Kering S.A.

"As a global luxury industry leader, we expect and require our business partners – including our suppliers and subcontractors – to do the same. Kering is committed to: [...] • prohibiting the use of slavery, human trafficking, debt bondage, compulsory labor and/or forced labour; • eliminating child labor; • preventing violence, discriminatory practices and harassment [...] The SUPPLIER and its sub-suppliers shall guarantee the employees’ rights to establish, participate in and organise trade unions according to their own will and their right to bargain collectively through the trade unions"

"Part of our 2025 sustainability strategy is to achieve gender equality and equal pay among women and men at every level of the organization and to introduce a mentoring program for women at the international level. [...] Women are an important part of the workforce in our supply chain and may face multiple economic and social barriers to achieving gender equality. We support women’s empowerment across our global supply chain and engage with our business partners to address any barriers. In particular, our business partners are expected to develop women’s skills and opportunities, ensure that women and men are given equal pay for equal work, and provide a workplace free from violence and harassment. For pregnant workers and workers who have recently given birth or are breast feeding , appropriate measures must be put into place to ensure the maintenance of good health and well-being at work."

"Kering requests that its suppliers acknowledge the right of Indigenous People and rural communities to give or withhold their Free, Prior and Informed Consent (FPIC) before new logging rights are allocated or plantations are developed."

"We restate our commitment to human rights and intend to conduct ourselves as a socially responsible corporation wherever we operate. We will not tolerate threats, intimidation or attacks, whether physical or legal, against defenders of human rights."

"Across all raw materials, suppliers must meet “minimum” requirements immediately. For example, in the case of leather, this means only purchasing skins from suppliers who are willing to disclose the source. Suppliers must also meet additional conditions by 2025. For example, in the case of leather, this will mean having full traceability back to the farm, with high standards of ecological and animal welfare being applied. Kering’s recent Sustainability Progress Report showed that the Group has so far achieved 68% alignment with the Kering Standards, and is well on track to meet its goal of 100% by 2025."

"Kering forbids the use of leather from farms involved in any form of deforestation in the Amazon biome since July 2006, or farms included in IBAMA’s embargo list. Suppliers are required to ensure, and provide documentation of, traceability so as to;- guarantee that leather supplies do not come from farms which directly or indirectly (through the production oflivestock fodder) use lands recently (since 2009) converted to pasture from sensitive natural eco-systems (especially forests and grasslands) with a high conservation value;"

"Through its different programs on the field, Kering engages with a significant numbers of small holders: - Through its partnership with the Savory Institute, Kering contributes to the support of small holder farmers in 16 countries worldwide to transition towards regenerative farming practices. In 2021, the collaboration with the Savory Institute focused on establishing and supporting wool and leather supply chains around the world (New Zealand, United Kingdom, Turkey, etc.). - Through its multi-stakeholder project in the South Gobi area, Kering supports around 200 herder families through bonus/incentive payments and better pricing in order for them to switch to more sustainable herding practices (holistic grazing, improved land management, etc.) - Through its project in South Africa, aiming at building up a sustainable sheep leather supply chain from farm to finished leather, Kering collaborates with the Karoo Meat of Origin certification programme. This programme, which looks at environmental, social and animal welfare practices at farm level, is engaging 236 farmers to improve their practices"

"Risk related to cattle commodity are assessed across 4 approaches (1,2,3: internal company methods ; 3: national specific tools and 4:databases). Internal methods have been chosen because together with national specific tools and databases, they form a robust methodology to assess cattle-related risks for both direct operations and supply chain"[...]"Internal sourcing risk assessment framework (environmental, social and animal welfare risks on all the supply chain - including cattle-related forests risks) performed every year by our team of specialists with 3 levels of risks (low, medium, high) for each sourcing country."[...]"The internal assessments guide Houses in their supply decision and an action plan is built yearly for each House. 3. EP&L assesses impacts and reliance on natural resources (including forest resources) and attributes monetary value to the Group’s environmental impacts throughout its supply chain. Through scenario simulation, EP&L understands key risks drivers behind the use of raw materials with respect to their geographical origin and process type. Specifically regarding forests, EP&L measures and compares the impact of land use (including deforestation) of sourcing countries"

"Kering works with suppliers to audit all facilities to assess adherence to the Kering Standards.[...]Compliance with all national and international laws, conventions and regulations"

"If you are working for a company supplying Kering or one of its Houses and you think you witness or suffer practices contradictory to these principles, or if you have a question about them, you can confidentially contact Kering Alert System" The document linked specifies the Kering Alert Sysrtem and how to get in touch.

"Leather is mainly used within the leather goods and shoes business units. In 2021, with more than 37,996 tons sourced, leather represents 44% of the total quantity of raw materials that are used within the Group. In overall, the top countries from which the animals producing the leather used by the group are grazed are: 1. France 2. Italy 3. Netherlands 4. Spain 5. United States 6. United Kingdom. In terms of quantity, these countries represent 60% of the total leather used by the Group (all type of leather together: bovine/ovine/pig/exotic skins...). Considering that Kering Brand's are buying high quality leather, especially due to its Luxury activities, leather is representing 56% of the total Group procurement spend."

"Training and ethics awareness programs are available to all employees of the Group worldwide....Similarly, every year each employee in the Group must take the compulsory training course or courses on ethics developed for all employees of the Group worldwide... Kering and its Houses provide support and advice to them (training program, development of skills, sharing good practice and so on) to ensure that they comply with its Code of ethics and Suppliers’ Charter...The Group carries out checking procedures and does not knowingly work with partners who do not share these essential principles at the heart of their businesses and in the choice of their own service providers."

"For cattle products, we control, monitor and verify compliance with no conversion and no deforestation commitments through our new Biodiversity Policy published in 2020, which is focused on three goals: • stemming biodiversity loss; • restoring ecosystems and species; • sparking systemic change that goes above and beyond our supply chains. In addition, thanks to the Savory Institute’s Ecological Outcome Verification (EOV) program, Kering will have access to data and verifications carried out by the Institute to demonstrate the positive impact of its sourcing choices on soil, water management, animal welfare and biodiversity. 3,420 supplier audits were performed in 2021, representing 64% of our suppliers. After qualification, suppliers’ continued compliance with Kering requirements is verified by follow-up audits. In 2021, 93% of leather is traceable and 68% is aligned with Kering Standards."

"Known or estimated deforestation/ conversion footprint (hectares) 56,673 [...] Focusing specifically on EP&L landuse impact related to leather, we can see that the total Ha impacted through leather sourcing went from 111,929 Ha in 2015 to 168 602 Ha in 2021 which represents an increase of 56,673 Ha."

"Procedures to address and resolve non-compliance with suppliers Developing time-bound targets and milestones to bring suppliers back into compliance...In 2021, 68% of leather is aligned with Kering Standards. % of total suppliers in compliance: - 64% of suppliers were audited in 2021. After qualification, suppliers’ continued compliance with Kering requirements is verified by follow-up audits. Response to non-compliance: The Group and its Houses implement corrective actions when non-compliance is identified. A single central body allows Kering to control the compliance of Group suppliers. The Hercules system is build on 6 pillars: 1) The Sustainability Principles 2) Central management team 3) Clear and uniform procedures for all the Houses, corresponding to the different stages of the supplier relationship, including the activation procedure, monitoring procedure, and termination of contract procedure 4) Risk assessments and audit plans are constructed on the basis of a set of predefined criteria. 5) A single and comprehensive audit methodology, with a comprehensive audit questionnaire (Containing 97 questions). Follow-up audits with a smaller scope focus on the area(s) in which breaches of compliance were identified. 6) Anomalies classified into four categories and standard responses to each case: - zero tolerance: immediate establishment of a committee - serious compliance breach: one month to resolve and follow-up audit - moderate compliance breach: three months to resolve and follow-up audit - observations: six months to resolve and corrective action plan"

"As a global luxury industry leader, we expect and require our business partners – including our suppliers and subcontractors – to do the same. Kering is committed to: [...] • prohibiting the use of slavery, human trafficking, debt bondage, compulsory labor and/or forced labour; • eliminating child labor; • preventing violence, discriminatory practices and harassment [...] The SUPPLIER and its sub-suppliers shall guarantee the employees’ rights to establish, participate in and organise trade unions according to their own will and their right to bargain collectively through the trade unions"

"Part of our 2025 sustainability strategy is to achieve gender equality and equal pay among women and men at every level of the organization and to introduce a mentoring program for women at the international level. [...] Women are an important part of the workforce in our supply chain and may face multiple economic and social barriers to achieving gender equality. We support women’s empowerment across our global supply chain and engage with our business partners to address any barriers. In particular, our business partners are expected to develop women’s skills and opportunities, ensure that women and men are given equal pay for equal work, and provide a workplace free from violence and harassment. For pregnant workers and workers who have recently given birth or are b re a s t f e e d i n g , a p p ro p r i a t e measures must be put into place to ensure the maintenance of good health and well-being at work."

"Kering requests that its suppliers acknowledge the right of Indigenous People and rural communities to give or withhold their Free, Prior and Informed Consent (FPIC) before new logging rights are allocated or plantations are developed."

"We restate our commitment to human rights and intend to conduct ourselves as a socially responsible corporation wherever we operate. We will not tolerate threats, intimidation or attacks, whether physical or legal, against defenders of human rights."

"In 2021, 85% of the paper consumed was certified (PEFC or FSC) i.e. 1,049 metric tons out of a total of 1,234 metric tons. Most of the maisons prefer FSC certification for their paper and cardboard packaging, as well as recycled paper: Gucci has been a member of FSC since 2017. All of the packaging and printed materials used by the House, for BtoB and BtoC, have been FSC-certified since 2010"

In their 2022 CDP Forests Report, they specify that in their timber products, there has been 5902 hectares of deforestation/conversion since 2015. In this report, they say that the cutoff date for their 2.1 deforestation commitment is 2013.

"Kering sourcing does not support degradation or destruction of forest ecosystems, recommending use of FSC certification, and reducing pressure on forest ecosystems by using recycled paper where possible, - and for cellulosic fabrics, aligning its standards with the work from Canopy NGO. Regarding innovation, Kering’s policy includes the development of alternate raw materials through its partnership with the Plug & Play-Fashion for Good accelerator, supporting startups like Amadou Leather, a leather alternative made from mushroom material, both aiming at reducing pressure on forest ecosystems. [...] Existing efforts in this area include alternative materials usage, new supply chain methods, and public-private conservation partnerships. For example, Kering is working in French Guiana with conservation partners Solicaz and Forest Finance to reforest a former alluvial gold mining site. With goals of 100% restoration (beyond the regulatory minimum of 30%), it is the first full reforestation programme of a mining site in the Amazon."

"Risk related to timber commodity are assessed across 4 approaches (1,2,3: internal company methods ; 2: national specific tools and databases; 4: external consultant or certifications), together forming a strong, efficient, and varied methodology to assess risks related to timber for both direct operations and supply chain. 1. Kering Risk management framework, setting roles, responsibilities and procedures through a shared risk management policy and IT system. Forests risks are covered under ‘Raw materials scarcity, quality and biodiversity"[...]"The environmental footprint is measured across 6 indicators among which land use & forest aspects. 3. Kering Standards: They allow Kering’s sustainability experts to define and implement the relevant sustainable standards and support brands in the identification of and shift towards more sustainable alternate materials, including forest-sourced. For cellulose-based fabrics, the supplier has to evaluate its supply chain vis-à-vis the Canopy Style methodology. 4. An external Global risk analytics provider, Verisk Maple croft, covering over 200 issues for 198 countries including deforestation risks. It provided risk-based hotspot maps for strategic raw materials on the current and future (2036-2060) climate and forest risks. 5. Canopy Style methodology and/or FSC certification are used to ensure our viscose & other wood-pulp based materials come from supply chains that avoid sourcing from ancient and endangered forests."

"Kering works with suppliers to audit all facilities to assess adherence to the Kering Standards.[...]Compliance with all national and international laws, conventions and regulations"

"If you are working for a company supplying Kering or one of its Houses and you think you witness or suffer practices contradictory to these principles, or if you have a question about them, you can confidentially contact Kering Alert System" The document linked specifies the Kering Alert Sysrtem and how to get in touch.

"In 2021, 85% of the paper consumed was certified (PEFC or FSC) i.e. 1,049 metric tons out of a total of 1,234 metric tons. Most of the maisons prefer FSC certification for their paper and cardboard packaging, as well as recycled paper: Gucci has been a member of FSC since 2017. All of the packaging and printed materials used by the House, for BtoB and BtoC, have been FSC-certified since 2010" 31,659 Metric tons

"Training and ethics awareness programs are available to all employees of the Group worldwide....Similarly, every year each employee in the Group must take the compulsory training course or courses on ethics developed for all employees of the Group worldwide... Kering and its Houses provide support and advice to them (training program, development of skills, sharing good practice and so on) to ensure that they comply with its Code of ethics and Suppliers’ Charter...The Group carries out checking procedures and does not knowingly work with partners who do not share these essential principles at the heart of their businesses and in the choice of their own service providers."

"For timber products, we control, monitor and verify compliance with no conversion and no deforestation commitments...- In 2021, 91% of timber products used by the Group were aligned with Kering Standards % of total suppliers in compliance: - 64% of suppliers were audited in 2021. After qualification, suppliers’ continued compliance with Kering requirements is verified by follow-up audits."

In their 2022 CDP Forests Report, they specify that in their timber products, there has been 5902 hectares of deforestation/conversion since 2015. In this report, they say that the cutoff date for their 2.1 deforestation commitment is 2013.

"Procedures to address and resolve non-compliance with suppliers Developing time-bound targets and milestones to bring suppliers back into compliance...Response to non-compliance: The Group and its Houses implement corrective actions when non-compliance is identified. A single central body allows Kering to control the compliance of Group suppliers. The Hercules system is build on 6 pillars: 1) The Sustainability Principles 2) Central management team 3) Clear and uniform procedures for all the Houses including monitoring and termination of contract procedure 4) Risk assessments and audit plans constructed on the basis of a set of predefined criteria 5) Single and comprehensive audit methodology, with comprehensive audit questionnaire. Follow-up audits with a smaller scope focus on the area(s) in which breaches of compliance were identified. 6) Anomalies classified into four categories and standard responses to each case: - zero tolerance: immediate establishment of a committee - serious compliance breach: one month to resolve and follow-up audit - moderate compliance breach: three months to resolve and follow-up audit - observations: six months to resolve and corrective action plan"