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"Supplier Assessments (Audits)

All facilities producing for lululemon are regularly assessed against the requirements of our VCoE Compliance Benchmarks. Our policy is to assess all Tier 1 and Tier 2 facilities every 12 months at a minimum. Additional assessments may be triggered by certain risks or grievance investigations. Subcontractor re-assessment frequency is based on risk factors such as geography, production processes, or elevated risk of severe issues such as forced labour or foreign migrant workers.

Assessments are conducted by either our internal RSC team or nominated third-party assessors. Selected facilities are also assessed through our membership with the FLA. Assessments are carried out on-site and include visual inspections of the entire facility, including on-site dormitories, documentation reviews, and interviews with management and workers. If an assessment indicates potential for severe risks, we conduct heightened due diligence."

"In 2022, we carried out 452 RSC assessments; 74 percent were conducted by our internal RSC team, and 26 percent were conducted via nominated third-party assessors. The FLA carried out assessments of five percent of our Tier 1 facilities. If an issue is flagged in an assessment, we work with the supplier on a Corrective and Preventative Action Plan (CAPA)."