13-14 September 2014 Hanoi, Vietnam

MUTRAP Training 2014

WFTO Guarantee System (GS)

How it began

• Mombasa AGM 2011 – decision to develop new Fair Trade system to guarantee Fair Trade credentials of members

• Working Group convened / began work end 2011• Rio AGM 2013 – agreement on financing of system &

external certification in due course • June 2013 – implementation started• December 2015 – all members will have completed

the WFTO Guarantee System Self Assessment Report

WFTO Guarantee System: Components

WFTO.COM

Peer visitSelf

Assessment Report (SAR)

GUARANTEE SYSTEM

Monitoring Audit

Fair Trade Accountability

Watch(FTAW)

Internal Monitoring

System (IMS)

New applications: Steps for new FTO members (I)

WFTO.COM

REQUIREMENTS:• 2 years of legal existence• Commitment to WFTO FT Principles

(check WFTO FT Standard compliance criteria)

Step 1a: PROFILE FORMSubmit Profile Form +

supporting docs.

• Regional Office checks for completeness and sends feedback to applicant as necessary

• Cost: Handling fee (100 Euros)

Step 1b: REFERENCES

• Regional Office collects references + in-country comments (FTAW)

New applications: Steps for new FTO members (II)

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Step 2: RECOMMENDATION

• Global Office assesses application and makes recommendation for WFTO Board

Step 3:APPROVAL (or rejection)

• WFTO Board makes final decision

Step 4: Pay WFTO fee

• WFTO Office sends 1st membership fee invoice

• Cost: annual fee; variable depending on size and type of member

Result: PROVISIONAL MEMBER

Guarantee System: 1st cycle/steps for FTO members (I)

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Step 1: SAR

(+PF+IP)

• Submit Self-Assessment Report, incl. Improvement Plan + updated Profile Form (if more than 6 months old)

• Regional Office checks for completeness of SAR

Step 2: Peer Visit

(recommended)

• Member proposes peers; WFTO selects• Member arranges and pays for peer visit • Peer report (+ Improvement Plan) sent to

WFTO Office

Step 3: Monitoring

Audit

• WFTO Office selects auditor• Members arranges and pays for audit• Audit report is sent to WFTO Office• GS Manager assesses reports and makes recommendation for WFTO Board

Guarantee System: 1st cycle/steps for FTO members (II)

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Step 3: Monitoring Audit

(cont.)

• ...• GS Manager assesses reports and

makes recommendation for WFTO Board

Step 4: Approval (rejection)

• WFTO Board makes final decision

Result: GUARANTEED FAIR

TRADE ORGANISATION

• WFTO sends Monitoring Schedule to member

• Cost: annual membership fee

Guarantee System: The Monitoring Audit

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Cost of audit dependent on:

• Geographical location,

• Size of organisation,

• Complexity of supply-chain,

• Number of ‘non-verified suppliers’ → the IMS (Internal Monitoring System)

1-2= 1 / 3-5= 2 / 6-10=4 / more than 10 =

Guarantee System: Steps for FTO members

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1. Self-assessment report (SAR)

Peer visit

SAR

Monitoring audit

WFTO GS: FTO Risk level and tools (I)

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Low Risk

Peer visit every 6 yearsMonitor. Audit every 6 years

Medium Risk

Peer visit every 4 yearsMonitor. Audit every 4 years

Elevated Risk

Peer visit every 2 years Monitor. Audit every 2 years

WFTO GS: FTO Risk level and tools (II)

WFTO.COM

Risk Factors:

1. No. of Producer groups/suppliers,

2. No. of product lines,

3. Robustness of IMS (control supply chain),

4. % of purchase of products without FT control,

5. Use of WFTO Product Label,

6. Serious complaints,

7. No. of Non-compliances audit related.

What the WFTO Product Label means

The WFTO Product Label is an organisational label that can be used on products.

It differentiates Fair Trade products in the market.

It empowers members to strive for continuous improvement.

Available to WFTO members who have successfully passed the WFTO Guarantee System.  

Guaranteed members are regularly monitored.

Product Labels

Product Labels: Selyn and ACP

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• Credible

• Sustainable (affordable and transparent)

• Simple

• Flexible

The WFTO’s Guarantee System: Conclusion

Thank you!

Questions?

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