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The SMETA (Sedex Members' Ethical Trade Audit) 4-pillar audit is the most comprehensive assessment available under the SEDEX platform. It evaluates supplier sites across Labour Standards, Health and Safety, Environment, and Business Ethics — providing buyers with a complete picture of a factory's ethical and compliance performance.
This guide explains each of the four pillars in detail, how the audit process works from start to finish, and what factory exporters need to know to prepare for a 4-pillar SMETA 7.0 audit.
What is a 4-Pillar SMETA Audit?
A 4-pillar SMETA audit covers all four assessment areas developed by Sedex members. It takes approximately 3 days on-site, compared to 2 days for a 2-pillar audit. The 4-pillar audit is increasingly requested by brands with strong sustainability commitments who want a holistic view of their suppliers' performance.
SMETA is not a certification — there is no pass or fail. The audit produces a Corrective Action Plan Report (CAPR) and a Full Audit Report, which are uploaded to the SEDEX platform and shared with buyers.
| Aspect | 2-Pillar Audit | 4-Pillar Audit |
|---|---|---|
| Coverage | Labour + H&S + basic Environment | Labour + H&S + comprehensive Environment + Business Ethics |
| Duration | Approximately 2 days | Approximately 3 days |
| Typical cost | Lower (less auditor time) | Higher (more auditor time and scope) |
| Buyer acceptance | Accepted by most retailers | Required by brands with strong sustainability requirements |
Pillar 1: Labour Standards
The Labour Standards pillar is the most intensive part of any SMETA audit. The auditor assesses the site against the ETI Base Code provisions and local labour laws. Whichever standard provides greater protection for workers becomes the benchmark. Key areas include:
- Employment is Freely Chosen: No forced, bonded, or involuntary prison labour. Responsible recruitment with no excessive fees charged to workers. Entitlement to work documentation verified.
- Freedom of Association: Workers have the right to join trade unions and bargain collectively. Worker committees or equivalent representation bodies must exist where unions are restricted.
- No Child Labour: Strict prohibition. Age verification records for all employees. Remediation procedures in place.
- Legal Wages: Wages must meet or exceed legal minimums. Overtime paid at premium rates. Social insurance contributions verified.
- Working Hours: Must comply with local law and ETI Base Code limits. Overtime must be voluntary. One rest day in every seven required.
- No Discrimination: No discrimination in hiring, compensation, promotion, or termination based on race, gender, religion, or other status.
- Regular Employment: Work provided on a basis recognised by law. Sub-contracting and homeworkers used responsibly.
- No Harsh or Inhumane Treatment: No physical abuse, verbal abuse, sexual harassment, or intimidation. Disciplinary procedures documented.
The auditor reviews payroll and attendance records (typically 6-12 months), employment contracts, policies, and conducts private worker interviews to verify that documented practices match actual conditions.
Pillar 2: Health and Safety
This pillar evaluates whether working conditions are safe and hygienic. The auditor conducts a thorough site tour and reviews documentation. Key areas include:
- Fire Safety: Building fire certificate, fire alarms, extinguishers, emergency exits, evacuation plans, and quarterly drill records.
- Risk Assessments: Written risk assessments covering all work areas, chemicals, and machinery. Regular reviews documented.
- Machine Safety: Guards on all hazardous equipment. Maintenance logs. Operator training records.
- Chemical Safety: Safety Data Sheets for all chemicals. Proper storage with secondary containment. PPE availability and usage.
- Workplace Conditions: Adequate lighting, ventilation, clean drinking water, sanitary facilities, first aid kits, and trained first-aiders.
- Emergency Preparedness: Emergency response plan, evacuation drills, assembly points, fire warden training.
The MSA (Management Systems Assessment) for this pillar evaluates whether the site has a systematic approach to health and safety management — not just individual compliance items.
Pillar 3: Environment
The comprehensive Environment assessment in a 4-pillar audit goes beyond the basic environmental review included in a 2-pillar audit. Key areas include:
- Environmental Permits: All required permits current — discharge, waste, emissions. Compliance records maintained.
- Waste Management: Hazardous waste disposal with licensed contractors. Waste transfer manifests. Segregation and recycling programmes.
- Water and Wastewater: Water consumption monitored. Wastewater treatment operational. Test reports demonstrating discharge compliance.
- Energy and Emissions: Energy consumption records. Air emissions monitoring and reporting. Conservation measures implemented.
- Management Systems: Environmental policy, management system documentation, training records, incident reports and corrective actions.
The environmental assessment in SMETA 7.0 has been enhanced compared to 6.1, reflecting the growing global emphasis on sustainability and environmental due diligence.
Pillar 4: Business Ethics
This pillar evaluates the site's integrity and transparency. It was significantly enhanced in SMETA 7.0. Key areas include:
- Anti-Bribery and Corruption: Written policy, gift and hospitality register, conflict-of-interest declarations, training for relevant employees.
- Grievance Mechanisms: Accessible procedure for all workers. Anonymous reporting channel. Grievance log with resolution records. Whistleblowing policy.
- Compliance Systems: Systems to manage ethical compliance. Supplier code of conduct. Regular compliance reviews. Data protection measures.
- Land Rights: Land acquisition documentation. Evidence of legal ownership or lease. No evidence of forced eviction.
The Audit Day Process
A typical 4-pillar SMETA audit follows this structure:
- Opening Meeting (30-60 min): The auditor meets with management and worker representatives to explain the audit scope, schedule, and methodology.
- Site Tour (1-3 hours): The auditor walks through all areas — production floor, warehouse, chemical storage, canteen, dormitories, waste storage, and outdoor areas. Photographs are taken of key observations.
- Document Review (2-4 hours): The auditor examines documents organised by pillar: payroll, attendance, contracts, policies, training records, risk assessments, permits, waste manifests, and ethics documentation.
- Worker Interviews (1-2 hours): Private, confidential interviews with a representative sample of workers selected randomly. Interviews are conducted in the worker's language.
- Closing Meeting (30-60 min): The auditor presents preliminary findings including Non-Compliances, Non-Conformances, CARs, and Good Examples. The CAPR is discussed.
The report is typically uploaded to the SEDEX platform within 5-10 working days after the audit.
SMETA 7.0 Enhancements for 4-Pillar Audits
SMETA 7.0 (released 10 September 2024) introduced several enhancements specifically relevant to 4-pillar audits:
- 100+ audit clauses: Each pillar now has more detailed, verifiable requirements.
- Management Systems Assessment (MSA): Each pillar is scored on policies, resources, training, and monitoring — with a four-level grade.
- Enhanced environmental and ethics criteria: Both pillars have been strengthened with more rigorous requirements.
- Semi-announced audits: Since July 2025, only semi-announced audits are permitted (3-week window).
- Collaborative Action Required (CAR): New finding type for complex issues requiring buyer-supplier collaboration.
FAQ: SMETA 4-Pillar Audit
Q: Does my buyer require a 4-pillar audit?
A: Check with your customer. If they accept 2-pillar, that may be sufficient. However, 4-pillar is increasingly required by brands with strong sustainability policies. Accepting a 2-pillar report when 4-pillar is required means re-auditing.
Q: How long does a 4-pillar audit take?
A: A 4-pillar SMETA audit typically takes 3 days on-site. The actual duration depends on site size, number of workers, and complexity of operations.
Q: Is SMETA a certification?
A: No. SMETA is not a certification and has no pass/fail result. The audit produces a CAPR and Full Audit Report. Each buyer evaluates the report independently.
Q: Can a 2-pillar audit be upgraded to 4-pillar later?
A: Yes. If you initially complete a 2-pillar audit and your buyer later requires 4-pillar, you can schedule a supplementary audit covering Environment and Business Ethics. This is typically shorter and less expensive than a full 4-pillar initial audit.
Q: What is the MSA grade in a 4-pillar report?
A: The Management Systems Assessment (MSA) grades each pillar on a four-level scale: Not Addressed, Fundamental Improvements Required, Some Improvements Recommended, and Robust Management System. The MSA is a key feature of SMETA 7.0.
Q: Who conducts SMETA audits?
A: SMETA audits are conducted by Affiliated Audit Companies (AACs) approved by Sedex. All AACs must be APSCA members. Lead auditors must be APSCA CSCA qualified.
Need Help Preparing for a 4-Pillar SMETA Audit?
Our compliance specialists can guide you through all four pillars and help your factory prepare. Contact us for a free consultation.
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