The company reports all the suppliers are screened using labor practices criteria.

pg. 70

"Selection and monitoring

As a guarantee of an operation aligned with our values and commitments, we demand all our suppliers, in the contraction moment, to adhere to our Suppliers’ Code of Conduct. To support the definition of relationship strategies, monitoring, and development of the suppliers’ chain, we work on a multi-disciplinary committee, which defines the follow-up and development actions for the suppliers, observing the potential risks to the business. Concerning the confections, in the moment of their selection and through the term of the contract, all suppliers go through non- announced on-site audits, with the Cia. Hering’s team and the period between 30, 90, and 180 days, according to the exposure to risks presented. In the audits, we evaluate the adherence to the commitments and the good practices of social-environmental responsibility and conformity to the labor laws, health and security legislation, besides documental verification of licenses and environmental issues."