"HUMAN RIGHTS RISK ASSESSMENT

In 2017 Kering’s Sustainability Department analysed the practices of the Group by comparing them to the United Nations Guiding Principles on Busi-ness and Human Rights. This assessment enabled Kering to identify specific points for progress in areas including public commitment and policy, scope of internal control procedures, grievance and remediation mechanisms, and external communications. In addition of this analysis, Kering’s Compliance Department, together with Kering’s Internal Audit Department and Sustain-ability Department, took steps to ensure compliance with the requirements of French ‘Devoir de Vigilance’ legislation, to identify risks and prevent severe impacts, including on human rights and fundamental freedoms.

Keen to refine its understanding of human rights issues throughout the supply chain, and to learn from good practices on the matter, in 2020 Kering’s Sustainability Department carried out a new study focusing on the governance and management of human rights within the supply chain, at the Group and House level. Carried out with GoodCorporation, an independent organization specializing in business ethics, this study included consultations with various internal stakeholders in order to gather their feedback. To identify new avenues for progress, the findings from the study were analysed in the light of the recommendations given in the UNGP and the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Foot-wear Sector.

In 2020, Kering’s Sustainability Department also conducted a study aiming to identify and assess human rights risks linked to the supply of certain raw materials. This analysis was carried out in the countries in which the Group suppliers are located. The findings from these various studies enabled the Group to identify a number of key points and subjects, and the resulting recommendation were shared with members of the Executive Committee.

The different work undertaken led Kering to update the list of risks that the Group considers salient with regard to human rights (forced labour, child labour in raw materials sourcing, discrimination, health and safety in our supply chains, decent wages for our suppliers’ employees, harassment).

The materiality assessment carried out by the Group identified respect for human rights as one of its central strategic challenges. This assessment, which was renewed in 2020, confirmed that respect for human rights is among the crucial challenges facing the Group.

In 2021, the risk map will be reviewed to update the identification of risks pertaining to severe impacts on (i) human rights and fundamental freedoms, (ii) human health and safety, and (iii) the environment, to improve the regular assessment procedure, and to form an up-to-date action plan. This project is led by the Compliance Department, in association with internal and external stakeholders and with assistance from an independent external service provider." p.9