CA Transparency Act

This statement outlines the commitment to maintaining transparency and ethical responsibility throughout the global supply chain, with a strong focus on preventing modern slavery and human trafficking. In alignment with applicable legislation such as the California Transparency in Supply Chains Act of 2010 and the United Kingdom Modern Slavery Act 2015, ongoing efforts are made to ensure that all operations and partnerships reflect these principles. For further details regarding organizational practices or social responsibility initiatives, inquiries may be directed to Compliance@Skims.com.

A structured verification process is in place to identify, assess, and address potential risks within the supply chain. Strict standards prohibit any form of forced labor or human trafficking across all operations. To support this, regular verification activities are conducted, including both initial and annual social compliance audits carried out by independent third-party auditors. All suppliers are required to comply with a defined Code of Conduct and contractual agreements that establish clear expectations related to ethical labor practices. These requirements extend beyond direct suppliers, ensuring that upstream partners also follow the same standards. Compliance is continuously monitored through internal policies designed to uphold social responsibility.

An established auditing system plays a key role in maintaining oversight. Independent third-party audits are conducted for all primary suppliers during onboarding and at least once per year thereafter. In many cases, secondary suppliers are also included as part of ongoing monitoring efforts. Audits may be fully announced or conducted within a short notification window. When issues are identified and rated at a critical level, corrective measures are required, including follow-up audits to confirm that improvements have been successfully implemented. Suppliers must also maintain internal systems that support adherence to required standards.

These audits assess multiple areas, including labor practices, workplace health and safety, environmental impact, ethical conduct, and management systems. Labor-related standards address issues such as forced labor, child labor, fair wages, working hours, non-discrimination, and the prevention of abuse or harassment. The framework also supports workers’ rights, including freedom of association and collective bargaining, in accordance with internationally recognized guidelines. Any form of involuntary labor, including bonded, trafficked, or indentured work, is strictly prohibited, and partnerships will not continue with entities that fail to meet these expectations.

Suppliers are required to formally certify their compliance with all applicable laws and internal standards, including those related to slavery and human trafficking. This includes confirming that materials used in production meet legal requirements in all relevant jurisdictions. Additional acknowledgments may be required to ensure compliance with international trade restrictions and regulations. Any violation of these standards is treated with zero tolerance. In such cases, immediate corrective actions must be taken, supported by detailed analysis and follow-up evaluations. Failure to resolve issues within a defined timeframe may result in termination of the business relationship.

Internal accountability measures are also in place to ensure that employees, contractors, and partners adhere to established ethical standards. Violations related to forced labor or trafficking are treated as serious offenses. Disciplinary actions may escalate depending on the severity and frequency of non-compliance, ranging from formal warnings to termination. Clear reporting channels are available to allow individuals to raise concerns or report potential violations. These systems are designed to be accessible and confidential, with strict protections in place to prevent retaliation against those who report issues in good faith.

Ongoing training and education are considered essential components of maintaining ethical supply chain practices. Employees involved in sourcing, procurement, and supply chain management receive regular training on identifying and addressing risks related to forced labor and human trafficking. This includes guidance on responsible purchasing practices, audit procedures, and corrective action processes. Continuous learning ensures that teams remain informed about evolving standards and expectations.

A dedicated compliance function supports these efforts by staying current with global regulations and best practices. Participation in industry events, training programs, and educational initiatives helps ensure awareness of emerging risks and regulatory developments. This ongoing commitment to education strengthens the ability to maintain responsible sourcing practices and uphold transparency across all operations.

This statement reflects a continued dedication to ethical conduct, accountability, and the protection of human rights within the supply chain. Updates may be made periodically to reflect changes in regulations or operational practices.