p. 14

Factory audits. A pre-determined level of spend after one season will then determine the requirement for a 3rd party ethical audit which includes a corrective action plan (CAP).

We carry out full analysis of the CAP and address the open issues stated in the plan in order to continue the relationship. We understand and appreciate the costs and work involved in preparing and maintaining standards to achieve a successful audits so JD joined the FFC (Fair Factories Clearing House) in 2016 which allows the sharing of audits and CAPs to minimise repeated costs and actions on factories. 77% of our first tier suppliers within the Group are coded Green which shows successful compliance with our principles and strategies.

A pre-determined level of spend after one season will then determine the requirement for a 3rdparty ethical audit which includes a corrective action plan. (CAP). We carry out full analysis of the CAP and address the open issues stated in the plan in order to continue the relationship.14