What is SMETA?
SMETA — Sedex Members Ethical Trade Audit — is the standardized ethical audit that multinational retailers and brands use to verify factory labor standards, health and safety, environmental management, and business ethics. It is operated by Sedex, a global membership organization, and is the most widely used social audit framework in global supply chains.
After decades of factory labor scandals and worker deaths, Western retailers needed a unified standard. Sedex created SMETA to provide transparent, consistent auditing across global supply chains — replacing dozens of conflicting retailer-specific audits with a single recognized framework.
What SMETA Covers
- Labor Practices — child labor prevention
- Forced labor and debt bondage
- Working hours and overtime
- Wages and benefits
- Discrimination and harassment
- Freedom of association
- Health & Safety — fire safety
- Machine guarding and training
- Chemical safety and storage
- Ventilation and lighting
- First aid and emergency response
- Personal protective equipment (PPE)
SMETA audits verify your factory is a safe, ethical workplace. It is mandatory for Walmart, required by many global brands, and increasingly the baseline expectation across all major retailers.
SMETA 2-Pillar vs 4-Pillar Audit
2-Pillar (Basic)
Covers: Labor + Health & Safety
Cost: $2,000–$4,000
Timeline: 2–3 days on-site + 2–4wk report
NOT sufficient for Walmart or most major retailers. Accepted only by some smaller buyers.
4-Pillar (Comprehensive)
Covers: Labor + Health & Safety + Environment + Business Ethics
Cost: $4,000–$7,000
Timeline: 4–5 days on-site + 3–5wk report
Required by: Walmart, Target, H&M, Nike, Gap/Old Navy
Go directly to 4-Pillar. A 2-Pillar puts you in a weak position with major customers. If Walmart is anywhere on your roadmap, you need 4-Pillar from the start.
Who Requires SMETA Certification?
Mandatory Retailers
- Walmart — 4-Pillar required, re-audit every 3 years
- Target — 4-Pillar required
- H&M — 4-Pillar, regular re-audits
- Nike — SMETA plus brand-specific requirements
- Gap / Old Navy — 4-Pillar required
Growing Adopters
- Costco — ethical sourcing requirements
- Amazon — supplier conduct requirements
- ASOS and fast-fashion e-commerce brands
- European retailers (Carrefour, Aldi)
- Mid-market brands with ESG commitments
Even smaller retailers and e-commerce brands are beginning to require SMETA. It is becoming table stakes for any supplier serious about international buyers.
SMETA Audit Process
Create an account at sedexglobal.com and obtain your Sedex ID. This is your identity in the Sedex system and is required before any audit can be booked.
Select from Sedex-approved bodies: TÜV Rheinland, KPMG, Bureau Veritas, SGS, Intertek. Internal auditors do not qualify — you must use an accredited third party.
Pull together all documentation: worker records, payroll, safety plans, training records, permits, and policies. This is the most time-intensive phase.
Allow 4–5 weeks lead time for scheduling. On-site time is 4–5 days for 2-pillar or 5–6 days for 4-pillar depending on factory size and worker count.
Auditors visit the factory, interview workers privately, inspect working conditions, review documentation, and observe safety systems in operation.
Detailed report delivered within 2–4 weeks. Findings are categorized as major non-conformances, minor non-conformances, or observations.
Build a Corrective Action Plan (CAP) for each finding, document root cause and remediation steps, and upload to the Sedex platform.
The auditor may verify CAP implementation through a follow-up visit or documentary review. Once confirmed, your factory is certified for 3 years.
Week-by-Week Timeline
What SMETA Auditors Check
1Pillar 1 — Labor Practices
Child Labor
- Birth certificates and IDs on file for all workers
- No workers under 15 years of age
- Young workers (15–18) not in hazardous roles
Working Hours
- Maximum 60 hours per week
- At least 1 day off in every 7
- Overtime is voluntary, not coerced
Wages
- At or above legal minimum wage
- Timely payments with proper pay slips
- No unauthorized wage deductions
Forced Labor
- No debt bondage or advance wage schemes
- No passport or document confiscation
- Freedom of association respected
2Pillar 2 — Health & Safety
Fire Safety
- All fire exits clear and unobstructed
- Functional extinguishers, regularly serviced
- Emergency evacuation plan documented
- Fire drills conducted and recorded
Machine Safety
- Guards in place on all hazardous machinery
- Workers trained and certified on equipment
- PPE provided and worn correctly
- Maintenance records current
Chemical Handling
- Chemicals properly stored and labeled
- Safety Data Sheets (SDS) accessible at point of use
- Spill response procedures in place
First Aid & Medical
- First aid kits stocked and accessible
- Trained first aiders on every shift
- Accident and incident log maintained
3Pillar 3 — Environment (4-Pillar only)
Waste Management
- Documented waste disposal procedures
- Hazardous waste segregated and licensed disposal
- Waste reduction targets and tracking
Resource Use & Emissions
- Water conservation programs in place
- Energy efficiency measures documented
- Air quality monitored, wastewater treated
4Pillar 4 — Business Ethics (4-Pillar only)
Regulatory Compliance
- Business licenses current and displayed
- Taxes paid and filings current
- All factory permits in order
Anti-Corruption & Ethics
- No bribery or facilitation payments
- Transparent business practices
- IP rights respected, no counterfeit goods
- Functional worker grievance mechanism
Preparing for an SMETA Audit
Documentation to Prepare
- Worker Records: birth certs / IDs, employment contracts, training records, medical certificates
- Payroll Records (12 months): wage slips, attendance registers, overtime logs, benefits statements
- Health & Safety: fire safety plan, machine maintenance logs, chemical SDS sheets, accident logs
- Training Records: safety inductions, equipment certifications, harassment training, first aider certificates
- Policies: code of conduct, grievance procedures, anti-harassment policy, disciplinary procedures
- Environmental (4-Pillar): waste disposal contracts, wastewater treatment records, energy usage logs
- Regulatory: business licenses, factory permits, tax records, compliance certificates
Physical Facility Walk-Through
Walk through your factory before the auditor does. Confirm every item below:
- Fire exits clear and accessible — no storage blocking emergency routes
- Fire extinguishers present, functional, and within service date
- First aid kits visible, stocked, and documented
- All machinery guards in place and functional
- Chemical storage secure, labeled, with SDS on-site
- Adequate ventilation and lighting in all work areas
Worker Preparation
Tell workers an external audit is happening. Explain they may be interviewed privately. Do not script their answers or tell them what to say.
Auditors look for signs of coercion. Any indication workers are afraid to speak honestly is itself a major red flag in the audit report.
Auditors typically interview 3–5 workers. Selection should be a real mix — not just supervisors or long-tenured employees.
Auditors can detect fraud, coached responses, and rehearsed answers. If you have problems, disclose them up front in your CAP. Transparency builds trust — cover-ups destroy it.
Common SMETA Non-Conformances
Major Non-Conformances (Prevent Certification)
Child Labor
Any worker found under minimum legal working age. Missing or unverifiable age documentation. Young workers assigned to hazardous roles.
Forced Labor / Debt Bondage
Wage advances that bind workers. Passport or document confiscation. Workers cannot leave employment freely or are subjected to financial coercion.
Serious Fire Safety Violations
Blocked emergency exits. Non-functional fire suppression. No emergency plan. Evidence that fire drills have never been conducted.
No Written Records
Inability to produce payroll, attendance, or worker records. Systematic falsification of working hours. Records that clearly do not match reality.
Minor Non-Conformances (Addressable via CAP)
Excessive Working Hours
Regular overtime exceeding 60 hours per week. Insufficient rest days. Overtime not fully documented or consented to.
Incomplete Documentation
Missing training certificates. Gaps in payroll records. Safety inspection logs not current. Policy documents outdated.
Wage Calculation Errors
Overtime not calculated at correct premium rates. Benefits not applied consistently. Minor discrepancies between payroll and attendance records.
Chemical Safety & Missing Grievance Mechanism
SDS not accessible at point of use. Inadequate spill response signage. No formal worker grievance channel documented or communicated.
Minor findings do not prevent audit pass. Major ones do. Focus your preparation on eliminating major issues before the auditor arrives.
Corrective Action Plans (CAP)
For each non-conformance identified in the audit, your CAP must document five elements: the Root Cause of the problem, the Corrective Action you will take, an Implementation Date, a Responsible Person by name and role, and the Verification Method you will use to confirm the fix is in place.
CAP Submission Timelines
Example CAP Entry
Finding
Workers averaging 65 hrs/week — exceeds 60-hour SMETA limit
Root Cause
No formal time-tracking system; overtime logged manually by supervisors without oversight
Corrective Action
Implement electronic time-tracking; cap overtime at 20 hrs/week; train all supervisors and HR
Timeline & Responsible
30 days — HR Manager. Verified via 3-month attendance audit.
FAQ
Prepare for SMETA Audit Success
Ready to Pass Your SMETA Audit?
Retail Assured identifies issues before auditors do, organizes all required documentation, and guides your Corrective Action Plan development from start to finish.