The Indirect Self-Assessment Questionnaire (SAQ) is a tool developed by the RBA to help its members assess and manage risks associated with their indirect spend suppliers, particularly those that may pose risks to human rights, labor practices, and environmental standards. This article outlines the purpose, scope, and deployment process of the Indirect SAQ, guiding on identifying which suppliers require assessment.

What Is an Indirect Spend Supplier? 

An indirect spend supplier provides goods or services that are not directly integrated into a Member’s finished products. These suppliers support operations but are not involved in the manufacturing process.

Examples Include:
- Security services
- Waste management
- Cafeteria and food service providers
- Janitorial and cleaning services
- Landscaping companies
- Safety equipment suppliers

Who Qualifies as a Major Indirect Spend Supplier?

A supplier is deemed a major indirect spend supplier if they meet either of the following criteria:

Internally defined as “Major” Based on the Member’s internal classification process, which must consider risk to human rights as a factor.

OR

Meets Both of the Following Conditions:
- Ranked in the top 80% of indirect suppliers by spend.
- Provides services or materials not intended for finished goods.

Purpose of the Indirect SAQ The Indirect SAQ is designed to:
1. Identify and Assess Risks in the Indirect Supply Chain: This involves systematically examining various factors that could pose potential threats or vulnerabilities within the indirect supply chain. It requires an analysis of suppliers, logistics, and the overall operational framework to pinpoint areas where risks may arise. 
2. Support Due Diligence Efforts by Adhering to the RBA’s Code of Conduct: This point emphasizes the importance of adhering to the RBA Code of Conduct in the due diligence process. Organizations are encouraged to implement practices that align with the RBA’s standards to promote ethical business practices and prevent human rights abuses within their supply chains. This may include conducting audits, training, and establishing policies that reflect these commitments to responsibility and compliance.
3. Assist Members in Meeting Compliance Requirements for High-Risk Suppliers: The focus here is on providing support to members, such as companies or organizations, in fulfilling their legal and ethical obligations regarding suppliers classified as high-risk. This assistance could manifest through resources, guidance, and best practices designed to ensure these members can meet compliance standards effectively. It’s crucial for organizations to understand the specific requirements and challenges posed by high-risk suppliers to manage them proficiently.

Deployment Requirements:

 To deploy the Indirect SAQ, the following conditions must be satisfied:

• The supplier must be registered in RBA-Online.
• A formal trading relationship must exist between the Member and the supplier in RBA-Online.

Recommended guide: How to Deploy an Indirect SAQ 

Member Category: Only Regular or Full RBA Members (See Understanding RBA Membership Types) are required to complete the SAQ for 100% of their high-risk, major indirect spend suppliers.

 The Indirect SAQ is available as a digital survey within the RBA-Online platform. It encompasses questions designed to evaluate:
1. Labor and Human Rights Practices: This involves ensuring fair treatment of workers, promoting equitable labor conditions, safeguarding their rights to speak up against discrimination or exploitation, and adhering to international labor standards. Companies must implement policies that respect the dignity of all employees, provide a safe workplace, and adhere to laws that protect workers' rights.
2. Health and Safety Standards: Organizations need to prioritize the health and safety of their employees by establishing rigorous protocols and guidelines. This includes conducting regular risk assessments, providing necessary safety training, ensuring the use of proper protective equipment, and creating an emergency response plan to mitigate workplace hazards effectively.
3. Environmental Management: Effective environmental management is crucial for both compliance and sustainability. Companies are expected to minimize their ecological footprint by implementing practices to reduce waste, conserve resources, and engage in responsible sourcing. This may also include complying with environmental regulations and striving for certifications that demonstrate a commitment to environmental stewardship.
4. Ethics and Compliance: Upholding ethical standards and compliance with legal regulations form the foundation of trustworthy business practices. This includes implementing a clear code of ethics, providing regular training on ethical conduct, and establishing channels for reporting unethical behavior or compliance breaches. Organizations must foster a culture of transparency and accountability to build trust with stakeholders.

Benefits of the Indirect SAQ

1. Enhanced Visibility into Indirect Supply Chain Risks: Organizations are increasingly aware of the need to identify and monitor risks that may not be immediately apparent within their supply chains. This involves utilizing advanced analytics and technology to gain insights into potential disruptions, such as geopolitical issues, market volatility, or vulnerabilities in supplier practices that could indirectly impact the business.
2. Improved Supplier Accountability: Establishing clear expectations and metrics for suppliers ensures they meet performance standards and adhere to ethical practices. This accountability fosters stronger partnerships and allows companies to hold suppliers responsible for their actions, thus enhancing overall supply chain integrity.
3. Streamlined Compliance with Global Due Diligence Regulations: As regulations surrounding supply chain transparency and ethical sourcing become increasingly stringent, businesses must proactively ensure compliance with these laws. This not only reduces the risk of legal repercussions but also enhances corporate reputation by demonstrating a commitment to ethical practices and sustainability.
4. Data-Driven Insights for Risk Mitigation and Supplier Engagement: Leveraging data analytics tools enables organizations to identify potential risks and opportunities within their supply chains. By analyzing historical data and market trends, companies can better engage with their suppliers, improving decision-making processes and fostering collaboration for risk mitigation strategies.