pg. 7

“Factory audit programme

We are committed to the ongoing improvement of transparency in our supply chain and addressing the associated risks. To help us with this further down our supply chain, in March 2022 we launched an SAQ for our Tier 3 units. This means that suppliers are now required to share information on Tier 3 units including worker numbers, employment contracts, wages, working hours, health and safety, and accommodation. While we do audit some Tier 3 sites on a case-by-case basis, these SAQs form the basis of our future visits, along with helping us to gather baseline information to feed into our wider ethical trade strategy.

We use a combination of our own in-country teams and third-party audit providers to identify risk at factory level against our ethical trade policies (see page 6). Key audit providers we partner with are The Reassurance Network, ELEVATE, Sustainable Compliance Management, and the Accord. Another key partner of ours is ILO Better Work, which runs in-country programmes in Bangladesh, Cambodia, and Vietnam to improve compliance in our factories through assessments. ILO Better Work also runs advisory and training sessions in our factories in Madagascar.”

“All Tier 1 and Tier 2 factories in our supply chain are audited at least once a year. Between May 2021 and August 2022, together with our third-party auditors, we carried out 649 unannounced and semi-announced audits across Tier 1 and 2 of our supply chain, which accounts for nearly 90% of our Tier 1-3 supply chain and covers 64% of the total workforce.”

'Where relevant, we ultimately reserve the right to audit our non-stock vendors against our standards and policies and will carry out such audits if we deem them necessary to review risk.' - 7