Discusses remediation on page 9.

pg. 13

“A non-compliance regarding regular employment was identified in a country in Asia through the FY2022 audit program, where foreign workers at a supplier’s manufacturing facility were charged recruitment fees by the sourcing agent in their home country. The supplier sought to proactively address the matter and is reimbursing the workers. The precise amount of the recruitment fee was not able to be substantiated so a reasonable approximation based on a range provided by the various affected workers is being repaid.”

“The supplier was proactive in addressing this matter and has implemented a formal passport safekeeping and request procedure which also clarifies the process for 24-hour access to retrieve a passport in the case of an emergency. For the supplier to hold a passport for safekeeping, a signed consent (in English and the worker’s native language) is also now required.”

“We appreciate that potential gaps, such as these, create a risk of escalation into more serious concerns, including exposure to modern slavery practices. Accordingly, the suppliers subject to these findings have been placed on supplier development plans, which are tracked by the ESCT team, and may be scheduled for a follow-up audit if warranted.”