GRI 414 Supplier Social Assessment
GRI 414 requires companies to disclose what proportion of their suppliers have been screened using social criteria, and how significant actual and potential negative social impacts in the supply chain are managed. It is the social counterpart to GRI 308 (environmental supplier assessment).
GRI 414 requires companies to disclose what proportion of their suppliers have been screened using social criteria, and how significant actual and potential negative social impacts in the supply chain are managed. 414-1 New suppliers that were screened using social criteria: Percentage of new suppliers screened using social criteria during the reporting period.
The two GRI 414 disclosures
414-1 New suppliers that were screened using social criteria: Percentage of new suppliers screened using social criteria during the reporting period. Social criteria include: child labour, forced labour, freedom of association, collective bargaining, discrimination, working hours, wages, and health and safety.
414-2 Negative social impacts in the supply chain and actions taken: Number of suppliers assessed for social impacts; number with significant actual and potential negative social impacts identified; percentage of suppliers where improvements were agreed upon; percentage of supplier relationships terminated as a result of assessments.
The combination of 414-1 (screening rate) and 414-2 (assessment outcomes) tells the story of your supply chain social risk management maturity.
Building a supplier social assessment programme
Tier 1 screening: All new tier 1 suppliers should complete a social criteria questionnaire before onboarding. This covers: existence of a code of conduct, policies on child and forced labour, freedom of association stance, health and safety management system, and wage compliance.
Risk-based audit selection: From the screened pool, prioritise suppliers for deeper assessment based on: country risk (high-risk geographies), sector risk (garments, electronics, agriculture), spend level, and questionnaire red flags.
Audit standards: SMETA (Sedex Members Ethical Trade Audit) — most widely used globally. SA8000 — certification standard, higher bar than audit. BSCI — Business Social Compliance Initiative, common in European retail supply chains. Fair Trade — for specific commodities.
Continuous monitoring: Re-screen existing suppliers periodically — recommended every 2–3 years for medium-risk, annually for high-risk.
GRI 414 and CSDDD alignment
The Corporate Sustainability Due Diligence Directive (CSDDD) mandates active human rights due diligence across the value chain for large EU companies from 2027. GRI 414 disclosure provides the framework and documentation for CSDDD compliance.
CSDDD requires: mapping and prioritising value chain human rights risks; conducting appropriate measures (audits, engagement, contractual requirements); establishing or participating in grievance mechanisms; monitoring effectiveness; and communicating publicly on due diligence.
GRI 414-1 (screening coverage) and 414-2 (assessment outcomes and actions taken) directly evidence the CSDDD mapping and mitigation requirements. Companies with mature GRI 414 programmes have a significant compliance head start for CSDDD.
ESRS S2 (workers in the value chain) additionally requires qualitative disclosure of due diligence processes — GRI 414 data feeds into ESRS S2 with minimal additional collection.
Frequently asked questions
What percentage of new supplier screening is considered good practice?
Leading companies target 100% screening of new tier 1 suppliers using at minimum a social criteria questionnaire. For tier 2 and beyond, risk-based screening focusing on high-risk commodity and country combinations is standard practice.
Can we rely on supplier self-assessments rather than audits?
Self-assessments (questionnaires) are a starting point — they identify red flags and establish a baseline. For high-risk suppliers, independent third-party audits are necessary. Self-assessments alone are insufficient for material social risk management and will not satisfy CSDDD requirements.
What happens if a supplier audit finds violations — do we have to terminate?
Termination is the last resort. GRI 414-2 specifically asks about the percentage of supplier relationships terminated — implying that remediation and improvement agreements are the preferred response. Termination without remediation support can worsen outcomes for workers. Work with suppliers on corrective action plans first.