SMETA is one of the most widely used social and ethical trade audits in global supply chains, and it is increasingly built into how international buyers qualify flexible packaging suppliers. This article explains what a SMETA audit is, what it covers, who requires it, and what a packaging buyer should actually look for in a supplier's SMETA report before signing an export contract. Join BMP Group as we explore this topic.
What Are Sedex And SMETA?
Sedex (Supplier Ethical Data Exchange) is a UK-based non-profit that operates one of the world's largest supply chain data-sharing platforms, with roughly 115,000 sites audited on the platform in 2024 alone.
SMETA (Sedex Members Ethical Trade Audit) is the audit methodology built to run on the Sedex platform. Sedex describes it as "the world's most widely used social audit," designed to help businesses understand and improve working conditions and environmental performance across their own operations and their supply chains.
What Does SMETA Stand For?
SMETA stands for Sedex Members Ethical Trade Audit.
Is SMETA A Certification?
This is where most confusion starts. SMETA is not a pass/fail certification in the way ISO or BRCGS are. It is an audit methodology: an independent, APSCA-registered auditing company conducts an on-site assessment and produces an audit report. That report can then be uploaded to the Sedex platform and shared with multiple buyers at once, which is what allows a supplier to avoid repeating the same audit for every individual customer.
What Are The 4 Pillars Of SMETA?
SMETA assesses a site against four pillars, built on the Ethical Trading Initiative (ETI) Base Code and related international standards:
- Labour Standards
- Health & Safety
- Environment
- Business Ethics
Labour Standards and Health & Safety are the two core pillars, included in every SMETA audit regardless of scope. Environment and Business Ethics are the two additional pillars, included only in a full 4-pillar audit.
What Does The Labour Standards Pillar Cover?
This pillar looks at freedom from forced or bonded labour, prohibition of child labour, whether wages and benefits meet the legal minimum, whether working hours and overtime comply with regulations, freedom of association and collective bargaining rights, and fair treatment without discrimination in the workplace.
How Is Health & Safety Assessed?
This pillar covers fire safety and emergency exits, machine guarding and equipment safety, personal protective equipment (PPE), workplace risk assessment and control procedures, hygiene, lighting and ventilation in production areas, and emergency and accident-response procedures.
What Does The Environment Pillar Include?
This pillar, only present in a 4-pillar audit, covers the site's environmental management system, solid and hazardous waste handling, wastewater treatment before discharge, emissions and odour control, and energy and resource efficiency (water, electricity) in production.
What Does The Business Ethics Pillar Evaluate?
Also only present in a 4-pillar audit, this pillar looks at anti-corruption and anti-bribery practices, transparency in dealings with partners and regulators, internal whistleblowing and grievance mechanisms, and protection of customer and partner business data.
Who Currently Requires SMETA, And In What Situations Is It Used?
Which Buyers Typically Require A Supplier To Have SMETA?
SMETA is primarily requested by three groups: retailers, brand owners, and B2B buyers — organizations that need independent evidence that the goods they sell were produced under fair working conditions across their entire supply chain.
In What Situations Is SMETA Used?
In practice, SMETA is most often requested in four situations:
- When a new supplier — including a packaging manufacturer — is being onboarded by an international brand and must pass a social compliance due-diligence step.
- When an existing buyer periodically reviews and renews the compliance status of suppliers already in its supply chain.
- When a business needs to meet tightening supply chain transparency regulations that its own customers are accountable for — for example, the EU Forced Labour Regulation (expected to take effect from June 2026) or Australia's Modern Slavery Act.
- As a voluntary step, when a supplier wants to proactively demonstrate social compliance maturity while entering a new export market.
Why Do FMCG Companies Require Packaging Suppliers To Have SMETA?
For global FMCG brands, packaging is not just a purchased line item — it is a direct link in the supply chain that reaches the end consumer. When these brands make public commitments on social responsibility and supply chain transparency to shareholders and consumers, that requirement is typically pushed down to every supplier involved, including packaging manufacturers.
Which Markets Require SMETA Most Often?
SMETA is most common in supply chains serving the UK and European markets, where large retailers routinely require their suppliers — and often their suppliers' suppliers — to hold an up-to-date SMETA report.
How Does A SMETA Audit Process Work?
A SMETA audit is carried out by an independent, accredited auditing company through document review and an on-site facility inspection. Where non-conformances are identified, the auditor works with the business to build a Corrective Action Plan Report (CAPR) to address them.
What Is The Difference Between 2-Pillar And 4-Pillar SMETA?
SMETA comes in two audit scopes. A 2-pillar audit covers only Labour Standards and Health & Safety. A 4-pillar audit covers all four pillars, adding Environment and Business Ethics. Which scope a buyer requires depends on that buyer's own internal compliance policy.
Who Is Authorized To Conduct A SMETA Audit?
A SMETA audit must be conducted by an independent auditing firm registered with APSCA (the Association of Professional Social Compliance Auditors) — for example, major international certification bodies such as DNV, TÜV SÜD, TÜV Rheinland, or Bureau Veritas. A business cannot self-assess or self-declare a SMETA result.
How Should A Buyer Evaluate A Packaging Supplier's SMETA Report?
This is the part general explainer content usually skips: SMETA is not a simple pass/fail box to check. How a packaging supplier handles the findings in its audit report says more about its governance maturity than the audit result itself.
What Questions Should A Buyer Ask A Packaging Manufacturer?
When qualifying a flexible packaging supplier for an export market that requires SMETA, procurement teams should clarify: has the site ever undergone a SMETA audit, which accredited auditor conducted it, and — most importantly — how any non-conformances were resolved and within what timeframe. A SMETA report does not mean a facility is flawless; it means the facility is transparent and has a system for continuous improvement.
Does SMETA Replace Other Quality Certifications?
No. SMETA evaluates social responsibility and business ethics — a completely different scope from quality and food-safety management systems such as ISO 9001, ISO 15378, or BRCGS Packaging Materials, which focus on production processes, quality control, and hygiene in packaging manufacturing. A reliable packaging supplier typically needs to demonstrate both: product quality and social compliance are two separate questions international buyers ask when qualifying a supply chain.
Frequently Asked Questions About SMETA In Packaging Sourcing
Is SMETA mandatory for the packaging industry? No law makes SMETA mandatory for every packaging manufacturer. However, it is frequently a contractual requirement or supplier compliance policy set by large FMCG buyers, particularly for exports into Europe and the UK.
How is SMETA different from ISO or BRCGS? ISO and BRCGS assess quality management systems, product safety, and production processes. SMETA assesses labour conditions, workplace safety, environmental performance, and business ethics. The two categories complement each other rather than replacing one another.
Does a SMETA report expire? [REQUIRES BMP CONFIRMATION] — validity periods should be verified directly with Sedex or the accredited auditor at the time of the engagement, since requirements can vary by the specific buyer requesting the report.
Do smaller manufacturers need SMETA? This depends on the specific buyer and target export market rather than company size. A mid-sized facility exporting into a European retail supply chain can still be asked to provide a SMETA report.
Conclusion
We hope this article has given you a clear picture of what a SMETA audit is and why more international buyers are building it into how they qualify flexible packaging suppliers. BMP Group is a flexible packaging manufacturer serving customers across Southeast Asia, Europe, and the US. If your business is preparing an export compliance file or evaluating a current packaging supplier's readiness, BMP's team is available to help you identify the right standards for your target market.
Contact Us
- 1416 D1 Street, Phu Nhuan Residential Area, Phuoc Long Ward, Ho Chi Minh City, Vietnam
- (+84) 28 66 756 588
