Sedex, short for Supplier Ethical Data Exchange, is a global nonprofit platform where companies share data about ethical practices in their supply chains. It gives brands, retailers, and manufacturers a standardized way to track how their suppliers handle labor rights, worker safety, environmental impact, and business ethics. If a customer or business partner has asked you to “be on Sedex” or complete a Sedex audit, they want you to join this platform and share verified information about your workplace conditions.
What Sedex Actually Does
At its core, Sedex is a data-sharing system. Suppliers create a profile on the platform and fill out a Self-Assessment Questionnaire covering their workplace practices. That information, along with any audit reports, sits on the platform where authorized buyers and business partners can view it. This saves suppliers from answering dozens of separate questionnaires from different customers, and it gives buyers a single place to review ethical performance across their entire supply chain.
The platform focuses on four areas: labor standards (fair wages, working hours, freedom of association), health and safety, environmental practices, and business ethics (anti-bribery, data protection, responsible sourcing). These four areas form the backbone of how Sedex evaluates supplier performance.
How the SMETA Audit Works
Sedex developed its own audit methodology called SMETA, which stands for Sedex Members Ethical Trade Audit. This is the on-site inspection that verifies what a supplier reports on the platform. SMETA audits come in two formats, and your customer typically specifies which one they require.
A 2-pillar SMETA audit covers labor standards and health and safety. It also touches on management systems, entitlement to work, and subcontracting, but the primary focus stays on those two areas. Environmental assessment is included only at a basic level.
A 4-pillar SMETA audit covers everything in the 2-pillar version plus a detailed environmental assessment and a review of business ethics practices. This is the more comprehensive option and is increasingly what major retailers and brands require from their suppliers.
You don’t hire Sedex itself to conduct the audit. Instead, you hire an approved third-party audit firm. The audit firm sends auditors to your facility, and the resulting report gets uploaded to the Sedex platform.
What Happens During an Audit
Before auditors arrive, you receive a pre-audit information pack that includes a Self-Assessment Questionnaire and details about what the auditors will need to see. Completing this questionnaire thoroughly is important because it sets the agenda for the visit.
The on-site audit follows a structured sequence. It starts with an opening meeting where auditors sit down with your management team to explain the process and confirm the scope. From there, auditors conduct a site tour to observe physical conditions: fire exits, ventilation, machine guarding, chemical storage, dormitories if applicable. They then interview both managers and workers, often speaking with workers privately to get candid answers about working hours, wages, and treatment. Finally, auditors review documentation like payroll records, timesheets, contracts, and safety training logs.
At the end of the visit, the auditors prepare a corrective action plan report. This document lists any issues found and proposed timelines for fixing them. You discuss these findings in a closing meeting with the audit team, and both sides agree on what needs to be addressed and by when. Once finalized, the full report is uploaded to the Sedex platform, where your authorized customers can view it.
Who Needs to Join Sedex
Sedex membership is voluntary in the sense that no government requires it. In practice, many suppliers join because a major buyer makes it a condition of doing business. Large retailers, food companies, and apparel brands routinely require their suppliers to maintain a Sedex profile and share audit results. If you manufacture products, grow agricultural goods, or provide services for companies with ethical sourcing commitments, you may encounter Sedex as a procurement requirement.
Membership is available to both buyers and suppliers. Buyers join to monitor their supply chains. Suppliers join to share their data and audit results with multiple customers through a single platform rather than managing separate requests from each one.
Costs and Membership
Sedex charges an annual membership fee that varies based on your role (buyer or supplier) and the size of your organization. The membership fee covers access to the platform and the ability to share data. It does not cover the cost of the SMETA audit itself, which you pay separately to the third-party audit firm you select. Audit costs depend on the size of your facility, the number of workers, and whether you choose a 2-pillar or 4-pillar audit.
What Sedex Is Not
Sedex is not a certification. Unlike programs that grant a seal or certificate you can put on packaging, Sedex simply hosts your data and audit results. There is no pass or fail. Instead, buyers review your information and corrective action plans to make their own sourcing decisions. A clean audit report helps demonstrate your commitment to ethical practices, but it does not result in a “Sedex certified” label.
Sedex also does not set the ethical standards themselves. It draws on internationally recognized frameworks for labor rights, health and safety, and environmental management. The platform’s value lies in creating a common format for reporting and sharing this information across global supply chains, reducing duplication for suppliers and giving buyers consistent data to work with.