Freedom of association is covered in the suppliers manual and human resource policy.

Suppliers Manual, pg. 16

"2. SOCIAL

Within the social sphere, the supplier must commit to comply, control, communicate, raise awareness and train all its employees, including

outsourced workers, and suppliers, on the topics presented below:

• Forced labour

• Child labor

• Harassment or abuse

• Compensation, benefits and working hours

• Discrimination

• Free trade union association and collective bargaining"

Human Resource Policy, pg. 4

"Freedom of Association and Collective Bargaining: Brazilian labor law allows union membership for any employee. Grendene never interferes in this membership. In collective bargaining, workers’ and employers’ unions are responsible for negotiating economic and social clauses. "

In addition to the above information, the company also states that the suppliers are audited to check compliance with complementary management, development, quality, and sustainability requirements (environment, social responsibility, and occupational health and safety).

Supplier Manual, pdf page no. 9

The approval of suppliers, among other requirements, will include a systematic self‐assessment of the supplier and an audit to confirm the information provided, in addition to checking compliance with complementary management, development, quality and sustainability requirements (environment, social responsibility and occupational health and safety). After approval, suppliers will be monthly monitored and classified according to their performance. Only a few companies participate in the pilot project in order to allow them to experience the planned system and generate learning. GRENDENE believes that, with responsible action, with reciprocity and efficiency, it is possible to build solid and sustainable relationships. The actions related to this project will have a dedicated team with the PDQM area of Research, Development and Quality of Materials, which make up the Supply Division that are available for any need.