Health & Safety Module
Organizations must navigate a complex network of suppliers, subcontractors, and factories, making it challenging to monitor and enforce consistent health and safety standards. Lack of transparency and visibility into lower-tier suppliers can further compound this challenge.
Businesses often operate in diverse regulatory environments with varying health and safety regulations, adding complexity to compliance efforts. Language barriers, cultural differences, and limited resources can also hinder effective communication and training on health and safety practices. Addressing these challenges requires big data analytics, proactive engagement with suppliers, and mitigation workflows.
The FRDM Health & Safety Module provides analysis for health and safety risk across your entire supply chain. FRDM risk models are driven by leading indicators like the International Labor Organization and US Bureau of Labor Statistics. The module pulls in upstream sub-supplier data, certifications, and adverse media regarding any potential hazards.
Suppliers may provide additional information through assessments through a dynamic supplier portal called supplier link.
Benefits of Monitoring Health & Safety In Your Supply Chain
Legal & Regulatory Compliance
Monitoring health and safety risks ensures compliance with applicable laws, regulations, and standards related to workplace safety. By identifying and addressing potential non-compliance issues, businesses can mitigate legal risks, avoid penalties, and maintain a positive relationship with regulatory authorities. This commitment to compliance also helps protect the company's reputation and brand image.
Supply Chain Resilience & Continuity
Effective monitoring of health and safety risks contributes to the overall resilience and continuity of the supply chain. By identifying and addressing risks promptly, businesses can minimize disruptions and maintain operational continuity. This proactive approach helps prevent production delays, reputational damage, and potential financial losses. It also strengthens relationships with suppliers and other stakeholders, fostering a more reliable and resilient supply chain network.
Enhanced Worker Safety and Well-being
Monitoring health and safety risks in supply chains helps identify potential hazards and proactively address them. By actively monitoring and assessing risks, companies can implement measures to protect workers' safety, promote a healthy work environment, and prevent accidents, injuries, and occupational illnesses. This focus on worker safety leads to improved well-being and higher employee satisfaction, fostering a positive organizational culture.
How It Works
Each supplier gets a score based on FRDM’s Health & Safety risk algorithm along with any assessment information the supplier chooses to provide.
The Health & Safety risk algorithm consists of multiple indicators such as the International Labor Organization and US Bureau of Labor Statistics and more. These indicators drive predictions and events regarding death and injury across all countries and industries.
Each supplier loaded into FRDM gets risk scored for the industry(s) it works in, country(s) it operates in, products or services it provides, and trading partners it does business with (requires Trading Partners Module). In addition FRDM screens for any adverse media regarding health and safety events involving your supplier.
You can invite your supplier to link to your dashboard so they can provide any certifications, policy assessments, and additional information. Supplier’s scores change accordingly based on the maturity of their certifications, policies, and additional information. FRDM aggregates all supplier scores into an impact page where you can track progress over time as well as generate reports for external use.
A few of the Regulatory Standards Supported
FRDM offers tools to help businesses comply with the UFLPA by analyzing spend data and providing insights into supply chain risks. Identify upstream commercial connections, predict potential exposure to forced labor, and take corrective actions.
Occupational Safety and Health Administration (OSHA) Standards
In the United States, OSHA sets and enforces workplace safety regulations. These standards require employers to provide a safe and healthy work environment for their employees. Companies are responsible for conducting regular health and safety checks on their suppliers to ensure compliance with OSHA standards.
EU General Product Safety DirectiveThis directive applies to consumer products sold in the European Union (EU) market. It requires suppliers to ensure the safety of their products, including conducting health and safety checks. Suppliers must comply with essential health and safety requirements, conduct risk assessments, and provide information on any potential hazards associated with their products.
Corporate Sustainability Reporting DirectiveIn the United States, OSHA sets and enforces workplace safety regulations. These standards require employers to provide a safe and healthy work environment for their employees. Companies are responsible for conducting regular health and safety checks on their suppliers to ensure compliance with OSHA standards.
Use Cases For Health & Safety Module
Companies reporting on different sustainability frameworks will appreciate the effectiveness of the Health & Safety Module to drive data and insights including Sustainable Development Goal 8.
Environmental, Social, and Governance (ESG) investing has gained prominence in recent years, with investors considering environmental, social, and governance factors when making investment decisions. Many ESG investors prioritize companies that demonstrate strong health and safety practices throughout their supply chains. They may expect companies to disclose information on their health and safety management systems, risk assessments, and measures taken to ensure worker well-being.
Sustainable and Responsible Investment (SRI) strategies encompass various investment approaches that prioritize sustainable development and social responsibility. SRI investors often evaluate a company's commitment to health and safety in supply chains as part of their investment analysis. They may look for evidence of robust policies, monitoring mechanisms, and stakeholder engagement in addressing health and safety risks.
In some countries, stewardship codes or principles outline the expectations for institutional investors to act as responsible stewards of the companies they invest in. These codes often include considerations for environmental and social factors, which may encompass health and safety standards in supply chains. Institutional investors adhering to stewardship codes may require companies to disclose and improve their health and safety performance.
Let Us Show You How
By providing comprehensive mapping, real-time monitoring, and collaborative features, FRDM.ai stands as a pivotal solution for resilient and responsible supply chain management.
