Label STEP

1. Review the STEP Standard: Visit label-step.org and download the full STEP Standard document to understand the fair trade criteria your company must meet, covering wages, child labor, and environmental practices across your handmade carpet supply chain.

1. Assess your supply chain: Map your sourcing relationships — identify the weaving facilities, exporters, and intermediaries involved in your handmade carpet supply chain and evaluate current compliance gaps against STEP criteria.

1. Contact Label STEP: Reach out to the Label STEP team via the "Become a Partner" page on label-step.org to express interest and receive guidance on the application process, applicable partner category (wholesale, retailer, or e-commerce), and associated fees.

1. Prepare compliance documentation: Gather evidence of your sourcing practices, supplier agreements, wage records, and any existing audits or social compliance reports that demonstrate adherence to STEP's fair trade requirements.

1. Submit your application: Complete the formal partner application, providing all required documentation for Label STEP's second-party review by their compliance team.

1. Undergo compliance review: Label STEP staff will assess your submitted documentation and may conduct follow-up inquiries or remote verification of your supply chain claims.

1. Receive your license and use the mark: Upon approval, you will receive a license agreement granting you the right to use the STEP fair trade mark across your handmade carpet marketing and product offerings.

1. Maintain annual compliance: Renew your license each year by submitting updated documentation and demonstrating continued adherence to the STEP Standard.

Label STEP evaluates companies against its comprehensive STEP Standard, which covers four core areas of fair trade compliance across the handmade carpet supply chain.

Fair Wages and Working Conditions: Weavers and workers must receive fair, living-wage compensation for their labor. The standard sets requirements around minimum pay levels, timely payment, and reasonable working hours at weaving facilities in producing countries such as Nepal, India, Pakistan, and Afghanistan.

Elimination of Abusive Child Labor: The STEP Standard prohibits exploitative child labor in carpet production. It distinguishes between abusive child labor (which is banned) and non-exploitative participation by older children in family settings, with clear criteria for what constitutes a violation. Companies must demonstrate that their supply chain partners comply with these requirements.

Environmental Responsibility: Production practices must meet defined environmental standards, including responsible use of dyes and chemicals, waste management, and minimizing ecological harm at weaving facilities. This reflects the program's commitment to sustainability alongside social standards.

Supply Chain Transparency and Traceability: Companies must be able to document and demonstrate the provenance of their handmade carpets, including the weaving facilities and exporters involved. This traceability requirement underpins the credibility of the entire certification.

Assessment is conducted through second-party verification by Label STEP staff, who review submitted documentation, sourcing records, and supplier information. The certification applies at the company level, meaning all handmade carpets sold by a licensed partner are covered by the standard.

Label STEP occupies a niche but well-established position as the only dedicated fair trade certification specifically designed for the handmade carpet industry. Founded in 1995, it predates many broader textile sustainability standards and has built credibility in key carpet-importing markets across Europe and North America. Its focus on a single product category — handmade carpets — gives it depth and specificity that generalist textile standards cannot match, making it the reference point for ethical sourcing in this sector.

Adoption is concentrated among specialty carpet retailers, importers, and wholesalers in Switzerland, Germany, Austria, France, the United Kingdom, and Canada. The program has attracted a community of certified partners ranging from boutique importers to larger retail brands. However, it remains a relatively small program by global standards, and its recognition is strongest in the European market where fair trade labeling has deeper consumer awareness. In North America, awareness of the label is more limited compared to competitors like GoodWeave.

The handmade carpet industry faces ongoing scrutiny over child labor and worker exploitation, particularly in producing countries like Nepal, India, Pakistan, and Afghanistan. This keeps demand for credible ethical sourcing certifications relevant. However, Label STEP faces competition from GoodWeave International, which has broader international recognition and a stronger presence in the North American market, as well as from broader textile standards like SA8000 and GOTS. The trend toward corporate supply chain due diligence legislation in Europe (notably the EU Corporate Sustainability Due Diligence Directive) is likely to increase demand for verified ethical sourcing credentials, which could benefit Label STEP's market position in its core European markets.

Label STEP was established in 1995 by the Max Havelaar Foundation in Switzerland, building on the foundation's broader mission of promoting fair trade. The program was created in response to growing international concern about child labor and exploitative working conditions in the handmade carpet industry, particularly in South Asian producing countries. At the time, the carpet sector had attracted significant negative media attention, and there was no dedicated fair trade standard to address the specific social and environmental challenges of handmade carpet production.

Over the years, Label STEP developed its own comprehensive STEP Standard — described as the industry's most thorough fair trade framework — and built a network of certified partner companies across Europe and North America. The program evolved to include not just compliance verification but also proactive Weaver Empowerment initiatives, supporting programs that improve the livelihoods of weavers beyond minimum standards. In recent years, Label STEP has operated as an independent non-profit organization (label-step.org), maintaining its connection to the fair trade movement while focusing exclusively on the handmade carpet sector. The program continues to expand its partner network and has highlighted initiatives such as women-only weaving centers and inclusive facilities for artisans with disabilities.