ESA Code of Conduct for Responsible Sourcing

The ESA Code of Conduct for Responsible Sourcing was developed by the ESA Board and adopted by majority vote at the ESA General Assembly 2022 in Bodrum, Turkey.

Introduction
By this Code of Conduct, ESA clarifies and strengthens its commitment to contribute to the implementation of international conventions in the supply chain, in particular with respect to the protection of Human Rights and regulatory compliance.
ESA members shall have an understanding for social and environmental risks related to its business and supply chain. Based on a human rights and environmental due diligence tools risk assessment, appropriate policies and procedures shall be developed.
The Code defines the minimum requirements that the members of ESA shall respect and implement inline with, their operations and supply chains.
This code of conduct for responsible sourcing is materially based on the UN Declaration of Human Rights1, the UN Convention of the Rights of the Child2, the UN guiding principles of Business and Human Rights3, the UN Global Compact Principles4, The OECD Guidelines for Multinational Enterprises5 and the core standards of the International Labor Organization (ILO).

(1) Compliance with the law
All members shall as a minimum requirement comply with national and international legislation in the markets they operate.

(2) Business ethics
All form of corruption, bribes, money laundering, as well as all forms of mispresentation and adulteration are prohibited.

(3) Child labour
Child labour must not occur. Every child shall be protected from economic exploitation or from any work that may be harmful to the child’s physical and mental health or have a negative impact on the child’s development and education.

(4) Forced labour
No form of forced labour or labour linked to any form of punishment is permitted. Documents related to employment shall be at the employee’s disposal in a language understandable by the employee. In the work documents related to the employment the statutory severance when the employment ends shall be clear. The employee shall have the right to leave the workplace after completion of working hours and, if so wished, terminate the employment after a reasonable period of notice. No employees may be forced to deposit identification papers in the hands of his/her employer. Should a deposit of identification papers be demanded by national law shall these be at the employee’s disposal at any time.

(5) Non-discrimination
Any form of discrimination, on the ground of race, age, religion, caste, national origin, ethnic minority, disability, political affiliation, sexual orientation, intimidation, oppression, or harassment is forbidden. Disciplinary measurements shall be fair, clear, and communicated to all employees in an understandable language.

(6) Freedom of association and Collective bargaining
Employees shall have the right to organize themselves in the unions they wish and have the right to collectively negotiate wages and remuneration. Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates and does not hinder, the development of parallel means for independent and free association and bargaining.

(7) Working hours
Working hours shall comply with national laws or collective agreements and it is strongly recommended that regular working hours do not exceed 48 hours per week. Overtime shall be voluntary and always be compensated at a premium rate and limited unless differently regulated by a collective agreement or by national law. Recommended maximum overtime is 12 hours per week. Proper provision must be made for workers’ rest and sleep, with breaks, rests periods and holidays in compliance with national legislation.

(8) Wages
Wages and benefits paid for a standard working week meet, at a minimum, national legal standards. In any event wages should always be enough to meet basic needs and to provide some discretionary income. Details and wage conditions shall be clear and communicated to all employees in a language he/she understands before the employment may start. A transparent and reliable system for records of working hours and wages shall be in place. Wages shall be timely paid. Deduction from wages as disciplinary measure shall not be permitted.

(9) Working conditions
A safe work environment for all employees shall be provided. Responsibilities shall be defined and to prevent accidents and work-related injuries procedures shall be established. Employees shall as a minimum have access to clean potable water, adequate lighting, temperature, noise prevention, ventilation, and sanitation and if required to clean and safe facilities for food storage and cooking. Employers must provide essential items of appropriate protective clothing and safety equipment, free of charge to workers. Education and training concerning health and safety shall be carried out and documented on a regular basis. Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers.

(10) Environment
As a minimum there must be compliance with local and international legislation concerning environmental issues. There should be an active work for reduction of use of resources, energy, and emissions into air, soil, and water, with specific focus on decreasing Green House Gas (GHG) emissions, protecting biodiversity, prevention of deforestation and water conservation. A system of safe handling, storage and disposal of pesticides and hazardous chemicals shall be in place.

(11) Implementation
ESA member companies are obliged to use their best efforts to ensure the implementation of the ESA Code of Conduct for Responsible Sourcing in their business and supply chain(s), and to verify compliance with these commitments, as well as to recommend that their suppliers implement these rules in their own businesses.

ESA embraces sustainability

The main challenges and opportunities for the Spice Industry regarding sustainability are:

  • A long and complex supply chain with more than 200 kinds of spices and herbs globally sourced by European spice companies. It is not only that the amount is high, but the different spices do also have different characteristics due to diverse geographical and climate conditions in the growing areas. This will add complexity when addressing sustainability challenges as well as opportunities to the supply chain. Many of the herbs and spices imported into Europe are produced in less economically developed countries by smallholder farmers who for a large part of their livelihoods depend on the income from their crops. As a result of global market forces smallholder farmers have increasingly moved to other more valuable sources of income, such as highly intensive crops. In addition, many young farmers are leaving agriculture and migrate to urban areas for works in non-agricultural sectors. This affects the scarcity of spices and herbs and can also negatively affect the environment- highly intensive monoculture farm systems cause serious land degradation, pollution and erosion issues- and communities that suffer from health problems due to the use of chemicals in such systems.

  • EU upcoming sustainability legislations, where EU Corporate Sustainability Due Diligence Directive (CSDDD) requires in-scope companies to conduct due diligence on, and take responsibility for, human rights abuses and environmental harm throughout their global value chains. On 1 June 2023, the European Parliament agreed on its position on CSDDD. This legislation will be one that will impact all ESA members, though within different timeframe due to company size and where in the supply chain the company is. Corporate Sustainability Reporting Directive and Forced Labor Ban regulation have also to be considered in the future.

  • There are a lot on the EU policy agenda regarding sustainability except for CSDDD. Within The European Green Deal with Farm to Fork Strategy, Circular Economy Action Plan and EU Biodiversity Strategy there are forthcoming EU initiatives regarding proposal for a legislative framework for sustainable food systems, sustainable use of pesticides, revision of EU legislation on Food contact Materials, proposal for a sustainable food labelling framework, packaging and packaging waste regulation, directive on green claims.

  • Consumers are looking for more sustainable foods. Protect the security of supply chain is important and consumers want to know the origin of the food they buy and will eat, and many consumers want to know the livelihoods of the people who grow the spices. Hence transparency and traceability are crucial.

The most important and relevant stakeholders for ESA regarding sustainability are, EU regulators, EU agencies & scientists, NGOs, members, consumers, retailers, B 2 B customers, farmers, collectors, and producers. ESA as a Trade association is composed of different types of members, National Associations, Direct Full Membership and Direct Associated Membership which is important to keep in mind when to decide what we can and will focus on regarding sustainability. Until now very much of individual companies work within sustainability has been voluntary commitments, but with all the upcoming EU legislation that will change.

Focus areas and UNs Sustainable Development Goals

According to the risks and opportunities in the herbs and spice supply chain, upcoming legislations and our stakeholder analysis, the focus areas for ESA sustainability work are:

  • Human rights and specifically child labor

  • Farmers livelihoods

  • Climate

  • Biodiversity

  • Agrochemicals including pesticides

  • Water

From the UNs 17 Sustainable Development Goals ESA has decided that the following are where we can achieve the most impact and these are the ones ESA will mainly support:

  • Sustainable sourcing where compliance to ESA CoC is needed will promote sustainable production and create impact at farm level.

  • To identify and address risks, due diligence is needed. When performing due diligence there will be identified risks within:

  • Water and waste management.
    Child and forced labor awareness and absence in living income.
    Climate change.
    Biodiversity and agrochemical use.

  • Finally, partnership is important to create impact. This will be reached through MoU with SSI and collaboration at origin.

What to achieve?
As the umbrella association for the European spice industry we want the industry to work towards a more sustainable business and we want to help our members to drive impact in the entire supply chain. This will be done through awareness, education, tools and cooperations.

Since the ESA GA October 2022, we have the ESA CoC for responsible sourcing. This is a very important document for a more sustainable business, and it is mandatory for ESA members to ensure compliance with it. This will build credibility with clients through fair and transparent culture. Embed responsible business conduct into policies & management systems is also the first step in due diligence process according to UN Guiding Principles and the OECD Guidelines.

ESA goals 2023-2027

  • Establish an ESA Sustainability Committee.

  • Advice the membership how to comply with ESA CoC for responsible sourcing.

  • Support the membership with Due Diligence work regarding human rights and environmental.

  • Support one sector project at origin.

  • Strengthen ESA communication regarding sustainability.