SLCP completes SAC spin-off to drive green supply chain efficiency

Global non-profit Sustainable Apparel Coalition (SAC) and multi-stakeholder initiative Social & Labor Convergence Program (SLCP) have officially parted ways and become two separate entities but continue to collaborate for driving sustainability performance across the supply chain.

Shemona Safaya February 06 2024

SLCP officially separated from SAC on 1 February 2024. Its new legal entity is a Dutch non-profit foundation known as a "stichting."

Both SAC and SLCP reaffirmed their commitment to a close-knit strategic collaboration, aligning their tools and strategies for a shared vision of improved global working conditions.

SAC shared it is steadfast in supporting and incorporating the Converged Assessment Framework (CAF) as the preferred social compliance assessment framework for its Higg Facility Social & Labor Module (FSLM) tool.

The organisations emphasised the importance of industry convergence and said they will work together to expand the reach of the CAF into adjacent product categories and industries.

SLCP explained that this joint effort aims to streamline assessments, reduce duplication, and foster harmonisation in social and labour tools across sectors.

Additionally, SAC and SLCP will work together to accelerate insights based on CAF/Higg FSLM data. This collaboration extends to the production of aggregated industry reports, providing stakeholders with comprehensive and actionable information.

Andrew Martin, executive vice president at SAC, believes it is no longer enough to deliver value to shareholders without lasting positive human impact and societal change.

He continued: "As both organisations navigate this exciting new phase, our commitment to shared goals and values is greater than ever and propels us toward catalysing collective action at scale. Leaders stand out by their ethics, integrity, accountability, and responsibility. We believe our collaborative efforts will continue to uphold safe, respectful working conditions and establish new benchmarks for sustainability and social responsibility."

SLCP was launched in 2015 to reduce audit fatigue and improve working conditions in the apparel industry. The organisation said that over eight years it gathered more than 250 signatories and implemented CAF in approximately 60 countries.

However, in September 2023, SLCP signatories voted in favour of SLCP’s five-year Strategy, which included the plan to transition to an independent organisation. That same month, the SAC Board also approved the plans for separation.

Jonathan Obermeister, SLCP’s independent chair, said: "SLCP has just completed its first five years as a live program. During that time, we have demonstrated the value we can bring, built critical mass and achieved financial self-sufficiency. We’re now ready to take the next step as a fully independent organisation, with ambitious plans for growth while maintaining the multi-stakeholder ethos which has been such an important factor in our success so far. The new foundation board has total confidence in SLCP’s future and high-performing team, and we are excited about what we can accomplish together in the years ahead."

Both organisations highlighted that their strategic collaboration, focusing on convergence, industry adoption, data insights, and marketing collaboration showcases the depth and breadth of their partnership.

Last November, SAC joined the Sustainability and Health Initiative for Net Positive Enterprise (SHINE), a research initiative led by the Materials Systems Laboratory (MSL) at the Massachusetts Institute of Technology (MIT) to promote net positive practices.

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