Introduction to SEDEX and Pillar 2 Certification

Pillar 2 SEDEX Certification is a critical component of the Supplier Ethical Data Exchange (SEDEX) platform, which promotes ethical, responsible, and sustainable business practices in global supply chains. Pillar 2 refers specifically to the SMETA (Sedex Members Ethical Trade Audit) 2-Pillar Audit, one of the most widely used ethical audit formats in the world.

Designed to assess labour standards and health and safety in the workplace, SEDEX Pillar 2 audits help businesses and their suppliers meet corporate social responsibility (CSR) goals and demonstrate compliance with international labour laws and ethical sourcing requirements.

What is Pillar 2 SEDEX Certification?

Pillar 2 SEDEX Certification involves a SMETA 2-Pillar Audit, which evaluates suppliers on two core areas:

1. Labour Standards

2. Health and Safety

The 2-Pillar audit is based on:

• ETI Base Code (Ethical Trading Initiative)

• Relevant local laws

• International Labour Organization (ILO) conventions

While SEDEX itself is not a certification body, companies undergo third-party SMETA audits to verify their ethical compliance. These audit results are then shared on the SEDEX platform to foster transparency among supply chain partners.

Why is SEDEX Pillar 2 Certification Important?

1. Boosts Supply Chain Transparency

With increasing demand for ethical sourcing, Pillar 2 certification allows companies to demonstrate accountability and traceability in their supply chains.

2. Meets Global Retailer Requirements

Many major retailers and brands require their suppliers to undergo SMETA 2-Pillar audits to ensure they uphold ethical practices and safe working conditions.

3. Reduces Business Risk

Addressing labour violations and unsafe practices proactively helps avoid legal penalties, reputational damage, and supply chain disruptions.

4. Improves Worker Welfare

By complying with SEDEX Pillar 2 standards, organizations contribute to fair treatment, safety, and well-being of workers across the supply chain.

5. Supports Sustainable Growth

Being ethically compliant enhances brand image, builds customer trust, and supports Environmental, Social, and Governance (ESG) strategies.

What Does a Pillar 2 SMETA Audit Cover?

A SMETA 2-Pillar audit typically includes:

• Labour Practices

  • Working hours, wages, and benefits

  • Child and forced labour prohibition

  • Freedom of association and collective bargaining

  • Discrimination and disciplinary practices

• Health and Safety

  • Workplace safety conditions

  • Emergency preparedness

  • Health and hygiene protocols

  • Equipment and facility compliance

Audits are usually conducted on-site by independent, accredited third-party firms.

Pillar 2 vs. Pillar 4 SEDEX Audits

Pillar 2 audits are an ideal first step for businesses starting their ethical compliance journey.

Steps to Obtain SEDEX Pillar 2 Certification

1. Register with SEDEX as a supplier or buyer/supplier.

2. Conduct a self-assessment using the SEDEX SAQ (Self-Assessment Questionnaire).

3. Select a SMETA-approved audit firm to schedule your 2-pillar audit.

4. Undergo the audit covering labour and health & safety criteria.

5. Review the audit report and corrective action plan if applicable.

6. Share the report on the SEDEX platform with your customers.

Industries That Benefit from SEDEX Pillar 2 Certification

• Apparel and Textiles

• Food and Beverage

• Retail and Consumer Goods

• Manufacturing and Electronics

• Agriculture and Farming

• Logistics and Warehousing

Any business involved in global sourcing or working with major retailers can benefit from a SMETA Pillar 2 audit.