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Supply Chain Policy

Last Updated: 2018.11.30
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As our business expands across the globe, Fast Retailing communicates and asks our partner factories to comply with our policies regarding supply chain labor conditions and respect for human rights. To this end, we are building stronger partnerships with our partner factories.

Supply Chain Policy

Our Commitment

  • Fast Retailing is committed to resolving labor and any other workplace issues throughout our supply chain. To fulfill this commitment, we are forming deeper relationships with our production partners.
  • We will communicate closely with all stakeholders, including customers, NGOs, media, and investors, properly disclosing information related to our supply chain.

Our Policy

We respect the basic human rights of all people who work in our supply chain. One of our most important duties is to protect the physical and mental health, as well as the security and safety, of these people. Our partner factories know that we will not tolerate any violation of human rights (child labor, forced labor, harassment, discrimination, physical abuse, etc.). In addition, mechanisms are in place to ensure strict compliance. Fast Retailing asks all partner factories to comply with our Code of Conduct for Production Partners, which is based on the core labor standards of the International Labour Organization. We will fulfill our responsibilities in this area, aligned with the UN Guiding Principles on Business and Human Rights and other international human rights principles and declarations.

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Our Approach

Fast Retailing pursues the approach stated below to ensure our supply chain policy is understood and followed.

• Monitoring Partner Factory Labor Conditions
In 2004, we formulated the Code of Conduct for Production Partners, requesting all production partners comply with labor condition standards. To ensure compliance with our code of conduct, we regularly monitor supply chain labor conditions. We generally engage third-party entities to perform monitoring activities, the results of which we provide as feedback to our production partners. We ask factory management to resolve any issues identified, providing support for improvement. If an audit uncovers extremely serious violations, such as child labor or forced labor, we take appropriate action. Such action may include reducing our business volume or ceasing our relationship with the partner in question.

• Responsible Ordering Through Consistent Procurement Policy Compliance
We protect the labor conditions and human rights of workers at partner factories by establishing procurement policies and placing orders via proper procedures. For example, we maintain appropriate order schedules and volumes to avoid sudden increases in production volume that would result in excessive overtime hours at our production partner factories. Our Production and Sustainability departments are responsible for staying up to date on factory labor hours, revising orders when necessary.

• More Effective Information Sharing With Business Partners
We will encourage more effective two-way communications with partner factories by building stronger relationships of trust. For example, if excessive orders result in increased overtime, actual labor time reports from the factory can help both parties adjust labor hours appropriately. We strive to increase transparency throughout our entire supply chain, receiving reports on labor environments and human rights from both first and second tier factories.

• Improving Labor Conditions Through Collaboration With External Organizations
Fast Retailing collaborates with external organizations, taking an active role in addressing human rights and environmental issues in the apparel industry. We are a member of the Better Work program, a labor environment improvement initiative managed jointly by the Fair Labor Association, the International Labor Organization, and the International Finance Corporation. Through this program, we seek to improve our monitoring of labor conditions and introducing more effective internal management processes through responsible procurement policies.

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• Supply Chain Information Disclosure
We provide appropriate information about the labor conditions throughout our supply chain to our stakeholders, including customers, NGOs, media, and investors. Fast Retailing will continue to be proactive in production partner disclosures as well, raising the transparency of our supply chain.

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