ECCO Modern Slavery Statement 2016 This document describes the steps ECCO has taken during 2016 to prevent modern slavery and human trafficking from taking place in ECCO’s business and supply chains. ECCO has worked with the international sustainability consultancy firm, Sancroft, to help the company to assess compliance with the UK Modern Slavery Act 2015 and the California Transparency in Supply Chains Act (SB 657). The statement responds to the acts and has been approved by ECCO’s Group Managing Board. Introduction ECCO is aware that the issue of forced labour and human trafficking, in particular where work is conducted by migrant workers or other vulnerable workers, occurs across the world. These abusive working conditions are unacceptable and ECCO welcomes the Modern Slavery Act’s focus on preventing modern slavery from occurring in the business and supply chains of companies. Business and supply chains ECCO is in the business of making high-quality leather, footwear and accessories. ECCO owns and controls the majority of its leather and shoemaking process, from the tanning of hides, the production of shoes, to the sale of products to consumers. Although the majority of ECCO’s tanning and shoe production is conducted in-house, ECCO does rely on suppliers to provide the company with services and materials, such as uppers, laces, inlay soles, machines, chemicals, finished products, and components used in connection with the manufacturing of ECCO products. Policies ECCO’s Code of Conduct (the Code), which is signed by and overseen by the Group Managing Board, affirms ECCO’s commitment to respect internationally recognised human rights. Day-to-day implementation of the Code is the responsibility of the Group Corporate Responsibility department. The Code makes clear that ECCO must provide employees with a workplace free of harassment or abuse and condemns any form of forced labour. The Code specifically prohibits the use of work or services that are extracted from any person under menace of any penalty, and for which that person has not offered himself or herself voluntarily. It also commits ECCO to informing employees of the terms and conditions of service and the voluntary nature of employment, and the freedom to leave in a way that is customary to the respective country. The Code not only applies to all ECCO employees and business units, but also to all external suppliers and other business partners. Embedding ECCO’s policy Training helps ECCO embed its policy throughout the business. ECCO provides training to all new employees on its Code, with a more in-depth training provided to employees with particular responsibilities. For example all new Senior Managers, production teams, procurement teams, social media teams, customer service teams, design and product development and marketing teams. ECCO will continuously update its training material with up-to-date information on the trends in modern slavery as well as specific case studies describing the red flags for modern slavery. Recognising the risks of modern slavery in its supply chain, ECCO regularly provides in-depth trainings to its Code of Conduct auditors, who discuss how they can identify and address modern slavery. ECCO also seeks to work with its suppliers to help them understand the implications of modern slavery and related risks. For instance, ECCO held its second ECCO Code of Conduct Supplier Summit in 2015 with 55 of its global suppliers. ECCO used this opportunity to encourage its suppliers to share best practices and lessons learned, and ECCO will be seeking to add a specific lessonlearned session on the processes required to tackle modern slavery during its next Code of Conduct Supplier Summit. VALUES HERITAGE PASSION INNOVATION CARE EXCELLENCE HIGH QUALITY FOOTWEAR, LEATHER & ACCESSORIES NET REVENUE 2016 EUR 1,251m OPERATES IN 88 COUNTRIES MARKETS CHINA USA RUSSIA GERMANY SWEDEN
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