SLCP is becoming an independent organization. Find more information and FAQS.
Background
SLCP was launched in 2015 by the Sustainable Apparel Coalition (SAC) as a multi-stakeholder project aimed at reducing audit fatigue and improving working conditions in the apparel industry. With the establishment of the Converged Assessment Framework (CAF) and having launched our first five-year Strategic Plan in 2018, SLCP has grown from a development project into a well-established and self-sustained initiative. Today, it is run by its Executive Director and Secretariat, with oversight by the SLCP Council representing all our signatory caucuses.
Since its inception, SAC has played a pivotal role, serving as SLCP’s legal entity and offering operational support across key areas such as finance, legal, and HR. As we approach the end of the 2018-2023 strategy cycle, we are ready to build upon the solid foundations laid by SAC. Our objective: To establish SLCP as an independent non-profit entity and formally separate from the SAC. This strategic shift empowers SLCP to uniquely deliver on the goals of its new strategy cycle.
We are deeply grateful to SAC for nurturing SLCP’s growth, and also to other key organizations who provided critical financial support in our early stages. These include the C&A (now Laudes) Foundation, founding signatories, and other donors and grantors.
We believe the transition to an independent entity expresses SLCP’s maturity, as set out in the new Strategic Plan. Positioned as a credible, neutral, and independent Multi-Stakeholder Initiative, we stand ready for greater alignment, increased adoption, and expansion into adjacent sectors—many of which are already represented by our dedicated signatories.
We seek signatories’ approval for SLCP to become an independent entity by a vote, alongside our forthcoming five-year Strategic Plan. Voting has closed on Friday 22 September 2023.
Separation and legal form
In collaboration with SAC over the past year, we have meticulously orchestrated the separation process to position SLCP for enduring success. We are fully aligned on:
● Ensuring that a fully independent SLCP will continue to act in the best interests of workers
● Maintaining our inclusive multi-stakeholder governance, which has been such a critical factor in SLCP’s success to date
● Refining our collaboration with SAC into a strategic partnership to expand adoption of the CAF, both within and beyond the apparel and footwear sector
We will be setting up a Netherlands-based not-for-profit foundation called a ‘stichting’, which is ideally suited for multi-stakeholder organizations like SLCP that are working for the public benefit.
By 1 January 2024, the assets and intellectual property associated with SLCP, including the CAF, will be transferred to the stichting and we will be fully operational to continue supporting all our signatories and stakeholders.
Governance and signatory representation
We will maintain our existing governance principles and arrangements, as far as technically possible, within the stichting. The SLCP Council will be re-constituted as a formal Board of Directors, which will continue to oversee the work of the SLCP Secretariat.
We will continue to ensure that the majority of SLCP Board members are elected, with nine seats still allocated to representatives of our existing signatory caucuses. We will also add a new category of seats for SLCP strategic partners, including SAC.
Signatories will also continue to be consulted directly and to vote on significant matters, such as approval of SLCP’s Strategic Plans.
Benefits of becoming an independent organization
There are many reasons why this is the right move at the right time. Mainly:
● A natural progression for SLCP as a well-established and self-funding program
● Greater neutrality in terms of being able to serve all stakeholders equally and ability to drive acceptance of the CAF
● More opportunities for engaging with organizations operating in other sectors
● More opportunities to implement SLCP’s new five-year strategy and cultivate its team and unique culture
● Building on the complementary roles of SLCP and SAC
The SLCP Council is unanimous in its support to become an independent entity and has been consulted extensively on the way forward.
Frequently Asked Questions - FAQs
Why are you doing this now?
SLCP and SAC agree that it makes sense for SLCP to start its new strategy cycle (2024-28) as a fully independent entity. This will provide better opportunities for delivering against our new five-year Strategic Plan as well as maximizing the additional opportunities for convergence and collaboration that being our own legal entity brings.
How is the relationship between SLCP and SAC?
The relationship is very positive. The SAC Board and SLCP Council have voted in favor of a mutually agreed term sheet for the separation. We are proud of what we have accomplished together and there is shared excitement about the opportunities to make a greater impact collectively in the future on our shared mission and visions for improving working conditions in global supply chains.
Will SLCP be able to stand on its own two feet?
Yes. We have been operating semi-autonomously for several years. SLCP's strategy, operations, revenue generation, and cost management are well-established. We are confident in our financial stability and capacity to operate fully independently.
Has SLCP got all of the infrastructure in place to be fully independent?
We are in the process of securing in-house resources and external support, and the SAC has agreed to provide support as needed over the first six months of 2024 to ensure continuity and a smooth transition.
Will SLCP retain the same name and branding?
SLCP will continue to operate under the same brand. The formal name of the new entity will be ‘Stichting SLCP’.
Will separation from SAC affect industry convergence or adoption rates?
No. In fact, we anticipate a streamlined collaboration with SAC. The Higg FSLM adoption remains crucial to driving adoption of the CAF. As an independent entity, SLCP will encourage broader signatory participation, especially beyond SAC membership.
What will be the new legal entity for the independent SLCP and where will it be based?
SLCP will be registered as a Dutch foundation ‘stichting’ with a PBO (Public Benefit Organization) status. The non-profit and mission driven nature will be guaranteed. SLCP has a growing team of around 25 people around the world, with key staff based in Amsterdam. There is no need to change location or premises and the creation of a Netherlands-based not-for-profit foundation will make administration of SLCP much easier.
Will SLCP still be accountable to signatories as before?
Absolutely. We are working to make sure that we can effectively ‘copy and paste’ SLCP’s current governance, while respecting the formal legal and technical requirements of running a stichting. Signatories will continue to elect caucus representatives to the SLCP Board, to vote on key issues, to participate in Technical Advisory Committees (TACs) and of course continue to engage with us through webinars, meetings and other channels.
Why are you asking signatories to vote to become an independent entity?
According to our governance, the move to becoming an independent entity is what we call a ‘material change’ and therefore requires a formal signatory vote. The Governance Committee and Council as a whole agreed that the best time to conduct this vote was when terms of separation and the form of the new legal entity have been agreed with SAC, which we aim to finalize in Q4 2023.
Who will be on the Board of the new stichting?
To ensure continuity, we will invite all current SLCP Council members to transition to the new Board. This means extending their terms and deferring Board elections to next year. In the event that any elected Council members do not wish to continue, SLCP’s Governance Committee will decide how and when to organize elections to replace them. Additionally, we are broadening the Board by welcoming strategic partners, including the SAC. This integration enhances industry representation and collaboration to improve labor conditions. This expansion highlights our commitment to diverse perspectives and collective progress.
