When it comes to Environmental, Social, and Governance (ESG) compliance and supply chain risk management, businesses have traditionally relied on standardised audits to assess the conditions and practices within their operations and those of their suppliers. However, as ESG considerations become increasingly complex and dynamic, there is a growing recognition that traditional audits, while valuable in many ways, may not always be sufficient to capture the full picture. Audits are typically structured and formalised processes, designed to evaluate a company’s adherence to specific standards or regulations. They are generally scheduled in advance, allowing the audited entity time to prepare, and they follow a predetermined checklist of criteria. Some are also self-audits, or include a self-audit component, in which suppliers are requested to declare their compliance with audit or regulatory requirements, with little or no means for any customer to verify the submission. Whilst traditional audits can provide comprehensive assessments of compliance in some regards (particularly when it comes to evidencing that a business maintains correct documentation – e.g. a Modern Slavery Statement), they also have limitations. The predictability and structured nature of audits, along with the difficulty of verifying what has been stated in the real world – especially through supply chains at global scale, can lead to a disconnect between what is reported and what is actually happening on the ground.
This is where Ground Truth Reporting offers a distinct and complementary benefit, providing real-time, flexible, and often more accurate insights into the realities at supply chain locations on the ground – wherever they may be.
Ground Truth Reporting is an agile and responsive tool that provides a real insight into the daily working conditions and practices at the location concerned. It is designed to capture a snapshot of the real-world conditions at a given moment – often through our unannounced inspections, mystery shopping, or other direct observation techniques, and this immediacy is one of Ground Truth Reporting’s key strengths. Unlike audits, which are usually planned well in advance and that may require visas, letters of invitation, supplier notifications, interpreters and so on, Ground Truth Reporting can be deployed quickly using a local network of suitably qualified personnel, allowing businesses to respond to emerging issues or concerns without delay, or simply to reach out and connect with their supplier network regardless of geographical constraints.
Speed is of the essence
The speed of deployment of Ground Truth Reporting is particularly beneficial in industries where supply chain conditions can change rapidly – such as fashion or retail, where new trends, suppliers, or production methods might emerge suddenly. Whilst audits are typically conducted according to a set timeline and framework, focusing on specific criteria that may or may not capture the most pressing issues at any given time, Ground Truth Reporting can be tailored to address the unique needs of each situation at the moment that matters the most. For example, if there are concerns about labour practices at a particular clothing manufacturer, a brand can commission Ground Truth Reporting to focus specifically on that issue, with inspectors visiting the site unannounced to observe conditions without the possibility of pre-arranged preparation by the factory management, and all within an extremely short space of time. This flexibility and rapid reaction allows Ground Truth Reporting to adapt to the unique contexts and risks associated with different locations, suppliers, and even individual production lines.
Seeing the wood for the trees
Ground Truth Reporting provides a more realistic and unvarnished view of day-to-day operations than audits. Because audits are scheduled, there is often a tendency for companies or suppliers to prepare in advance – ensuring that everything is in order and well presented during the auditor’s visit. Whilst this preparation is not inherently problematic (of course all suppliers wish to be seen in their best light), it can create an environment where the audit reflects the best possible conditions – rather than the typical daily reality.
In contrast, Ground Truth Reporting captures what is actually happening on the ground. This results in a more accurate and honest portrayal of conditions, helping businesses to identify issues that might not be evident during a traditional audit, increasing accountability and transparency, and supporting auditing activities by adding greater depth to the evidence of compliance.
The benefit over time
Data becomes more meaningful, the more you collect. Another key benefit of Ground Truth Reporting is its ability to provide continuous monitoring over time. Audits are often conducted on an annual or biannual basis due to the fact that they can be laborious and require the involvement of multiple teams across multiple business units and locations. Ground Truth Reporting however, can be conducted more frequently, providing regular snapshots of conditions and practices to create a catalogue of evidence. This continuous monitoring helps businesses stay on top of issues as they arise, rather than discovering them after the fact, when they might have already caused significant harm.
Increasing accountability
When suppliers and partners know that they could be subject to unannounced inspections at any time, they are more likely to maintain high standards consistently, rather than only when they are being watched. This ongoing vigilance can lead to better overall compliance with ESG standards, reducing risks for the company and enhancing its reputation with consumers, investors, and regulators.
Whilst traditional audits remain a valuable tool for assessing compliance and performance to specific standards, Ground Truth Reporting offers a dynamic, flexible, and real-time complement that captures the true conditions within a company’s operations and supply chain. By providing quicker, more adaptable, and more accurate insights, Ground Truth Reporting enables businesses to respond effectively to the ever-evolving challenges of ESG compliance, ensuring that their operations genuinely reflect their commitments to sustainability, ethical practices, and governance.
To find out more about our Ground Truth Reporting services, please contact us here.
