Walk Free+MSA risk management (revised)+Kering+2020+Discussion

pg. 12

"STANDARDISED AUDITS

A single and comprehensive audit methodology with a questionnaire containing 97 questions divided into 13 categories (which includes child labour and forced labour) which are aligned with the best standards in the field, in particular the SA8000 and SMETA standards. Follow-up audits include a smaller scope focus on the area(s) in which breaches of compliance were identified or observations were made during the first comprehensive audit. In any case, the announced or unannounced audits consist of document reviews, site tours, and workers interviews. Workers are selected to offer a representation of the workforce, notably concerning age and union affiliation, if any. These interviews are confidential. The frequency of audits depends on the findings of previous audits. Nevertheless, periodic audits will be undertaken regularly to ensure compliance;"

pg. 16

"Within this portfolio of suppliers, 2,399 audits were conducted in 2020 despite the health crisis (3,241 in 2019), breaking down as 1,102 comprehensive audits and 1,297 follow-up audits. A total of 37% of these audits were carried out by Kering’s Internal Audit team, and 63% by external auditors, with the Group audit protocol applied in the same way for all audits conducted. This means that 41% of suppliers were audited in 2020."