake human rights due diligence and address
risks of forced labour and human trafficking in their activities and their supply chains. Such support can be
tailored to meet the differing maturity and needs of suppliers in a country context or market.
It is possible to mandate that suppliers complete training as a pre-qualification requirement to be eligible to
compete in a tender (See section 3.5 on supplier qualification for more information).
A helpdesk providing support for suppliers is a good way to engage and support supplies in an ongoing
manner.
• Ongoing support and training tailored to support individual suppliers
Ongoing support and dialogue over the duration of the contract is one of the most effective ways to improve
suppliers’ due diligence on forced labour and human trafficking. Section 3.8 on contract management
explains in detail how this can be done over the life of a contract.
75
A checklist for MSMEs
UNOPS have a customized checklist for MSMEs to bring their attention to what they should be aware of
when trying to participate in tenders.
• Support for Micro, Small and Medium-sized Enterprises (MSMEs)
The responsibility for businesses to respect human rights applies to all business enterprises, regardless of
their size, sector, location, ownership and structure. However, measures to meet this responsibility vary
based on a business's capacities and resources. More advanced measures to address forced labour and
human trafficking risks will be expected of a multi-national enterprise (MNE) than of a micro, small, and
medium-sized enterprise (MSME).
MSMEs can face challenges when asked to demonstrate their commitments to sustainability, human rights,
the environment, gender equality, or addressing forced labour and human trafficking. As such, MSMEs may
require support to meet enhanced measures and requirements introduced to address forced labour and
human trafficking.
There are a number of resources on human rights due diligence for MSMEs. These can be used in the
engagement with MSMEs to help build their capacity and to also provide inspiration on expectations on
MSMEs regarding their performance in relation to human trafficking and forced labour risks:
- European Commission Guidance - My Business and Human Rights - A guide to human rights for small
and medium-sized enterprises
- OECD Due Diligence Guidance for Responsible Business Conduct
In order for MSMEs to not be inadvertently excluded from tendering processes that have specific
requirements with regards to combating forced labour and human trafficking in supply chains, it is important
to give MSMEs the opportunity to demonstrate their respect for these principles through other means. This
could include, for example, adopting sufficient time-periods to allow MSMEs to submit tenders as they may
not have the same experience and capacity as larger businesses, or providing an unsuccessful bidder with
provides the opportunity to work with vendors by increasing their awareness of internationally recognised
standards and developing their capacity to respect them.
Under the DRiVE program, UNOPS has engaged with suppliers in relation to labour policies, focusing on
service sectors such as cleaning and security. If a supplier did not have a policy covering labour rights,
UNOPS asked more information on employment and worker contracts, and provided feedback highlighting
the importance of having a policy. Suppliers then notified UNOPS once they had developed a tailored
policy, sharing it with them.
UNOPS has also provided ongoing support as part of thematic reviews in particular contexts as part of
DRiVE. For example, as part of a recent review on sexual abuse and exploitation in Jordan, UNOPS engaged
with 21 awarded suppliers and provided recommendations on how to create or amend policies and
processes. 16 suppliers decided to voluntarily collaborate with UNOPS and are in the process of revisiting
their codes of conduct and policies.
76
feedback on the forced labour and human trafficking elements within their proposal in order to emphasise
the importance of this element to the UN Organization and encourage the bidder to develop further in this
area and bid again.
77
The COVID-19 pandemic & procurement
The COVID-19 pandemic, and the associated economic impacts, has had a large impact on forced labour
and human trafficking. A global report by the UNODC notes that since the start of the COVID-19 pandemic,
trafficking in persons has gone further underground, making any reliable estimates of the scale of
trafficking in persons more difficult. That said, the UNODC also estimates that in some regions and
countries, reporting on domestic trafficking has increased, especially local recruitment and exploitation. In
addition, loss of livelihoods and restrictions on movement have led to traffickers recruiting victims in their
local areas.
See further UNODC, The Effects of the COVID 19 Pandemic on Trafficking in Persons and Responses to the
Challenge.
While health has always been a significant procurement category for the UN, this has been further
increased during the COVID-19 pandemic. In 2020 the rubber sector, which produced rubber for use in
rubber-gloves, has long been known as a sector of risk of poor working conditions as well as forced labour
practices.
4.3 Emergency procurement
According to the UN Procurement Practitioners Handbook, emergency procurement allows an Organization
to “simplify its procurement process … to facilitate rapid response during an emergency situation, without
compromising compliance with applicable procurement principles.” Shortening and simplifying procurement
processes can help UN Organizations act in time-critical situations to help protect the human rights of
individuals and protect against risks to UN personnel. However, post-conflict and post-crisis areas where
emergency procurement is conducted generally have increased risks of forced labour and human trafficking.
Ultimately, a balance should be reached between the need for time-critical procurement activities to address
broader human rights risks in emergencies and to include procurement measures to address the increased
risks of forced labour and human trafficking.
Many UN Organizations have their own procurement procedures for emergencies in place, due to the varied
roles Organizations play when operating in post-conflict and post-crisis areas. Striking the right balance
between the simplification of procurement procedures and effective due diligence becomes increasingly
important where emergency procedures are applied to procurement activities for an extended period of
time.
The following considerations can help guide a decision on whether to streamline, maintain, or increase
measures to address protections against forced labour and human trafficking in emergency procurement:
• Does procurement have to be conducted within the emergency context?
It may be possible to conduct procurement activities outside the identified emergency or fragile context,
which can mitigate some of the risks of procuring in emergency contexts. However, some risks may never be
addressed in this way (e.g. post-distribution corruption) and some emergencies may require different
responses (e.g. bringing in food aid can depress local agriculture).
78
Requirements are not mandatory but ‘preferred’
When UNOPS declares an emergency for a project for a set period of time, emergency procurement
measures are engaged. UNOPS have included a specific focus on emergency procurement in their
procurement manual. UNOPS guidance specifies that Sustainable procurement requirements are not
mandatory for emergency procurement, however they are still preferred and should be included where
possible.
• Will including protections against forced labour and human trafficking lengthen and complicate
the procedure and/or significantly reduce competition in practice?
If the market is developed, and suppliers have measures in place to protect against forced labour and human
trafficking in supply chains, then including requirements which align with the market should not reduce
competition nor impact on time-critical procurements. If UN personnel have worked on the issues of forced
labour and human trafficking in procurement previously and can adapt previous approaches to the
emergency context, then including protections against these issues may not present an additional time or
resource burden.
• Are there reports of forced labour and human trafficking in the emergency area? Will the
emergency situation heighten the risks of forced labour and human trafficking occurring?
If there are reports of forced labour and human trafficking in the context of the emergency, then measures to
address these violations should be considered. If the emergency situation impacts on ongoing programmes
and projects to address forced labour and human trafficking, measures should almost certainly be included.
Measures that suppliers and UN personnel are familiar with and can be easily and effectively implemented to
address the identified risks should be prioritised. An emergency procurement may not generally be the
easiest time to introduce new or more advanced measures. However, if there is a significant risk of forced
labour and human trafficking and a spotlight on the emergency and the emergency response, then they may
be necessary. This could include, for example, making sure that there are inspectors to identify and respond
to reports of forced labour and human trafficking. Procurement in such contexts could be aligned with
broader relief or development efforts, including increasing coordination with government or NGO actors,
building institutional capacity and engaging in social dialogue.
Supplier assessment during an emergency
During the COVID-19 pandemic, the UNDP Procurement Services Unit in Malaysia developed a Due
Diligence and Qualification Assessment for health product suppliers. This was part of supplier
prequalification and aimed to protect the UNDP from scams and fraudulent offers, including those vendors
that practice unethical procurement. The assessment is divided in different sections, of which one is
dedicated to criteria that ‘expose’ UNDP. Screening is conducted through online research, guided by the
following questions, among others:
- Is there any report, indication available that the bidder has been involved in child labour?
- Is there any report, indication available that the bidder does not adhere to Worker Rights?
- Forced Labor - (slavery, servitude, trafficking, forced, bonded labor, compulsory labor)
While not a detailed guidance, this allowed the UNDP to consider potential human rights risks even in an
emergency situation and enabled it to assess over 66 COVID related health products in three months.
79
Pre-trained suppliers
The ILO Employment-Intensive Investment Programme (EIIP) in Lebanon requires that all bidders
undertake the Local Resource Based Technology training, which includes decent work, occupational health
and safety, employment of women workers and persons with disabilities, sexual exploitation and abuse.
When the Beirut explosion occurred in August 2020 and emergency procurements was needed to aid in
the rubble clearing efforts, the ILO had a pool of potential suppliers already trained in addressing certain
human rights risks who they could call on to engage in a closed tender.
• Could there be any risks of heightening the risks of forced labour and human trafficking through an
expedited procurement and/or through the implementation of emergency contracts?
The UN should endeavour to ‘do no harm’ in conducting activities, including procurement. Orders for large
volumes at short notice and ‘just-in-time’ orders can directly lead to abuses of workers’ human rights, via
excessive hours, ‘lock-ins’ and increased workplace injuries. UN personnel should be cognisant of such risks
and respond to them utilising measures identified throughout this Guidance, including through the inspection
of premises as part of a tender validation process to confirm that a potential supplier has the capacity to
deliver, (see section 3.5 on supplier qualification) and through supplier feedback to check that the contract is
fit for purpose and does not itself exacerbate risks of forced labour and human trafficking (see section 3.1 on
risk identification, assessment and management for more information).
• Are there measures to help prepare for emergencies while continuing protections against forced
labour and human trafficking in UN supply chains?
Although many emergencies are unforeseen, UN Organizations which have already have measures in place to
address forced labour and human trafficking in their supply chains can benefit from these during emergency
procurements. Having a capacitated supplier base to call on can be crucial to moving quickly without
reducing protections.
Being able to utilise framework agreements (including LTAs) with vetted suppliers with relevant contractual
clauses and KPIs already in place is invaluable during an emergency to allow a buyer to move quickly without
reducing protections.
Utilising existing suppliers and framework agreements
The African Development Bank has developed framework agreements in most procurement categories.
This minimises the risk posed by introducing a completely new entity to rely on in an emergency situation,
and allows the Bank to source from suppliers that have already been evaluated.
The OSCE also takes a similar approach for the emergency procurement in locations where they already
have a presence, using the infrastructure and supply network already there, and for which due diligence
has already been conducted. For those areas where the OSCE does not already have a presence, the usual
terms of contract would still apply, however in terms of tendering process OSCE would in practice
prioritize supply assurance over the inclusion of human rights tender evaluation criteria.
• Is it possible to identify and respond to risks emerging during contract implementation?
80
Ongoing risk management
UNOPS declared an emergency situation in Yemen and completed a USD $10m procurement for power
rental within 2 weeks through an LTA. A risk register was completed covering the electrical elements,
mobilisation and de-mobilisation and human rights. During contract implementation, further risks were
identified and as such a contract amendment was negotiated to address these risks and provide for the
extra costs the supplier so incurred to address them.
It may not be possible to identify and address all risks of forced labour and human trafficking at an early stage
in an expedited emergency procurement. However, these risks may become apparent during the contract
implementation stage. It is important to consider how a contract and/or monitoring mechanisms could be
developed to respond to risks identified during contract implementation.
81
Internal workshops on forced labour and human trafficking can be effective way of first introducing the topic
Training for procurement staff
UNDP/CIPS training is available to UN procurement staff and is mandatory requirement for certain
positions. All UNDP/CIPS procurement certification course content at Introductory (Level 2), Advanced
(Level 3), and Diploma (Level 4) levels is tailored to reflect common United Nations and public
procurement rules, policies and procedures. Further courses are available including, for example,
Introduction to Sustainable Public Procurement and Risk Management in Contracting for Constructions
Services.
Internal training on procurement
UNOPS has developed Procurement Operations Training (POT) which is designed to provide UNOPS
procurement practitioners with a comprehensive training on all operational aspects of UNOPS
procurement policies and procedures. There are specific modules focused on sustainable procurement,
covering:
- How sustainable procurement is key to achieving the Agenda 2030 and UNOPS strategic plan
- How to practically source sustainable goods, services and works from sustainable suppliers
- How to integrate sustainability considerations throughout the procurement process, in line with the
UNOPS new Sustainable Procurement Framework.
Internal workshops
The Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) conducts internal workshops on
ethics, anti-corruption, gender equality, social bias, HR issues which are mandatory for all CTBTO staff.
CTBTO procurement staff offer contract management training to non-procurement colleagues (a
customised course provided by the UNDP) as well as procurement training offered internally on specifics,
such as Terms of Reference writing, Evaluation of bids (evaluation criteria establishment, etc.), general
procurement principles, and other.
Utilising forced labour and human trafficking expertise
In 2021, the International Organization for Migration (IOM) experts on forced labour and human
trafficking delivered training for over 100 members of procurement staff from offices around the world on
forced labour and human trafficking in supply chains. The training provided:
4.4 Support for UN personnel
To effectively address forced labour and human trafficking in UN supply chains UN personnel require support.
A large range of staff are engaged in procurements and the nature and type of support they require will
differ. This includes support on forced labour and human trafficking for procurement personnel, and support
on procurement for forced labour and human trafficking personnel.
Training staff on procurement and sustainable procurement is an important element of a support package.
to a broad range of staff who may have not worked with this previously.
A large number of UN Organizations have experts working on addressing forced labour and human trafficking
around the world. Utilising internal expertise to provide training and provide ongoing support can be one of
the most effective means in delivering a holistic support package.
82
Sharing good practice between technical staff
The UNHCR participates in a Quality, Social and Environmental Group alongside the ICRC, IFRC, IOM,
UNICEF and MSF. This group is technically oriented and focuses on topics related to quality management,
product development, laboratory testing and factory audits. This includes agenda points on i) inspection of
facilities (infrastructure) ii) Quality Management Systems iii) Corporate and Social Responsibility iv)
Environmental Systems. The agenda is based on the needs raised by the members. The attendees are
personnel who have responsibility(ies) related to QM/Product Development. The group meets twice a year
physically or through online quarterly meetings when this is not possible.
Facilitating internal communication
UNOPS have implemented an iPass system to allow staff working at regional hubs or in national level
projects to communicate directly with teams working at headquarters. There are specific iPass channels for
matters related to legal issues, gender, and sustainability. This system can be used, for example, to request
support on identifying and tailoring a procurement to effectively address forced labour and human
trafficking. All interactions are recorded and archived to serve as sources of information themselves.
Supporting staff through online tools
UNOPS have established a SP Framework Guidance & Resource Tool which allows staff to easily navigate
and implement the mandatory sustainable procurement requirements, share supplier information and
access resources. This tool allows UNOPS procurement officials or internal users to identify risks for
specific geographies and markets and access a list of tailored criteria to respond to these risks.
Technical working groups can allow for a two-way flow of information and support the adoption of coherent
approaches. These can be organised between UN Organizations and/or other actors, although it is important
that these are safe-spaces if sensitive information is to be discussed.
Internal communication systems can allow for the easy flow of information and peer-to-peer support.
Integrating forced labour and human trafficking into procurement systems, like Enterprise Resource Planning
(ERP) systems, e-procurement systems, and other systems used for procurement, places forced labour and
human trafficking as an integral part of procurement rather than an add-on.
− An overview of forced labour and human trafficking
− IOM counter-trafficking programming, including on prevention, protection, and prosecution The
human rights due diligence framework and other relevant frameworks for UN Organizations on forced
labour and human trafficking (UN SC res s/res/2388 (2017) and 2331 (2016))
− Sustainable public procurement
o Mapping and risk identification
o Managing risk and exercising leverage
o Managing contracts, supplier engagement and monitoring
o Ensuring transparency and continuous monitoring
o Taking actions when violations are found
83
In addition, it is important to provide practical guidance to personnel. The UNGM contains a Knowledge
Centre with a range of procurement and sustainable procurement tools and guides. Annex 3 includes
relevant guidance produced by UN Organizations and other relevant actors.
84
Donor support
As part of the ILO programme in Lebanon to upskill the construction sector, the ILO ensures that every
worksite had monitoring through a social and environmental safeguard officer. Monitoring was integrated
into the project budget from the outset and the donor, the German Development Bank (KfW), welcomed
this element.
Donor oversight and accountability
UNOPS social projects funded by the World Bank include third party monitoring (TPM) reports and an
overview of information gathered through a grievance mechanism. The World Bank require access to this
information, with the TPM sent directly to them by the consultants conducting them. The World Bank
analyses reports and expects the UNOPS to explain how they are responding to the reports and overview
at regular check-in meetings. The World Bank also requires that UNOPS use certain training materials
when onboarding TPM consultants to ensure they understand the role of the donor, the donor’s
expectations and provide direct contact information. The World Bank may also set up their own meeting
with the TPM consultants to brief them further.
4.5 The role of donors and national stakeholders
UN Organizations often implement projects with countries, donors, and local stakeholders. The needs and
requirements of these stakeholders regarding forced labour and human trafficking can be taken into account.
• How can donors support increased forced labour and human trafficking protections?
Certain donors may require that their contracts are used, or that their standards are reflected in agreements
and contracts. They may also have their own standards and expectations on how an Organization conducts
procurements spending donor funds (see above section 3.7 on contractual provisions).
Where donors have higher standards, they can be engaged to provide support in implementing these
standards, especially where there is an obligation for these terms to be used by the Organization in any sub-
contracting. Where donors require higher standards and are engaged early in planning, they may be willing to
provide additional funding to develop an approach to following up on contractual clauses and KPIs with
audits, factory visits, and dedicated project staff.
Where donors have less stringent standards or standards which do not refer to forced labour and human
trafficking considerations, the UN Organization should advocate for donor support of the higher standard
being implemented.
• How can national stakeholders be engaged to support forced labour and human trafficking
protections?
Projects conducted at the national level should include a stakeholder engagement step at the outset to
ensure that the projects respond to the needs of local stakeholders and end-users. This stage can be utilised
to gather information on risks related to forced labour and human trafficking. It can also be an opportunity to
inform the participants of the mechanisms which will be established to report problems related to the
project and its associated procurements.
85
Ensuring a social licence to operate
The CTBTO are cognisant that some civil works, infrastructure and other decisions during the construction
and maintenance of an International Monitoring System Station should be undertaken in a manner to
maintain the interest and long-term support of local stakeholders. When the CTBTO are considering a
project, for example establishing a monitoring station for nuclear detection on a remote island, they must
consider that the local authorities of the island will require that the construction does not pollute or
destroy the local fauna and does not hurt animals. Batteries should be repatriated for proper recycling, all
debris should be removed after construction, and the land should be returned to the original "green
condition" in the surrounding area once the lifespan of the station has been reached. In rare cases in
desert areas, the CTBTO may require that suppliers drill a water well and install a water pipe for the well-
being of the local community (which would be very costly for the local community, but a small addition to
the overall cost of the project for the CTBTO) to ensure the CTBTO and the supplier a social licence to
operate.
Where forced labour and human trafficking is identified as a large risk at this stage, further measures to
address it can be incorporated into the project and procurement activities to respond to the needs of the
local communities so that the UN Organization maintains its ‘social licence to operate’.
Mandating a supplier engages in ongoing and interactive dialogue with the local community
A UNDP construction project on a remote island country to support local communities against rising sea
levels needed to get community buy-in and support for the project that aims to improve economic, social
and environmental aspects of islands inhabitants. The project was presented to the local community for
feedback, with specific attention paid to community input related to risks, including of foreign construction
workers in the local community. When planning the procurement, the UNDP recognised a risk to the
project if there was no community buy-in, and the value of community buy-in to identify and respond to
other risks during the construction, and included an obligation for the supplier to engage in an ongoing and
interactive dialogue with the local community as part of the contract.
86
4.6 Reporting
Exercising human rights due diligence requires not only assessing and addressing human rights risks, but also
communicating on these actions. Reporting and publicly disclosing organizations’ actions and progress in
complying with their commitment to fight forced labour and human trafficking is a fundamental element of
human rights due diligence in supply chains. UN Organizations are encouraged to report periodically on how
they are implementing their commitments in their own procurement.
Reporting is also essential to encourage transparency among different actors, acknowledging that risks exist
in every supply chain, and that these can only be successfully addressed if everyone plays their part. The UN
holds considerable normative power and, by committing to publicly reporting on its efforts to address forced
labour and human trafficking, it sends a powerful message to the international community, encouraging
others to do the same.
Periodic reporting is an opportunity for UN Organizations to showcase their progress in preventing forced
labour and human trafficking from materialising in their supply chains, demonstrating to stakeholders that
the Organization in question takes its commitments seriously, and that it values transparency and
accountability.
The substance of reporting will necessarily depend on the specific actions taken to address forced labour and
human trafficking risks in the UN supply chains. Since this will vary depending on the capabilities and
resources of each UN Organizations, it is recommended that each Organization develops its own procedures
for communicating the implementation of UN-wide commitments. At the same time, a periodic report at the
UN level is also recommended, to inform on overall actions and highlight best practice.
For recommendations on how and what to report on see annex 2.
87
ANNEX 1 - GLOSSARY OF TERMS
Abusive labour recruitment: Refers to recruitment practices, including fraudulent and abusive practices that
may lead to forced labour practices, human trafficking and other forms of exploitation. In contrast, fair labour
recruitment is recruitment which takes place in a way that respects, protects and fulfils internationally
recognized human rights, including those expressed in international labour standards, and in particular the
right to freedom of association and collective bargaining, and the prevention and elimination of forced
labour, child labour and discrimination in respect of employment and occupation.
Forced or compulsory labour: Refers to work or service that is exacted from any person under the menace of
any penalty and for which the person has not offered him/her self voluntarily as defined by article 2 of the
ILO’s Forced Labour Convention, 1930 (No. 29).
Global supply chains: is the cross-border organization of the activities required to produce goods and services,
and bring them to consumers through various phases of development, production and delivery.
Human rights due diligence in the supply chain: Activities and procedures which organizations, public and
private, undertake to identify, prevent, and mitigate human trafficking, labour exploitation and abuse of
human rights related to their commercial activities and their business partnerships and along the supply chain,
including procurement. Human rights due diligence should be supported by measures to facilitate access to an
effective remedy for victims where harm has already occurred. The term human rights due diligence is defined
by the UN Guiding Principles on Business and Human Rights and elaborated upon by the OECD in its for Due
Diligence Guidance for Responsible Business Conduct.
Leverage: Leverage is the ability of one party on a commercial relationship to effect change in the wrongful
practices of another party which is causing or contributing to a human rights abuse. In the context of
procurement, leverage can be exerted by a public buyer over its actual and potential suppliers, and likewise by
a supplier with regard to its suppliers and sub-contractors as part of its due diligence process.
Micro, small, and medium-sized enterprise: Different definitions of what constitutes a micro, small, and
medium-sized enterprise (MSME) exist tailored to local contexts. A 2019 ILO publication notes that:
- Self-employed (1 person)
- Micro- enterprises (2-9 persons)
- Small enterprises (10-49 persons)
- Medium and large enterprises (50-249 persons)
- Large enterprises (250+)
Servitude: is the obligation to provide services that are imposed by the use of coercion and includes the
obligation for a ‘serf’ to live on another person’s property and the impossibility of changing his or her condition.
Domestic servitude is still common in some countries.
Severity: The principle of severity is introduced in the UNGPs as a means to help business entities prioritise
their efforts to address risks of adverse human rights impacts. Severity of the impact is judged by assessing the
scale, scope and remediability of the impact. Scale refers to the gravity of the impact on human rights. Scope
refers to the number of individuals that are or could be affected. Remediability refers to the ease with which
those whose rights are impacted can be remediated.
Supply chain: is the network of commercial entities that cooperate to transform raw materials into finished
goods and services for consumers. Through this network flow material that are processed, transported, and
otherwise transformed by such organizations into higher value products.
88
Supply chain Tiers: Global supply chains are organised in “Tiers” and referred to as multi-Tiers supply chains.
Tier 1 supplier is used to refer to the main commercial relationship is with the primary supplier. Most Tier 1
suppliers will source their components from another company, or the Tier 2 supplier, and successively down
the commercial chain until the last supplier. The suppliers of raw material are very low down the chain and are
referred to as lower-Tier suppliers. Whilst there might be risks to human rights in all Tiers, it is at the bottom
of the supply chain where workers are much less visible to the purchaser, who will most likely not know who
the suppliers are or where and how they operate.
Trafficking in human beings (also “trafficking in persons”, “human trafficking” or THB): Trafficking in Human
Beings is legally defined in Article 3 of the UN Protocol to Prevent, Suppress and Punish Trafficking in Persons,
Especially Women and Children, supplementing the UN Convention against Transnational Organized Crime,
2000 (the “Palermo Protocol):
(a) “the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or
use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a
position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a
person having control over another person, for the purpose of exploitation. Exploitation shall include, at a
minimum, the exploitation of the prostitution of others or other forms of sexual exploitation, forced labour
or services, slavery or practices similar to slavery, servitude or the removal of organs;
(b) The consent of a victim of trafficking in persons to the intended exploitation set forth in subparagraph (a)
of this article shall be irrelevant where any of the means set forth in subparagraph (a) have been used;
(c) The recruitment, transportation, transfer, harbouring or receipt of a child for the purpose of exploitation
shall be considered “trafficking in persons” even if this does not involve any of the means set forth in
subparagraph (a) of this article;
(d) “Child” shall mean any person under eighteen years of age”.
Trafficking for labour exploitation: is part of human trafficking and is generally used in a wide sense, to both
refer to the trafficking in human beings for purposes referred to as forced labour or services, slavery or
practices similar to slavery, and servitude, as well as other forms of economic exploitation that may be
indicators of or lead to such practices.
UN Organization: This includes all bodies in the UN system, covering i) UN Funds and Programmes, ii) UN
Specialised Agencies, iii) Other Entities and Bodies, and iv) Related International and Regional Organizations.
UN Supply Chains: Means subcontractors and suppliers through all tiers of the upstream value chain that are
engaged by the UN Organizations, as well as the sourcing of the materials, goods, and services and works
provided to the UN Organizations.
89
ANNEX 2 - REPORTING
This annex provides a series of recommendations based on best practice which UN Organizations can use to
guide their reporting efforts and provides insights on why it is important to be transparent with regard those
specific issues, as well as what to consider when collecting and publishing information regarding actions
taken to combat forced labour and human trafficking in the supply chain of the products and services
procured. They are not exhaustive, and they are not intended to be used as a template. They should be
tailored to the circumstances and actions taken by a particular UN Organization.
What to report on
Why
What to consider
The nature and
structure of the
supply chain of the
products and
services the UN
Organization
procures
Awareness of an Organization’s supply
chains structure, from its direct suppliers to
where the products originate, is essential
to understand what risks may be prevalent
in the chain.
While no Organization is expected to have
successfully completed this process,
reporting can be used to document efforts
and highlight progress throughout the
different reporting cycles.
Mapping supply chains is a time-
intensive activity, and should be
undertaken on an ongoing basis and
as such reported on periodically,
because supply chains themselves
are not static, and may change over
time.
Due diligence
policies and
processes
developed and
implemented by the
UN Organization for
its specific supply
chain
Due diligence should be exercised to
identify, prevent, mitigate and remedy
human rights violations in supply chains. It
is not an ad hoc process, policies and
processes need to be formalised.
Potential topics to mention include
the following:
• Any internal procurement
policies which may have been
adapted to integrate relevant
forced labour and human
trafficking considerations, and
who within the organization may
be responsible for them (e.g.
procurement officials,
requisitioners, clients etc.);
• Any risk assessment and
management policies which may
be have been developed to
address forced labour and
human trafficking in UN supply
chains, and the progress in
implementing them;
• Any potential risks identified;
• Any action taken to address
potential or actual risk, including
the rationale for prioritizing
some above others and the
result of such actions and
corrective measures;
• Any meaningful collaboration
within the UN system or with
90
other organizations and
suppliers to manage risks.
Effectiveness of
measures taken
It is not enough to have policies and
commit to implement them. It is essential
to monitor the effect of these policies and
procedures, understanding whether they
work or need to be reviewed and what
lessons should be learnt from the
Organization and the UN system as a
whole. This way an Organization can ensure
that its actions remain relevant and
appropriate in addressing forced labour
and human trafficking risks in its supply
chains.
A good way to measure effectiveness
and report on progress is defining
KPIs, which should be Organization-
specific. KPIs should be used to
review aims and goals and planning
future steps for the short, medium
and long term.
Future actions and
goals
While periodic reports should reflect on the
actions taken in the reporting period and
their impact, they should also highlight key
actions for the future.
Future actions should be specific,
measurable, attainable, realistic, and
time-bound (SMART). Action can also
be accompanied by indicators to
facilitate greater accountability.
Training available to
staff
Staff training is essential to raise awareness
about the importance of identifying and
addressing forced labour and human
trafficking risks in UN Organizations’ supply
chains, and to facilitate relevant policy
circulation among all staff, rather than just
within the procurement department. It
should ideally take place on a recurrent
basis rather than just as part of induction
processes and be updated based on
emerging good practice.
Reporting could include the types of
training available and their
frequency, and highlight who it is
aimed at, and whether they are
mandatory.
Responsibility for
policies and
procedures
It is important that the Organization takes
ownership of the due diligence process and
clearly establishes who is responsible for
which actions
Reports should be signed at the
highest level of governance of the
Organization
Accessibility
Knowing what information is available,
where to find it and finding it in a format
which is comprehensible and easy to
process is key for transparency
Information should be provided in
sufficient detail to allow readers to
understand the substantive actions
undertaken by a UN Organization,
but technical details may be omitted
to aid readability and accessibility.
Reports should be disseminated and
easily accessible from an
Organization’s website, to encourage
transparency.
Importantly, practice has shown that organizations should avoid stating that their supply chains are free
from forced labour and human trafficking. Because of the complexity and opaqueness of supply chain, no
organization or buyer can realistically claim this. This underlines the need for cooperation between UN
Organizations and their suppliers.
91
ANNEX 3 – ADDITIONAL RESOURCES
A. Sources of information for risk identification and assessment
Sources from within the UN include:
- The UN Special Rapporteur on contemporary forms of slavery, including its causes and
consequences. Their reports provide valuable information on risks related to certain countries,
regions, or in specific circumstances;
- International Labour Organisation, recommendations to the state on different issue areas (e.g. child
labour, forced labour, wages, collective bargaining);
- The ILO’s Committee of Experts on the Application of Conventions and Recommendations which
produce annual reports on how the implementation of ILO Conventions, including those related to
forced labour and human trafficking which are a good source of information on risks;
- The ILO’s NORMLEX database can be a good source of information on International Labour Standards
(such as ratification information, reporting requirements, comments of the ILO's supervisory bodies,
etc.);
- The UNODC’s SHERLOC database which contains information on regarding the implementation of the
United Nations Convention against Transnational Organized Crime;
- UNODC, Module on Risk Assessment in Trafficking in Persons Investigations
- World Bank – reports – especially on institutional controls over corruption and fraud;
- UNDP – search regular publications;
- UNICEF’s Multiple Indicator Cluster Survey (MICS), the largest source of statistically sound and
internationally comparable data on children and women worldwide, with data on 118 countries;
- Joint reports of UN Organizations, such as ‘
Ending child labour, forced labour and human trafficking
in global supply chains’ (2019);
- The UNGM website and knowledge center.
External tools and resources which can help procurement professionals identify and assess risks include:
- The Norwegian Agency for Public and Financial Management (DFØ) High Risk List contains
information on so called high risk products;
- The CSR Risk Check tool contains information on risks throughout the value chain;
- The Children’s Rights and Business Atlas provides country-by-country data on children’s rights
related to the workplace;
- European Institute for Crime Prevention and Control (HEUNI), Labour Exploitation and Public
Procurement: Guide for risk management in national supply chains;
- The Responsible Sourcing Tool helps identify human trafficking in the value chain;
- Human Rights and Business Dilemmas Forum provides case studies on how to address human rights
risks;
92
- The Business and Human Rights Resource Centre publishes a wide variety of information which can
help inform risk assessments;
- The Swedish National Agency for Public Procurement’s sustainable procurement criteria library
provides examples of social requirements;
- US Department of State, Trafficking in Persons Report;
- US Department of Labor, International Child Labor & Forced Labor Reports.
Other relevant sources of information to search for risks:
- The Global Slavery Index;
- Transparency international;
- Gan Integrity;
- CIA world fact book;
- ILO website: Forced labour, modern slavery and human trafficking;
- The Thomson Reuters Foundation News;
- The Global Organised Crime Index.
B. Resources highlighted throughout this Guidance
UN resources on procurement:
- The UN Procurement Manual;
- The UN Procurement Practitioner’s Handbook;
- The UNOPS Procurement Manual;
- The UNDP Practitioner’s Guide to Sustainable Procurement;
- Doing Business with UNOPS;
- UNOPS Possibilities Toolbox;
- UNDP/CIPS training.
Resources on forced labour and human trafficking:
− UN Security Council Resolution 2388;
− ILO Forced Labour Indicators;
− UNODC Human Trafficking Indicators;
− European Commission Guidance for EU Businesses to Address the Risk of Forced Labour in Their
Operations and Supply Chains;
− The Inter-Agency Coordination Group against Trafficking in Persons, Issue Brief 10 - Preventing
Trafficking in Persons: the Role of Public Procurement
− OSCE, Model Guidelines on Government Measures to Prevent Trafficking for Labour Exploitation in
Supply Chains;
− OSCE, Combating Trafficking in Human Beings and Labour Exploitation in Supply Chains’;
93
− Guidance on Due Diligence for EU businesses to address the risk of Forced Labour in their operations
and supply chains;
− ITUC and Business & Human Rights Resource Centre, Modern Slavery in Company Operation and
Supply Chains;
− IOE, Combatting forced labour: A handbook for employers and business.
Resources on responsible business conduct and labour standards:
− The principles set out in the UN Guiding Principles on Business and Human Rights;
− The UN Global Compact’s Ten Principles;
− The 2030 Agenda for Sustainable Development and the 17 Sustainable Development Goals;
− The OECD Due Diligence Guidance for Responsible Business Conduct;
− The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy;
− The ILO General Principles and Operational Guidelines for Fair Recruitment and Definition
of Recruitment Fees and Related Costs;
− The ILO’s 2014 Guide to International Labour Standards;
Resources on responsible procurement:
− Ethical Trading Initiative Guide to Buying Responsibly;
− UN Security Council Resolution 2388
− Report by the OECD, IOM and UNICEF on Ending child labour, forced labour and human trafficking in
global supply chains (2019);
− UNODC, The Effects of the COVID 19 Pandemic on Trafficking in Persons and Responses to the
Challenge;
− UNDP & UNEP, Working Paper: A Sustainability-Weighted Procurement Portfolio Model (PPM)
(2021);
− Electronics Watch’s worker-driven monitoring methodology;
− Issara Institute’s Inclusive Labour Monitoring;
− Workers' Rights Consortium;
− UN Women, Gender-responsive procurement;
− the Children's Rights and Business Principles.
Resources on access to remedy and grievance mechanisms:
− UN OHCHR Accountability and Remedy Project: Improving accountability and access to remedy in
cases of business involvement in human rights abuses;
− CSR Europe, Assessing the effectiveness of company grievance mechanisms;
− IHRB, Remediation and Operational-Level Grievance Mechanisms.
Other resources:
- UN financial regulations;
94
- The UN Implementing Partner PSEA Capacity Assessment;
- The UN 2020 Annual Statistics Report on United Nations Procurement;
- The Standards of Conduct for the International Civil Service;
- European Commission Guidance - My Business and Human Rights - A guide to human rights for small
and medium-sized enterprises.
C. Further useful resources
Clean Clothes Campaign et al, Follow the Thread, The Need for Supply Chain Transparency in the Garment
and Footwear Industry, April 2017;
Danish Institute for Human Rights, Driving change through public procurement, A toolkit on human rights for
policy makers and public buyers (2020);
European Commission, “Study on the economic, social and human costs of trafficking in human beings within
the EU” (2020);
Global Electronics Council, Purchasers Guide for Addressing Labor & Human Rights Impacts in Technology
Procurements (2021);
Olga Martin-Ortega and Andy Davies (2017), Protecting Human Rights in the Supply Chain. A Guide for Public
Procurement Practitioners, CIPS, LUPC-APUC-BHRE Guidance, CIPS Knowledge;
Axel Marx, Public procurement and human rights: current role and potential of voluntary sustainability
standards, Ch.8 in O. Martin-Ortega and C. Methven O’Brien, Public procurement and human rights:
Opportunities, risks and dilemmas for the state as buyer (Cheltenham: Edward Elgar, 2019);
Claire Methven O’Brien and Olga Martin-Ortega, “The SDGs, human rights and procurement: An urgent need
for policy coherence”, UNOPS, Thematic Supplement to the 2016 Annual Statistical Report on United Nations
Procurement: Procurement and the 2030 Agenda (2017);
UNODC, Trafficking in Persons in the context of armed conflict, 2018;
Worker-Driven Social Responsibility Network, Comparison of Critical Elements of WSR vs. CSR and MSIs
(2019).
95
ANNEX 4 – CASE STUDIES
Case Study 1 – A full procurement cycle approach in practice at
the OSCE
In 2021, the OSCE Secretariat Procurement and Contracting Unit ran a pilot project to introduce new human
trafficking and labour exploitation considerations in its procurement exercises. It did so with a tender for
Apple iOS devices, including repair, maintenance and recycling services, for an expected contract duration of
5 years. The contract sought was not directly with Apple, but with regional authorised suppliers.
• Market research
Although the OSCE was already aware of the fact that instances of human trafficking and labour exploitation
in electronics supply chains are widespread, the first step in this pilot project was to undertake further
comprehensive research on the topic. While the media was used to get a first indication of where risks may
lie, the team emphasised the importance of not relying on this exclusively for risk identification, to avoid
potential bias. Instead, multiple sources of information were sought, including from NGOs working in the
field. The OSCE is affiliated with Electronics Watch, which is an independent monitoring organization
providing support and leverage to public buyers and civil society organizations in electronics production
regions. Electronics Watch’s reports and case studies were a valuable source of information as they described
the criteria used in the procurement exercises, the issues faced and any resulting actions taken with
suppliers. The research enabled the procurement officer to understand the nature of the abuses in IT supply
chains, and the range of measures available to address and manage risks from a buyer’s perspective.
• Market analysis
Market analysis was conducted to understand the capabilities of the market, the leverage that the OSCE had
with its supplier base and to inform the development of the tender. This involved researching relevant policy
and documents available on suppliers’ websites, to understand what they had in place to address human and
labour rights in their supply chains. However, acknowledging that having a policy does not per se imply that
suppliers are taking substantive action, information was also sought from organizations such as Electronics
Watch and the Responsible Business Alliance, and from colleagues who may have been working with some
potential bidders.
• Evaluation criteria
The results of market research and market analysis were used to develop tailored technical specifications for
evaluation, modelled on best practice criteria provided by Electronics Watch. These were designed to include
a two-step technical evaluation process:
1) All technical bids were evaluated against fifteen mandatory requirements with Pass/Fail evaluation.
2) The technical bids meeting all mandatory requirements from Step 1, were further evaluated on the basis of
responsiveness to the Terms of Reference against additional requirements grouped in three categories:
a. Local after sales support (200 points);
b. Extended warranty, offered Trade-in and device recycling programs (200 points);
c. Combating Trafficking in Human Beings (CTHB) and social criteria (200 points).
96
Bidders had to meet a specific minimum number of points for each category to be admitted to the next step
of the evaluation. The minimum points for the CTHB and social criteria were 110. This threshold was
introduced to send a message to the market about the importance of the criteria, as it ensured that bidders
failing to reach the minimum score from the CTHB category could not rely on the cumulative score from the
remaining categories to qualify.
The total number of points achieved in the evaluation of these three groups of additional requirements
contributed to 40% of the final recommendation for contract award. The remaining 60% was scored on the
price.
The CTHB and social criteria were:
− Bidder’s code of conduct (20 points): this was to determine what kind of internal policies suppliers had to
address violations and whether they were enforced with their own supply base.
− Implementation of codes and policies (20 points): this criterion required bidders to provide audit reports
or corrective action plans as a means to prove that their policies are implemented in practice.
− Responsible sourcing practices (20 points): suppliers had to demonstrate how performance data
regarding human and labour rights affect their sourcing decisions.
− Supplier risk screening (30 points): this criterion required bidders to provide evidence of their human and
labour rights risk identification in their supply chains.
− Supply chain transparency (50 points): suppliers were asked to disclose to the extent possible their own
supply base, in order to support OSCE in its supply chain mapping beyond Tier 1. Bidders were awarded
incremental points depending on the Tier levels being disclosed. Confidentiality was ensured.
− Plan for supply chain transparency as well as the scope of the labour and social standards to be observed
(40 points): suppliers were asked to provide a detailed long-term plan to enhance supply chain
transparency and ensure human and labour rights are respected. This criterion was born out of the
market analysis, which brought to light the fact that not all potential suppliers had developed
appropriate policies and procedures yet.
− Sustainable provision of products and services (20 points): the final criterion was also developed to help
suppliers who may not be as advanced in the social aspect of sustainable procurement as in the
remaining two aspects. It asked them to provide information on managing corruption, green
procurement and related accreditations.
The last three criteria were important for the tender to not excessively restrict competition. In fact, they
were designed to allow suppliers to achieve the minimum required points to progress even if not advanced in
addressing human and labour rights issues, as long as they had a plan to address this deficiency, were willing
to disclose their supply base, and were advanced in other aspects of sustainable procurement.
• Explaining criteria to suppliers
OSCE Procurement contacted 18 potential suppliers to inform them of the new criteria included in the
tender. Additionally, the tender documentation also alerted bidders to the new criteria, and explained their
importance for OSCE. Although the OSCE did not host a pre-bid conference, consideration will be given to
97
these in the future to convey the message to the market what standards OSCE will be requesting and address
any supplier questions related to this requirement in advance of their bid.
• Evaluation
The tender received six bids, which was more than what had been received on the previous tender of similar
scope. Of them, two failed the Step 1 pass/fail technical evaluation, and two did not meet the necessary
threshold for the CTHB and social criteria required from Step 2, leaving two for the final stage of financial
evaluation.
After the deadline, the OSCE contacted suppliers who had not participated in the tendering exercise. The
feedback received was that they did not bid specifically because of the new CTHB requirements. Regardless,
the OSCE received a sufficient number of bids to proceed with evaluation and award. The market analysis
was once again crucial for this; when designing the requirements, the procurement officer was confident that
several suppliers were advanced enough to meet the social criteria, and was able to set a relatively high
threshold for them in the technical evaluation of one third without overly limiting the market.
Importantly, the OSCE were also able to achieve best value for money, awarding the contract to a supplier
with very competitive prices, 10% lower than the average market price identified at the market research
stage. In this way, the OSCE demonstrated to the internal client that affordability and transparency are not
inherently in opposition, and that additional human and labour rights criteria do not automatically increase
the price of goods or limit competition.
• Contract conditions
In drafting the terms and conditions of the contract, OSCE adapted the ones developed by Electronics Watch,
tailoring them to the OSCE terms and conditions for the specific tender.
• Contract management
Having awarded the contracts in June 2021, the OSCE continues in its supplier evaluation and monitoring
through its contract management. This includes quarterly business meetings as specified in the contract to
discuss, inter alia, forced labour and human trafficking, risk management and following-up on potential issues
with action plans and monitoring.
• Further supplier engagement
In addition to the actions taken for the specific tender, the OSCE mapped its current IT suppliers against these
new requirements, and identified a local supplier which did not meet the minimum in this category. The
OSCE proceeded to contact the supplier to inform them that they would need to implement the necessary
improvements if they would like to remain eligible for future tenders with OSCE.
• Next steps
The OSCE plans to apply this approach to all their procurement activities, adjusting the particular
requirements based on the commodity, market maturity, risks, and OSCE priorities.
To embed forced labour and human trafficking protections across the OSCE supply chains and the full
procurement cycle, it has developed an institutional approach composed of the following steps:
98
1. Taking an Organizational level approach, OSCE developed formal Guidance for staff titled ‘Combating
Trafficking in Human Beings and Labour Exploitation in Supply Chains’.
2. Train staff on the OSCE Guidance
3. Undertake a supply chain mapping exercise and risk analysis in all OSCE office locations.
4. Develop an action plan to address the risks identified
5. Led by OSCE HQ and in all OSCE office locations, Implement the action plan, monitor actions taken and
report transparently .
The Guidance, ‘Combating Trafficking in Human Beings and Labour Exploitation in Supply Chains’, was
published in 2021.
To implement the OSCE Guidance through the OSCE, a road map will be developed with each field operation.
Field operations administrative management, procurement practitioners, the CTHB focal point, and the Office
of the Special Representative and Co-ordinator for Combating Trafficking in Human Beings will be involved.
With support from the Procurement and Contracting Unit, they will:
− Map human trafficking and labour exploitation risks in their supply chains;
− Create an action plan identifying priority categories and contracts;
− Plan support for identified victims;
− Design implementation and communication;
− Develop a framework and processes for monitoring, tracking and reporting.
More information on the pilot project and the OSCE’s next steps can be found in the Guidance.
For more information on the OSCE’s approach, contact Procurement-AT@osce.org
99
Case Study 2 – Sustainable procurement at UNOPS
UNOPS has developed different approaches to the oversight of sustainability related risk in the procurement
cycle:
1. Delivering Responsibility in Vendor Engagement (DRiVE)
Since 2018, UNOPS has implemented its DRiVE supplier sustainability programme to improve visibility of how
suppliers manage and mitigate their impact on sustainability related issues in supply chains. The programme
is rooted in the UN Supplier Code of Conduct and General Conditions of Contract, contributing to their
effective implementation.
The inclusion of DRiVE is mandatory for formal methods of solicitation for goods, services or works (ITB, RFP)
with the value of USD 5,000 or above, as well as Expression of Interests (EOIs) and Invitations for
Prequalification (PQ) leading to the short listing of suppliers, as well as processes to establish Long Term
Agreements (LTAs).
The system aims to improve supplier performance through a three-stage process:
− Data collection: during the tender process, bidders are required to complete a Supplier Sustainability
Questionnaire, which covers 10 different areas, with particular focus on human and labour rights,
ethical conduct, sexual exploitation and abuse, and environmental responsibility. Data collection is
also done through other relevant sources (e.g. eSourcing, UNGM and global datasets);
− Assessment: The datasets are assessed for verification and to identify suppliers and industries to
engage with, following a risk-based approach;
− Action: Identified suppliers are subject to an onsite inspection or verification process after which a
Corrective Action & Preventive Action plan (CAPA) is issued including corrective actions for suppliers
to implement on a voluntary basis.
Although suppliers are required to complete the DRiVE questionnaire at the tender stage, engagement with
UNOPS on the topic throughout the contract is not mandatory, and it does not have any bearing on future
engagement with UNOPS. This ensures that suppliers implement risk mitigation procedures out of genuine
desire to improve with the support of UNOPS, rather than being approached as a tick-box exercise.
2. Sustainability criteria
For formal methods of solicitation, requisitioners must include at least one sustainable procurement
technical criterion or a gender-mainstreaming criterion (both if the procurement activity is above USD 1
million or to establish LTAs). While, in general, requisitioners can choose which criteria they think are most
suitable, UNOPS has pre-identified certain criteria which must be incorporated for 14 categories, which
represents approximately 50% of the UNOPS overall procurement volume.
To facilitate the selection of criteria, UNOPS has also developed an online tool which, based on the
procurement type and category, provides requisitioners with policy requirements to be included in tenders
and suggested relevant criteria to include in the technical evaluation. This is especially valuable as it provides
support to officials who may be unaware of sustainability risks specific to an industry, product or service.
At the same time, UNOPS staff can use the data generated through DRiVE for evidence-based selection of
sustainability criteria. The system allows staff to compare similar suppliers from previous tenders and
100
understand their maturity. This information can be used to select criteria to foster supplier improvement in
particularly weak areas.
The UNOPS Sustainable Procurement Criteria list is updated on a regular basis, and any UN Organization
wanting to use them in their own procurement should reach out to the Sustainable Procurement Team.
3. Background checks at the award stage
As part of evaluation, UNOPS also conducts background checks on the bidder recommended for award based
on the risk profile, with minimum requirements for all contracts, and advanced checks for high-risk contracts.
High-risk is defined by:
− The Corruption Perception Index (CPI) in the supplier country;
− The amount of the current award and those awarded in the past 12 months to the same supplier;
− Context-specific market conditions (e.g. history of supplier fraud and collusion).
Advanced checks are also mandatory for procurements in countries with a CPI of 50 or below, contracts of
value equal to or above USD 250,000, and suppliers that have not been awarded by UNOPS before.
As stated in UNOPS’ Procurement Manual, as part of the advanced checks, the evaluation team may, among
others:
- Verify other documentation provided, such as certificates of quality management systems or the
verification of relevant responses provided in the DRiVE supplier sustainability questionnaire.
- Check past supplier performance evaluations (SPE) on UNOPS contracts for the bidder or through
references from past work. Note: when a rejection takes place at this stage based on this ground, the
evaluation team must confirm it is commensurate to the value and risk of the purchase and must be
reported to the VRC to assess if the vendor should be additionally suspended from doing business
with UNOPS.
- Verify the ethical reputation of the vendor, by obtaining reports or checking adverse media coverage
(via internet or local media searches) related to any current or past unethical behaviour or ethics
breaches, including but not limited to incidents related to corruption, fraud, exploitation,
sustainability or environmental matters. Note: should a rejection of a vendor be considered on this
ground, the Procurement Authority must consult with the Ethics and Compliance Office and the
Communications Group and must be reported to the VRC to assess if the vendor should be
additionally suspended from doing business with UNOPS.
If risks are identified, suppliers can be excluded, or UNOPS can mitigate them through contractual clauses or
by further engaging with the procurement group.
101
Case Study 3 – Social audits at the UNHCR
In 2018, UNHCR began a process of auditing its core relief suppliers. This has involved between 15 and 20
audits per annum, supported by an auditing service provider. The practice has continued during the COVID-
19 pandemic, although UNHCR representatives were not able to attend these audits in person.
The audits aim to:
- Assess potential or existing UNHCR suppliers and factories;
- Establish audits as a risk reduction tool in support of procurement processes and management of
UNHCR suppliers;
- Verify compliance of UNHCR’s suppliers’ factories with international standards;
- Limit risks regarding non-compliance with corporate social responsibility and quality standards.
To facilitate the process, UNHCR has developed a Factory Audit Reporting Tool. This is divided into four
categories:
- Production Infrastructure and Facilities;
- Quality Management System;
- Corporate Social Responsibility (CSR);
- Environmental System.
Each category contains several questions, which are grouped into sections and with scores of a specific
number of points each.
The CSR category is the most important, weighted at 67.78%. Its content is based on international standards
including, but not limited to the UN Supplier Code of Conduct and ILO Conventions. The questions are
grouped according to the following sections:
- Child labour, forced labour and other human rights findings;
- Hiring and termination;
- Wages and benefits;
- Working hours;
- Equality/discrimination;
- Freedom of association;
- Disciplinary procedures;
- Health and safety;
- Dormitories; and
- Chemical management.
UNHCR’s aim in conducting audits has been to establish a baseline with information on all its suppliers for
core relief items procured from HQ. The approach has been geographical, with a focus on Pakistan, China,
and Vietnam, where audits have already been completed, as well as India, the audit of which is to be finished
by the end of 2021. In the future, UNHCR plans to adopt a risk-based approach to supplier audits, informed
by utilising information collected through the previous audits and further risk assessments, in addition to
geography.
102
In line with UNHCR’s main objective of providing an initial snapshot of supplier performance, audits have all
been announced, with a notice period of 30 days or less. Employee interviews are done in a separate room,
with workers selected during the visit and without prior notice, to avoid any potential influence from factory
management.
At the end of each audit process, an exit meeting takes place, where the factory management signs a
Corrective Action Plan, committing to work on any identified issues. Although no critical issues have been
found to date, suppliers are always given some indication on what they may need to clarify or implement to
foster their continuous development in all areas.
UNHCR derives its power to conduct these audits from its contractual terms and conditions for suppliers. It
also works so that bidders are aware of this during their onboarding process.
103
ANNEX 5 – SUGGESTED CLAUSES
The suggested clauses set out in this annex can be included in the contracts of individual UN Organizations
and adapted according to the context and needs of a particular contract. This annex includes clauses requiring
suppliers to engage in responsible business conduct, undertake human rights due diligence, take steps to
address forced labour and human trafficking, provide relevant warranties, make disclosures concerning
instances of forced labour or human trafficking, participate in audits or investigations.
Item
Subject
Suggested clause
1.
Responsible
Business
Conduct
The Contractor, shall, and procure that its officials, employees, agents,
servants, subcontractors and other representatives (collectively, the
Contractor’s “Personnel”) shall, respect and promote internationally
proclaimed human rights, international labour standards of the International
Labour Organization, the United Nations Guiding Principles on Business and
Human Rights (“UNGPs”), the ten principles of the UN Global Compact, and
observe the highest ethical standards in fulfilling the obligations under this
Contract.
The Contractor shall, and shall cause the Contractor’s Personnel to, maintain
compliance with all obligations relating to its registration as a qualified
vendor of goods or services to the United Nations, as such obligations are set
forth in the United Nations vendor registration procedures.
The Contractor shall not, and procure that the Contractor’s Personnel do not,
use or engage in any: threats of violence, verbal or psychological harassment
or abuse to its employees or those of its suppliers or subcontractors.
2.
Human Rights
Due Diligence
a. In performing its obligations under the Contract, the Contractor shall
exercise due diligence by identifying, preventing and mitigating the risk
of human and labour rights violations, including but not limited to forced
labour and human trafficking, throughout its operations and business
relationships, including those detailed in [current]Article 4
[Subcontracting] herein. The Contractor shall carry out such due diligence
in accordance with:
i. the process of human rights due diligence set out in the UNGPs,
ii. the requirements of this contract,
iii. applicable law, and
iv. all obligations relating to its registration as a qualified vendor of
goods or services to the United Nations, as such obligations are set
forth in the United Nations vendor registration procedures.
b. The Contractor shall exercise the following minimum due diligence in
discharging its obligations under this Contract:
c. Design and implement a risk assessment procedure to identify risks of actual
or potential human rights violations in its supply chain;
104
d. Deploy reasonable and proportionate endeavours to address the identified
risks to prevent and mitigate the negative impacts on human rights of its
commercial activities, including:
i. Require its own suppliers to identify, prevent and/or mitigate negative
impacts in accordance with the UNGPs, the UN Supplier Code of
Conduct and all obligations relating to its registration as a qualified
vendor of goods or services to the United Nations, as such obligations
are set forth in the United Nations vendor registration procedures;
ii. Include in its contracts with suppliers and subcontractors provisions
requiring the supplier or subcontractor to act in accordance with the
UNGPs and the UN Supplier Code of Conduct;
iii. Monitor and audit compliance with the UN Supplier Code by its
suppliers and subcontractors through independent monitoring
processes; and
iv. Implement an appropriate system of training for the Contractor’s
Personnel to ensure compliance with the UN Supplier Code of Conduct;
e. Report to the United Nations on the measures taken to identify, prevent and
mitigate actual and potential violations and their effectiveness in a
reasonable and proportionate manner and frequency.
f. Notify the United Nations as soon as it becomes aware of any breach, or
potential breach of the UN Supplier Code of Conduct by either the
Contractor or any of the Contractor’s Personnel.
Alternative approach: simplified clause omitting the process requirements:
In performing its obligations under the Contract, the Contractor shall exercise
due diligence by identifying, preventing and mitigating the risk of human and
labour rights violations, including but not limited to forced labour and human
trafficking, throughout its operations and business relationships, detailed in
[current]Article 4 [Subcontracting] herein. The Contractor shall carry out such
due diligence in accordance with the process of human rights due diligence
set out in the UNGPs and the all obligations relating to its registration as a
qualified vendor of goods or services to the United Nations, as such
obligations are set forth in the United Nations vendor registration
procedures.
3.
Forced Labour
and Human
Trafficking
The Contractor shall respect, and shall cause all of the Contractor’s Personnel
to respect, at all times and in all circumstances, relevant to the performance
of the Contract and in relation to all its Personnel, the principles concerning
international labour standards of the International Labour Organization,
including the prohibition of forced labour and human trafficking in all its
forms.
The Contractor shall and shall cause all of the Contractor’s Personnel to:
1. Not engage, directly or indirectly through its supply chain and other
commercial operations, in practices which increase the vulnerability to
forced labour and human trafficking of workers in its supply chain;
105
2. Take all reasonable and proportionate measures to prevent forced labour
and human trafficking in its own operations and take all appropriate
measures to prevent their Personnel and suppliers engaging in forced labour
and human trafficking;
3. Deploy all reasonable and proportionate measures to promote fair labour
recruitment in its supply chain as defined in the ILO General Principles and
Operational Guidance for Fair Labour Recruitment;
4. Design and implement procedures to identify within its supply chain any of
the ILO Forced Labour Indicators; and
5. Inform the United Nations as soon as it becomes aware of any incident or
report that may constitute a breach of this Article.
In the event that an incident is notified in accordance with paragraph 1.5 [of
this Article]] or the United Nations otherwise becomes aware of a breach of
this Article , without prejudice to the termination rights of the United Nations
pursuant to [Cross refer to the article concerning “Essential Terms”, currently
Article 22], the Contractor shall take appropriate action to address the
relevant incident or breach to the satisfaction of the United Nations,
including participating in any mitigation and remediation procedures the
United Nations may initiate.
For the purpose of the Contract Forced Labour and Human Trafficking is
defined by reference to the ILO Forced Labour Convention 1930 (No 29) and
Human Trafficking by reference to the United Nations Protocol to prevent,
suppress and punish trafficking in human beings, especially women and
children, supplementing the UN Convention against Transnational Organized
Crime 2000 (the Palermo Protocol).
4.
Warranties
Unless otherwise specified in the Contract, in addition to and without limiting
any other warranties, remedies or rights of the United Nations stated in or
arising under the Contract, the Contractor warrants and represents that:
1. At the date of this contract, neither the Contractor nor Contractor’s
Personnel, have been convicted of any offence involving forced labour
and/or human trafficking, nor have they been or are the subject of an
investigation, inquiry or enforcement proceedings by any governmental,
administrative or regulatory body regarding any offence or alleged offence
of or in connection with forced labour and/or human trafficking in the past
ten (10) years.
2. At the date of this contract, neither the Contractor nor Contractor’s
Personnel, is subject to any sanction or temporary suspension imposed by
the United Nations Security Council.
5.
Disclosure
1. During the term of the Contract, the Contractor shall immediately disclose to
the UN any investigation, inquiry, administrative or judicial procedure
initiated against the Contractor and the Contractor’s Personnel by any
governmental, administrative or regulatory body regarding any offence or
alleged offence of or in connection with forced labour and/or human
trafficking.
2. During the term of the Contract, the Contractor shall immediately disclose to
the UN any known information which reasonably gives rise to a risk of forced
106
labour and/or human trafficking in its supply chain or practice which
increases the vulnerability to forced labour and human trafficking in its
supply chain, in accordance with [new clause 1.5. in Item 3 above].
3. During the term of the Contract, the Contractor shall immediately disclose to
the United Nations if the Contractor or Contractor’s Personnel becomes
subject to any such sanction or temporary suspension.
6.
Audits and
Investigations
The Contractor shall provide its full and timely cooperation with any such
inspections, post-payment audits or investigations by the United Nations or its
designee. Such cooperation shall include, but shall not be limited to, the
Contractor’s obligation to make available its personnel and any relevant
documentation for such purposes at reasonable times and on reasonable
conditions and to grant to the United Nations or its designee access to the
Contractor’s premises at reasonable times and on reasonable conditions in
connection with such access to the Contractor’s personnel and relevant
documentation and use reasonable and proportionate efforts to exercise leverage
over its suppliers and subcontractors to engage with and participate in any
inspection, post-payment audit or investigation conducted pursuant to this
[Article X]. The Contractor shall require its agents, including, but not limited to,
the
Contractor’s
attorneys,
accountants
or
other
advisers,
to
reasonably
cooperate with any inspections, post-payment audits or investigations carried out
by the United Nations hereunder.
7.
Essential terms
The Contractor acknowledges and agrees that each of the provisions in Articles
[X] to [X] hereof constitutes an essential term of the Contract and that any
breach of any of these provisions shall entitle the United Nations to terminate
the Contract or any other contract with the United Nations immediately upon
notice to the Contractor, without any liability for termination charges or any
other liability of any kind and/or exclude the Contractor from participating in any
ongoing or future tenders and/or entering into any future contractual or
collaborative relationships with the United Nations. The United Nations shall be
entitled to report any violation of such provisions to the United Nation’s
governing bodies, other UN agencies, and/or donors.
107
END NOTES
[1]
In this Code of Conduct, “UN” shall refer to the UN Secretariat, Programmes and Funds of the UN, Specialised
Agencies of the UN and all other entities belonging to the UN system, that have adopted this Code of Conduct
through the High Level Committee on Management - Procurement Network.
[2]
The UN Guiding Principles on Business and Human Rights (2011) can be accessed at:
https://www.ohchr.org/documents/publications/guidingprinciplesbusinesshr_en.pdf
[3]
The full texts of the ILO Conventions and Recommendations can be accessed at:
http://www.ilo.org/global/standards/lang--en/index.htm
[4]
ILO General Principles and Operational Guidelines for Fair Recruitment and Definition of Recruitment Fees and
Related Costs (2019) can be accessed at: https://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---
migrant/documents/publication/wcms_536755.pdf
[5]
These principles are set out in the ILO fundamental Conventions, No. 87, Freedom of Association and Protection
of the Right to Organise, 1948 and No. 98, Right to Organise and Collective Bargaining, 1949.
[6]
This principle is set out in the ILO fundamental conventions, No. 29, Forced Labour, 1930, its Protocol of 2014
and No. 105, Abolition of Forced Labour, 1957.
[7]
The definition of human trafficking is set out in the United Nations (UN) protocol to prevent, suppress and
punish trafficking in human beings , especially women and children, supplementing the UN Convention against
Transnational Organized Crime and its Protocols (2000).
[8]
These principles are set out in the ILO fundamental Conventions, No. 138, Minimum Age, 1973 and No. 182,
Worst Forms of Child Labour, 1999 and in the UN Convention on the Rights of the Child.
[9]
These principles are set out in the ILO fundamental Conventions, No. 100, Equal Remuneration, 1951and No.
111, Discrimination (Employment and Occupation), 1958.
[10]
These principles are set out in ILO Conventions No. 95, Protection of Wages, 1949 and No. 94, Labour Clauses
(Public Contracts), 1949 and in a number of Conventions addressing working time (see:
http://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/workingtime/lang--
en/index.htm).
[11]
These principles are set out in the ILO Conventions, Recommendations and Codes of Practice (see:
http://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/occupationalsafety-and-
health/lang--en/index.htm).
[12]
These principles are derived from Universal Declaration of Human Rights (UDHR) and are set out in the United
Nations Global Compact (see http://www.unglobalcompact.org/Issues/human_rights/index.html).