pg. 6

"A key inherent modern slavery risk identified for all the Group’s businesses is suppliers not complying with Wesfarmers’ labour standards, including dangerous health and safety practices, excessive working hours, unpaid work, below legal minimum wages, forced labour, child labour and limited or no freedom of association."

pg. 11

"CASE STUDY

Kmart Group making progress on living wage commitments

Kmart Group is committed to working with partners to achieve a living wage for factory workers. A living wage is the minimum income necessary for a person to meet their basic needs as well as that of their family, including some discretionary income.

Kmart Group’s living wage efforts are focused through its membership of ACT, a living wage collaboration between international brands and retailers, and IndustriALL Global Union, the international trade union federation.

A key initiative of ACT is its Global Purchasing Practices Commitments, aimed at developing a common set of purchasing practices that will support the movement towards living wages in the apparel industry.

The commitments cover five broad areas for brands, including that purchasing prices detail negotiated wages as itemised costs. The commitments also address fair terms of payments, order demand planning and forecasting, undertakings around training on responsible sourcing and buying, and strategies for responsible exit.

Kmart Group has committed to fully implementing ACT’s Global Purchasing Practices within suppliers of own-brand apparel and footwear by December 2023.

In the past year, Kmart Group has established a project team to drive the implementation of changes required to meet this commitment. This project team has been focused on the following activities:

– The development and implementation of a new open costing sheet for suppliers to itemise and ring-fence labour costs. Approximately 80 per cent of suppliers have now submitted open costing in the new format

– Continued roll-out of enhanced planning and forecasting mechanisms with strategic and core suppliers to improve accuracy of forecasts and maximise capacity planning in factories

– The development and implementation of a responsible exit strategy and procedures in accordance with the ACT Responsible Exit Policy and Checklist, to manage the end of a commercial arrangement

– Commenced implementation of the ACT purchasing practices baseline assessment with the team and suppliers. Feedback from the survey will be used to measure progress toward Kmart Group’s 2023 commitments and identify further opportunities for improvement."