In 2021, we finalised new Key Performance Indicators (KPIs) under each of our human rights strategy focus areas.The KPIs for modern slavery were agreed in consultation with key stakeholders (pg 23)

pg. 16

"In parts of the garment industry in southern India, workers are recruited through contracts under which they are paid a lump sum at the end of a three-year period, and have restrictions placed on their movement, known as Sumangali. This leaves them vulnerable to abuse. We have continued to monitor our direct suppliers closely and work through the ETI to ensure this practice does not take place in our supply base. We have not identified any cases of Sumangali in our direct supply base in 2020/21. We continue to map our clothing and textile supply chain - including spinning mills, fabric mills and other processing sites - to ensure better visibility of any potential risks. In the last year we have:

• Assessed the working conditions of the top 36 spinning mills and fabric mills used by our suppliers, and followedup to ensure non-conformances are resolved. Following our assessment, a mill in Tamil Nadu has been added to a prohibited sourcing list due to its lack of willingness and action to remedy the poor working conditions identified. We have written to inform our clothing suppliers not to buy any materials from that mill for Tesco production.

• Collaborated with other members of the ETI to write to the Minimum Wages Committee for Textile Industry Tamil Nad. We have recommended that the evaluation process of the minimum wage level should align with international labour standards set by the ILO, by taking into account the needs of workers and their families, the general level of wages in India, the cost of living and inflation; social security benefits, the relative living standards of other social groups and economic factors."

Above information is not relevant

Pg 15

"Purchasing Practices

We recognise the role purchasing practices can have on the ability of suppliers to maintain good labour conditions. In the past year, we have continued to create greater alignment between our responsible sourcing and commercial teams. This has included raising awareness of human rights risks within our supply chains, engaging in the commercial agreement process for products known to have a higher risk of forced labour and ensuring human rights priorities are captured in our plans with our strategic supplier partners.

This year, across our non-food supply base, we have launched an ‘Ethical First’ initiative with internal colleagues and all Own Brand general merchandise and apparel suppliers. Under this approach, Tesco commits to only buying and selling ethically and has requested suppliers consider ethical implications as a priority. All non-food functions, including commercial, are committed to working together end-to-end for an ethical supply base. All suppliers are also assessed on their ethical performance, capability and transparency. Improvement plans are required for lower scores, with improvements linked to future business growth. As part of this approach, we have launched a new policy re-emphasising to our teams and suppliers that forced labour is a zero tolerance issue. Where use of forced labour is identified, the suppliers and factories involved will be exited. Online conferences have been held where our senior leadership clearly communicated our position to suppliers."