Climate Change Data

FKA Brands Co. LLC. and its covered subsidiaries

Climate Impact & Sustainability Data (October 2022 to December 2023)

Reporting Period: October 2022 to December 2023

Environmental Metrics

ESG Focus Areas

  • Modern Slavery
  • Human Trafficking
  • Supply Chain Ethics
  • Worker Rights
  • Health and Safety

Social Achievements

  • All FKA staff who visit suppliers, conduct UK recruitment, or appoint contractors are trained to identify signs of forced labor.
  • All factories are audited by FKA employees prior to approval and at least every 2 years afterwards.
  • In 2022, each supplier confirmed compliance with the Uyghur Forced Labor Prevention Act.
  • Annual surveys of Asia-based suppliers regarding policies on Forced Labor, Child Labor, and Conflict Minerals.
  • 96% of suppliers are aware of the need to monitor the entire supply chain and are monitoring their suppliers.
  • 93% of suppliers are aware of the need to look for signs of Child Labor.

Governance Achievements

  • Formation of a Sustainability Steering Committee and a Green Management Team to monitor worker conditions and environmental impact.
  • Completed a double materiality impact assessment and identified 12 high-priority topics for improvement.

Climate Goals & Targets

Short-term Goals:
  • Review H&S policies in each FKA Brands managed site.
  • Establish a central register of reportable incidents.
  • Update terms and conditions with suppliers.
  • Update and publish procedures on workers' rights, health and safety, etc.
  • Publish a mission statement outlining business culture.
  • Ensure all new suppliers are SEDEX members and have completed SAQs.

Environmental Challenges

  • High-risk areas for modern slavery identified in China and Vietnam using SEDEX risk assessment tools.
  • Some suppliers had high-risk scores and had not yet completed assessments.
  • A decrease in the percentage of suppliers with independent audits (from 97% to 89%) due to new suppliers.
  • Some employees had paid recruitment fees.
Mitigation Strategies
  • All factories are required to be SEDEX members and align with SEDEX ethical standards.
  • Regular site visits and remote sessions with suppliers to monitor conditions and provide feedback.
  • Plans in place for independent audits with four additional suppliers.
  • Corrective action plans and supplier removal from the Approved Supplier List if forced labor is detected.
  • Notification of Trade Associations and local authorities if forced labor is detected.
  • Annual updates to terms and conditions with suppliers.
  • Engagement of SEDEX consultants to assist in identifying and addressing high-risk factories.

Supply Chain Management

Supplier Audits: At least every 2 years

Responsible Procurement
  • Terms and conditions requiring no forced labor.
  • Ethical Policy.
  • SEDEX membership requirement for suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Modern Slavery Act 2015, California Transparency in Supply Chain Act 2010, Canadian Modern Slavery Act, Australian Modern Slavery Act 2018