pg. 1

"Designer Brands makes the following statements in response to the California Transparency in Supply Chains Act of 2010 (SB 657): DSW verifies its product supply chains to evaluate and address the risks of human trafficking and slavery through the C-TPAT (Customs Trade Partnership Against Terrorism) processes. The C-TPAT processes that DSW has implemented provide robust controls for ensuring all shipping containers are checked prior to loading and during the loading process. All overseas factories are required to follow this process, which includes the following controls:

Yards are to be fenced with security provided;

Supervisors perform seven point inspections of all containers prior to loading;

Loading is supervised by Managers and/ or Supervisors and includes security camera surveillance;

Loaded containers are sealed by management immediately after loading;

Seal integrity is reviewed at port arrival."

...

"DSW audits compliance with the its policies and procedures, including those relating to slavery and human trafficking, through two audit processes. For new factory partners we hire a third party, international, Quality Assurance and Security validation company to conduct unannounced audits and inspections. During these audits, the outside company assesses, among other factors, the factory conditions, employee work conditions, and product quality. Factory partners with whom we have an established relationship are subject to audits conducted by DSW on a random basis. If DSW finds evidence of slavery or human trafficking in the supply chain we expect action to be taken to eliminate such activities."