SMETA, ETHICAL AUDITING AND SUPPLIER DUE DILIGENCE: A PRACTICAL FRAMEWORK FOR THE FROZEN FOOD INDUSTRY

Executive Summary

Ethical auditing has become a core requirement in today’s frozen food supply chains, driven by buyer expectations, regulatory pressure and growing scrutiny of global sourcing practices. This article explores how SMETA has evolved from a compliance tool into a widely adopted industry framework for assessing labour standards, health and safety, environmental impact and business ethics. It examines why ethical auditing is now non negotiable, how SMETA works in practice, and what both buyers and suppliers need to consider when building resilient, transparent supply chains. The article concludes with a practical SMETA supplier checklist to support structured due diligence and responsible sourcing decisions.

 

From buzzword to baseline

Ethical sourcing has become a defining issue for the global food industry, particularly in sectors reliant on international supply chains such as frozen ingredients. What was once treated as an optional layer of reassurance has evolved into a core requirement for doing business with major manufacturers, retailers and foodservice operators.

At the centre of this shift sits SMETA, the Sedex Members Ethical Trade Audit. While the term is now widely used across procurement and supplier discussions, its significance goes far beyond a simple audit label. SMETA has become a shared framework for how ethical, transparent and responsible supply chains are assessed and managed.

SMETA was developed by Sedex as a practical methodology for evaluating labour standards, health and safety, environmental practices and business ethics within supply chains. Today, it is one of the most widely used social audit frameworks globally, with tens of thousands of sites undergoing assessment each year.

Its growing prominence reflects two clear industry drivers. First, buyer expectations have shifted decisively. Retailers and manufacturers increasingly require suppliers to operate under recognised ethical audit frameworks as a condition of approval. SMETA offers a common language and structure that buyers and suppliers can align around.

Second, transparency and risk management have moved to the forefront of sourcing strategies. In a globally sourced frozen food environment, businesses need confidence not only in product quality, but also in how people are treated, how sites are operated, and how environmental impacts are managed. SMETA provides documented, verifiable evidence of those practices.

 

Why ethical auditing is now non negotiable

Ethical audits are no longer viewed as optional or aspirational. For many suppliers, they function as a gatekeeping mechanism. Without evidence of audited ethical practices, suppliers may face delayed approvals, increased scrutiny or exclusion from tender processes altogether.

Beyond commercial requirements, regulatory and reputational pressures are intensifying. Legislation such as the EU Corporate Sustainability Due Diligence Directive places a greater onus on companies to identify, prevent and mitigate human rights and environmental risks within their supply chains. At the same time, investors, NGOs and consumers are paying closer attention to how food is sourced.

High profile media investigations into labour abuses or unsafe working conditions have demonstrated how quickly reputational damage can escalate. Ethical auditing does not eliminate risk, but it significantly reduces exposure by turning policies and commitments into tangible evidence.

SMETA’s shared audit model also offers operational benefits. A single audit uploaded to the Sedex platform can be shared with multiple customers, reducing duplication, audit fatigue and cost, while improving consistency and transparency across supplier assessments.

 

What SMETA looks like in practice

SMETA audits are structured as either 2 pillar or 4 pillar assessments. The mandatory pillars cover Labour Standards and Health and Safety. The 4 pillar audit extends this to include Environment and Business Ethics, allowing scope to be tailored according to risk profile, sourcing region and customer expectations.

A typical audit process includes a pre audit self assessment, followed by an on site visit involving document reviews, management interviews, worker interviews and a physical site inspection. The resulting report identifies any non conformances and sets out a corrective action plan with defined responsibilities and timelines. This information is then made available to buyers through the Sedex platform.

Crucially, audit readiness is not about achieving a perfect report. It is about demonstrating systems, transparency and a commitment to continuous improvement.

 

Moving from compliance to capability

For suppliers, being SMETA ready means embedding ethical practices into daily operations. This includes maintaining accurate employment records, managing working hours and payroll transparently, implementing documented health and safety procedures, and where applicable, monitoring environmental impacts and business ethics policies.

For buyers, effective use of SMETA goes beyond checking that an audit exists. Reviewing corrective action plans, understanding repeated issues and tracking improvement over time provides a far more meaningful picture of supplier performance.

When used properly, ethical auditing becomes a tool for strengthening relationships rather than policing them. Shared expectations, clear standards and transparent data support better communication, reduced risk and more resilient supply chains.

 

Your Practical Supplier SMETA Checklist

When onboarding or reviewing suppliers, procurement and technical teams should ensure the following criteria are met:

1. The supplier holds a valid SMETA audit report from the past 12 months.
2. The audit scope is appropriate to the risk profile, covering 2 or 4 pillars as required.
3. Labour standards and health and safety requirements are fully assessed.
4. Environmental and business ethics pillars are included where relevant.
5. All non conformities are documented with corrective actions and deadlines.
6. Evidence shows corrective actions have been implemented and closed.
7. Working hours, wages and employment conditions comply with local and international laws.
8. Environmental impacts are monitored, with improvement measures in place.
9. Raw material sourcing is traceable and documented.
10. Ethical trading principles are embedded into supplier contracts and reviewed regularly.
11. The supplier commits to re assessment and continuous improvement.

Used consistently, this checklist supports structured due diligence and reduces reliance on assumptions or informal assurances.

 

Conclusion

Ethical auditing has become a fundamental part of responsible sourcing in the frozen ingredient sector. Frameworks such as SMETA provide a practical, credible way to assess suppliers, manage risk and demonstrate transparency to customers and stakeholders.

As supply chains grow more complex and scrutiny increases, the ability to evidence ethical practices is no longer a differentiator. It is a requirement. Companies that integrate ethical auditing into everyday sourcing decisions are better positioned to build trust, protect their reputation and ensure long term supply chain resilience.