SEDEX (Supplier Ethical Data Exchange) is one of the world’s largest membership-based data platforms for managing ethical supply chain compliance. Founded in 2001 by a group of retailers, SEDEX enables buyers and suppliers to share responsible sourcing data, audit reports, and self-assessment information through a single, secure platform.
The term “SEDEX audit” is widely used across the textile, garment, electronics, and consumer goods industries, but it refers specifically to the SMETA (Sedex Members’ Ethical Trade Audit) methodology — the audit standard used on the SEDEX platform. Understanding the distinction between SEDEX (the platform) and SMETA (the audit methodology) is essential for any supplier navigating ethical compliance requirements.
SEDEX vs SMETA: Understanding the Difference
One of the most common sources of confusion is the relationship between SEDEX and SMETA. They are related but distinct:
SEDEX is the platform — a membership-based data system where companies register, share audit reports, and manage compliance data. Over 75,000 member companies across 180+ countries use the SEDEX platform.
SMETA (Sedex Members’ Ethical Trade Audit) is the audit methodology — the world’s most widely used social audit framework. SMETA provides a standardised, on-site assessment of working conditions, environmental performance, and business ethics at supplier sites.
In practice, a “SEDEX audit” means a SMETA audit conducted by an approved Affiliated Audit Company (AAC), with results uploaded to the SEDEX platform and shared with multiple buyers. This one-audit, multi-buyer model reduces audit fatigue and duplication.
Key Facts About SEDEX and SMETA
| Fact | Detail |
|---|---|
| Founded | 2001 by a group of retailers |
| Headquarters | 5 Old Bailey, London, EC4M 7BA |
| Platform reach | 75,000+ member companies across 180+ countries |
| Audit methodology | SMETA (Sedex Members’ Ethical Trade Audit) |
| Current version | SMETA 7.0 (released 10 September 2024) |
| Standard basis | ETI Base Code + local legislation (whichever provides greater protection) |
| Certification model | Not a certification — no pass/fail. Continuous improvement methodology. |
The Four Pillars of SMETA
A SMETA audit assesses supplier sites across four pillars. Buyers may request either a 2-pillar or 4-pillar audit depending on their requirements.
Pillar 1: Labour Standards
This is the most intensive part of the audit. It assesses the site against ETI Base Code provisions including: employment is freely chosen (no forced labour), freedom of association, no child labour, legal wages paid (with living wages encouraged), working hours are not excessive, no discrimination, regular employment provided, sub-contracting and homeworkers used responsibly, and no harsh or inhumane treatment.
Pillar 2: Health and Safety
Evaluates whether working conditions are safe and hygienic. Key areas include building and fire safety, risk assessments, machine guarding, chemical safety (SDS/PPE), lighting and ventilation, drinking water and sanitation, emergency preparedness, and accident reporting.
Pillar 3: Environment
A comprehensive assessment of the site’s environmental management and performance, covering air emissions and GHG, chemicals, energy usage, environmental permits and management systems, waste management (including hazardous waste), and water consumption and wastewater treatment.
Pillar 4: Business Ethics
Reviews the site’s ethical business practices including awareness of requirements/policy, grievance mechanisms, systems to manage compliance, land rights, anti-bribery and anti-corruption measures, and protection of confidential information.
A 2-pillar audit (Labour + Health & Safety + basic Environment) typically takes 2 days on-site. A 4-pillar audit (all four areas) takes approximately 3 days.
SMETA 7.0: Key Changes for 2026
SMETA 7.0 was released on 10 September 2024 and is now mandatory for all new full audits. All follow-up audits for previous SMETA 6.1 audits must transition to SMETA 7.0 by 31 December 2025. Key changes include:
| Change | Impact |
|---|---|
| 100+ audit clauses | ETI Base Code expanded to over 100 specific, verifiable clauses |
| Management Systems Assessment (MSA) | Each pillar includes MSA evaluating policies, resources, training, and monitoring |
| Collaborative Action Required (CAR) | New finding type for complex issues beyond site’s control |
| Semi-announced audits | Since July 2025, only semi-announced (3-week window); fully announced no longer permitted |
| Unique report numbers | Every SMETA 7.0 report carries a traceable, tamper-proof number |
How the SEDEX Platform Works
To undergo a SMETA audit, a supplier must first register as a SEDEX supplier member. The membership provides access to the SEDEX platform where audit reports can be shared with multiple buyers. The process typically involves:
- Register on SEDEX — Complete supplier membership to obtain your supplier code (ZC) and audit code (ZS). Only registered members can schedule a SMETA audit.
- Select an AAC — Choose from SEDEX’s global network of Affiliated Audit Companies (AACs). All AACs must be APSCA members, and lead auditors must be APSCA CSCA qualified.
- Conduct the SMETA audit — The AAC performs the on-site audit using the SMETA 7.0 methodology. The audit covers the applicable pillars and produces a Corrective Action Plan Report (CAPR) and a Full Audit Report.
- Upload to SEDEX — The AAC uploads the completed audit report to the SEDEX platform.
- Share with buyers — The supplier can share the report with multiple customers on the SEDEX platform, eliminating the need for separate audits.
- Complete corrective actions — Findings can be closed through desktop review (evidence submitted within 5 working days) or on-site follow-up audit (generally within 6 months).
SMETA Audit Findings and Criticality
SMETA audits produce four types of findings:
| Finding Type | Definition |
|---|---|
| Non-Compliance (NC) | Site does not meet local or international law |
| Non-Conformance | Site meets local law but not the ETI Base Code |
| Collaborative Action Required (CAR) | Issue requiring multi-stakeholder collaboration; no fixed closure date |
| Good Example | Practice exceeding both local law and ETI Base Code requirements |
Findings are also graded by criticality: Business Critical (imminent risk to life or severe human rights impact), Critical (systemic, deliberate, or severe breach), Major (systemic breach with potential danger), and Minor (isolated, low-risk breach).
Critical and Business Critical findings require an on-site follow-up audit. The site must submit a corrective action plan within 7 working days and complete the follow-up within approximately 30 days. Minor findings may be closed through desktop review.
Why Suppliers Need SEDEX/SMETA
Major retailers including Tesco, Sainsbury’s, Marks & Spencer, Walmart, and Amazon require their suppliers to undergo SMETA audits and share results via the SEDEX platform. Beyond customer requirements, SEDEX membership and SMETA audits deliver tangible benefits:
- Reduced audit duplication: One SMETA report can be shared with multiple buyers, eliminating the need for separate audits for each customer.
- Improved working conditions: The audit process identifies risks and drives continuous improvement in labour standards, health and safety, and environmental management.
- Operational efficiency: Better management systems lead to reduced worker turnover, fewer incidents, and improved productivity.
- Market access: SMETA is accepted by hundreds of global brands as proof of ethical compliance.
- Risk management: Early identification of non-compliances helps prevent escalation into business-critical issues.
FAQ: SEDEX and SMETA Common Questions
Q: What is the difference between SEDEX and SMETA?
A: SEDEX is a membership-based data platform founded in 2001. SMETA is the audit methodology used on the SEDEX platform. Registering on SEDEX enables you to share SMETA audit reports with multiple buyers, reducing the need for duplicate audits.
Q: Is SMETA a certification with a pass/fail result?
A: No. SMETA is not a certification. There is no pass or fail. The audit produces a Corrective Action Plan Report (CAPR) and a Full Audit Report. Buyers evaluate the report and determine whether the findings are acceptable for their business relationship. SMETA is designed as a continuous improvement tool, not a certification scheme.
Q: What is the difference between a 2-pillar and 4-pillar SMETA audit?
A: A 2-pillar audit covers Labour Standards and Health & Safety (plus a basic Environment assessment) and typically takes 2 days on-site. A 4-pillar audit adds comprehensive Environment and Business Ethics assessments and takes approximately 3 days. Your buyer will specify which type is required.
Q: Who conducts SMETA audits?
A: SMETA audits are conducted by independent, third-party Affiliated Audit Companies (AACs) approved by Sedex. All AACs must be APSCA members, and individual lead auditors must be APSCA CSCA qualified through examination. Auditors also complete the Sedex Auditor Academy e-learning course to ensure consistent application of the SMETA methodology.
Q: How long is a SMETA audit valid?
A: SMETA does not issue certificates with fixed validity periods. Instead, audit frequency is risk-based: high-risk sites are recommended for annual audits, medium-risk sites every two years. The report is generally considered valid for 24 months as a reference document.
Q: Can one SMETA audit be shared with multiple customers?
A: Yes. This is one of SMETA’s key advantages. Because the audit report is uploaded to the SEDEX platform, you can share it with multiple customers who are also SEDEX members. This eliminates the need for multiple audits from different buyers.
Q: What happens if a site receives Critical findings?
A: Critical and Business Critical findings indicate severe risks to workers. The auditor designates these for follow-up (on-site visit). You must submit a corrective action plan within 7 working days and complete the follow-up within approximately 30 days. Your buyer will assess the findings and may require resolution before continuing business.
Q: Is SEDEX membership required before a SMETA audit?
A: Yes. Only SEDEX-registered supplier members can undergo a SMETA audit. Registration must be completed before scheduling, and annual membership fees apply.
Conclusion
SEDEX and SMETA have become essential tools for ethical supply chain management. The SEDEX platform provides the infrastructure for sharing compliance data, while the SMETA audit methodology delivers standardised, credible assessments of working conditions, environmental performance, and business ethics at supplier sites worldwide.
For suppliers, understanding the SEDEX-SMETA relationship and preparing for SMETA 7.0 audits is critical for maintaining access to international buyers and demonstrating a genuine commitment to responsible business practices.
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