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Principle 5. Fair Transition
If change is needed, are we making it fair?
Where decisions may affect jobs, incomes, livelihoods, businesses, or communities, change should be planned and managed together with those affected, not imposed on them. Fair transition is not an add-on, but a core part of responsible decision-making where significant impacts have been identified. This includes situations where a buyer introduces new requirements, substantially reduces volumes, changes sourcing strategy, or exits a supplier relationship.
5.1 Participation and Engagement
Affected suppliers, workers, communities, and other stakeholders should be meaningfully involved in the design and implementation of transition plans. Particular effort should be made to include those who are most vulnerable or most likely to be affected by a decision.
5.2 Transparency and Transition Planning
The reasons for change, the intended outcomes, and the potential risks and impacts should be communicated clearly and transparently. Transition plans should set out responsibilities, timescales, expected impacts, and measures to mitigate negative consequences, informed by engagement with affected stakeholders.
5.3 Time and Capacity to Adapt
People, organisations, and supply chains should be given sufficient time to adapt to new requirements. Where significant changes are proposed, decision-makers should consider whether realistic alternatives, transition periods, or phased implementation approaches are needed to reduce disruption and avoid unnecessary harm.
5.4 Support and Shared Responsibility
The costs and responsibilities associated with transition should be shared fairly across the supply chain. Buyer purchasing practices, pricing, forecasting, lead times, order changes and contract terms should be reviewed to ensure they do not undermine the transition. Where additional requirements create costs or burdens, particular consideration should be given to how smaller suppliers, producers, workers, and vulnerable communities can be supported through funding, training, technical assistance, capacity building, or other appropriate measures.
Those with greater resources, influence, or capacity to absorb costs should be prepared to play a greater role in supporting and enabling the transition.
5.5 Fairness in Commercial Relationships
Recognise existing imbalances in power and influence within supply chains. A fair transition requires responsibility from both buyers and suppliers. Organisation's introducing new requirements should consider their own role in supporting implementation and should avoid practices that undermine responsible sourcing outcomes, including unreasonable pricing pressures, excessive risk transfer, late changes, unfair penalties, or sudden withdrawal of business.
Where sustainability requirements are introduced, organisations should consider making reciprocal commitments of their own, recognising that responsible sourcing depends on the actions of buyers as well as suppliers.