Clarifications

DUE DILIGENCE

For the purposes of Just, due diligence toward ensuring a socially responsible procurement process includes the following steps, at minimum:

• Confirm whether the business has a published commitment regarding human rights;
• Identify whether the business has an active certification that includes vetting for human rights approaches (e.g., B Corp); and
• Review the Business & Human Rights Resource Centre Company Dashboards to view available businesses’ records of human rights allegations, lawsuits, and defender attacks.
  

Living Future acknowledges that, despite an organization’s best efforts, it can be extremely challenging to fully eliminate all purchases from businesses with known human rights violations. Consistent with our calculation guidance for other Indicators within Just 3.0, the percentage of direct purchases of goods and services may follow the default Just 3.0 rounding guidance and be reported as is (i.e., out to two decimal places) or rounded to the nearest whole number.

GOODS AND SERVICES

For the purposes of Just, goods and services refer to all purchases made on behalf of an organization. Within this Indicator, the scope of goods and services included must be comprehensive of all purchases; however, due to limited available options (if any alternative options exist at all), the following services may be excluded:

• All forms of insurance
• Rent
• Retirement plans
• Utilities

INDEPENDENT, LOCALLY OWNED AND OPERATED BUSINESS

A primary intent of this Indicator is to support businesses that are independent as well as locally owned and operated. In other words, businesses that do not have a larger national entity involved in decision-making or providing financial backing. Local businesses are likely to be more responsive to local needs, and they also typically put money back into the local economy through both wages that stay in the community and through local purchasing and contributions.⁸⁹

For purposes of this Indicator, local sourcing comes from within a 500-kilometer radius of the end-use location. For example, in the case where the organization is procuring goods and services through construction contractors, the 500-kilometer radius applies to the location where the goods and services will be used (e.g., the work site).

PERCENTAGE OF GOODS AND SERVICES PURCHASED

The percentage of goods and services purchased by the organization should be determined by total dollars (or applicable monetary unit) spent.

PROCUREMENT POLICY

At minimum, an organization’s Procurement policy must include commitment to ensuring its procurement process is socially responsible and does not include forced labor or human rights violations, in addition to meeting the other policy metric requirements.

PROCUREMENT PROCESS ASSESSMENT

For the purposes of Just, organizations should conduct a self-assessment of their procured materials, products, and services against lists provided by reputable entities, such as the KnowTheChain, U.S. Bureau of International Labor Affair (ILAB), Walk Free, Social Hotspots Database, Fair Supply, and more, relevant to the organization’s context and industry.

QUALIFIED BUSINESSES

Purchases made from certified MBEs, WBEs, DBEs, LGBTBEs, and SDVOSBs may contribute to the Indicator metric thresholds. Other types of relevant business certifications may be considered if they are approved by Living Future in advance. See General Clarifications for more information.

Alternatively, businesses with a) a single owner who identifies as a racial or ethnic minority, a woman, gender-diverse, or a veteran, or b) multiple owners who identify as racial or ethnic minorities, women, gender-diverse, or veterans and who together hold 51% or greater ownership, may contribute to the Indicator metric thresholds.

REPORTING PERIOD

For the purposes of this Indicator, calculations should be made based on the organization’s most recently completed fiscal year.

SOCIALLY RESPONSIBLE PROCUREMENT

While Living Future encourages critical examination of the full supply chain, for the purposes of Just, Living Future asks organizations to begin by focusing on vendors, suppliers, contractors, and businesses they are engaging with directly to procure goods and services needed for their internal business operations. Examples of goods and services that fall into this category could include furniture, fixtures, and equipment (FF&E); office supplies; catering; information technology equipment; and more. Given Just’s focus on internal business operations, Living Future is not currently asking organizations to include goods or services procured for the organization’s own externally offered products or service delivery processes.⁹⁰

SUBCONTRACTORS

Subcontractors (e.g., consultants) who fit the criteria listed in the Indicator metrics may contribute to the metric thresholds.

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⁸⁹ Ibid LaVecchia, O.

⁹⁰ Living Future’s Living Product Challenge addresses supply chain issues and human rights in much further depth.