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Last Updated: 2020.08.17

Regarding recent reports about Xinjiang Region

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The Fast Retailing Group has a zero-tolerance policy for any human rights violation and strictly prohibits all forms of forced labor. The policy is clearly stated in the Fast Retailing Group Code of Conduct for Production Partners, established in 2004 in accordance with standards set out by the International Labour Organization. All production partners must commit to our Code of Conduct, which covers human and worker rights, and we require all production partners to uphold the same standards with any of their upstream partners.

We are aware of reports raising serious concerns on the situation for Uighurs in Xinjiang, China. No UNIQLO product is manufactured in the Xinjiang region. In addition, no UNIQLO production partners subcontract to fabric mills or spinning mills in the region.

We are also aware of claims made in a report by the Australian Strategic Policy Institute (ASPI) that links UNIQLO to these two factories: Youngor Textile Holdings Co. Ltd and Qingdao Jifa Huajin Garment Co. Ltd. We can confirm that we do not have any business relationships with these factories.

Fast Retailing regularly communicates with our production partners about the workforce in their supply chains to ensure our products are being manufactured in ethical environments. To verify that our partners comply with our Code of Conduct, we arrange regular audits carried out by third-party organizations, and install hotlines for workers to contact us directly and anonymously. Through these and other mechanisms we have in place to identify and prevent potential violations of human and worker rights, we have not learned of any violations. Furthermore, we demand all suppliers to ensure that no cotton in our products originates from facilities using forced labor or where human rights violations occur.

Going forward, we will strengthen due diligence and traceability measures throughout our supply chain. Specifically, we will map out the suppliers of our production partners - material factories and other upstream processes - to ensure working conditions based on international guidelines are maintained across the supply chain. Should we find evidence of forced labor as indicated in reports, we will require our production partners to suspend business with that supplier immediately.

The measures outlined above are part of the Fast Retailing Group's ongoing emphasis on sustainable cotton, which includes our firm commitment to a sustainable cotton procurement ratio of 100% by 2025. By definition, sustainable cotton requires that human rights are safeguarded in processing.


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