ICS – Initiative for Compliance and Sustainability

What is ICS – Initiative for Compliance and Sustainability?

ICS is an international sectoral initiative to enhance working conditions along the global supply chains of its member retailers and brands. ICS comprises 67 multinational retailers and brands in the textile, retail, footwear, electronics, and furniture sectors.

It Is a France-based initiative by FSC Fédération Française du Commerce et de la Distribution. Most company members are French Companies. It can only be requested by an ICS member and not by a supplier, a factory, or an intermediary.

Bureau Veritas is one of the ICS-accredited audit companies entitled to carry out ethical audits that assess supplies’ compliance with the ICS Code of Conduct. The Code of Conduct covers key areas of suppliers’ social performance and manufacturing ethics.

Scope of ICS

One of the unique elements of ICS, amongst other audit schemes and membership groups, is that ICS audits are mandated and managed by member companies solely comprising brands and retailers. Audit launch is a member prerogative, ensuring total control of ICS tools’ use.

Social code of conduct:

•    Management system(s), transparency and traceability
•    Minimum age, child labor and young workers
•    Forced labor
•    No discrimination
•    Disciplinary practices, harassment and abuse
•    Freedom of association and grievance mechanisms
•    Working hours and overtime
•    Remuneration and benefits
•    Health and safety

Environmental code of conduct:

•    Environmental management system(s)
•    Energy use, transport and greenhouse gases
•    Water use
•    Wastewater and effluent
•    Emissions to air
•    Waste management
•    Pollution prevention, hazardous and potentially hazardous substances
•    Emergency response management

ICS target sectors

ICS applies to the sectors of softlines, footwear, hardlines, toys, electronics, IoT devices, cosmetics, luxury goods and more.

The ICS members promote the ICS scheme and follow the established rules. Basic information is shared in order to jointly monitor the audit conclusions and to initiate the continual improvement of working conditions in the source countries.

ICS audit process

1. Audit application
2. Document check
3. Preparation for the on-site audit
4. On-site audit
5. Audit report
6. Certify or audit follow up if failed.

The ICS process allows semi-announced audits within a window of a minimum of two weeks or fully unannounced audits.

ICS audit rating standard and validity frequency

The ICS social audit is built on a double rating system composed of a percentage (0-100%) and a letter (A, B, C, D, E), for example, the global audit rating can be 90% B, 60% C, etc. The percentage indicates the degree of compliance of the factory, and the letter indicates the degree of criticality related to defined major non-compliances.

Depending on members‘ own requirements based on different risk levels (A, B, C, D, E). The General ICS process rule requires follow-up audits to take place no later than 12 months (and extended by 4 weeks worked to plan the audit with the factory) after completing the full scope audit (either initial audit or re-audit) undergone by the assessed facility. If beyond 12 months, then the audit type should be re-audit.

For reporting, only ICS members and ICS can see the report. Copies will not be sent to suppliers or factories. 

What are the benefits of conducting an ICS audit?

ICS members collaborate with common tools to mutualize audits, contributing to reducing audit fatigue and sharing knowledge and best practices.

Due diligence is the way forward to advanced transparency and responsibility across global supply chains. A combined approach of social and environmental audits and close cooperation with factories on corrective action plans can enhance sustainable supply chain management.