Overview
The commodities impact area evaluates how a brand mitigates human rights abuses in commodities with a known high risk of labour rights abuses. Agricultural commodities like palm oil, mica, and cocoa are ubiquitous in consumer products, yet their extraction often leads to child labour and modern slavery. Conversely, certain commodities, such as shea, offer pathways for women's empowerment when sourced responsibly.
This area focuses on the implementation of good practices that go beyond simple "free-from" claims, emphasising transparency, credible certifications, and direct engagement with suppliers to mitigate risks such as child labour.
By focusing on verified outcomes and detailed ingredient transparency, the commodities impact area identifies brands that are genuinely transforming their most complex and high-risk supply chains.
Good On You assesses how brands navigate these risks by evaluating their sourcing policies, the use of credible third-party certifications, and their participation in initiatives designed to mitigate harm in the deepest tiers of the supply chain.
Industry verticals: Beauty, Retailers (specifically for businesses using mica or other product-based inputs)
Applicable for: small and large brands. Each commodity is assessed only where brands are using that commodity in their products.
What is assessed?
Good On You evaluates commodities sourcing through several key lenses to determine the extent to which a brand has adopted accepted good practices.
1. Human rights sourcing policy
A brand's foundational commitment is evaluated through the presence and depth of its sourcing policies. A high-performing brand will publish a comprehensive, company-wide policy that covers all key areas of risk management, including:
Traceability: Clear mechanisms to identify the origin of materials back to the farm or mine
Risk assessment: Processes for identifying social risks associated with specific regions or suppliers
Active monitoring: Regular verification of supplier compliance with the brand's standards
Progress reporting: Public updates on progress toward sourcing targets
2. Sourcing certifications
Certifications serve as essential third-party verification that commodities meet specific human rights standards.
For palm oil, for example, The Roundtable on Sustainable Palm Oil (RSPO) is the primary standard. The method differentiates between sourcing models such as Segregated (highest score), Mass Balance, and Credits/Book and Claim (lowest score). For a commodity such as cocoa, sourcing Fairtrade is considered to be best practice.
3. Field-level initiatives and innovation
The methodology rewards brands that go beyond certification to implement direct interventions in the supply chain:
Smallholder support: Investing in programs that help independent smallholders adopt human rights monitoring processes.
Worker engagement: Some brands will work directly with primary suppliers to ensure human rights are protected. An example is engaging with workers and implementing new safety standards.
4. Targets
The methodology identifies whether a brand has set targets to:
Increase the level of certifications
Increase field-level initiatives
Assessments in industry verticals
Beauty
In the Beauty vertical, commodities are highly material as they form the bulk of cosmetic formulations. The methodology focuses on seven key commodities: mica, palm oil, soy, coconut, cocoa, shea, vanilla, and sugarcane.
Mica: Mica is weighted more heavily due to extreme risks of child labour and hazardous working conditions in regions like India. Assessment focuses on membership in the Responsible Mica Initiative (RMI) and the use of the RMI Workplace Standard
Palm oil: Like mica, palm oil is weighed more heavily due to the extreme risks of labour rights abuses. Assessment focuses on sourcing certified palm oil, such as through the RSPO. Brands can go even further if they have traced their palm oil and work directly with plantations to minimise the risk.
Shea: Unlike other commodities, shea is viewed through an empowerment lens. Collection is traditionally female-led in the Sahel region of Africa, and brands are rewarded for working with co-ops or the Global Shea Alliance to uplift these workers.
Services and Retailers
For the Services vertical, commodities sourcing is a non-core area triggered only when a business uses relevant inputs to deliver its service, such as:
Product-based services: Hairdressers, spas, and auto-repair shops are assessed if they use products containing high-impact commodities like palm oil or mica
Mica-specific sourcing: Businesses that use mica (often found in shimmering beauty products or certain equipment) are asked specifically about human rights sourcing policies covering traceability and risk assessment
Services and Retailers are not expected to have as detailed sourcing policies as Beauty brands. However, they are expected to minimise the risk of the products that they use or sell, such as sourcing products that are Fairtrade certified.
Conditional assessment
Commodities questions are only triggered if brands sell or use products that contain relevant materials.
Disclosure and data sources
Good On You primarily relies on a brand’s public website and formal sustainability, CSR, or ESG reports. In addition, for commodities impact we reference:
Brands are expected to publish their full ingredient list to determine which commodities are used in their products
Analysts cross-reference brand claims with third-party databases like RSPO, and the RSPO Annual Communication of Progress report to verify certifications and the proportion certified
Relevance for different brands
The commodities sourcing assessment varies based on the size and nature of a business.
Large brands
Large brands are expected to disclose their commodity-specific policies, with aspects including risk assessment, traceability, and governance. In addition, large brands should also disclose targets to reduce human rights abuses connected to that commodity.
Small brands
Small brands are not expected to have formal policies and targets. They are expected to focus on action, such as sourcing certified commodities.
Best practice and common pitfalls
Best practice principles
Knowing the exact origin of raw materials (farms or mines) is the first step toward management
Policies should not "cherry-pick" issues but must cover traceability, risk assessment, supplier engagement, and reporting
Third-party verification: Relying on robust, independent certifications rather than self-declared "sustainable" claims
Common pitfalls
Brands often fail to disclose the presence of "hidden" commodities. A common error is not disclosing whether palm oil is used in their products
Using terms like "fairly sourced" without a defined policy with clear mechanisms for monitoring and reporting