HOFER KG dba ALDI SOUTH Group

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"to address gender inequality and to improve working conditions for women, ALDI strives for gender equality within its supply chains where it is being undermined or at risk."

"As a cross-standard cut-off date for any commodity, we specify the 1stJanuary 2020. The cut-off date marks the date after which no deforestation or conversion of land to produce the commodity can take place. Earlier cut-off dates for each individual commodity are applied in line with the market (e.g., Amazon Soy Moratorium (2006)) and available certification schemes (e.g., RSPO P&C (2018), Rainforest Alliance (2014), FSC (1994)). Should there be an even earlier cut-off date defined by legal regulations, market or by recognised standard certifications, we will of course adhere to this earlier date."

"Assessed deforestation-risk of beef in supply chains in 2020 [...] <1% of beef from deforestation-risk regions in South America in 2020.

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"Certification requirements often represent a barrier for smallholders to participate in global supply chains [...] Based on this knowledge, we developed an approach to include smallholders in the scope of our commitment: We purchase and accept RSPO Independent Smallholder Credits to support their work directly. [...] Smallholders do not always have access to a certified mill, and so Independent Smallholder Credits are the only possibility for smallholders to benefit from an RSPO premium for growing certified palm. [...] Via our E-Learning, we inform suppliers about these framework conditions and encourage them to engage with smallholders. Also in exchange with actors further up the supply chain, such as traders, we underline the importance of integrating smallholder farmers in sustainable global palm oil supply chains"

"to address gender inequality and to improve working conditions for women, ALDI strives for gender equality within its supply chains where it is being undermined or at risk."

"In addition, we ask our own-brand suppliers to commit to compliance with the following aspects when purchasing the required palm oil products along the upstream stages ... Respectful treatment of the local population: Early participation of the local population in all decisions affecting their land and living conditions in accordance with the principle of free prior informed consent (FPIC)."

"As a cross-standard cut-off date for any commodity, we specify the 1stJanuary 2020. The cut-off date marks the date after which no deforestation or conversion of land to produce the commodity can take place. Earlier cut-off dates for each individual commodity are applied in line with the market (e.g., Amazon Soy Moratorium (2006)) and available certification schemes (e.g., RSPO P&C (2018), Rainforest Alliance (2014), FSC (1994)). Should there be an even earlier cut-off date defined by legal regulations, market or by recognised standard certifications, we will of course adhere to this earlier date."

[Translation] "In Côte d'Ivoire, we have initiated a smallholder project to set an important course for the sustainable cultivation of oil palms. The focus of this project is on the protection of native forests and environmentally sound cultivation methods. By purchasing RSPO credits for palm oil produced by smallholders ("RSPO Independent Smallholder Credits"), we provide direct support to these smallholders. Trading RSPO credits enables smallholders to directly receive premiums for growing sustainable palm oil. These credits are often the only way for smallholders to receive premiums. Furthermore, we are a member of the "RSPO Smallholder Standing Committee" as a representative of the retail sector. This committee pursues the goal of strengthening smallholders within the framework of the RSPO and contributing to more sustainability in the market. Among the major achievements of this committee so far is the development of a standard for oil palm growing smallholders."

"In our recent risk assessment, we examined more than 25 commodities based on their global deforestation risk and relevance in our supply chains. The assessment allowed us to identify ten supply chains that have the highest deforestation-risk within our business: Palm Oil [...] For palm oil [...] the analysis shows that we have significantly reduced the risk of deforestation in our supply chains: Relevant products are certified by standards that contain robust forest protection criteria. We also invest in transparency and engage in sector-wide collaboration initiatives. For these supply chains, we will continue the measures we currently have in place and monitor their effectiveness in order to identify possibilities to strengthen them. For palm oil for example, we will increase the transparency in our supply chain to the trader and on the amount of palm oil used in animal feed."

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"to address gender inequality and to improve working conditions for women, ALDI strives for gender equality within its supply chains where it is being undermined or at risk."

"As a cross-standard cut-off date for any commodity, we specify the 1stJanuary 2020. The cut-off date marks the date after which no deforestation or conversion of land to produce the commodity can take place. Earlier cut-off dates for each individual commodity are applied in line with the market (e.g., Amazon Soy Moratorium (2006)) and available certification schemes (e.g., RSPO P&C (2018), Rainforest Alliance (2014), FSC (1994)). Should there be an even earlier cut-off date defined by legal regulations, market or by recognised standard certifications, we will of course adhere to this earlier date."

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"to address gender inequality and to improve working conditions for women, ALDI strives for gender equality within its supply chains where it is being undermined or at risk."

"As a cross-standard cut-off date for any commodity, we specify the 1stJanuary 2020. The cut-off date marks the date after which no deforestation or conversion of land to produce the commodity can take place. Earlier cut-off dates for each individual commodity are applied in line with the market (e.g., Amazon Soy Moratorium (2006)) and available certification schemes (e.g., RSPO P&C (2018), Rainforest Alliance (2014), FSC (1994)). Should there be an even earlier cut-off date defined by legal regulations, market or by recognised standard certifications, we will of course adhere to this earlier date."

""We are a member of several relevant multi-stakeholder groups that advocate for sustainable soy production at different levels of the soy supply chain. These include the Retail Soy Group (RSG), the Roundtable on Responsible Soy (RTRS), the Soy Transparency Coalition (STC) and the Cerrado Statement of Support Group. These memberships enable us to dialogue and exchange with feed retailers and manufacturers, as well as other food retailers, to establish industry-wide solutions for sustainable soy. "

"In our recent risk assessment, we examined more than 25 commodities based on their global deforestation risk and relevance in our supply chains. The assessment allowed us to identify ten supply chains that have the highest deforestation-risk within our business: [...] Soy [...] For these supply chains, we will continue the measures we currently have in place and monitor their effectiveness in order to identify possibilities to strengthen them."

Achieved: ">50% of soy footprint certified to a deforestation-free standard or from deforestation-free origins in 2020." [...] In their RTRS annual report Aldi South state that their annual soy footprint is 627,641 tonnes (direct + indirect). In 2021 33,141 tonnes = segregated certified. 131,818 tonnes = Mass Balance certified. 67.655 tonnes = RTRS credits

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"to address gender inequality and to improve working conditions for women, ALDI strives for gender equality within its supply chains where it is being undermined or at risk."

" In August 2015, we joined the Leather Working Group (LWG)."

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"In order to offer greater transparency to our customers, we are publishing the addresses and number of employees of all our main production facilities used for the manufacturing of garment textiles, household textiles and shoes. Production facilities are classified by product groups or country and the information will be updated bi-annually. The list below contains main production facilities used for the manufacturing of ALDI products that were sold in stores between April 2021 and March 2022. "

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."

[Translation] "The ALDI "Social Standards in Production" clarify our commitment to humane and fair working conditions. They are based on: the United Nations Universal Declaration of Human Rights [...]the ILO standards We expect our suppliers and business partners to act as a first duty in full compliance with all applicable national laws, rules and regulations, as well as in accordance with existing industry standards, ILO standards and UN conventions that are consistent with national law [...] Our suppliers are obliged to grant workers in their supply chain the right to freedom of association and the right to collective bargaining [...] We reject any form of discrimination [...] Child labour, as defined by ILO and UN conventions and/or nationally applicable law, is not permitted [...] Any form of servitude, forced or compulsory labour, servitude, human trafficking or involuntary labour is not permitted [...] We expect our suppliers and business partners to make clear provisions in their supply chain regarding occupational health and safety regulations and health protection. [...] Our suppliers and business partners ensure that the facilities and buildings they use are stable and safe and that workers are protected against any foreseeable accidents [...] Physical punishment, mental or physical coercion and/or verbal abuse of workers are prohibited. [...] Our suppliers and business partners are expected to apply these standards to all sub-suppliers throughout the entire production process."

"ALDI is committed to eliminate deforestation and conversion of natural ecosystems from our high-priority supply chains by 31 December 2030. [...] Our high priorities: timber and paper products, wood-based packaging […] Achieved: 100% of all relevant wood and paper-based products from recycled or certified raw materials (since 2021). FSC, PEFC, Blauer Engel and Sustainable Forestry Initiative (SFI; only for the US). […] WOOD-BASED PACKAGING: 100% of core range product packaging from recycled or certified raw materials (since 2021). » FSC, PEFC and Sustainable Forestry Initiative (SFI; only for the US). […] All measures we are describing in this position statement apply to our own-brand products.”

"As a cross-standard cut-off date for any commodity, we specify the 1stJanuary 2020. The cut-off date marks the date after which no deforestation or conversion of land to produce the commodity can take place. Earlier cut-off dates for each individual commodity are applied in line with the market (e.g., Amazon Soy Moratorium (2006)) and available certification schemes (e.g., RSPO P&C (2018), Rainforest Alliance (2014), FSC (1994)). Should there be an even earlier cut-off date defined by legal regulations, market or by recognised standard certifications, we will of course adhere to this earlier date."

"In terms of monitoring, ALDI maintains an overview of production facilities in its supply chains via a combination of third party social audits and ALDI Social Assessments (ASAs), which are conducted by ALDI employees based in Bangladesh and Hong Kong. ALDI maintains a checklist for assessing forced labour risks when interviewing workers in the context of ASAs. On farm level, ALDI conducts ALDI Producer Assessments (APAs) jointly with an external service provider to assess compliance with ‘ALDI’s Social Standards in Production’ and to identify forced labour risks on farms supplying to ALDI."

"MONITORING We support our suppliers in implementing our requirements by clearly communicating what we expect, by providing guidance and by monitoring compliance. Our direct suppliers are contractually bound to follow general and commodity-specific sustainability requirements and are subject to consequences in case of non-compliance. We monitor the implementation of our requirements through regular data assessments by our service providers, certification schemes, and cooperation in multi-stakeholder initiatives."