A Sedex SMETA audit assesses labor standards, health and safety, environmental compliance and business ethics at a supplier’s facility. For buyers, understanding the process makes it easier to evaluate supplier claims and request the right documentation before placing orders.
Large retailers and brands increasingly require SMETA or similar social audits from their packaging suppliers. This article explains what SMETA is, what the audit covers, and how buyers should use the results.
What is Sedex?
Sedex is a membership organization for ethical trade. It operates a platform where suppliers share audit reports with buyers. SMETA stands for Sedex Members Ethical Trade Audit. It is one of the most widely used audit methodologies in global supply chains.
SMETA is not a certification. It is an audit report that shows how a facility performs against ethical standards.
The four pillars of SMETA
SMETA audits cover four areas. Buyers can request two-pillar or four-pillar audits.
| Pillar | Focus | Typical documents reviewed |
|---|---|---|
| Pillar 1 | Labor standards | Contracts, wages, working hours, age verification |
| Pillar 2 | Health and safety | Fire exits, PPE, machine guarding, training records |
| Pillar 3 | Environment | Waste records, emissions, permits |
| Pillar 4 | Business ethics | Anti-bribery policy, supplier code of conduct |
Most retail buyers request the full four-pillar audit.
How the audit works
The SMETA process follows these steps:
- Audit request — the buyer or supplier initiates the audit.
- Audit planning — the auditor confirms scope, date and documents needed.
- Opening meeting — management and worker representatives are briefed.
- Facility tour — the auditor inspects production, storage, dormitories and canteens.
- Document review — payroll, attendance, contracts, policies and permits.
- Worker interviews — private interviews with selected employees.
- Closing meeting — preliminary findings are shared.
- Report upload — the final report is uploaded to the Sedex platform.
A typical SMETA audit at a mid-sized packaging facility takes 1–2 days depending on the scope.
What auditors look for
Labor standards
- No forced or bonded labor
- No child labor
- Legal minimum wages and overtime pay
- Working hours within legal limits
- Freedom of association
- Proper employment contracts
Health and safety
- Adequate fire exits and extinguishers
- First aid kits and trained first aiders
- Personal protective equipment
- Machine safety guards
- Clear emergency procedures
Environment
- Waste segregation and disposal records
- Wastewater and emissions compliance
- Energy use monitoring
- Hazardous substance management
Business ethics
- Anti-bribery and corruption policies
- Transparent record keeping
- Fair competition practices
Understanding the audit report
SMETA reports classify findings into three categories:
| Finding | Meaning | Action needed |
|---|---|---|
| Minor | Low-risk issue | Improve within agreed timeframe |
| Major | Significant non-compliance | Corrective action required |
| Critical | Severe breach | Immediate action, may affect business relationship |
A clean report with no major or critical findings is the goal.
Real example: from corrective action to clean report
For example, a packaging factory might discover an incomplete fire extinguisher inspection record during a SMETA audit. The auditor flags it as a minor finding. The factory implements a monthly inspection log, assigns a responsible person and uploads evidence to Sedex. The follow-up review closes the finding. This small system change protects the facility on every subsequent audit.
How buyers should use SMETA
When evaluating a packaging supplier, buyers should:
- Request the supplier’s Sedex membership number.
- Ask for access to the audit report on the Sedex platform.
- Check the audit date and validity.
- Review any findings and corrective actions.
- Confirm the audit scope covers your product category.
A SMETA report is only valuable if you read it. A low score with closed corrective actions can be better than an old report with no follow-up.
SMETA vs other audits
| Audit | Focus | Output |
|---|---|---|
| SMETA | Ethical trade, labor, safety, environment | Audit report on Sedex platform |
| ISO 9001 | Quality management | Certification |
| ISO 14001 | Environmental management | Certification |
| BSCI | Social compliance | Audit report |
| WRAP | Apparel-specific compliance | Certification |
For packaging, SMETA is the most commonly requested social audit.
How factories prepare for audits
In a well-run factory, audit readiness is part of daily operations. Facilities typically maintain:
- Accurate attendance and payroll records
- Regular safety training logs
- Fire drill records
- Waste disposal contracts
- Environmental permits
- Worker grievance procedures
This documentation is reviewed monthly so the facility is always prepared.
Common audit findings in packaging factories
| Finding | Why it happens | How to fix |
|---|---|---|
| Overtime hours exceed limits | Seasonal peaks | Improve planning, add shifts |
| Missing PPE | Complacency | Daily supervisor checks |
| Incomplete fire records | Poor record discipline | Assign owner, monthly log |
| Wage calculation errors | Manual payroll | Use verified payroll software |
The business case for ethical audits
Ethical audits are not just about compliance. They reduce risk, protect brand reputation and often improve operational efficiency. Factories with strong labor and safety practices tend to have lower turnover, better productivity and fewer disruptions.
Conclusion
SMETA audits give buyers visibility into how a packaging factory treats workers, manages safety and handles environmental responsibilities. The process is thorough but straightforward when a facility maintains good records and corrective action discipline. Ask for the Sedex report early, read the findings carefully, and confirm that corrective actions are closed before placing large orders.