Strategic Plan
2024-2028
SOCIAL & LABOR CONVERGENCE PROGRAM (SLCP)FINAL February 2024

Stichting SLCP - RSIN 865635298

TABLE OF CONTENTS
Introduction

03

Executive Summary04

1. Context

06

2. Horizon Scanning11

3. Impact

15

4. Strategic Aims

18

5. Operational Priorities

20

6. Risks and Mitigation

27

7. Governance and Organization

29

8. Finances

32

SLCP STRATEGIC PLAN 2024-2028

INTRODUCTION
We are excited to present SLCP’s Strategic Plan 2024-2028, which has been developed collaboratively
with many of our signatories and stakeholders. The strategy is evolutionary, building on key strengths
and accomplishments from our first five-year cycle (2019-2023), while also recognizing where we needto improve and change.
SLCP was born out of a collective need and desire to reduce social and labor audit duplication andfatigue in the global apparel and footwear industry. The solution was SLCP’s Converged Assessment
Framework (CAF), a universal tool that eliminates the need for proprietary audits and allows saved
resources to be redirected to improving conditions for workers.
We have much to celebrate from our first five years as a live program. We are already reaching over
10,000 facilities (including other sectors) and unlocking an estimated $23m annually through use of the
CAF. At the same time, however, supply chains have faced significant challenges. The pandemic exposedserious vulnerabilities, reinforcing the need for resilience and adaptability. And we have seen growingpressure from consumers, companies, investors and regulators for greater transparency, responsible
sourcing, and just and equitable working conditions.
At the heart of SLCP’s success to date has been our multistakeholder, signatory-driven ethos. We have been fortunate
to attract a group of over 250 signatories who share common
goals, representing a diverse range of interested stakeholder
groups – manufacturers, brands and retailers, audit
companies, service providers, civil society, industry
associations, national governments and intergovernmentalorganizations. We also have a number of key partners, whohave invested alongside us in creating a dynamic ecosystemof services and solutions
to drive adoption and unlock value through the CAF.

"An unwavering commitment
to equipping and empowering
our stakeholders with credible
and actionable data."

The same principles of collaboration and partnership underpin our Strategic Plan 2024-2028, with anunwavering commitment to equipping and empowering our stakeholders with credible and actionable
data that will enable them to drive transformative change.
Work on the plan has been led by the SLCP Secretariat, working closely with a Council Strategy Committee
and supported by The Terrace, a consultancy firm. We have had regular touchpoints with our signatories
and stakeholders throughout the process and have built much of our thinking iteratively with their input
and feedback. Our thanks go to everyone for their participation and contribution.
Over the following pages, we hope that we make a compelling case for the role SLCP can play – with yourhelp – in driving decent working conditions in global supply chains. We look forward to you joining us on
the journey. The best is yet to come.

JANET MENSINKJONATHAN OBERMEISTER

Executive Director, SLCP

Independent Chair, SLCP

SLCP STRATEGIC PLAN 2024-2028

03

EXECUTIVE SUMMARY
Our new Strategy is evolutionary, taking forward
several proven elements of our first five-year
Strategic Plan, while incorporating lessons
learned (Chapter 1) plus a comprehensive
horizon scanning exercise to assess theimplications for SLCP of a complex set of megaand sectorial trends (Chapter 2).
In terms of the impact we seek, our theory ofchange remains constant: SLCP is a foundational
piece of a much bigger ‘puzzle’. However, wehave responded to signatory and stakeholder
feedback by making our Vision more aspirationaland our Mission more purposeful (Chapter 3).

Remediation andimprovements

Better buying
practices

Collaborative
actionSupply chain
resilience

Datainterpretation

SLCP’s CAF and data

Underpinning our Vision are four new Value Drivers that in turn have shaped a fresh articulation of ourStrategic Aims (Chapter 4), as illustrated in the diagram below.
New or enhanced elements in our core strategy include the power and dynamism of SLCP’s partner andstakeholder ecosystem, SLCP’s role in supporting human rights due diligence, supply chain efficiencies
through audit de-duplication, developing the CAF for scale, and the potential of SLCP data to drive
decision-making and transformative change.

VISION

Decent working conditions in global supply chains

MISSIONTo unite and support all stakeholders by developing and deploying
a Converged Assessment Framework (CAF)
that delivers harmonized, accessible and trusted data.

Create efficiencies and resiliencein supply chains

Identify and sharesocial labor insights

Support human rights
due diligence implementation

Enable solutions toimprove working conditions

VALUE
DRIVERSSTRATEGIC
AIMS

SUCCESSCRITERIA

Relevant,
effective andscaled tools

Credible andactionable data

Accelerated
collaborative
improvement
programs

Inclusiveorganizationand dynamic
ecosystem

CAF used
at scale and in
multiple sectors

Diversestakeholders
includinggovernments
accept SLCP
data

Partnerships thatdrive improved
working
conditions

Multistakeholder
governance andcommitted
partners

SLCP STRATEGIC PLAN 2024-2028

04

To deliver against this core strategy, SLCP will concentrate its efforts and resources on eight Focus Areas(Chapter 5). These remain broadly consistent with SLCP’s first strategy cycle (2018-2023), but with renewedemphasis on optimizing the CAF and improving its ease of use, data quality and integrity, data insights,
cutting-edge technology and expansion into other sectors.
The work of the SLCP Secretariat will be guided by three over-arching performance indicators: the annual
number of verified SLCP assessments conducted, the resources saved to fund improvement actions, andstakeholders using SLCP data for research and decision-making. Annual plans will be driven and monitored
against these indicators, plus a broader set of operational KPIs, also taking into account our Risk Register(Chapter 6).
The one substantive change for SLCP from a governance and organization perspective (Chapter 7) will be
our incorporation as a fully independent entity – a Netherlands-based not-for-profit public benefit
foundation, which will be operational at the start of the new strategy period. A successful signatory votelaunched in August 2023 showed widespread support for this move. SLCP’s Council will transition to a
two-tier Board, broadly replicating SLCP’s current multi-stakeholder governance, including elected Board
seats representing our diverse caucuses. We will also place greater emphasis on people and culture, alongwith prudent expansion of SLCP’s team and capabilities in line with the new strategy and further income
growth.
SLCP’s business model and the principles behind it have been field tested and validated in the first strategy
cycle, with SLCP’s earned income consistently ahead of expenditure (Chapter 8). We will maintain, but notincrease, our current system of fees from Accredited Hosts, Verifying Bodies and verifiers plus the uploadcharge on verified assessments to the SLCP Gateway, which will remain our primary income stream. This
allows us to extrapolate forward for the first three years of the new strategy period with a reasonable
degree of confidence, with income forecast to double to nearly $8m by 2026.
We believe that this Strategic Plan sets ambitious, but attainable goals for the next five years and defines acredible pathway to achieve them.

SLCP STRATEGIC PLAN 2024-202805

1. CONTEXT
Where are we coming from?

In our first five years as a live program, we
have successfully established SLCP as aforce within the social and labor landscape,meeting our promise to stakeholders andproviding evidence for our theory ofchange.
In this chapter:
1.1 Progress and achievements to date
1.2 Collaborations and partnerships
1.3 Lessons learned

1.1 Progress and achievements to date
During the 2019-2023 strategic cycle, we have seen significant growth and momentum across all areas of
SLCP’s work.

2022 country breakdownof verified assessments

Growth in SCLP assessments
25,00025,000

Others20%

20,000China
39%

15,000Vietnam11%

11,00010,000

7,200
4,400

5,000

500

Bangladesh
9%

1,500

0
201
9

202
0

202
1

202
2

2023
TargetGOA
L

SLCP adoption grew 65% from 2021 to 2022

SLCP STRATEGIC PLAN 2024-2028

India
10%

Turkey11%

SLCP has been implemented globally

06

SLCP has been able to meet its promise and provide evidence for its theory of change. Key achievements
include:Establishing the program and scaling the deployment of the Converged Assessment Framework (CAF)
in more than 61 countries.
Enabling facilities to reduce duplicative social and labor, unlocking resources that can be redirected
towards improvement programs.
Increasing industry acceptance and expansion into new sectors and regions, driving further progress
towards convergence.
Creating a sophisticated technology ecosystem with a Gateway and Accredited Hosts to allow sharingof data in a secure and scaled way.
Achieving broad satisfaction among users of the CAF through tools, systems, reports (e.g., case studies
and surveys) and efficiency gains.
Building up a strong data quality and integrity program.
Establishing a highly professional and financially healthy organization, with inclusive multi-stakeholder
governance and proven partnerships.

Vince Beaman, Sourcing and Supply Chain, Décor“Labor practices in the fashion industry can only be improved if the entire supply chain is bought-in. At
Décor, we are thrilled to be working closely with SLCP, and other industry leaders, to shape the futureof collecting, consolidating, and using verified social and labor data to drive a highly complex andglobalized supply chain into the future. The more we can work together as a value chain, the fasterwe can drive meaningful and comprehensive impacts. SLCP provides that community and partnershipforum, with global industry stakeholders committed to improving the conditions for the people
working within it.”

SLCP is a signatory-driven organization. Signatories (250+) commit to the principles of
convergence and subscribe to our Vision and Mission by signing the SLCP Charter. Fromthe 2022 annual signatory survey, the satisfaction rate was high, with 97% confirming
support for the Mission and 82% confirming SLCP was inclusive of all signatories.

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Our past Strategic Aims revolved around four main topics: industry adoption, resources unlocked, data
access and comparability, and organizational resilience. The numbers below provide a snapshot of ourprogress through 2022, creating a solid foundation for our next strategic cycle:

Industry
Adoption

9805

7255
assessmentscompleted in 2022.

facilities registered in
the SLCP Gateway

Potential of

Resources
Unlocked

87%of signatories using the
CAF instead ofproprietary tools

23 millionUS$unlocked* through useof the CAF

66

Data Access &Comparabilitybr﻿ands and organizations
publicly committed
to accepting
SLCP verified data37%
of signatories reported
redirecting resources
as a result of SLCP
implementation in 2022.

2.67

Launch ofaverage shares per
assessment

Organizational
Resilience

CAF v1.5
with Better Work

Strong network of
Accredited Hosts.
Introduced ‘Brand
Hosts’ to the data
sharing system.

2022 budget
based on115%

earned income

Leveraged key
collaboration
partnerships with ITC
and Better Work

*This number reflects the potential of resources unlocked. Many signatories invested time and resource into implementing SLCP within their supply
chains. This included training, awareness-raising and updating/ changing internal systems to ensure it is compatible with SLCP and the CAF. At this earlystage of SLCP roll-out, the resources unlocked through SLCP may be offset by the cost of implementation.

1.2 Collaborations and partnerships
Since our inception, SLCP has positioned itself as catalyst for change, working towards a bigger, shared
Vision by supporting stakeholders’ efforts to improve working conditions in global supply chains. In thespirit of convergence and collaboration, we have always recognized that SLCP would need to partner withother organizations with complementary capabilities and expertise to deliver our Mission. We refer to ourexpert support network of partners, hosts and service providers as the ‘SLCP ecosystem’.
Critical partners include The International Trade Center (ITC), who have built our technology system andcentral portal (Gateway) and our connected Accredited Hosts, whose platforms enable SLCP datacollection and analyze SLCP data for end users. ITC, together with other training bodies, also support us
with training for facilities and other stakeholders.
SLCP’s outsources quality assurance to an expert Verification Oversight Organization (VOO), Sumerra. We
also work with many Verifier Bodies to manage and implement the data verification of assessments.
Other key collaborators include manufacturer’ organizations – the International Textile Manufacturers
Federation (ITMF) and International Apparel Federation (IAF).

Pamela Coke-Hamilton, Executive Director, International Trade Center"The combination of SLCP’s power to drive collaboration among the major clothing brands, manufacturers’
associations, standards, and other stakeholders – combined with ITC’s customized tools and expertise –has brought about some incredible results. Though there remains a lot of work to be done, the future isbright in terms of bringing these solutions to more companies.
The potential to utilize the wealth of data now contained within the Gateway presents an enormous
opportunity. Through an anonymized and aggregated analysis, we can, together and in partnership withresearch institutes, leverage this assessment data from thousands of factories to identify social and laborgaps, inform policymakers, and re-direct the money saved to improvement measures where they are mostneeded – data informed decision-making."

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SLCP has deliberately focused its own mandate and efforts on developing and implementing the CAF. We
have always seen ourselves as being just one piece of a piece of a bigger ‘puzzle’ and as an enabler ofmore systemic solutions to improve working conditions, such as remediation of non-compliances andimproved buying practices by companies. In so doing, we have also created connections to drive
collaborative actions in these fields, including for instance with Fair Wear Foundation (FWF) and Better
Buying Institute (BBI). A non-exhaustive list of key partners and collaborators is shown in the table below.

Stakeholder

Topic
International Trade Center(ITC)

The ITC is a joint agency of the United Nations and the World Trade Organization.
SLCP partners with the ITC for the Gateway, user training and support for the CAF,
stakeholder engagement and data insights.

ILO-Better Work (BW)ILO-BW and SLCP are on common ground in promoting credible and actionable
data that is shared between a broad range of industry actors to act upon, including
governments and workers’ and employers’ organizations. SLCP and BW work
together on tool development, data sharing, ILO constituent consultation and otherrelated work.

Sustainable Apparel
Coalition (SAC)

SAC took the initiative to facilitate discussions with stakeholders for a joint
convergence effort in 2015. Today, the CAF is the backbone of SAC’s Higg Facility
Social & Labor Module (FSLM) Organizations have a shared vision to drive
convergence in social compliance assessment efforts in order to improve working
conditions in global supply chains.

Better Buying Institute (BBI)

BBI and SLCP pursue a shared vision of improved working conditions in apparel andfootwear supply chains. We have jointly developed some key questions related tothe convergence of social assessments and /implementation of the Converged
Assessment Framework (CAF) which were added to the Better Buying Purchasing
Practices IndexTM.

Accredited Hosts

Accredited Hosts are selected technology partners who have implemented the CAF
on their platform and are providing value-added services to their members/clients.
Active Accredited Hosts includethe Higg FSLM platform and Fair Factories
Clearinghouse (FFC), both operating under the tech company Worldly. Brands canalso connect directly to the SLCP Gateway as Brand Hosts. By the end of 2023 we
expect to have an additional AH.

Fair Wear Foundation (FWF) FWF and SLCP have developed a list of joint activities in pursuit of improved
working conditions in supply chains, including human rights due diligence hub
drawing on SLCP data as source
Verification Oversight
Organization (VOO)

The VOO is responsible for monitoring data quality and integrity. Currently (2023),
this is Sumerra.

Association of Professional
Social Compliance Auditors(APSCA)

SLCP aligns with APSCA criteria to monitor and improve the performance of SLCP
Verifiers and Verifier Bodies.

VBs (Verifier Bodies)

SLCP partners with (approved) Verifier Bodies who are carefully selected. Theirperformance is monitored for on-site verification of the assessments.

TBs (Training Bodies)

SLCP partners with (approved) organizations/service providers who provide training
to facilities and other stakeholders for the CAF and SLCP.

IAF (International Apparel
Federation)/ITMF(International Textile
Manufacturers Federation)

ITMF and IAF bring a focus on manufacturers and manufacturer associations. Theircollaboration with SLCP is focused on convening stakeholders to implement the
CAF.

Global Fashion Agenda(GFA)

The GFA and SLCP partnership has complementary roles. GFA focuses on
convening industry, leadership and business/trade media, and policymakers. SLCP
focuses on the implementation of the CAF, providing data and measuring progress.
Together, we can accelerate industry alignment and convergence and shift
resources towards improvement actions based on credible, verified data.

SLCP STRATEGIC PLAN 2024-202809

1.3 Lessons learned
The 2019-2023 Strategy was originally based on an adoption goal of 25,000 SLCP verified assessments onan annual basis. Prior market research in 2018 had indicated that approximately 33,000 apparel andfootwear facilities worldwide are currently under audit. The goal was set on 75% of those.
In reality, SLCP found that adoption was slower and less than expected. This was due to external factors(pandemic, supply chain consolidation) as well as more SLCP-related elements (such as time, costs oftransition and compatibility with industry standards).
Adoption remains our over-riding priority for the next strategy cycle. To take SLCP’s scale and impact tothe next level, we will need to:
Optimize the CAF to achieve (more) global and wide applicability of the CAF including Small andMedium Enterprises (SMEs);
Improve ease of use;
Ensure greater alignment with International Labor Standards (ILS) and National Labor Law (NLL);
Enhance data quality and integrity;
Develop data analytics and insights for impact;
Facilitate change management with users (including compatibility with existing systems);
Diversify through tier and sector expansion.
These align closely with the trends, and their implications, that we outline in Chapter 2.

Dr Delman LEE, Vice Chair, TAL Apparel Limited“TAL Apparel supports and actively participates in the convergence work of SLCP. A Converged
Assessment Framework (CAF) is important for the industry as it helps to reduce audit fatigue and let
facilities spend their time making real improvements on the ground. The apparel industry has beentackling the social space for a long time. It is time to focus our efforts on capability building andrealize the benefits. In addition, adoption of unified data structure is crucial for big data analysis,
more accurate benchmarking and identification of best practices. We do continuously support andpromote this meaningful initiative, expecting that more industry players will adopt the CAF to drive
positive movement in the industry.”

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2. HORIZON SCANNING
Key trends and implications

To inform our next strategic cycle, we
conducted a comprehensive horizon
scanning exercise to identify key trends
affecting SLCP, our signatories andstakeholders, drawing from a wide range ofsources. These can be summarized as a
combination of mega trends (such as global
trade and climate change) and sectorial
trends (such as regulation and corporate
accountability).
In this chapter:
2.1 Mega trends
2.2 Sectorial trends
2.3 Implications for SLCP

2.1 Mega trends
The world is facing a complex set of challenges as we look toward the end of the decade, many of theminterlinked, with both direct and indirect consequences for businesses and their workers.

Global uncertainty& geopoliticalconditions

Global economic
turbulence

Supply chain
disruption

Technology &innovation

ClimatechangeGlobal uncertainty and geopolitical conditions
We expect a rise in geopolitical instability and tensions, with growing barriers to trade. Social unrest, civil
wars, conflicts, disasters, migration and other humanitarian emergencies will disproportionately affectemerging economies – bringing increasing risks of child labor, restrictions on freedom of association andassembly, and human rights violations. Threats to working conditions and worker livelihoods in somealready high-risk countries will be exacerbated as sourcing shifts to more stable and compliant locations.

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Global economic turbulenceTechnology and innovation

In the near to medium-term, the world willcontinue to suffer the aftershocks of Covid andtrade wars, particularly through higher energy
prices, interest rates and inflation. Economic
headwinds will continue to affect consumers,companies and investors alike. Workers will be
particularly vulnerable to order volatility, marginpressures and deteriorating purchasing practices –which will negatively impact their economic
security, wages, working hours, and health andsafety. This, in turn, will set back progress in key
areas such as non-discrimination, therepresentation and involvement of women, andavailable funds to improve working conditions.

Technology will impact manufacturing in multiple
ways, including growing use of automation androbotics (particularly in more sophisticated, higher
wage countries), supply chain digitalization fromdesign to production (including leveraging thepower of data and AI) and development ofinnovative materials (especially through recycling)– although traditional manufacturers will be lessable to reap the benefits. The global workforce will
inevitably shrink, with lower-skilled workers
particularly affected.

Supply chain disruption
Multiple factors including disrupted commodity
markets, sudden changes in bilateral or multilateral
trade agreements (such as removal of preferential
duty arrangements), transport bottlenecks andshipment disruptions will make supply chains morechallenging and potentially less predictable. Theseand other factors are likely to fuel two opposing
trends of supply chain consolidation on the one
hand, and fragmentation on the other – adding tounpredictability and insecurity for bothmanufacturers and workers alike.

SLCP STRATEGIC PLAN 2024-2028

Climate change
Climate change is both an existential threat in its
own right and a force multiplier for other megatrends. Climate impacts for manufacturing will
include the fluctuating availability, quality and costof agricultural raw materials, sea-level rises
eliminating some manufacturing locations, andextreme weather and heat hindering production
and creating unsustainable working conditions.
Climate-induced migration will put additionalstrains on resources and systems in countries
which are already vulnerable, with increased risksof exploitation. Increased risk of flooding andextreme heat will cause long periods of
unemployment and financial turmoil for workers.

122.2 Sectorial trends

Regulatory
drivers

Clampdown on
sustainability
claimsIndustry-led
compliance under
scrutiny

Regulatory drivers
Major regulatory initiatives such as the European
Union’s Corporate Sustainability Due Diligence
Directive (CSDDD) or the New York Fashion Act, will
have fundamental impacts on sourcing, supply
chain assessment, materiality assessment, risk
management, legal compliance, ESG reporting, andinvestor scrutiny. There will be a particular focus onhuman rights due diligence (HRDD), expanding thebreadth and depth of compliance programs andregulating what has to date been guidance from theOrganisation for Economic Co-operation andDevelopment (OECD). New regulation will cover amuch larger supply chain footprint including both
upstream and downstream production, as well as
extending to a wider range of facilities.

Clampdown on sustainability claims
Within and alongside the above due diligencelegislation, national regulators – particularly
consumer authorities (for example in Norway and
Denmark) – are placing increased scrutiny onsustainability claims. Retailers and brands
particularly are in the line of fire around potential
misleading claims or consumer confusion – putting
corporate reputation at risk and fueling increased
demand for accurate, credible and trustworthy datafrom their supply chains, including social and labor
data.

Industry-led compliance under scrutiny
The drive for more public regulation fits with agrowing backlash towards private regulation andmore criticism of industry-led compliance initiatives
and sustainability standards (especially from civilsociety), despite their multi-stakeholder nature.
There is insufficient proof that these have led tomaterial changes in social and labor conditions.

SLCP STRATEGIC PLAN 2024-2028

Changing
consumerpatterns

Supply chain
resilience & agility

There is also a lack of transparency in data sharing
and a lack of trust in auditing regimes, wherecompanies select their own auditors. There is a riskof a race to the bottom on audit quality and price.
The proliferation of competing schemes andstandards also drives undesirable complexity andopacity – making harmonization, aggregation andcomparison of data difficult. There is also growing
evidence that private regulation fails to address
underlying issues and materially improve workers
lives.

Changing consumer patterns
A growing proportion of global business in markets
Clampdownonsuch as apparel and footwear will takeplace withinsustainability
the Global South, with local manufacturers
claimsproducing for national and regional demand outsideof the regulatory and consumer dynamics we will
see in the Global North. ­Western consumer buying
behavior and expectations will continue to evolve –including the trend towards circularity and possible
rejection of fast-fashion, and more focus on
corporate sustainability claims and performance –including both environmental and social and labor
criteria.

Supply chain resilience and agility
This will be an increasing area of focus for brands
and manufacturers in response to the trends above.
Businesses will seek to future-proof their supply
chains – looking to increase efficiency, tighten
planning, optimize sourcing agreements to increase
flexibility and speed to market, and improve risk
management, including spreading risks across newand existing manufacturing hubs. On the positiveside, there will be some movement away fromtransactional relationships towards strategic
partnerships between companies and preferredsuppliers, distributing costs and risks more equitably.

132.3 Implications for SLCP
Understanding how and where this complex, changing landscape affects SLCP has been a key driver of our
new five-year Strategy. Putting ourselves in the shoes of our signatories and stakeholders, while being farsighted and focused as what SLCP itself can meaningfully do and drive, and where best to focus ourresources. We have therefore integrated the following key learnings into our future plans.

Programexpansion

Drive
impactHuman rights
due diligence

Program expansion
SLCP must continue to advocate for audit deduplication, industry convergence and the reallocation of saved resources into improving
conditions for workers. Increasing adoption is the
pre-condition for this, with opportunities fordiversification of our supply chain users(companies, tiers, sectors).

Drive impact
Further scale cannot be at the expense of impact,and demonstrating impact will be key. We need tocreate an enabling environment for moretransparency and disclosure, based on trusted
social and labor data that demonstrates tangible
improvements for workers.

Human rights due diligence (HRDD)
SLCP must adapt and align to HRDD requirements,
providing confidence to stakeholders andpolicymakers as to how the CAF can be integrated
into credible HRDD approaches, enabling effective
monitoring and detection of due diligence risks.

Data quality& integrity

Equal
partnership

Data-driven approach, quality andeffectiveness
SLCP was born in response to signatory demandfor credible, actionable data informing
stakeholders how to improve labor conditions.
Data quality and integrity will remain paramount,with more work to do on quality assurance.
Technology and innovation will have a key role toplay here. We will need to build out data analytics
capabilities (in-house and with partners) to identify
and share key insights from SLCP aggregateddata, and support stakeholders in their effort toimprove labor conditions.

Equal partnership
Facility ownership in the CAF tools, systems andprocesses will be more important than ever in
helping to bring more balance and equity tosupply chain relationships and unlock complianceon labor conditions. By the same token, SLCP’s
multi-stakeholder constitution and vibrant,
inclusive ecosystem will remain critical to fosteringcollaborative dialogue and action.

Anna Burger, Board Chair, Cornell University ILR School, Global Labor Institute (GLI)"Access to SLCP data gives academic researchers the ability to analyze data from across the supply
chain to identify trends and underlying obstacles to improving working conditions. This can be the basisof collaboration by stakeholders on strategies to address problems systemically and with real impact."

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3. IMPACT
The change we want to see

To respond to learnings, identified trends
and evolving stakeholder and signatory
demands, we have updated our theory ofchange, refreshed our Vision and Mission,and identified four primary areas of value
delivery.
In this chapter:
3.1 Theory of change
3.2 Vision and Mission
3.3 Value Drivers
3.4 Core Values

3.1 Theory of change
Improving working conditions in global supply chains requires pre-competitive collaboration between
multiple parties to enable organizations to improve social and labor conditions. The program provides afoundation for other crucial elements such as risk prevention, transparency and improvement programs.
SLCP drives collaborative action and stakeholder inclusion to make change happen.

Improved working conditions

Accelerated collaborative improvement actions

Redeploy resources towards improvement actions

Transparency and insights into working conditions

Unlocked resources

Credible and actionable data

Reduced duplication in social audits

Converged Assessment Framework
The CAF is SLCP’s unique asset and contribution to our theory of change– empowering manufacturers, providing common data and reducing
audit duplication and fatigue. This in turn helps drive transparency andthe unlocking of resources.
The CAF is contributing to Sustainable Development Goals 8 and 17:

SLCP STRATEGIC PLAN 2024-202815

3.2 Vision and Mission
Given the evolutionary nature of our next five-year Strategy, our overall ambition has not changed.
However our consultation with signatories and stakeholders highlighted calls for a more aspirational
expression of SLCP's Vision and more purposeful Mission. Our Vision statement outlines the world we allwant to see – one where decent working conditions in global supply chains are standard practice. Our
Mission captures the distinctive role we play in realizing that Vision.

VISION

Decent working conditions in global supply chains

MISSIONTo unite and support all stakeholders by developing and deploying
a Converged Assessment Framework (CAF)
that delivers harmonized, accessible and trusted data.

3.3 Value Drivers
We have identified four main Value Drivers where SLCP can make a tangible contribution to delivering
against our Mission. These drivers fully align with findings from our 2022 Learning & Evaluation Reportand 2022 Impact Report, as well as responding to key trends identified in Chapter 2.

Create efficiencies and resiliencein supply chains
SLCP results in the reduction of duplicative social
audits, provides opportunities for reallocating
resources towards improvement programs, andthrough gained efficiencies and supply chain
partnerships creates resilient supply chains.

VALUE
DRIVERS

Identify and sharesocial labor insights
Analysis of SLCP data provides patterns, trends andinsights on labor conditions in supply chains. Given
the CAFs (further) alignment with International Labor
Standards and National Labor Law, this will include
legal compliance information.

Support human rights
due diligence implementation

Enable solutions toimprove working conditions

The CAF supports supply chain actors to undertake
human rights due diligence activities (HRDD). By
laying the foundations for strong alignment with
policy demands, stakeholders can leverage SLCP
data to maximize impact and support HRDD
implementation.

Convergence on assessments and data insights
opens the opportunity of a shared foundation for
dialogue and prioritization of improvement areas forlabor conditions. This drives transparency andaccelerates collective knowledge and action on
systemic solutions.

Alexander Kohnstamm, Executive Director, Fair Wear
“At Fair Wear, we know that ambitious alignment is needed for the garment industry to become fair
for all. Integrating SLCP data into our human rights due diligence (HRDD) facilitation tool is an
example of how we’re promoting collaboration. By joining forces with SLCP we can better support
companies with a variety of high quality, verified information sources as input for their HRDD
implementation. This will help brands focus their resources when addressing human rights impacts
in their supply chains, as well as build critical mass for change across the wider industry.”

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SLCP and HRDD
According to our 2022 signatory
survey, many brands already use SLCP
for HRDD purposes. SLCP aims toensure the CAF is relevant to HRDD
legislative frameworks, particularly in
identifying human rights risks andtracking and monitoring progress, andwill partner with other organizations(such as Fair Wear Foundation) toenable broader solutions.
SLCP tools and systems will continue
to be adapted to meet policy needs,
such as alignment with the OECD Due
Diligence Guidance, specific inclusionsof compliance against International
Labor Standards (ILS) and National
Labor Law (NLL) and mechanisms tofurther enhance stakeholder
engagement with workers.

Do you use SLCP
data for any of
the following
purposes?*% of brands thatuse SLCP data forthis purpose% of policy
stakeholders thatconsider SLCP
useful for thispurpose89%

93%

To monitor andtrack human rights
risks in the supply
chain

93%

80%

To assess if there
are instances offorced labor inyour supply chain

78%

60%

2022 signatory
surveyOECD Policy
roundtable survey

To identify humanrights risks in the
supply chain

3.4 Core Values
SLCP’s work and conduct will continue to be guided by the same Core Values. We have refreshed some of
the language, but these values apply throughout our governance structure – Secretariat, TechnicalAdvisory Committees and Board – and to our everyday interactions both internally and externally.

Rigorous

Impartial

Collaborative

Progressive

Ensuring the quality of ourwork, the credibility of oursystem and the integrity ofour data.

Inclusive and fair in ourtreatment of colleagues,
supply chain actors andothers committed to
improving social and labor
conditions, with theinterests of workers at theheart of everything we do.

Working actively with ourcolleagues, signatories
and partners to facilitatechange and achieve
greater impact.

Always looking to improvethe usefulness andeffectiveness of the tools
and services we provide.

SLCP STRATEGIC PLAN 2024-2028

17

4. STRATEGIC AIMS
What we want to achieve

SLCP has four Strategic Aims, and accompanying
success criteria, for the next strategy period andbeyond. Operational delivery against these aims
will be channeled through the Focus Areas
detailed in Chapter 5, with annual operational
plans approved by the SLCP Board.

In this chapter:
4.1 Relevant, effective and scaled tools
4.2 Credible and actionable data
4.3 Accelerated collaborative improvement
actions
4.4 Inclusive organization and dynamic
ecosystem

Strategic Aims
Our four Strategic Aims build on the Value Drivers, where SLCP contributes to tangible change. They havecollaborative action at their heart. The intention is to develop and learn from our success, but recognize
where we need to improve and change.

STRATEGIC
AIMS

Relevant,
effective andscaled tools

Credible andactionable data

Accelerated
collaborative
improvement
programs

Inclusiveorganizationand dynamic
ecosystem

SUCCESSCRITERIACAF used
at scale and in
multiple sectors

Diversestakeholders
includinggovernments
accept SLCP data

Partnerships thatdrive improved
working
conditions

Multi-stakeholder
governance andcommitted
partners

SLCP STRATEGIC PLAN 2024-202818

4.1 Relevant, effective and scaled tools
Success criteria: CAF used at scale and in multiple sectors
SLCP has done well to create significant momentum around adoption of the Converged Assessment
Framework (CAF) (see Chapter 1.1 Progress to date). Further scaling will require broader acceptance by
end-users of the CAF (particularly brands and retailers), expansion into adjacent sectors (such as home
textiles and new sectors) and extension across supply chains (including material processing and relatedindustries such as packaging and distribution centers). We have already seen organic uptake in thesecategories.

4.2 Credible and actionable data
Success criteria: Key stakeholders including governments accept SLCP data
Trusted, actionable data is a cornerstone of our strategy. Data quality and integrity will therefore remain akey pillar in our work. Robustness of our verification oversight and quality assurance of Verifier Bodies,verifications and execution of verifications will be high priority.
Data insights will increase the effectiveness of SLCP’s own program, as well as identifying industry-wide
trends that can direct improvement actions. Linking SLCP with policy implementation, particularly HRDD,
requires that SLCP is accepted by all stakeholders as a trusted solution, including governments andpolicymakers.

4.3 Accelerated collaborative improvement actions
Success criteria: Partnerships that drive improved working conditions
As one piece of the ‘puzzle’, multi-faceted collaboration will remain critical for SLCP. We will continue toplay an enabling role in supporting and driving systemic solutions in four key areas: data interpretation,
supply chain resilience, better buying practices, and remediation and improvements.

4.4 Inclusive organizationand dynamic ecosystem

Remediation andimprovements

Better buying
practices

Success criteria: Multi-stakeholder
governance and committed partners
For SLCP to be successful, we will need toremain a focused, results-oriented, inclusive,
and independent organization. Our multistakeholder governance and ethos has beena critical pre-condition and will be even more
so in the future. At the same time, SLCP has
fostered a dynamic ecosystem of
stakeholders (ITC Gateway, Accredited Hosts,
Verification Oversight Organization, Verifier
Bodies, Training Bodies). Nurturing andbuilding on this is imperative.

SLCP STRATEGIC PLAN 2024-2028

Collaborative
actionSupply chain
resilience

Datainterpretation

SLCP’s CAF and data19

5. OPERATIONALPRIORITIES
Where we will focus our efforts

5.1 Key performance indicators and targets
Given the fast-changing landscape we have set headline three-year targets for 2026 and will set new
targets for 2028 following a mid-term review of this Strategic Plan.
Based on a forecast of 11,000 facilities assessed by the end of 2023, we are seeking to double that to
25,000 verified assessments annually by the end of 2026, with a threshold of 90% of that target (23,000).
Based on a forecast $25m per year in resources unlocked by the end of 2023, we are aiming to quadruple
that figure to $100m per year by the end of 2026. This will be underpinned by increasing number ofbrands & retailers that accept SLCP data, as well as drive further convergence with MSIs and Standard
Holders.
TARGETS(Guiding KPI's)

25,000 assessments
on an annual basis​$100 M/year unlocked for
improvement actions​

SLCP data as a key source forresearch and decision making
on working conditions

These three lead KPIs will be complemented by an additional set of more operational KPIs against each of
our Strategic Aims. These will be built and tracked in SLCP’s annual operating plans. A non-exhaustive listof KPIs is provided below.
Strategic Aim 1:
Relevant, effective and scaled tools

Strategic Aim 2:
Credible and actionable data

# facilities in Gateway# country roll-out# law overlays# brands and organizations that accept SLCP
% credibility index# shares/SLCP assessment

Strategic Aim 3:
Accelerated collaborative improvement programs

Strategic Aim 4:
Inclusive organization and dynamic ecosystem# law overlays# collaborations on improvement actions# academic studies based on SLCP data

# signatories and % satisfaction% financial self-reliance# ecosystem tech partners (AHs)

SLCP STRATEGIC PLAN 2024-202820

5.2 Focus Areas
In order to deliver against our Mission, Value Drivers and Strategic Aims, in this next strategy period SLCP
will concentrate its energy and resources on eight Focus Areas:

1. Optimized CAF
2. Data quality and integrity
3. Scaled roll-out and ease of use
4. Enabled through cutting-edge tech

Strategic Aim 1

Strategic Aim 2

Strategic Aim 3

Strategic Aim 4

Relevant,
effective andscaled tools

Credible andactionable data

Accelerated
collaborative
improvement
programs

Inclusiveorganization anddynamic
ecosystem

CAF used at scale
and in multiple
sectors

Diverse stakeholders including
governments
accept SLCP data

Partnerships thatdrive improved
working
conditions

Multi-stakeholder
governance andcommitted
partners

X

X

X

X

X

STRATEGIC AIMS

SUCCESS CRITERIA

5. Meaningful data insights and analysis
6. Engaged and informed stakeholders
7. Collaborations and partnerships
8. People and culture

FOCUS AREAS (below)
Linked to Strategic Aims
1, 2, 3 and/or 4 (X)
1. Optimized CAF

2. Data quality and integrity

3. Scaled roll-out and easeof use ​X

4. Enabled through cuttingedge tech​

X

X

X

5. Meaningful data insights
and analysis​

X

X

X

X

X

X

7. Collaborations andpartnerships​

X

X

8. People and culture​

XX

6. Engaged and informed
stakeholders​

SLCP STRATEGIC PLAN 2024-2028

X

X

21

1. Optimized Converged Assessment Framework (CAF)
The CAF will continue to deliver high quality social and labor data aligned with International Labor Standards
and National Labor Law, generating data and insights that inform stakeholders, including companies, civilsociety, governments and policy makers. We will optimize the CAF so as to ensure that it becomes a scalable
tool that is relevant, globally applicable, and widely implementable.
Specifically, we will:
Ensure that the CAF continues to address future trends, particularly in ensuring relevance to upcoming
legislation, and including worker voice, through Worker Engagement Technology (We Tech);Introduce more flexibility into the CAF tool and process, to better accommodate diverse stakeholder
needs;
Support data interpretation and readability of the SLCP assessment report;
Aim for annual and, in the future, bi-annual major updates of the CAF as SLCP stakeholders haveexpressed the importance of predictability and stabilization;
Continue to manage priorities based on clear processes and our multi-stakeholder governanceframework – learnings from the past years show that priorities sometimes compete.

She Ali, Chief Sustainability Officer, Crestex Textile Mills“Because SLCP’s WE Tech is facilitated by a third party, it provides a credible platform for collecting
feedback directly from workers. We shared the WE Tech survey results with a number of ourcustomers. Using WE Tech and sharing the surveys with our business partners distinguishes us andstrengthens our customer relationships.”

2. Data quality and integrity
SLCP’s success so far is based on broad acceptance (70+ organizations/brands accepting) and trust in thesystem. A system that is data-driven, transparent, and robust, emphasizing stakeholder collaboration andrelying on technology to create efficiencies and performance insights. To run this system, we rely on our
Verification Oversight Organization (VOO).
Data Quality and Integrity (DQ&I) will remain our highest priority, particularly in the context of SLCP data
supporting human rights due diligence implementation. Through the Verification Oversight Organization(VOO), we will continue to spend a significant share of our resources directly on Quality Assurance (QA)
activities. SLCP will continue to enhance the systems, use a smart mix of QA activities and be transparent
about tools and outcomes. SLCP will seek further opportunities for innovative and data driven strategies
and measures. This will also ensure a more ‘risk based’ approach, which should set a foundation for a bestin class, yet cost effective data quality and integrity strategy.
We will rely on quantitative KPIs to measure success – the Credibility Index, based on users’ trust in SLCP
data, being a key driver. While SLCP data quality is equal to or better than existing social audit schemes,
we know it’s not perfect. In the upcoming strategy period, we will:
Continuously drive improvements to Verifier Body (VB) and Verifier performance and consistency;
Incentivize good performance and be strict(er) on poor performance of VBs and Verifiers;
Use predictive analytics for QA activities;
Develop our collaborative approach to QA, including our partnership with the Association ofProfessional Social Compliance Auditors (APSCA);
Implement system improvements by focusing on stakeholder feedback and investigations as input.

SLCP STRATEGIC PLAN 2024-2028

22

Ian Spaulding, CEO LRQA
"LRQA is proud to be an SLCP Verifying Body. We strongly believe that the data gathered during the
SLCP verification process has the potential to provide the industry with relevant and actionableinsights to drive for sustainable improvement throughout the apparel industry supply chains. Criticalto achieving this potential will be for SLCP to continue to prioritize quality and strengthenverification oversight standards to ensure the bar remains high and that the SLCP verification
provides stakeholders with complete and accurate insight into working conditions."

3. Scaled roll-out and ease of use
In order to achieve the scaling and expansion described in our first Strategic Aim (Chapter 4.1) and our2026 adoption target (Chapter 5.1), our approach will change. Customer success will be integrated
throughout our workstreams, and we will take a more tailored approach towards tools, support
mechanisms and systems for specific target groups (e.g. small facilities, home-textiles or other categories,
and facilities deeper in the supply chain).
In the upcoming strategy period, we will prioritize the following three areas:

Ease ofimplementation
Including simplifying theCAF, support andprocesses.

Value delivery

Credibility

Mainly throughecosystem partners (suchas Accredited Hosts)

Given the criticality ofdata quality and integrity

Converged Assessment Framework (CAF) availability
The CAF is publicly available and accessible via an open license. SLCP strives for transparency andscaled adoption. The CAF has been developed in a multi-stakeholder effort and has been rolled-out
since 2019. Tools will be publicly and freely available through the SLCP Gateway. SLCP will confirm thisthrough a long-term open licensing model for the CAF.

SLCP STRATEGIC PLAN 2024-2028

23

4. Enabled through cutting-edge tech
Since 2019, SLCP has worked in close partnership with ITC to develop and enhance the Gateway as the
hub of SLCP’s data hosting and sharing model. The model was independently validated by PWC in 2020 as
being fit-for-purpose, and remains well-suited to supporting our growth over the coming years.
Specifically, we will:
Continue partnering with ITC and Accredited Hosts to develop the Gateway and deliver value for users
and stakeholders. Initiatives will ease implementation for facilities, brands, MSIs and standard holders,with plans to add features such as the bulk upload of supply chain data, mapping tools to support
compatibility of the CAF with existing standards, and decision frameworks (including HRDD);
Engage with additional Accredited Hosts and Brand Hosts to facilitate wider adoption;
Use artificial intelligence, including predictive analytics and machine learning, to enhance data quality
and integrity throughout the assessment lifecycle;
Apply strong data governance to ensure that data remains secure and protected even when used for
insights and analysis;
Develop dashboards to provide a near real-time view of operations across the organization.

Viola Wan, Team Head Social Sustainability, Puma
"In an industry where many suppliers are shared among brands, we cannot do it alone. Therefore,
we are working with our industry peers towards harmonizing sustainability standards and joint
efforts towards implementing good practices to create positive impact. We use SLCP’s technology
ecosystem, so other stakeholders can access shared data."

5. Meaningful data insights and analysis
SLCP’s verified assessment data offers enormous potential toanalyze trends in supply chain labor conditions and correlate
this with effective remediation, such as buying practices. In thisway we can drive real change. While expansion and adoption
remain key in the next strategy cycle, the focus is now shifting
towards data insights and measuring impact. We areshowcasing this in the SLCP impact reports and fact sheets,
which ITC and SLCP will continue to publish annually.
SLCP and ITC have already structured the data in a ‘data store’
which can provide trusted partners with access to anonymized
and aggregated SLCP data.

Opportunities for data insights andresearch together with (academic)
partners:
Tracking of legal noncompliances/ issues frequency
and identify high impact areas
Time and resources saved
through SLCP and reallocatedtowards improvements andmeasurable impact on workers
Measure progress of specificremediation approaches
Correlation between proper
management systems and labor
conditions in facilities
Correlation between buying
practices and labor conditions
in facilities

In the upcoming strategy period, we will:
Develop the data store for public good and remain noncommercial for the aggregated data (vs. selling data) todrive research and policy discussions. This is also linked toour strong collaborations with UN organizations ITC andILO/Better Work and the role division with Accredited Hosts(who can be commercial);
Further drive data insights with (academic) partners and seek (grant) funding for this;Explore the option of identifying ‘purpose’ projects to support longer-term academic research on SLCP
data, potentially drawing on an internal fund if and when SLCP generates a significant annual surplus.

SLCP STRATEGIC PLAN 2024-2028

24

6. Engaged and informed stakeholders
Multi-stakeholder collaboration is at the heart of SLCP. From existing signatories and supporters to newpartners in government, academia and policy – we will continue to inform, advise and listen to ourstakeholders as we build and grow.
Specifically, we will:
Invest in policy and public affairs;
Work with our stakeholders to acknowledge and understand their challenges, address issues anddeliver solutions;
Prioritize business development and support the wider SLCP team to deliver on Customer Success;Continue to monitor stakeholder satisfaction and feedback;Seek the right external media opportunities to promote our Vision and increase awareness to wider
audiences, with a focus on demonstrating impact and tangible outcomes;
Provide clarity on the complexities of our data-driven approach, promoting quality and integrity;
Develop clear and simple messaging, better tailored to our audiences;
Celebrate achievements and key milestones with collaborative case studies;
Develop more creative content across a broader range of channels and touchpoints.

7. Collaborations and partnerships
Collaboration and partnership is hardwired into SLCP’s work and cuts across both our Strategic Aims (seeChapter 4.3, 4.4) and other Focus Areas. As we scale through the next strategy period, we will seek toenhance, expand and diversify our collaborations with other organizations that share our Vision and thatcan play a role in delivering our theory of change.
We will further develop our ecosystem of partners and service providers with a priority on:
Technology and innovation: additional Accredited Hosts and potentially new collaborations withorganizations like Open Supply Hub;Quality assurance: including working more with our Verification Oversight Organization (VOO), Verifier
Bodies (VBs) and APSCA;
Engagement with standard holders for further convergence and alignment. We aim for acceptanceand compatibility of SLCP data versus standards such as SAC’s FSLM (full integration achieved), butalso additional standards such as amfori’s BSCI.
Throughout the consultation towards this Strategic Plan 2024-2028, we received broad support fordeveloping additional impact collaborations and data analysis and learnings. In line with our enabling rolein four areas – as presented in our updated ‘piece of the puzzle’ graphic in Chapter 4 – this includes:
Unlock further potential in our long-lasting collaboration with ILO-Better Work;
Partner on data analysis and knowledge development with academic institutions and universities toenable greater collaboration throughout the global supply chain on strategies for improvements inworker’s lives (for example, our partnership with Cornell/Global Labor Institute GLI);
Expand the use of SLCP data in driving sustainable finance and trade, through collaboration withfinancial institutions and investors (such as Norges Bank Investment Management (NBIM), a founding
signatory and early funder of SLCP).

Better Work and SLCP have found common ground in promoting credible andactionable data to be shared between a broad range of industry actors to act upon,
including governments, workers’, and employers’ organizations.

SLCP STRATEGIC PLAN 2024-202825

8. People and culture
Over our first five years as a live program, we have built a strong and distinctive organizational culture,underpinned by SLCP’s Core Values (see Chapter 3.4). This seeks to bring out the best in our people, tofoster collaboration, to encourage listening and learning, to empower people to speak up, and to drive
accountability for performance.
In the upcoming strategy period, we will:
Continue prioritizing organization culture and identity;
Enhance the professionalism of the organization through our competency framework andperformance management;
Develop our own, fit-for-purpose HR policies and procedures as a fully independent organization;
Continue to attract and retain talented staff;
Invest in learning and development (L&D).
As a multi-stakeholder organization representing, serving and partnering with a diverse range ofstakeholders across the world, we place particular importance on diversity, equity and inclusion andrespect for difference. Given that SLCP's Mission is centered on improving conditions for workers, we areespecially mindful of ensuring the right working conditions for our own staff.

SLCP STRATEGIC PLAN 2024-2028

26

6. RISKS AND
MITIGATION
Learning, planning and analysis

This Strategic Plan builds upon thelearnings and experience gained throughthe first five years of SLCP's operations.
Despite careful planning and analysis, anumber of risks remain. The mostsignificant risks are shown in the tablebelow, including an assessment of risk
levels, their impact and probability, andcorresponding mitigating actions.

Key Risks and Mitigation Strategies
Risk

ImpactProbability

Quality of SLCP
verified assessment(VRF data)
perceived to be
insufficient

4.5

4.6

20.7

CAF designed in collaboration with key signatories and ILOBWWorker voice included in SLCP process
Continuous improvement methodology for CAF content
Strong verification oversight and QA program
Quality checks enforced through technology

MSIs and Standard
Holders do not see
themselves ascompatible with
the SLCP system

4.5

4.0

18.0

Develop tools and resources for easy onboarding of standard
holders
Support other organizations to better understand the CAF
Create mapping tools

Lack of customer
focus

4.0

3.5

14.0

Re-orient around ‘Customer Success’ principles
Build capacity and skills to exceed customer expectations

SLCP unable toexpand to othersectors

3.0

4.5

13.5

Accommodate sector requirements as part of CAF
development process
Strong training and guidance materials
Work with signatories to expand to mutually adjacent sectors
Early engagement with tech partners in other sectors
Case studies that demonstrate applicability of the CAF inother sectors

SLCP STRATEGIC PLAN 2024-2028

Risk

Mitigation

27

Risk

Impact(1)

Probability (2)Risk

Mitigation

Insufficient Verifier
Bodies and verifiers
to meet demand

3.0

4.2

12.6

Work with brands to understand regional demand
Ensure SLCP remains commercially attractive for VBs

Adoption rates
significantly lower
than planned

4.0

3.0

12.0

Create compatibility and acceptance with other standards
Analyse and understand user requirements and behaviors
Strong comms programs to share best practices and benefitsof using SLCP
Engage additional Active, Passive and Brand Hosts
Ensure sufficient verifier capacity

Insufficient staff
capacity

3.0

4.0

12.0

Invest in recruiting and retaining talentContinue to develop strong team culture and effective
working practices
Celebrate successes

SLCP verified data
not aligned withnew policies and
laws

2.5

4.2

10.5

Close tracking and monitoring of legislative development
Detailed gap analysis with support from Better Work andsignatories
Evolve VO and QA program to ensure complianceNew sustainability
initiatives emerge
and compete with
SLCP

3.0

3.5

10.5

Proactively enhance products and services
Ensure alignment with emerging legislation and themes

Complexity ofself/jointassessment andverification deters
manufacturer
participation (esp.
smaller size)

3.0

3.5

10.5

Customer-focused implementation
Automation through technology
Comprehensive user training
Regular feedback and capture of user experiences
Evolve CAF content to ensure it is applicable to all users(1) Probability and Impact evaluated from 1 (low) to 5 (high).
(2) Risk evaluated from 1 (low) to 25 (high).

Overall responsibility for risk management lies with the Board’s Finance and Risk Committee. SLCP willcontinue to monitor for emerging and changing risks both at an operational and strategic level, and will
ensure that appropriate and effective mitigations are in place to control SLCP’s exposure. The risk
assessment is performed on an annual basis, priority risks and mitigations are updated accordingly.

SLCP STRATEGIC PLAN 2024-2028

28

7. GOVERNANCE AND
ORGANIZATION
Evolving and maturing

Since SLCP's inception as a project in 2015 andthen its first five years as a live program,
SLCP's multi-stakeholder, signatory-driven
ethos and governance have been a criticaldriver of its legitimacy and success. In thissecond strategic cycle, SLCP will continue tomature as a signatory-supported program andorganization.
In this chapter:
7.1 Legal form
7.2 Signatory representation
7.3 Secretariat

7.1 Legal form
From 1st January 2024, SLCP will be an independent Foundation (known as a stichting), headquartered in
the Netherlands. The Stichting SLCP will aim for a PBO (public benefit organization) status to demonstrate
its not-for-profit nature and commitment to improving working conditions. The organization will be thelegal owner of the CAF, securing the public and open nature of the tool. This legal form is optimal forinternational multi-stakeholder initiatives working for the public benefit. SLCP was previously governed bya Council, which will transition to a new two-tier Management and Supervisory Board.
Previously, SLCP was incubated by the Sustainable Apparel Coalition (SAC), acting as SLCP's financial andlegal host and providing a range of support services to SLCP under a service level agreement (SLA). As a
independent organization, SLCP will now have full ownership in delivering against its 2024-28 Strategic
Plan. SAC and SLCP will enter in a new partnership based on a shared Vision ‘to drive convergence insocial compliance assessment efforts in order to improve working conditions in global supply chains’.

Andrew Martin, Executive Vice President of Sustainable Apparel Coalition (SAC)“This strategic move propels both the SAC and SLCP into a shared journey of growth, evolution, andcollective progress. We're shaping an impactful future, working hand in hand to leverage data and drive
collaborative improvements in global supply chain working conditions."

SLCP STRATEGIC PLAN 2024-202829

7.2 Signatory representation
In keeping with best practice for multi-stakeholder organizations, signatories can participate in SLCP's
governance either through our TACs (Technical Advisory Committees) or via elected Board seats.

SLCP Governance structure 2024-2028

Signatories (250+)
SLCP Board (Management and Supervisory)
9 signatory representatives: 3 manufacturers, 3 brand and retailer, 3 other stakeholders
3 independent experts
1-3 strategic partners

Independent Chair
Appointed by Board

CEOReports to Board via Chair

Secretariat

Senior Managers andOther Staff

GovernanceTechnical Advisory
Committee(s)BoardCommittees

Advising Secretariat

Advising Board

1. CAF
2. Roll-out
3. Verification Oversight
4. Technology
5. Comms and SHE
6. Data Insights
7. Policy

1. Finance and Risk
2. Governance
3. Strategy
4. Dispute Resolution(ad-hoc)

Executive

Advisory

The majority of Board seats (nine) will continue to be held by elected signatory representatives.
Up to three seats will be reserved for Strategic Partners, with an additional three Independent Expert
seats appointed by the Board. This ensures appropriate representation of SLCP's caucuses, while
ensuring diversity of experience and skills.
SLCP also has an Independent Chair, appointed by the Board, who is free from any vested interests.
SLCP's Chief Executive leads and runs the organization, reporting to the Board via the Chair.

SLCP STRATEGIC PLAN 2024-202830

7.3 Secretariat
Our people are SLCP’s capital (see Chapter 5.8). While remaining lean, the Secretariat team has grown inline with the evolving needs of our signatories, partners and other stakeholders, and our ability to growour income. At the start of this strategy period, SLCP will have a team of around 25 value-driven andpassionate professionals.
Leadership will be divided between the Chief Executive Officer (formerly Executive Director) and a newly
appointed Chief Operating Officer. The CEO will have overall responsibility and be accountable to theBoard. They will be supported by a Senior Management Team (SMT) responsible for running teams in
Customer Success, Assessment and Quality, System Delivery/Technology, Data Insights, andCommunications and Stakeholder Engagement. Responsibility for delivery against SLCP's Focus Areas willbe allocated to the relevant teams.

SLCP Secretariat - Organization Chart Q3 2024, expected to be expanded later in 2024/2025

SLCP Secretariat

CEO-1
COO-1
Admin and Support (2-3)
Senior Management Team (3-4)
Customer Success Team
(8-10)

Assessment and Quality
Team (5-6)

Communications andStakeholder Engagement
Team (5-6)

SystemDelivery/Technology andData Insights Team (5-6)

Partners, hosts and service providers
Levels and team members

A. 11-12

B. 10-11

C. 4-5

D. 2

Total 27-30

SLCP will continue to be agile and responsive in growing and developing its team, while maintaining tightcontrol of expenditure (see also Chapter 8 Finance). Key drivers of SLCP's organization development will
include:Building more capacity within the Leadership and SMT;
Deepening of existing resources in key areas (e.g., tech, policy);
Addition of new capabilities (e.g., customer success, data analytics);
More resource in local markets to get closer to signatories;
Expansion into other sectors beyond footwear and apparel;Engagement of specialist service providers and/or in-house resources to manage key functions (HR,financial, legal) previously handled by SAC as SLCP's host;Continued alliances with ecosystem partners and expert consultants to complement and support
SLCP's in-house team.
It is hard to predict with precision, but we would expect 40-50 staff by the end of 2028, within broadly thesame organization design and shape. Staff growth will be somewhat below projected income growth,allowing for improvements in productivity and efficiency.

SLCP STRATEGIC PLAN 2024-2028

31

8. FINANCES
Building on strong foundations

SLCP’s 2019-2023 business model has
proven to be solid and prudent, having
reached self-reliance on earned income
already in its third year of operation (2021).
It is SLCP’s intention that the businessmodel remains similar for the next three
years, while continuing to increase
adoption and use of the CAF.
In this chapter:
8.1 Business model: core principles
8.2 Adoption targets
8.3 Income
8.4 Financial forecast

8.1 Business model: core principles
As a fully-functioning operational entity, SLCP will require:
A viable business model that can enable it to remain self-sufficient;
Diverse revenue streams with acceptable value propositions for system participants;
Adequate funding to achieve the aim of maximizing adoption of the CAF within the apparel andfootwear supply chain, to spearhead expansion into other sectors, and to further explore new work
streams such as public affairs and data insights;
Sound budgeting and financial management principles (including transparency in reporting,conservative revenue budgeting, cautious expense management, checks and balances in spending
and reporting, and ensuring sufficient cash flow/operational budget availability).

SLCP is and will remain a non-profit organization. This implies that once volumes goup and earned income becomes higher, or through any other changes which increase
SLCP’s balance above levels required to sustain operations, further surpluses will be
reinvested in support of SLCP’s Mission and/or fees will be reduced.

SLCP STRATEGIC PLAN 2024-2028

32

These principles have been field tested over the past five years, adjusted where necessary and validated
and further refined to make them future proof:
Focus on implementing the CAF and making the data available to stakeholders;
Remain as lean as possible and work in partnership with other organizations;Remain self-funding through earned income, rather than being dependent on charity/donor support;
Costs should be borne fairly by the main participants/beneficiaries of the system;
Fees/charges should be volume-driven, to link costs to usage and drive sustainability of the system;
Fees/charges should incentivize adoption (low costs/tiered levels);
Fees/charges should be built around natural steps/events in use of the system, including billing andpayments.

8.2 Adoption targets
Savings in audit costs and the financial viability of SLCP are directly linked to the rate of adoption of the
CAF and indirectly the number of Accredited Hosts and approved verifiers participating in the system.
Based on experience, signatory feedback and trends analysis (including legislative pressure), we expectthat wider adoption of the CAF is viable. This will be driven by expected uptake of SLCP by smaller brands,
use of the CAF in upstream/downstream production tiers, compatibility with social standards and sector
expansion.
We have therefore restated our original 2023 goal of 25,000 verified assessments (see Chapter 1.3) as our2026 adoption target. Conservatively we have based our financial model on 90% of that target (23,000
verified assessments by 2026), plus achievable growth in the number of SLCP hosts, Verifying Bodies andverifiers – as set out in the table below.
2023

2024

2025

2026

Verified Assessments

11K

15K

19K

23K

Accredited Hosts - Active

2

2-3

3

3

Accredited Hosts - Brand andPassive

2

2

2-3

3

Approved Verifier Bodies (Active)

80

92

108

124

Approved Verifiers (Active)

1100

1250

1500

1750

SLCP STRATEGIC PLAN 2024-2028

33

8.3 Income
Revenue: Adoption related fees
SLCP will have several streams of earned income. All are volume-driven with fees based on the number ofverifications conducted and the number of verifiers and Accredited Hosts participating in the system. For
now we are assuming the same fee levels as 2023. These are summarized in the table below.
Summary of SLCP fees (US$)
Fee type

AmountPayable by

Verification
upcharge fee$300 (and lower if
possible during theyears)

Whoever pays for a facility verification, included in
the cost of the verification

Verifier access
fee

$200

Verifier/Verifying Body annually, as a business cost

Accredited Host(partner) base fee$30,000 first year
$5,000 consequent fees

Accredited Hosts annually, as a business cost

Accredited Hostusage fee$45 (and lower based onvolume tiers)

Accredited Hosts when uploading or downloading
verifications from the Gateway, potentially rechargeable to end-users

These fee mechanisms and rates have been tested and updated in the past few years. They take accountof what users of the system are already paying or charging for services used or provided. They aredesigned to be manageable on-costs, which will not materially impact the affordability of the system as awhole. Nor will they compromise the ability of service providers (such as Accredited Hosts or Verifying
Bodies) to set their own commercial terms for their services.
For the years 2024-2026 SLCP intends to maintain fee levels at no higher than the figures stated in thetable above. Maintaining these fees represents a real-terms reduction in cost to participants in the face ofother rising costs. The aim for SLCP – again – is not to make profit”. Any further reductions possible due toadditional income or stronger than expected balance will be passed on to make the program even more
affordable for participants.

Additional funding
While SLCP has been financially self-sufficient since 2021, other funds will be used to complement anddrive innovative projects, aligned with our Vision and Mission. The two key additional funding streams
include:1. Grant donors
2. Charter signing fees (one-off)
Additional funding is expected to be minor compared to the earned income (below 5-10%).

SLCP STRATEGIC PLAN 2024-202834

8.4 Financial forecast
We project SLCP’s financial future for the next three years, as predicting further ahead leads to too many
additional uncertainties. Projected revenue and expenses for 2024-2026 are shown in the table below:

Summary of SLCP 2024-2026 Forecast (1000 US$)In US $000s

2023

2024

2025

2026

Income

3,996

5,190

6,507

7,803

Expenses

3,716

4,838

6,229

7,358

Simple profit

280

352

278

445

Note that going forward, budgets will be made in Euros, aligned with the new legal entity in The Netherlands.

The forecasts show (limited) net profits in all years. Over the years, a continuity reserve will be built up toprovide three to six months’ cover of core operating expenses. SLCP is a non-profit organization and does
not aim to build up surpluses beyond operational reserves. Any additional profits will be used to invest in‘purpose projects’ and/or will lead to a decision to reduce fee levels.
The cashflow position, particularly in the first few quarters of the upcoming strategy period, is affected byseasonality with incomes trailing expenses. Additional measures (donation and/or no/low interest loan) will
be taken to avoid it falling below the desired level of operating reserve.

SLCP STRATEGIC PLAN 2024-2028

35

ACKNOWLEDGEMENTS
SLCP would like to thank all the signatories, partners andstakeholders that continue to support us.
For further information:
Please contact info@slconvergence.org for feedback or questions
Please visit the Gateway for the latest information on SLCP roll-out
For questions about the SLCP assessment and verification process, consult the FAQs on our helpdesk.
Disclaimer: This report is intended for information purposes only. Unless SLCP provides prior consent,
reproduction and distribution of this report, or any part of it, for any other purpose, is prohibited.
Copyright © 2023 SLCP. All rights reserved.

Contact
Social & Labor Convergence Program
Fashion For Good, 102 Rokin
Amsterdam, The Netherlands
www.slconvergence.org
info@slconvergence.org