Understanding SEDEX and SMETA: Enhancing Ethical Business Practices

PT Mitra Ayu is proud to be a SEDEX member since 2020 and has successfully completed the SMETA (Sedex Members Ethical Trade Audit) assessment. This achievement reflects the company’s strong commitment to ethical business practices, responsible sourcing, and continuous improvement in labor standards, health and safety, environmental performance, and business integrity. By adhering to SEDEX’s globally recognized standards, PT Mitra Ayu ensures transparency and accountability across its operations, reinforcing its dedication to sustainability and social responsibility.

In today's global marketplace, ethical and responsible business practices have become increasingly important. Companies are expected to not only deliver quality products but also ensure fair labor, environmental sustainability, and transparent operations throughout their supply chains.

Sedex (Supplier Ethical Data Exchange) provides a collaborative platform for buyers, suppliers, and auditors to share ethical data in a secure and efficient way. It enables companies to map their supply chains, identify risks, and improve working conditions across their operations. Sedex membership also helps suppliers demonstrate their commitment to ethical trade, making them more attractive to global buyers who prioritize responsible sourcing.

One of the most widely used audit methodologies within the Sedex system is SMETA (Sedex Members Ethical Trade Audit). SMETA is not a certification but a common auditing framework that assesses a site’s practices against key pillars: labor standards, health and safety, environmental performance, and business ethics. By using SMETA, companies can ensure that audits are conducted consistently and transparently, reducing audit fatigue for suppliers and improving trust in the supply chain.

The results of a SMETA audit are uploaded to the Sedex platform, where they can be accessed by authorized partners. This improves visibility and reduces duplication of efforts, as suppliers do not need to undergo multiple audits for different clients. SMETA audits are conducted by third-party auditors trained in the methodology, ensuring objectivity and alignment with international standards such as the ETI Base Code and ILO conventions.

Benefits of SMETA & Sedex in the Natural Essential Oil Industry are explained in the table below:

Category	Buyer	Manufacturers/Suppliers
Ethical Sourcing	Ensure oils are sourced from producers who follow fair labor and environmental standards	Prove ethical harvesting and distillation practices to meet EU buyer expectations
Traceability	Track the origin of oils and verify social compliance throughout the supply chain	Offer verified transparency from raw material to finished extract
Sustainability Compliance	Align sourcing with EU Green Deal, REACH, and corporate sustainability goals	Show commitment to eco-friendly practices, from cultivation to export
Audit Consolidation	Access consistent SMETA audit data across multiple small producers or cooperatives	Use one SMETA audit to satisfy multiple EU clients, reducing audit burden
Reputation Management	Reduce reputational risk by avoiding unethical labor or environmental practices	Gain recognition as a responsible supplier in a premium, values-driven market
Market Access	Simplify ethical supplier screening and streamline supplier approvals	Meet key ethical and sustainability requirements for entering the EU market
Value-Added Branding	Support brand storytelling around ethical, artisanal, and clean beauty values	Position products as high-quality, ethically sourced, and premium grade

Please connect with PT Mitra Ayu on SEDEX. If you have any question, you can contact us here or email us at info@ptmitraayu.com.