Applying Target’sStandards of Vendor
Engagement© 2024 Target Corporation

Introduction
Target is committed to responsible and ethical business conduct. Respect for human rights andenvironmental stewardship are fundamental principles of our business practices and standards. We
expect our domestic and international suppliers to share those principles and uphold our standards.
We require all vendors, suppliers, third party sellers, manufacturers, contractors, subcontractors, andtheir agents (collectively, “suppliers”) to abide by the following standards and cascade them throughtheir supply chain. Standards are applicable to all workers in production or non-production roles,
including regular workers, piece-rate workers, casual workers, contract workers, foreign migrant/guest
workers, trainees, students, apprentices, part-time, or temporary workers.

© 2024 Target Corporation2

We expect all our suppliers to
respect human rights, comply withTarget’s Standards of Vendor
Engagement (SOVE) and allapplicable laws pertaining to humanrights. This guidebook builds upon
Target’s SOVE to provide detailed
information on our expectations for
ethical business practices, social,labor, and environmental
sustainability.

Target expects that all suppliers establish management systems toensure that locations and subcontractors comply with these Standards
and applicable laws and regulations. Each location should have aminimum of one person accountable for social and environmental
compliance. This system should include proper management andgovernance, training, monitoring, and continuous improvement
mechanisms such as corrective action plans. This guidebook is a tool to
be used in the development of that management system.
Target monitors for compliance to SOVE using a multipronged
approach, including our Responsible Sourcing & Sustainability Audit
Program. Locations must be disclosed to Target according to ourdisclosure requirements, which can be found in the Location Disclosure
Scope Guide on Partners Online. Locations in-scope ofTarget’s Responsible Sourcing & Sustainability Audit Program mustcomplete the audit requirements. Further details can be foundon Partners Online.
We are continuously working to do better, but if there are adverse
impacts, our approach is to provide access to effective remedy. All
stakeholders may utilize the Integrity Hotline details on the next page toreport a violation.

Introduction© 2024 Target Corporation

3

Reporting Misconduct: If you encounter
what you believe to be a potential violationof local laws or regulations, Target’sStandards of Vendor Engagement, or
unethical behavior, you must report yourconcerns to Target by emailing
Ethics@Target.com or visiting
www.targetintegrityhotline.com. Reportanonymously by calling the Integrity Hotline.
The call is free and handled by anindependent third-party. Local language
interpreters are also available.
We engage only the necessary partners
and investigate every allegation received.
Retaliation of any kind against an
individual who reports concerns in good faithviolates Target’s principles and will not betolerated.

Introduction

U.S.

1-800-541-6838

India

000-800-1001657

Bangladesh(0) 9610-998509

China

4001201894

Hong Kong

800906528

Indonesia(021) 50918413

Vietnam

024 4458 3187

Other
non-U.S.
locations:place a collectcall to the U.S.

470-219-7116

Scan the QR Code or Visit:
www.TargetIntegrityHotline.com to reportanonymously, by completing theonline Hotline Webform or
Call the Integrity Hotline, 24 hours a day,managed by a third-party provider(interpreters available)
Email: Ethics@target.com
Write: Corporate Compliance & Ethics
Target Corporation
1000 Nicollet Mall #3110
Minneapolis, MN 55403© 2024 Target Corporation

4

Contents
6

Ethical Business Practices

84

Freedom of Association

10 No Unauthorized Subcontracting

87

Environmental Management andMonitoring Systems

90

No Illegal Wastewater Discharge

93

Waste Reduction and Disposal

96

Energy and Water Use

12 Grievance Mechanisms
20 No Forced Labor or Human Trafficking
39 No Underage Labor
44 Health and Safety
67 No Discrimination
71 No Harassment
75 Working Hours and Overtime
78 Wages

101 Emissions to Air
104 Licenses and Permitting
107 Responsible Exit or Decline
111 Appendix A: Implementation Guidanceon Protections for Foreign Migrant Workers© 2024 Target Corporation

5

Ethical Business Practices
We seek business partners who adhere to the highest ethical standards intheir business practices and their interactions with Target. Suppliers are expected toact in an ethical manner and comply with all applicable laws, regulations, and Target’sStandards. Target does not allow any exchange of favors, money, gifts,
entertainment, or travel with our team members with the intent to influence businessdecisions. As with the other standards outlined, Target Team Members are held to thesame standards and are strictly prohibited from soliciting anything of value frombusiness partners. Suppliers must conduct their business with a high level of integrity
and maintain transparent and accurate records.

© 2024 Target Corporation

6

Suppliers should not offer anything of value to Target
team members or third-party auditors to attempt to
influence audit results or any other business decision.
Requirements••

Never directly or indirectly offer a Target team member, team member family member, third-party auditor, or agovernment official a bribe (offer anything of value including but is not limited to, gifts, gift cards, meals,
entertainment, transportation, travel, accommodations, expenses, cash, jobs, internships, or donations onbehalf of Target or a team member) with the intent to influence business decisions or receive favorable treatment, an
improper advantage, or personal gain.
Immediately report any Target team member solicitation (asking for) of a meal, gift, entertainment, travel, or anythingelse of value from a vendor or vendor representative.

*

Offering or accepting bribes or
kickbacks with the intent to
influence business decisions is azero tolerance violation.
Retaliation of any kind against an
individual who reports concerns ingood faith violates Target’s
principles and will not be tolerated.

Ethical Business Practices© 2024 Target Corporation

7

Suppliers should maintain accurate records and provide
them transparently during audits.
Requirements•

Suppliers must be transparent during the audit process not interfere with any audit procedures. Auditors must haveaccess to all areas of the location, must be provided access to records, and must be allowed to conduct worker andmanagement interviews. Workers must not be coached or bribed to influence interview responses.

•

Target requires locations to be transparent regarding all hours worked and wages paid. Time keeping and wage
payment records should be accurately maintained. Locations are required to provide Target Responsible Sourcing &Sustainability or third-party representatives’ full access to accurate records.

•

Suppliers must not falsify or mispresent any permits or licenses.

Ethical Business Practices© 2024 Target Corporation*

Falsified, misrepresented and/or
the absence of a valid businesslicense and required environmental
permits and licenses is a zerotolerance violation.

8

Suppliers and workers should report any violations of local
laws or regulations, Target’s Standards, or unethicalbehavior to Target.
Requirements•••

Suppliers and workers should report any violations of local law or
regulations, Target’s Standards, or unethical behavior to Target byemailing Ethics@target.com or using the third-party Integrity Hotline.
Report anonymously by calling the Integrity Hotline. The call is freeand handled by an independent, third-party. Local language
interpreters are also available.
Suppliers must develop a confidential and anonymous internal
process for employees to report potential violations of law,regulations, Target’s Standards, or unethical behavior. Seegrievance mechanism expectations on pg. 12.
Suppliers should not retaliate against an individual who, in good faith,
reports a potential violation of law, regulation, Target’s Standards, orunethical behavior.

Ethical Business Practices

Scan the QR Code or Visit:
www.TargetIntegrityHotline.com to reportanonymously, by completing the online Hotline
Webform or
Call the Integrity Hotline, 24 hours a day, managed bya third-party provider (interpreters available)
Email: Ethics@target.com
Write: Corporate Compliance & Ethics
Target Corporation
1000 Nicollet Mall #3110
Minneapolis, MN 55403© 2024 Target Corporation

U.S.

1-800-541-6838

India

000-800-1001657

Bangladesh(0) 9610-998509

China

4001201894

Hong Kong

800906528

Indonesia(021) 50918413

Vietnam

024 4458 3187

Other
non-U.S.
locations:place a collectcall to the U.S.

470-219-7116

9

No Unauthorized
Subcontracting
We do not tolerate unauthorized subcontracting. All
locations within the scope of Target’s Responsible
Sourcing & Sustainability Program must be disclosed
to Target before production begins. All locations
must be approved by Target in accordance with
Partners Online requirements.

© 2024 Target Corporation

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Disclose all locations in-scope of the Responsible
Sourcing & Sustainability program.
Requirements•••

Prior to production, the business partner is expected to disclose all
locations considered in-scope of Target’s Responsible Sourcing &Sustainability Program. A complete description of production locations thatare considered in-scope for Target’s Responsible Sourcing & Sustainability
Program can be found on Partners Online in the Location Disclosure
Scope Guide.
Locations which are in-scope for Target’s Responsible Sourcing &Sustainability Audit Program must meet audit requirements. See Partners
Online for scope and audit details.
Suppliers must maintain a list of all locations that provide materials orservices incorporated into the manufacturing, processing, harvesting or
production of product sold to Target.

No Unauthorized Subcontracting© 2024 Target Corporation*

Unauthorized subcontracting isa zero tolerance violation.

11

Grievance Mechanisms
We require suppliers to implement effective grievancemechanisms to systematically receive, investigate, andrespond to issues raised and implement remedies to resolve
them. The United Nations Guiding Principles on Business andHuman Rights (UNGPs) defines an effective grievancemechanism as legitimate, accessible, predictable, equitable,transparent, rights-compatible, based on engagement anddialogue, and used as a source of continuous learning.

© 2024 Target Corporation

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Definitions

Grievance: Grievance(s) are issues/concerns raised by affected parties (e.g., workers) that laws, regulations, collective or individual contracts, and/or
workplace rules, customs, or codes of conduct have not been honored. Grievances are filed by affected parties as a means to address the issue.
Effective Grievance Mechanisms: Grievance mechanism(s) are systemic methods to receive and address issues/concerns raised by affected parties,
particularly as they relate to human rights. These mechanisms are most effective at the operational level (e.g., factory level), where they can be addressed
the earliest and remediated directly. Examples include suggestion boxes, phones or text, emails, hotlines, or a Human Resources complaints process.
Effectiveness is measured according to Principle 31 of the UNGPs. The grievance mechanism must be legitimate, accessible, predictable, equitable,transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue.

Grievance Mechanisms© 2024 Target Corporation

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Target expects suppliers to establish and maintaingrievance mechanisms that meet the eightcomponents of the UNGP effectiveness criteria.
Criteria

UNGP Definition

Requirements

Legitimate

Enables trust from the stakeholder groups for whose
use they are intended, and being accountable for fairconduct of grievance processes• Clearly define the grievance mechanism process with a standardized set of policies andprocedures to receive complaints confidentially, investigate, respond to, and remediate in a
predictable and fair manner. Ensure that it can be used for sensitive topics such as sexual
harassment and gender-based violence.
• Establish and enforce a non-retaliation policy and disciplinary consequences for retaliation
against workers who report grievances.
• Non-retaliation refers to clear guarantee(s) and protection(s) that ensure
workers/claimants are not subject to retaliation following an expression of agrievance; engagement with grievance mechanisms; submission and/or withdrawal ofclaims; and throughout the grievance process.
• Claimants must be protected from dismissal, penalties and any other kind of reprisal(e.g., ridicule, discrimination, pressure or violence) should they chose to engage witha grievance mechanism.
• Grievances must be treated with confidentiality.

Grievance Mechanisms© 2024 Target Corporation

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Target expects suppliers to establish and maintaingrievance mechanisms that meet the eightcomponents of the UNGP effectiveness criteria.
Criteria

UNGP Definition

Requirements

Accessible

Known to all stakeholder groups for whose use they
are intended, and providing equitable assistance forthose who may face barriers to access• The location must provide workers with more than one grievance mechanism, at least one ofwhich can be used anonymously and one of which must be received by someone outside of
their direct chain of command.
• The grievance mechanisms must be available during all stages of recruitment andemployment. For foreign contract workers, this means it is available in their country of origin
and destination.
• The grievance mechanisms must be available to all workers, with a clear guarantee that it isavailable for temporary and contract workers.
• A grievance mechanism must be available in the dormitory.
• Workers should be able to access grievance mechanisms without any type of barrier
preventing them from communicating through the respective channel. Examples:• A worker must be able to communicate in a language they understand when using
the grievance mechanism and through dispute resolution.
• If a worker cannot read or write, there must be grievance mechanisms that do not
require reading or writing.
• If a worker does not have digital literacy or access to digital technology, there must
be grievance mechanisms that do not require the usage of technology.

Grievance Mechanisms© 2024 Target Corporation

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Target expects suppliers to establish and maintaingrievance mechanisms that meet the eightcomponents of the UNGP effectiveness criteria.
Criteria

UNGP Definition

Requirements

Predictable

Provides a clear and known procedure with anindicative time frame for each stage, and clarity on
the types of process and outcome available andmeans of monitoring implementation• Time frames must be provided for management to issue a response, including how longeach step should take and how long workers should expect management to take to respondto their concerns.
• Available outcomes of the grievance process and remedies available should be documented
to support consistent implementation.

Equitable

Seeks to ensure that aggrieved parties havereasonable access to sources of information, advice
and expertise necessary to engage in a grievanceprocess on fair, informed and respectful terms• The grievance mechanism processes must be fair, impartial, respectful, and consistent for all
workers.

Transparent

Keeps parties to a grievance informed about its
progress, and providing enough information about
the mechanism’s performance to build confidence inits effectiveness and meet any public interest at stake• Any worker who uses a grievance mechanism should receive communication of some form
acknowledging their concern and/or feedback that has been received and is under review.
Subsequently, they should receive follow-up communication regarding any action taken toaddress their feedback.

Grievance Mechanisms© 2024 Target Corporation

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Target expects suppliers to establish and maintaingrievance mechanisms that meet the eightcomponents of the UNGP effectiveness criteria.
Criteria

UNGP Definition

Requirements

RightsCompatible

Ensures that outcomes and remedies accord withinternationally recognized human rights• This process should ensure workers are treated with dignity and respect.
• The Parties who have been directly or indirectly impacted by a grievance must be provided
with a fair and just remedy that addresses the impact or harm committed against them.
Examples of effective remedy can include restitution, financial or non-financial
compensation, punitive sanctions against the offender(s) whose actions caused the impact
or harm against the aggrieved or a formal apology. The process to develop and provide
remedy must be free from corruption and of any outside political and non-political influence.

A source ofcontinuous
learning

Draws on relevant measures to identify lessons for
improving the mechanism and preventing future
grievances and harms• Conduct annual reviews of the effectiveness of available grievance mechanisms, using theeffectiveness criteria defined by the UNGPs, and make improvements based on identified
gaps.
• If multiple workers are affected, or similar feedback and/or concerns are raised, business
partners should take action to address the root of the issue to ensure it does not repeat.
• Create and maintain a system to track grievance/compliant records, dispute resolutions anddisciplinary activity.

Based onengagementand dialogue

Consults the stakeholder groups for whose use they
are intended on their design and performance, andfocusing on dialogue as the means to address andresolve grievances• Practices ongoing workplace dialogue, which includes regular engagement between
management and workers, to develop and implement solutions to improve working
conditions.

Grievance Mechanisms© 2024 Target Corporation

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Ensure the communication and training of grievancemechanism policies and procedures are aligned withthe effectiveness criteria.
•
•
•
•
•

Conduct training and refresher training with all workers to build awareness of the grievance mechanisms and the company’s non-retaliation policy.
Conduct training with management and supervisors on the grievance mechanism policies and procedures to help them understand the process andreinforce available mechanisms and non-retaliation process with workers.
Conduct training with individuals who are responsible for implementing the grievance mechanism policies and procedures, including responsibilities forinvestigating issues raised.
Communication of the grievance mechanism must be included in the pre-departure briefing for foreign contract workers.
Communication of the grievance mechanism must be included in orientation training.

Grievance Mechanisms© 2024 Target Corporation18

Target expects suppliers to establish and maintaingrievance mechanisms that meet the eightcomponents of the UNGP effectiveness criteria.

Best Practices

Grievance Mechanisms•

Create workplaces where workers are empowered to provide feedback and engage
with management to identify and implement solutions to improve working conditions.

•Collect sex-disaggregated data on types of grievances reported and their outcomes.

•

The investigation team should be representative of the diversity of the workforce.

•

Use specialized third-party investigators to investigate reports of gender-based
violence and other highly sensitive matters.

•

Use worker surveys to gain worker insight and improve working conditions.

•

Provide supervisors and management with leadership training to build soft-skills on
how to receive and respond to worker feedback.

•Establish employee resource groups/affinity groups for minority groups (e.g., awomen’s council) to provide extra support on matters affective the group, coaching, aregular forum to connect with management on issues, and provide resources tohistorically marginalized groups.

© 2024 Target Corporation

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No Debt or Fees

No Forced Labor or
Human Trafficking
We condemn forced labor and human trafficking and will notknowingly work with suppliers who engage in these practices or theuse of incarcerated labor. All workers have the right to engage inwork willingly, without surrendering identification and without thepayment of fees. Workers have the right to freedom of movement
and our suppliers must ensure it is afforded to them. Workers havethe right to terminate their employment without penalty upon
providing reasonable notice. Suppliers must also procure their raw
materials and/or components for products solely from sources that
do not utilize forced labor or engage in human trafficking.

Employment Contracts

Freedom of Movement

Labor Agents

Equitable Treatment

Termination of Employment

Cascading Due Diligence© 2024 Target Corporation

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Workers must not be forced to work or be boundto employment in order to fulfill a debt.
Requirements•

Ensure all workers work on a voluntary basis and receive compensation in accordance with local law, in theform of cash or equivalent.

•

Ensure no prisoners work in the location and/or no production is subcontracted to prison laborers.

•

Ensure that no workers are employed through third-parties that also act as drug and/or alcohol rehabilitation
service providers to workers (this does not prohibit factories from directly employing workers in drug andalcohol treatment programs, in supportive housing (a.k.a. half-way houses), or drug/alcohol users).

•

Develop a written policy incorporating Target requirements and best practices on the prohibition of forcedlabor and human trafficking.

•Communicate the facility policy on the prohibition of forced labor and human trafficking to management
personnel, and labor agents used in the recruitment, hiring, or management of workers.

•

Ensure workers do not pay any fees to begin, continue, or terminate employment.
—

Please see Appendix A for a list of expenses that are covered under this requirement.

•

Ensure workers are not asked to take out loans, post bonds, or make deposits in conjunction with their hiringand employment. Deposits may only be paid if these are required to be borne by the worker.

•

Ensure all fees paid by workers are reimbursed by the employer within thirty days of their discovery.

•

Ensure workers maintain exclusive access to and control over their own bank accounts, with the sole
exception of employer access for depositing wages. This includes exclusive access to any documents
needed by workers to access and use their accounts, such as bankbooks and chops.

No Forced Labor or Human Trafficking© 2024 Target Corporation*

Forced labor is a zero tolerance
violation. Suppliers must takeprecautions not to purchase any raw
materials or components producedby forced labor.
Use of prison labor is a zero tolerance
violation.
Employing workers through thirdparties that also act as drug and/or
alcohol rehabilitation service
providers to workers is a zerotolerance violation.
21

Workers must not be forced to work or be boundto employment in order to fulfill a debt.
Requirements (Cont.)•

Ensure any savings schemes implemented are voluntary and explicitly permit workers to opt out at any time.

•

Recruitment agency fees must be paid by the factory and may not be deducted from worker wages.

•

Uniforms, tools, or other items required for work must be paid for by the supplier.

•

Labor agents must be licensed in accordance with local law and regulations.

•

Workers must enter and terminate their employment freely. Workers have the right to refuse overtime above
legal or contracted limit. Workers must not be disciplined or penalized for refusing overtime.

•

Factories cannot withhold payment to workers in order to prevent the workers from leaving their jobs.

•

Ensure any deductions from wages are only made if they are mandatory under local law or voluntary,reasonable, and clearly understood by workers. Fees for food and lodging cannot be deducted without theworkers’ consent.

•

Factories must provide itemized pay slips or payment receipts in workers’ local language(s).

•Ensure workers’ complaints or suggestions can be easily delivered to management and that all information is
kept confidential to prevent retaliation. Factory must establish and enforce a No Retaliation Policy.

•

Workers should be able to decline working overtime without any repercussions or penalties, including the loss of
future ability to work overtime.

No Forced Labor or Human Trafficking© 2024 Target Corporation

Please see Appendix A for
additional details concerning theprevention of forced labor andhuman trafficking related toforeign migrant workers.

22

Workers must not be forced to work or bebound to employment in order to fulfill a debt.

Best Practices

No Forced Labor or Human Trafficking•

Develop a written set of instructions for all labor agents
establishing the prohibition of forced, human trafficking,prison labor, and the hiring of workers through rehabilitation
service providers.

•

Require labor agents to disclose their labor sources.

•

Suppliers must not charge a worker interest on any debt
owed to the factory.

•

Ensure all final wage payments are made to workers who
submit resignations with proper notice without penalty.

•

Develop an internal procedure to confirm voluntary
acceptance of overtime work.
© 2024 Target Corporation

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Ensure all workers have a written employment contract
and are aware of the location rules.
Contracts should cover the following:•

Worker identification and contact information;•

Employer name and address;•

Nature of work and the location where it will be performed;••

Contract start and end dates;
Provisions for contract renewal, as applicable;•

Provisions for repatriation (in the case of a foreign migrant worker), including a
breakdown of costs to be borne by the factory and foreign worker;•

Provisions for voluntary early termination of contract by worker with and without
reasonable notice, including any special conditions under which the factory covers
additional costs;•

The process for involuntary termination by the factory;•

Overview of living conditions provided, including a breakdown of any costs formeals, accommodation, and regular transportation;

To ensure that workers understand the contents of their contract before signing, contracts
must be accurately translated into a language which workers understand; contracts must
be explained to illiterate workers; and workers must be given sufficient time to review
contract contents before signing.

••

Expected regular working hours and overtime hours;
Expected work schedule, including holidays and rest days;•

Clearly defined regular and overtime wage rates;•

Any applicable bonuses, allowances, or other cash compensation;•

The worker and the employer must sign employment contracts; workers must retain asigned copy; and signed copies of contracts must be kept in workers’ personnel files.

••

Employment contracts may be amended only if such amendments are equally or morefavorable to the worker, legal, explained to the worker in full, and fully and freely
consented to.

•

Descriptions of work-related benefits, including medical and social insurance
benefits, and leave, including sick, emergency, and annual leave;
Frequency and method of payment, and an explanation of pay slips; and•Any permissible legal deduction•

The contract should not contain any terms that prevent a worker from exercising
their legal right to associate.

Requirements
Contracts•••

Each worker must receive and sign an employment contract in their local language.
Foreign migrant workers must receive and sign an employment contract at least five days
prior to deployment.
Employment contract contents must comply with applicable law and accurately reflect theposition, place of work, and terms and conditions of employment. Where formal contracts
are not required by law, offer letters and other methods of employment agreements are
considered an acceptable equivalent.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Ensure all workers have a written employment contract
and are aware of the location rules.
Requirements (Cont.)
Communication and Training•

Ensure all workers attend an orientation training in a language they
understand that covers Target requirements laid out in Appendix A.
Training must be well documented.

•

Provide workers with adequate information to understand all factoryrules by, at a minimum, posting factory rules in workers’ own
language in visible locations, and providing workers with ahandbook in workers’ own language that is signed upon receipt. The
location may also provide information via a company intranet, and in
regular refresher trainings (at least annually). Ensure that posted or
distributed material is up-to-date.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Ensure all workers have a written employment
contract and are aware of the factory rules.

Best Practices• Provide refresher training on location rules to all
workers on a regular schedule (at least annually).
Ensure training is conducted in languages understoodby the workers and is done in an appropriate format sothat it is understood by the workers.
• Keep a record showing when the contract was signed
and evidence that a copy was given to the worker.
Include the date, the worker’s name and the worker’s
signature in the record.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Eliminate all unreasonable restriction
on the movement of workers.
Requirements
Identity Documents•

Ensure that workers retain possession or control of their passports, travel documents, identification
papers, and any other legal documents.

•

Suppliers and labor agents are not permitted to withhold workers’ personal identification documents,
including passports, with the sole exception of if a document is temporarily required for completing alegal requirement.

•

Explain any temporary collection of documents done to complete a legal requirement to the worker
and accompanied by a form signed and dated to indicate the submission and return of the
document. Include the number of days the document will used for processing in the communication.

•

Provide individual lockers to all foreign migrant workers in workers’ accommodation to safely store
their personal identification documents and valuables. Ensure lockers are fire- and water-proof andalways available for individual workers in employer-provided residences.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Eliminate all unreasonable restriction
on the movement of workers.
Requirements (Cont.)
Freedom of Movement•

Ensure workers are free to leave the location and/or dormitory at all times, aside from reasonable
expectations for safety. In general, do not prohibit workers movement in and out of the dormitory.

•

Do not lock workplaces and dormitories to restrict workers’ movements.

•

Ensure workers are free to avail of any home leave benefits they have accumulated without paying adeposit, being subject to wage withholding, or otherwise being discouraged from taking leave.

•

Ensure workers have free access to drinking water and toilet breaks during their working hours as needed.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Eliminate all unreasonable restriction
on the movement of workers.

Best PracticeNo Forced Labor or Human Trafficking• Provide security guards with refresher training on
workers’ freedom of movement requirements. Verify
security guards are used to protect the factory and not
to restrict the movement of workers.

© 2024 Target Corporation

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Establish a due diligence processwith all labor agents.
Requirements•

If labor agents are used, suppliers are expected to establish a due diligence process, implement a
procedure for the management of labor agents, and assign an individual to assume responsibility for labor
agent management.

•

Perform a pre-selection due diligence assessment of each labor agent considered for use to determine theagent and any recruitment partners that may be used meet factory, customer and legal requirements.
Suppliers must demonstrate that performance against Target requirements on recruitment, hiring, andemployment form part of ongoing evaluation, and continuation, of the business relationship Preassessment due diligence should cover the topics laid out in Appendix A.

•

Execute legally binding service agreements with all labor agents that will be used for the recruitment ormanagement of workers.

•

Ensure agreements with labor agents reflect that the agent must conform to factory, Target, and legal
requirements as a condition for continuing the business relationship. All agreements should cover the
topics laid out in Appendix A.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Establish a due diligence processwith all labor agents.
Requirements (Cont.)•

Conduct regular audits, at least annually, of all labor agents and their recruitment methods to ensure
they comply with factory requirements, Target’s Standards and applicable law.

•

The supplier must oversee implementation of a documented corrective action process for any
identified violations by labor agencies of applicable laws or Target standards.

•

After each recruitment, interview a representative sample of newly arrived workers to ensure agents
did not engage in deceptive practices (such as contract substitution or misrepresentation of actual
job conditions), and the recruitment process met factory requirements, Target Standards, andapplicable law. Interviews should determine whether workers paid fees, as well as specific fee
amounts paid. See Appendix A for sample interview content.

•

Retain copies of any agreements signed between labor agents and workers in workers’ personnel
files at the location.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Establish a due diligence processwith all labor agents.

Best Practices• Ensure the supplier compensates the labor agents fortheir services at the current market rate, if workers arerecruited by labor agents.
• Locations are encouraged to hire workers directly,
without the use of labor agencies. Suppliers must
demonstrate continuous improvement, as feasible, todirectly employ all production workers, and not makeuse of outsourcing arrangements with labor agents forthe employment of production workers.
• Require labor agents to disclose their labor sources.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Ensure all foreign migrant workers
receive equitable treatment.
Requirements
Work Permits•

The location must ensure that foreign workers are in the country legally and have valid legal work
permits, including visas where required.

No Forced Labor or Human Trafficking© 2024 Target Corporation

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Ensure all foreign migrant workers
receive equitable treatment.
Requirements (Cont.)
Terms and Conditions•

Foreign migrant workers’ contract terms and conditions of work must be materially equal to those of local workers, including
hours, wages, and benefits.

•

All overtime should be voluntary. Workers must not be subject to coercion, discipline or penalties for refusing overtime.
Locations must develop an internal procedure to confirm voluntary acceptance of overtime work. Internal procedure may
include a written policy that is communicated to workers through orientation and/or refresher training in workers’ native
language and/or the use of overtime approval sheets that must be signed by the worker in conjunction with clear procedureson how workers decline overtime.

•

Suppliers must pay full wages due to workers, except when required to withhold a portion of the salary specified by local law,such as national health insurance fees, labor insurance fees, income taxes, etc.

•

Wages must not be channeled through a labor agent. Workers must be paid directly by the employer.

•

Deductions from workers’ pay must always be legal, specified in employment contracts, and clearly defined in pay slips.

•

Locations must provide itemized pay slips or payment receipts accurately translated in workers’ local language(s).

No Forced Labor or Human Trafficking© 2024 Target Corporation

34

Ensure all foreign migrant workers
receive equitable treatment.
Requirements (Cont.)
Communication and Training•

Suppliers must ensure all workers attend a comprehensive briefing prior to departure from the sending country that meets therequirements laid out in Appendix A. Ensure training is well documented.

•

Provide foreign workers with access to a grievance mechanism, meeting criteria on pg. 14-17, that enables them to report any
experiences of deception, fee charging, or other unethical practices anonymously.

No Forced Labor or Human Trafficking© 2024 Target Corporation

35

Ensure all foreign migrant workers
receive equitable treatment.

Best Practices• Location personnel conducts all hiring and pre-departure briefing
activities in the sending country.
• Keep records showing when the contract was signed and evidence
that a copy was given to the worker in the sending country. Include
the date, the worker’s name and the worker’s signature in therecord.
• At least quarterly, interview a sample of foreign workers to monitor
their conditions and understanding of location rules.
• Directly employ management and line supervisors who are fluent inlanguages understood by workers.
• Provide foreign workers with material support needed to participate
and be represented in any worker committees or associations.

No Forced Labor or Human Trafficking© 2024 Target Corporation

36

Ensure all workers are free to terminate theiremployment at will without undue cost or penalty.
Requirements•

Ensure workers who resign receive all wages due to them without penalty. The supplier must not
impose any fees or penalties for failure to complete a labor contract.

•

Provide foreign workers return transportation after contract completion, when resigning withreasonable notice, when resigning under specific conditions, or when terminated under specificconditions, as laid out in Appendix A.

No Forced Labor or Human Trafficking© 2024 Target Corporation37

Cascading Due Diligence.
Facilities must apply Target’s requirements on the prohibition of forced labor to the supply chain in its entirety. To thisend, facilities must require their suppliers to acknowledge and implement requirements on the prohibition of forcedlabor. At a minimum, communication by the facility must cover all subsequent tier suppliers.

Requirements•

Communicate requirements to subsequent tier suppliers verbally and in writing.

•

Include requirements in forms that will enable their enforcement by the location, such as in contracts
and purchase orders.

•

Provide training to relevant management personnel on next tier supplier due diligence.

•

Ensure workers employed onsite by subsequent tier suppliers, such as onsite contractors, have
employment terms and conditions that meet requirements.

•

Supplier must validate compliance with standards at subsequent tier suppliers.

No Forced Labor or Human Trafficking© 2024 Target Corporation

38

No Underage Labor
We do not tolerate the use of underage labor and will not knowingly
work with suppliers that utilize underage workers. We define
underage workers as any individual younger than the local minimum
working age or the age of 15, whichever is older, and/or those notabiding by the international standards as defined by the International
Labor Organization (ILO) regarding age-appropriate work governing
family farming. Suppliers must comply with all age-related working
restrictions as set by local law and adhere to international standards
as defined by the ILO regarding age-appropriate work.

© 2024 Target Corporation

Minimum Age

Personnel Records
Local Law Compliance39Ensure all workers meet the minimum age at
the time of hire according to local law, or theage of 15, whichever is older.
Requirements•

Establish and enforce a comprehensive human resources system to prevent underage labor. Ensure policies
include a clause that no department can hire anyone outside of the established hiring channels. Do not allow
any exceptions, whether for permanent workers, contract workers, piece-rate workers, foreign and domestic
migrant/guest workers, casual workers, students, interns, or temporary workers.

•

Define consequences if managers or supervisors violate local laws and/or Target’s Standards. Hold
managers or supervisors accountable.

•

Business Partners: Understand the definition of underage labor for all countries where you source product,
and whether it meets Target’s Standards.

•

Locations: Understand the legal working age and adolescent working age, and how the laws compare to
Target’s Standards.

•

Verify proof of age and identity for each applicant prior to hiring. Documentation must include anauthenticated original identity document with a photograph, such as an Identification Card, Birth Certificate,
Passport, Driver’s License, Doctor’s Certificate, or any other identity document accepted by local law. Neverhire anyone without this information.

•

Confirm all production work is performed in the factory or a controlled environment in order to prevent risk ofparticipation by underage or adolescent laborers.

No Underage Labor© 2024 Target Corporation*

Underage labor is a zerotolerance violation for
Target.

40

Ensure all workers meet the minimum age at
the time of hire according to local law, or theage of 15, whichever is older.

Best Practices

•

•
•
•
•
•
•

No Underage Labor

Critically examine the authenticity of age and identity documentation. In regions wherefalsification is widespread, substantiate age through other information sources, such as:— Contact source of original document, such as local government authority, forauthentication.
— Ask for multiple original document sources for cross comparison.
— Utilize specialized document authentication machinery to rule out falsification.
— In-depth interview using advanced interview techniques to crosscheck information.
Track type and occurrences of falsified documents identified over time and train humanresources staff to recognize common practices.
Interview prospective workers to ensure appearance matches identity documents.
Create a corporate “No Underage Labor” policy and include it in the company manual.
Business Partners: Ensure locations have a hiring policy that specifies a minimum age inaccordance with Target’s Standards.
Share age requirements with hiring agencies, as applicable.
Control access to production areas. Do not allow any individual below the legal working age or
the age of 15 (whichever is older) access to the production floor.

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Keep organized personnel records with
proof of identity and age for all workers.
Requirements••

Each worker must have a personnel record.
The personnel record must contain the full employment date (day-month-year), proof ofage at the time of hire, and other information as required by law.

••

Personnel records for each worker must be available for review.
Personnel records must be created at time of hire. Do not allow workers access to
production areas before completing age verification and creating the personnel file.
Provide Target’s Responsible Sourcing team and/or our designated third-party auditorswith complete access to personnel records for all workers.

•

No Underage Labor© 2024 Target Corporation

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Comply with all local laws concerningadolescent workers.
Requirements
•
•
•
•
•

Factories must understand and comply with local laws for adolescent workers including,but not limited to, type of work, working conditions, working days, working hours, andovertime hours.
Where local law requires, adolescent workers must be registered with the local laborbureau and receive health examinations.
Have a system in place to clearly identify and monitor adolescent workers and theirworkstations, as well as identify stations that are inappropriate for adolescent workers due
to legal and safety concerns.
Verify all workers engaged in high-risk activities such as working with hazardous
substances, lifting heavy loads, working at high levels, etc. are above the legal age
required for such work.
Train adolescent workers to ensure they fully understand factory rules and, in particular,
legal restrictions concerning adolescent workers.

No Underage Labor© 2024 Target Corporation

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Health and Safety
Suppliers must provide a safe and healthy working
environment for workers. We expect hazards to beassessed and appropriate safeguards to be implemented,
monitored, and trained to workers to prevent accidents,
injuries, and illnesses. The safeguards must protect
workers from exposure to toxic chemicals or materials,
ensure life and building safety, and meet local laws. If
suppliers provide residential facilities for their workers,
they must be safe and sanitary.

*

Unless otherwise noted, all information pertains
to both location and dormitory conditions.

Electrical Safety
Machine Safety
Structural Safety
Hazardous Materials
Personal Protective Equipment
Emergency Preparedness44© 2024 Target Corporation

Comply with all applicable laws regarding electricalsafety. Electrical boards, panels, wiring, circuit
breakers etc. should be properly configured,adequately marked and securely protected.
• All electrical systems in the location and dormitory should comply with local healthand safety regulations in order to prevent fire and hazards:• Properly cover electrical cables/wires with tubing, electrical tape, or covers.
• Properly install and cover electrical outlet/switch box.
• Post warning signs in accordance with local law.
• Fit all warehouses’/stores’ lights with protective covers or guards that prevent
shattering and contain a burst light bulb.
• Have a qualified electrician on staff or retain the services of a qualified electricalcontractor to perform all electrical work in the location.

Health and Safety© 2024 Target Corporation

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Comply with all laws regarding machine safety andtake all steps to ensure machine safety.
••

Ensure that all machinery and peripheral equipment has functioning safety features. Examples:• Machinery with hazardous parts such as conveyor belts, gears, and abrasive wheels, should be equipped with protective devices. Fans
should have blade safety guards.
••

All stamping, punching, and cutting machines should be equipped with safety devices.
Sewing machines should have needle guards and pulley safety guards.

••

Machinery that has automatic feeds should have automatic shut-offs.
Guardrails are provided in any area of the location or dormitory which is accessible to workers and elevated high enough that a fall
could cause personal injury (e.g., storage platform or second floor walkway).

Workers should be provided training on machine safety.

Health and Safety© 2024 Target Corporation

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Ensure that all buildings and dormitories arecompliant with local laws. Take all steps to ensurethat all location buildings and dormitories are
structurally safe and well maintained.
• The location and dormitory building should be free of any
major structural defects or issues.
• The location should apply and obtain approved building plan from theconcerned building authority, prior to starting location/dormitory building
construction or for any alternation or modification after the original building
approval. The building plan should be updated and reflect current building
structure and use.
• Ensure that the location has obtained building safety/stability certificate or
permit if required by law, issued by official building authority/department tocertify the building construction and quality meet legal requirements prior
to location operation/production. It could be named differently by country,e.g., Occupancy Certificate, Building Acceptance Permit or Stability
certificate, Location License, etc. The license or certificate should be
updated and match the current building structure and use.

Health and Safety• The location should have documented policies and procedures toensure the location and/or dormitory buildings are inspected byappropriate workers and/or government entities on a regular basis.
• Ensure the aisle/passageway has enough width and the exit doorand staircase has enough height and width for workers to evacuatesafely. If not, the location is required to build, construct or modify theexisting aisle/passageway, exit door, and staircase to provide
enough width and height for workers to evacuate safely, as requiredby local law or when local law does not exist, by international
standards.
• Prohibit smoking in the location and warehouse buildings. A
designated smoking area should be provided away from thebuildings with adequate safety measures.

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Ensure that all buildings and dormitories arecompliant with local laws. Take all steps to ensurethat all location buildings and dormitories are
structurally safe and well maintained.

Best Practices

Health and Safety•

In case of any major structural defects or issues in any location or dormitorybuilding, a qualified third-party should assess the structural integrity, stability,
and conformity by following the applicable standard.
• Day/child-care center should be located on the ground floor of the
production building or in a separate building.
• Conduct periodic tests of the location electrical appliances, installation,connections, and load according to the applicable regulation andstandard using a credible electrical contractor/firm and by using theappropriate tool(s).

© 2024 Target Corporation48

Provide safe, clean, sanitary, and neat living
and working areas.
• The dormitory should provide functional and clean shower and/or bath facilities
separated by gender. In the absence of local law, the dormitory should have one
shower/bath facility per six occupants.

• The location and dormitory should be clean and well maintained.
• Tools must be kept in a secured location.
• Toilets in the dormitory and location should be separated by gender, stalls should provide
sufficient privacy with a door and lock, toilets should meet local standards for generalcleanliness, and toilets should be operational. The location should provide one toilet per 15
workers, or more if required by local law. The dormitory should have one toilet per six
workers, or more if required by local law.
• Ensure that the location has enough light for workers to work safely without vision damage.
• The location should provide adequate ventilation in the location, such as windows, fans, airconditioning, or heat to promote air circulation and comfort.
• Workers should always have access to safe drinking water free of charge in the locationand dormitory. Water should be kept in a sanitary manner, including away from toilets, toprevent contamination. Testing should be conducted as required by law.
• Potable water should be provided within a reasonable distance from the dormitory andworkstations. At a minimum, potable water should be provided on each dormitory andproduction floor. Workers should be able to always access potable water without
restriction.
• If a child-care center exists at the location, it should be clean and dry, should haveadequate light and ventilation, be equipped with the necessary furniture, food supplies, andsafety equipment as required by law.
• Ensure that the dormitory is in a separate building from the production building. No
production should be allowed in the dormitory.

Health and Safety• Dormitories should provide separate male and female sleeping facilities, except for
those provided to couples.
• The dormitory should include a comfortable cot, bed, or bunk for each dormitory
resident. Triple-bunk beds are prohibited. Shared beds are prohibited except for thosein an individual family’s accommodation.
• Ensure that the dormitory meets all local housing laws and regulations and provides
adequate protection against weather conditions. The structure should be safe andsecure with no exposure to the outdoors through gaps in structures. The windows anddoors of each dormitory room should be well maintained.
• The dormitory rooms should meet local laws and customs for personal space andnumber of occupants. Each dormitory resident should be provided personal living
space of no less than 3.6 square meters in their bedroom.
• Provide running water and functional laundry facilities for dormitory residents.
• The location is expected to provide a clean and well-maintained canteen or cooking
space if outside food sources are not readily available. Workers should have access toa clean dining space or canteen away from the production floor.
• Provide dormitory residents with clean and well-maintained canteen or cooking anddining space. The cooking area should be separate from the sleeping area.

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Minimize the risk of chemical exposureand hazardous materials for workers.
•

Identify all chemicals and hazardous materials onsite. Document all chemicals and hazardous
materials with valid Material Safety Data Sheets (MSDS) or Safety Data Sheets (SDS) in a Chemical
inventory that is evaluated periodically to review risks associated with chemical usage andalternatives available.

•

MSDS/SDS should be readily accessible to all in the local language of workers.

•

Provide workers handling chemicals, or exposed to chemicals, special training to ensure safe usage.
Training should include both orientation and ongoing components, and cover day-to-day
responsibilities, systems and emergency management, and clean-up.

•

Chemical containers should be maintained in good condition, properly labeled with the proper
chemical names and hazard symbols in the language of workers, covered, and stored withsecondary containment and proper ventilation.

•

Hazardous material storage areas should be enclosed and protected against all hazards, with only
authorized personnel having access.

•The location should not mix hazardous and non-hazardous waste.

•

The location should have a chemical spill response kit readily available which includes personal
protecting equipment, absorption material, and firefighting equipment.

•

Dispose of chemicals and hazardous materials in accordance with local laws.

•

Provide an unobstructed permanent eye wash station that is installed into a main water line forworkers in a location that is easily accessible from anywhere that hazardous chemicals are being
used. Eyewash should use potable water at an appropriate temperature and pressure.

•

Adhere to Target’s sandblast ban to avoid worker’s long-term health issues.

Health and Safety© 2024 Target Corporation*

Sandblasting is a zerotolerance violation for Target due tothe health hazard that it poses toworkers. Target defines
sandblasting as any abrasive
blasting with a media that contains
crystalline silica such as aluminumoxide, aluminum silicate, siliconcarbide, copper slag, or garnet.
Target bans the use of sandblastingin the manufacturing process
anywhere in the facility. Suppliersmust procure raw materials
and/or product components fromsources that do not utilize
sandblasting.

50

Minimize the risk of chemical exposure andhazardous materials for workers.

Best Practices

•
•
•
•
•
•
•
•

Health and Safety

Eliminate hazardous materials, when possible, by using non-toxic
alternatives.
Have documented written procedures for all handling of chemicals andhazardous materials.
Store chemicals in an appropriate area away from the dormitory andproduction areas. This area should be cool and dry and equipped with a fire
prevention system.
Avoid all possible fire hazards, including improper chemical mixing or theaccidental storage of combustible chemicals in close proximity to one
another.
Post emergency procedures in chemical mixing and storage areas.
Research the most appropriate chemical safety and air quality systems foryour industry in order to best protect worker health.
Workers should not place their faces between sources of hazardous material
and ventilation systems.
Develop and document annual targets to reduce the amount of hazardous
substances in the facility.

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Make personal protective equipment (PPE)
available to all workers.
• Perform a safety risk assessment to evaluate workplace hazards.
• Provide workers with appropriate, functioning PPE based on the hazards identified through the hazard
assessment to reduce the risk of accidents, injury, or illness – free of charge• Examples of PPE include metallic cutting gloves, facemasks, goggles, earplugs, ventilators, andreinforced footwear.
• Location should ensure employees in outdoor work settings have access to cold-protective equipment
and gear (e.g., lined hard hats, thermal-lined gloves, waterproof boots, layered socks, and fleece-lined
bomber jackets); and/or heat-protective equipment and gear (e.g., gloves, breathable, reflective
clothing, protective head coverings, and sunglasses)• Workers should be provided training on PPE usage.

Health and Safety© 2024 Target Corporation

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Emergency
Preparedness

Fire Prevention
Fire Alarms
Fire Protective Equipment

Suppliers are expected to assess and monitor emergencyrelated hazards and implement emergency preparedness
plans. Workers must be trained on prevention andresponse protocols.

Emergency ExitsFirst Aid
Hazardous Temperature*

Hazardous Weather

Unless otherwise noted, all information pertains
to both location and dormitory conditions.

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Location is expected to develop policies, team,practices, and training for fire prevention atdormitories and workplace.
• Develop policies and procedures on health and safety that include fire
prevention, hot-work procedures, and emergency response proceduresfor fire and natural disaster preparedness.
• Location should develop a fire safety/fighting plan including emergency
evacuation, firefighting personnel, and duties. Safety plan should contain(but not be limited too), location details and address, emergency contact
number, floor layout with in-built equipment, safety personnel with theirduties, firefighting equipment list, evacuation and rescue plan, assemblyarea, water reservoir location, and nearby back-up water and power
supply location. Fire safety plan should be approved by the fire
department where applicable. Safety plan should be posted at the location
entrance, main gate, or common area.

• Locations should educate their workers on fire emergency response
including basic fire safety, safety policy, emergency preparedness andprocedure, fire extinguisher operating system.
• Locations should ensure that the required number of workers are trained
and certified by the local fire service or credible certified authority on
firefighting, fire equipment, and rescue as required by local law or
following Target’s requirement where local laws do not exist.
• Locations should maintain a log of the workers who have completed thetraining and when recertification is required. Unless specified by local
law, arrange refresher training for certified fire fighters/workers should
be arranged every two years.

• If required by law, the location should have a fire safety officer responsible
for the implementation of the health and safety policies and procedures
who is a part of senior leadership.

• Location should conduct a fire and safety risk assessment that covers all
production, storage, and dormitory (if applicable) spaces in a location
which should include a plan to mitigate all identified risk.

• Locations are expected to conduct emergency and fire drills, managed byqualified fire safety officers if available, for all workers in accordance withlocal law and in every work shift with power shut. If there is no applicable
local law, conduct emergency and fire drills at least once a year. If there
are other building occupants, the location should conduct drills with otheroccupants.

• Location should obtain the Fire License, NOC (No Objection Certificate),
Fire Control Completion and Acceptance Report or other fire safety
documentation from the fire service authority as applicable by local law
and keep this license or acceptance letter available for review.

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Location is expected to develop policies, team,practices, and training for fire prevention atdormitories and workplace.

Best Practices

•
•
•
•

Health and Safety

Develop a system for reviewing all health and safety requirements regularly to ensurecompliance.
Maintain thorough health and safety records on site for one year. Records should document
training programs (prevention), any incidents that occur, and how incidents were addressed(corrective action).
Investigate any incidents that occur, determine cause, develop and implement a plan forprevention, and keep records on file.
Hold periodic dialogue between management and employees to address and improve
workplace safety concerns. Location should ensure all the employees and management arepart of conversations to work together to develop a culture of safety.

© 2024 Target Corporation

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Install fire alarms at all areas to detect andnotify workers during emergencies both atworkplace and dormitories.
• All fire alarm devices should have emergency backup power supply supported by battery or generator.
• Visual fire alarms should be installed at location where workers use earplugs.
• Fire alarms should be interconnected within each building.
• All fire alarms should be checked and tested regularly to ensure functionality during emergency.

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Provide unobstructed fire protective equipment
such as fire extinguishers, fire hoses, hydrants,
sprinklers throughout the location and dormitory
as required by law.
• If there are no local laws and regulations, have enough equipment located throughout the location to
successfully fight a fire. An approximate reference is one set of safety equipment per 100 square meters.
• Place fire extinguishers at an appropriate height to be used by all with written instruction in language that all
workers can understand.
• Fire extinguishers should be appropriate by size and category as required by operation and category ofidentified fire hazard for specific area.
• All fire extinguishers should be charged and serviced periodically and properly.
• Fire hose/hydrants and/or sprinklers should have adequate water pressure to reach remote areas oflocation and dormitories.
• Ensure all fire protective equipment is regularly inspected to ensure its functionality during an emergency.

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Ensure adequate, unlocked, unobstructed,
clearly marked emergency exits for dormitories
and workplace.
• Provide an adequate number of emergency exits on each floor of the location as defined by law or in absence of legal
requirement, each worker should have access to at least two exits that lead to clearly marked assembly points.
• Location should maintain proper height and width of exit along with exit stairways.
• All exit route aisles and doors should be clearly marked, illuminated with adequate lights, maintained with adequate width andcleared from any form of obstruction.
• Ensure that all emergency exits are kept unlocked. Doors should push or slide to open in accordance with local law toprovide quick and easy escape during an emergency.
• Each emergency exit should discharge away from the structure and not re-enter the structure. Emergency exits should notdischarge through any hazardous area (e.g., chemical storage, boiler room).
• Location should post an accurate, easy-to-understand evacuation plan at each floor or workshop. All defined escape routes
leading out of the location/dormitory from each section, department, line, etc. should be marked on the evacuation plan.
• Location should provide guardrail for any elevated exit/work/storage platform. Staircases should have a handrail or railing forgoing up and down safely.
• Ensure that high-beam emergency lighting is installed with a back-up power supply throughout the entire location anddormitory and tested regularly.

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Ensure adequate, unlocked, unobstructed,
clearly marked emergency exits for dormitories
and workplace.

Best Practices

•
•
•
•

•
•

Health and Safety

Hazardous machineries such as boilers should be kept separate from the production
floor or building.
Following training or safety drills, conduct a debrief with management to discuss
successes and failures.
Remove excess product and production waste on a regular basis.
Materials or boxed goods should be stored or stacked safely on pallets and shelvesin stacks that are not too high or unstable. Workers should use appropriate safety
equipment to retrieve items from high locations. Consider assigning someone tomonitor storage practices regularly to ensure safety.
Label doors that could be mistaken for exits but lead elsewhere, for example,“Bathroom” or “Not an Exit.”
Paint a yellow or red box on the floor around fire safety equipment, extending
approximately one meter. Educate workers that no equipment or other obstructions
should be placed within the box.

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Provide all first aid supplies along withadequately trained first aid person as required bylaw for dormitories and location.
• Provide first aid supplies for each floor or area even if a medical facility is alsoavailable onsite.
• Conduct inspections to ensure first aid kit supplies are always available andinclude basic supplies such as bandages, pain relievers, anti-bacterial ointment,
tourniquets, tape, heat and cold packs, disposable thermometer, etc. as
required by local law.
• First aid personnel should be trained on how to administer first aid measures incase of a medical emergency.
• Location should ensure adequate first aid personnel for each floor/area asdefined by law—at least one per floor/area/shift. A minimum of two per shift is
recommended.
• The people who are trained in first aid should be easily identifiable on the work
floor.

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Location should adopt limitations on when and how
long workers can perform their duties in hazardous
temperatures in indoor and outdoor work settings.

Best Practices

•
•
•
•

Health and Safety

Allow for unscheduled breaks if workers report feeling weak, nauseated,
excessively fatigued, confused and/or irritable during work.
Establish mandatory breaks for people who work in hazardous
temperatures in outdoor work settings following exposure limit guidance per
local law.
Establish mandate to cease work when temperature becomes hazardous.
During periods of hazardous temperatures, work schedules should be
modified – breaks and ceasing work – based on but not limited to the following
considerations: temperature, humidity and/or wind chill, and sunshine (outdoor
work in hazardous heat only); when there is no air movement (indoor work inhazardous heat only); if protective clothing or equipment is worn and forheavier work.

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Location should establish appropriate engineering
controls to minimize the impact of hazardous
temperatures on workers.

Best Practices

Health and Safety•

For outdoor work setting, location should establish engineering control toreduce cold stress through use of heated warming shelters and/or reduce heatstress through use of reflective or heat-absorbing shielding or barriers.

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Location should develop policies, practices andtraining for hazardous temperature-related safety
plans for indoor and outdoor work settings.
•

Best Practices

•

•

•

Health and Safety

Location should develop weather acclimatization procedures (focused on
newly hired workers and unacclimatized existing workers) – following local
law. In the absence of local law, provide a one to two week acclimation
period.
Location should develop hazardous temperature-related safety plan. The
safety plan should contain (but not be limited to) plan to activate mandatory
breaks and/or ceasing work when appropriate; establishing buddy system tomonitor employees during cold and/or heat waves; and procedures to follow
when a worker has symptoms consistent with cold and/or heat-related illness.
The safety plan should be posted at the location entrance, main gates, and/or
common area.
Location should develop a hazardous temperature alert program to monitor
weather reports and properly respond to cold and/or hot weather advisories
with related safety plans and/or modified work schedules whenever theweather service forecasts that a cold and/or heat wave is likely to occur.
Location should establish a cold and heat stress training program to educate
all employees and supervisors to recognize the causes of cold and heatrelated illnesses; symptom recognition; how to administration of first aid; andproper care and use of protective clothing and equipment.

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Location should develop policies, practices, andtraining for hazardous weather-related emergency
preparedness plan and emergency response
protocol for indoor and outdoor work settings.
•

Best Practices

•

•

•

Health and Safety

Location should assess, identify and monitor potential hazardous weather that may
occur in their location. This includes (but is not limited to): blizzards;
cyclones/hurricanes/typhoons; droughts; earthquakes; flooding andlandslides/mudslides; lightning; polluted air; tornadoes; tsunamis; volcanic disruptions;wildfires; and wind.
Location should develop a hazardous weather alert program to monitor weather
reports and properly respond to weather advisories with related safety plans and/or
modified work schedules whenever the weather service forecasts that hazardous
weather is likely to occur.
Location should develop hazardous weather-related emergency preparedness plan.
This plan should contain (but not limited to): evacuation plans (designate indoor
shelter-in-place locations and emergency exit plans/routes). The plan should assign
leadership roles to guide employees during these events. The emergency
preparedness plan should be communicated to employees, trained on an annual
basis, and posted at the location entrance, main gates, and/or common area.
Location should adopt limitations on when and how long workers can perform theirduties in hazardous weather, per local law.

© 2024 Target Corporation

Location should develop policies, practices, andtraining for hazardous weather-related emergency
preparedness plan and emergency response
protocol for indoor and outdoor work settings.
•

Best Practices
•
•
•

•

Health and Safety

In hazard weather circumstances where extreme damage or loss of life ispredicted, locations should cease operation and employees should evacuate to a safe
location, per local law. For factory locations and employer-provided dormitories, theselocations must meet structural safety requirements and have designated safe
locations. For outdoor locations, there should be safety plans to move employees into
designated safe locations.
Employees should be trained on how to avoid hazards after hazardous
weather events (e.g., exposed electrical wires, gas leaks, polluted water).
A designated response/safety team should be established and responsible for postdisaster action including guiding employees to post-disaster assembly area(s)and assessing post-disaster hazards, damages, and injuries.
Location should provide adequate equipment to mitigate the risk ofhazardous weather on workers. Emergency supplies should be always available andinclude basic supplies such as an emergency phone, whistle, flashlights, air cleaners,
battery-powered or hand crank radio.
Location should provide telephone numbers and their contact information for
local emergency response services including local fire department; ambulance service
and local hospital; and nearby back-up water and power supply location(s).

© 2024 Target Corporation

Location should establish natural disaster warning
systems to notify workers during emergencies bothat the workplace and dormitories.

Best Practices

•
•
•
•

Health and Safety

All natural disaster alarm devices should have emergency backup power supply
supported by battery or generator.
Natural disaster alarms should be interconnected within each building and havedistinct sounds to indicate different emergencies.
All natural disaster alarms should be checked and tested regularly to ensure
functionality during emergencies.
If natural disaster alarm systems are not possible, location should establish anothermethod to communication emergencies which could include intercom systemcommunication, portable radio communication, and bullhorn.

© 2024 Target Corporation

No Discrimination
We respect cultural and individual differences andbelieve discrimination should not be tolerated.
Suppliers are expected to maintain a discriminationfree workplace and to employ legally-eligible workers
based upon on their abilities, rather than their race,color, sex, pregnancy status, gender identity, marital
status, political opinions, religion, age, disability,
sexual orientation, social origin, national origin or any
other characteristics unrelated to an individual’sability to perform the work required by the job.

© 2024 Target Corporation

Actions Based on
PerformancePregnancy Testing67

Hire, compensate, promote, discipline, andterminate workers based on qualifications,abilities, and performance alone.
Requirements•

Create and distribute job titles and descriptions for all positions. Do not include criteria notdirectly related to job tasks in employment advertising. For example, gender, biological,
physical or age characteristics.
• Make all employment and compensation decisions based on requirements for job performance
rather than individual characteristics.
• Establish objective criteria for hiring decisions and job assignments. Do not make assignments
based on gender.
• Do not include criteria not directly related to job tasks in employment advertising. For example,
gender, sexual orientation, physical characteristics or age.
• Establish clear non-discrimination policies documented in the factory rule book and/or worker
handbook, including:— Confidential grievance procedure in which workers can report discrimination to someone
other than a direct supervisor.
— Appropriate consequences for violations.
— Review the policy frequently to ensure effectiveness.

No Discrimination© 2024 Target Corporation*

Making any employment
and compensation
decisions based on
individual characteristics
rather than job performanceis a zero tolerance violation.

68

Hire, compensate, promote, discipline, andterminate workers based on qualifications,abilities, and performance alone.

Best Practices

•
•
•
•
•
•

•

No Discrimination

Allow all eligible job applicants to apply and/or take related exams.
Do not collect information not related to job performance and not
required by law, during the application process.
Have a system that effectively implements non-discrimination
policies.
Establish and communicate objective measurements for
performance (including bonuses) and promotions.
Establish and apply objective criteria for dismissal.
Develop and provide non-discrimination and cultural sensitivity
trainings for all workers, which address the importance of treating
all people equally. Provide topic specific training for managers,
supervisors, and security guards.
Document employment practices over time to establish credibility.

© 2024 Target Corporation

69

Do not use pregnancy testing as a conditionof employment or to terminate employment.
Requirements• Do not require pregnancy testing as a condition of employment.
• Do not use marriage or pregnancy as a reason for prohibition of or
termination of employment, unless required by law.
• Knowledge of pregnancy is to be used only in order to provide
reasonable accommodations to pregnant women. Such as,
avoiding work that may pose a health risk, standing for long
periods, other risks or concerns, and providing proper benefits
under local law.
• If pregnancy testing is legal and in use, clearly communicate its
purpose to workers within the factory rulebook.

No Discrimination© 2024 Target Corporation70

No Harassment

Hostile Work
Environment

We believe all workers should be treated with dignity.
Suppliers must not engage in, condone, or tolerate
physical, verbal, mental, or sexual harassment
against or among their workers.

Factory Rules© 2024 Target Corporation

71Ensure factory management does not condone,
create, or contribute to an intimidating, hostile,
or offensive work environment.
Requirements•

Ensure that workers are not subject to corporal punishment, harassment, or abuse.

•

Create a written policy to outline the above practices are prohibited and which details appropriate disciplinary
procedures. Disciplinary procedures must consist of an escalating series of measures, from verbal to written
warnings, prior to suspension or dismissal. Document all warnings in a worker’s personnel file.

•

Location rules must provide information about disciplinary practices in the workplace and be consistent withlocal law and Target’s Standards.

•

Location rules must not include fines or fees for the following, or similar:—

Damaged goods—

Drinking water—

Minor disciplinary infractions such as smoking or tardiness—

Freedom of movement violation (For example: limitations on bathroom privileges)•

All workers, including management, must receive education on the factory disciplinary policies.

•

Security guards are not authorized to impose disciplinary actions against workers.

•

Create a system in which workers can raise issues of concern, including treatment by their supervisor,
without retaliation or penalties.

•

Maintain written records of disciplinary measures taken.

No Harassment© 2024 Target Corporation*

Corporal punishment is azero tolerance violation.
Harassment and abuse arezero tolerance violations.

72

Ensure factory management does not condone,
create, or contribute to an intimidating, hostile,
or offensive work environment.

Best Practices

No Harassment• Encourage management to take classes on
harassment, awareness, sensitivity to othercultures, corporal punishment, and mental abuse.

© 2024 Target Corporation

73

Workers must be aware of location
rules and Target’s Standards.
Requirements
•
•
•
•
•

Post rules in a public area. Distribute rules in the form of a handbook andinclude in the detailed employment contract. Keep posted and distributed
rules up-to-date.
Ensure rules are written in the language(s) of workers.
Educate all workers on all rules, and ensure workers are trained on any newrules or changes.
Post Target’s Standards of Vendor Engagement in a visible location and in alanguage all workers understand.
Post the rules if not required by local law. Suppliers are accountable to thestricter Target Standards when local law does not exist.

No Harassment© 2024 Target Corporation

74

Working Hours andOvertime
Suppliers must not allow working hours that exceed
the applicable legal limit, or 60 hours per week,
whichever is less. Regularly paid hours must notexceed 48 per week and overtime hours must notexceed 12 hours per week or the amount specified
by local law, whichever is less. Only in exceptional
cases may a person work more than 60 hours per
week or more than six consecutive days. Overtime
work must always be voluntary and paid at apremium rate. Workers must have at least one fullnon-working day in every 7-day period.

© 2024 Target Corporation

Work ScheduleTime Keeping75

Maintain a work schedule that complies with bothTarget’s Standards and local law.
• Target requires locations to be transparent regarding all hours
worked and wages paid. Time keeping and wage payment
records should be accurately maintained. Locations are
required to provide Target Responsible Sourcing &Sustainability or third-party representatives’ full access toaccurate records.
• Provide a minimum of one full rest day for every six days
worked to all workers. No workers should work consecutively
for seven days or longer.
• Ensure that workers receive vacation/time off in accordancewith local law.
• Ensure that workers receive maternity/paternity/nursing leavein accordance with local law.

• Develop a production plan in advance to ensure workers do
not work more than 48 regular and 12 hours overtime in aweek (60 hours total).
• If the location anticipates working hours will be in excess ofTarget’s 60-hour standard, please notify your Responsible
Sourcing contact or email Responsible.Sourcing@target.com
to determine a collaborative solution based on exceptionalsituations. Exceptional situations include the following:—

Natural disasters affecting suppliers—

Pre-communicated agricultural and peak season
production• Ensure that nursing mothers should receive adequate
breastfeeding/pumping breaks.

• Provide reasonable meal and rest breaks in accordance withlocal law.
• Detail working schedule, normal working hours, rest days, andholiday policy in the location rules and/or in worker handbook,in a language understood by local and migrant/guest workers.

Working Hours and Overtime© 2024 Target Corporation76

Target requires suppliers to be transparent regarding all hours worked
and wages paid. Time keeping and wage payment records should be
accurately maintained. In order to ensure accurate working hours,
suppliers should use a fully functioning time-keeping system.
See also, Wages section.
•

The same time-keeping system should accurately track all hours worked for
all workers.

•

Ensure that manual attendance sheets have exact time-in and time-out with
employees' acknowledgement.

•

Provide Target Responsible Sourcing & Sustainability or third-party
representatives full access to accurate records. Location should not
maintain a false set of records or double books.

•

Timecards should be properly completed and easy to read.

•Electrical time-keeping systems should have a battery back-up which starts
immediately in the case of power loss to prevent data loss.

•

Ensure that all hours, including overtime, are recorded within the sametime-keeping system and one single payroll record.

•

Ensure that all workers have accurate time records that reflect all regularand overtime hours actually worked.

•

Workers should be able to verify regular and overtime hours worked eachday.

•

All workers should accurately complete their own timecard for all regularand overtime hours worked. Management or another worker cannot
complete timecards.

•

Provide training on the time-keeping system for new workers and on an
ongoing basis. Train new workers on the first day of employment.

••

Management should ensure workers do not punch timecards earlier thanwork start time or later than work finish time.

Ensure managers and line supervisors receive specialized training andunderstand the importance of managing all time tracking within the sametime-keeping system.

•

Ensure that workers are paid for all hours worked.

•

Install adequate time-keeping machines at the entrance of or nearby theemployees' workshop to reduce the waiting time to complete timecards.

•

Conduct regular internal audits to ensure the time-keeping system isproperly used and it ties back to the payroll systems properly.

Working Hours and Overtime© 2024 Target Corporation

77

Wages

Hours Worked

Suppliers must provide wages and benefits that meetor exceed local law requirements and are
paid/provided in a timely manner. We encourage
suppliers to commit to the betterment of wages andbenefits to improve the lives of workers and theirfamilies in the communities where they live.

Payroll Deductions
Payment Accuracy
Payroll Access
Back Pay© 2024 Target Corporation

78

Pay workers for all hours worked at the pay
rates stated by local law.
See also, Working Hours and Overtime section.

Requirements
•
•
•
•
•
•
•
•

•
•

Wages for regular hours worked must meet or exceed the minimum wage required by local law.
Payment in-kind is not allowed in lieu of minimum wage.
Do not use schemes that legally permit the payment below what is considered the standard minimum wage (e.g. Apprenticeship wages below minimum
wage, lower wages for workers with disabilities, wages below the minimum allowed for economic purposes).
Wages for overtime hours worked must meet or exceed the overtime wage rate required by local law.
If there is no local law regarding overtime compensation, workers must be compensated at a premium higher than for regular hours.
Ensure workers are properly compensated, in accordance with local law, for working on holidays.
Ensure workers are paid in accordance with local laws for all paid leaves, including holidays and maternity or paternity leave. Locations must not set
production quotas at a level that requires workers to exceed regular working hours to earn the minimum wage.
Piece-rate wages must meet or exceed the equivalent hourly minimum wage. If the wages of workers calculated by piece-rate fall below the applicablelegal wage rates (minimum, overtime, holiday, etc.) then the location must calculate the difference between the piece-rate wage and the correct legal
wage and pay the difference to the workers in order to meet the legal minimum rates. Bonus or incentive pay cannot be used towards the minimum
wage.
Pay workers in a timely manner and, if payment is not digital, ensure workers sign a logbook documenting receipt of payment.
Suppliers are encouraged to regularly review wage systems and benefits in order to identify opportunities to continuously improve the lives of workers,
their families, and the communities where they live.

Wages© 2024 Target Corporation

79

Implement payroll deductions in order to provide
legal benefits or voluntary services only.
Requirements
•

•
•
•
•

Implement mandatory benefits such as medical insurance, injury insurance, pension insurance, social
security/retirement, etc., in accordance with local law. Ensure deductions are used specifically for the purpose
stated and maintain supporting documentation to prove mandatory deductions are taken and applied inaccordance with local law. Do not deduct amounts for dormitory, meal, or similar expenses, which exceed
actual cost. Keep records available, which demonstrate the actual cost of these expenses, if they are
deducted from worker wages.
Do not take deductions from wages unless they are mandatory under local law or voluntary, reasonable, andclearly understood by workers.
Deductions are not be taken from wages for damaged goods, tardiness, or failure to meet production quotas.
Do not use short-term or renewable contracts that are not substantively different from full-time employment
opportunities, in order to avoid payment of benefits, higher wages, or promotions to workers under local law.
Properly recognize the length of service of all workers in order to determine benefits to which they areentitled, as applicable.

Wages© 2024 Target Corporation

80Ensure workers fully understand their wage
structure, benefits they are eligible for, and canverify the accuracy of payments they receive.
Requirements••••

Educate workers on the pay structure, including the type and amount of all deductions taken from their pay, wage rates,
bonuses, and incentive systems. Develop and implement refresher training for existing workers.
Make workers aware of all leave benefits available under local law, including maternity and paternity leave. Payment and recordsof leave benefits should be maintained.
Pay stubs or receipts of payment must be itemized and available to all workers in their native language, document deductions
taken, and include actual pay.
Provide access to a contact in the human resources department (or other applicable department) in case a worker has a related
question.

Wages© 2024 Target Corporation

81

Provide access to complete and accurate payroll
and production records.
Requirements
•

•

•
•

Payroll must include enough details to verify proper wages and hours per legal requirement,
including but not limited to:— Complete pay period date
— Worker name— Total hours worked and breakdown by type of hours (regular, overtime, etc.)— Worker wage rates (normal, overtime, etc.)— Piece rate calculations (if applicable)
Payroll and/or production records should reflect all hours worked by the workers.
Suppliers should maintain a single authentic set of payroll and production records,
which clearly and accurately provides information for all workers. Location must not
maintain a false set of records or double books.
Location must provide auditors access to review the payroll records.
Keep all wage records for the time period required by local laws.

Wages© 2024 Target Corporation82

Back pay must be provided to workers if wages were
not paid in accordance with legal or contractual
requirements.
Back Pay: Money that is owed and paid to workers to remedy missing compensation.

Requirements•••

If wages or severance are unpaid, underpaid, delayed, or deducted improperly per local law or employment contract,
suppliers must calculate and provide back pay to all affected workers within thirty days of their discovery.
Back pay must be provided to all affected workers, regardless of their current employment status; this includes workers that may
no longer have an employment relationship with the suppliers.
All back pay provided must include any interest payment required by local law.

Wages

© 2024 Target Corporation

83

Freedom of
Association
We seek suppliers who productively engage workers
and value them as critical assets to sustainablebusiness success. This includes respecting the rights
of workers to make an informed decision as towhether to associate or not with any group,
consistent with all applicable laws.

© 2024 Target Corporation

Workers’ Rights

84

Recognize and respect workers’ rights tofreedom of association.
Requirements
•
•
•
•
•
•
•
•
•
•

Establish sound hiring and employment practices that are legally compliant regarding freedom of association.
Grant workers the right to openly communicate with management individually or collectively.
Allow employees to represent themselves and others without interference, intimidation, or discrimination frommanagement.
Management and workers must comply with all national or laws, regulations, and procedures concerning freedomof association.
Workers must not be punished or otherwise discriminated against for supporting freedom of association.
Appropriate training must be conducted for supervisors/managers.
Retaliation against workers who are attempting to legally associate and/or organize is prohibited.
Management must not discriminate against workers due to their membership in, or affiliation with, a union or worker
association.
Where law prohibits the right to freedom of association, the supplier must not hinder the development of legal
alternatives.
Suppliers must have a written policy that states its commitment to comply with applicable laws and respect
workers’ rights to freedom of association.
Membership in a trade union or worker association must not be a condition of hiring.

Freedom of Association© 2024 Target Corporation

85

Recognize and respect workers’ rights tofreedom of association.

Best Practices

Freedom of Association• If a union or worker association has been formed,
allow worker representatives access to theworkplace in order to carry out their representative
functions in accordance with law or agreement.
• Train managers and supervisors on freedom of
association laws.

© 2024 Target Corporation

86Environmental
Management andMonitoring Systems
Suppliers must have an environmental management
system that identifies, characterizes, and inventories all
operational and production impacts to air emissions, energyuse, water use, and wastewater.

© 2024 Target Corporation

Monitoring Systems

87

Have an environmental management system that
identifies, characterizes, and inventories
all operational and production impacts to air
emissions, energy use, water use, and wastewater.
Requirements
•
•
•
•
•
•

An Environmental Management System (EMS) that sets measurable goals and timeframes for
impact areas based on production and operations must be documented and on file.
Locations in-scope are required to complete a Higg Index Facilities Environmental Module (FEM)
self-assessment at least once a year to validate environmental performance. See Partners Online
for facilities in scope of the Higg FEM.
A system must be in place to respond to any unexpected environmental emergencies such as
chemical spills or gas leaks.
Corrective action from appropriate governing bodies due to being out of legal compliance must be
documented and completed within the set period.
EMS must be evaluated and updated annually to manage and track environmental progress.
General training must be conducted annually to all employees regarding environmental protection.

Environmental Management
and Monitoring Systems© 2024 Target Corporation

88

Have an environmental management system that
identifies, characterizes, and inventories
all operational and production impacts to air
emissions, energy use, water use, and wastewater.

Best Practices

Environmental Management
and Monitoring Systems• Information on the location’s environmental
performance is made available to both internaland external stakeholders.

© 2024 Target Corporation

89

No Illegal Wastewater
Discharge
Monitor Wastewater
We will not tolerate suppliers with undersized,
bypassed, or inoperable wastewater treatment
systems. Suppliers must install and maintainappropriately-sized wastewater treatment systems toensure pollutants are at or below legally required
levels.

© 2024 Target Corporation

Manage Water Use

90

Monitor wastewater discharge and reduce thepollutants of wastewater to levels compliant withapplicable laws and regulations.
Requirements•

Ensure that all wastewater streams are identified and characterized: maintain an inventory of processwastewater stream.

•

Install and maintain appropriately-sized wastewater treatment systems that reduce the pollutant ofwastewater to levels compliant with applicable laws and regulations.

•

In the absence of an on-site wastewater treatment facility, all wastewater to be discharged into the off-sitewastewater treatment facility (i.e., industrial park wastewater treatment facility, or municipal wastewater
treatment facility) as regulated. Required discharge permits must be updated periodically and filed with theproper regulatory agency.

•

Monitor wastewater discharges in accordance with regulatory requirements and develop a schedule of water
quality sampling and testing that conforms to government and industry guidelines.

•

If wastewater is treated off-site, location must have a knowledge of the name, address of the offsite thirdparty treatment plan, and have oversight to ensure it is compliant. The off-site treatment plant and relevant
information must provide access to Target as requested.

•

Prepare for emergencies and implement emergency response actions in case the on-site wastewater
treatment plant exceeds its capacity or malfunctions.

•

Training is required for all employees who work directly with wastewater.

Water Stewardship© 2024 Target Corporation*

Illegal wastewater discharge
is a zero tolerance violation.

91

Monitor wastewater discharge and reduce thepollutants of wastewater to levels compliant withapplicable laws and regulations.

Best Practices

•
•
•
•
•
•
•

Water Stewardship

Develop and document an inspection and maintenance schedule ofwastewater treatment facility, where applicable.
Develop and document annual targets to reduce wastewater discharge
and improve wastewater quality.
Develop and document an action plan for achieving wastewater
discharge reduction target and wastewater quality improvement target.
Byproducts of wastewater treatment (e.g., sludge) are analyzed,
handled, and disposed of properly as hazardous waste.
Be aware of any non-compliance occurring in the off-site third-party
wastewater treatment plant. Develop an action plan for remediation if
the factory has contributed to the non-compliance.
Implement innovative solutions/technologies to reduce wastewater
volume and/or pollutant loading.
Publicly disclose wastewater discharge information.

© 2024 Target Corporation

92

Waste Reduction
and Disposal
Suppliers must handle, store, transport, and disposeof hazardous waste legally. We seek suppliers who
demonstrate they actively work to reduce waste
throughout the production process.

*Hazardous Waste

We will not tolerate suppliers that engage inillegal waste dumping.

© 2024 Target Corporation

93

Handle, store, transport and dispose of hazardous
waste legally, and actively work to reduce waste
throughout the production of products.
Requirements
•
•
•
•
•
•
•

Identify all sources of waste and characterize each waste stream as either hazardous
waste or non-hazardous waste as per applicable regulations.
Document an inventory of all wastes and track the amount of waste stream
generated.
Hazardous waste storage containers and storage area must be in good condition.
All hazardous and non-hazardous waste must be segregated and stored separately.
Hazardous waste must be sent to a licensed waste handler or authorized waste
facilities as required by law or regulation.
A licensed hazardous waste transporter as required by law or regulation must
transport hazardous waste.
Training is required for all employees on disposing, storing, and handling waste.

Waste Reduction and Disposal© 2024 Target Corporation

94

Handle, store, transport and dispose of hazardous
waste legally, and actively work to reduce waste
throughout the production of products.

Best Practices

Waste Reduction and Disposal• Reuse materials when possible and recycle materials
that are recyclable.
• Develop and document annual targets to reduce waste
generation.
• Develop and document an action plan for achieving
waste generation reduction target.
• Validate the final disposal and treatment of all wastes.

© 2024 Target Corporation95

Energy and Water Use
Suppliers are expected to set clear goals toimprove energy and water efficiency anddocument progress made toward achieving
those goals.

Efficient Energy Use

Efficient Water Use© 2024 Target Corporation

96

Utilize energy efficiently in locations andproduction processes.
Requirements• Identify energy source, track, and record energy consumption for buildings
and processes where production occurs.

Energy and Water Use© 2024 Target Corporation

97

Utilize energy efficiently in locations andproduction processes.

Best Practices

Energy and Water Use• Conduct an energy audit to identify potential
energy and cost savings.
• Develop and document annual targets to reduceenergy consumption and greenhouse gas (GHG)
emissions.
• Develop and document an action plan forachieving energy reduction target.
• Utilize online metering and publicly disclose data.

© 2024 Target Corporation98

Manage water use in facilities andproduction processes.
Requirements• Water use must be tracked and recorded for buildings andprocesses where production occurs.
• Set and review formal, normalized targets on a regular basis for
improving water use.

Energy and Water Use© 2024 Target Corporation

99

Manage water use in facilities andproduction processes.

Best Practices

Energy and Water Use• Develop and document annual targets to reducewater consumption.
• Develop and document an action plan forachieving water consumption reduction target.

© 2024 Target Corporation

100

Emissions to Air
Suppliers must install and maintain appropriate air
emissions control devices to ensure air emissions’pollutants are at or below legally required levels.

© 2024 Target Corporation

Minimize Air Pollution

101

Minimize air pollution impacts in locations
and production processes.
Requirements••••

Identify air emissions sources from industrial activities and auxiliary devices.
Develop and maintain an air emissions source inventory.
Required discharge permits must be updated properly and on file.
Install and maintain appropriate air emissions control devices that reduce the pollutant tolevels compliant with applicable laws and regulations.
• Monitor emission to air in accordance with regulatory requirements. The quantity of air
emissions must be tracked and recorded for all buildings and processes.

Emissions to Air© 2024 Target Corporation

102

Minimize air pollution impacts in locations
and production processes.

Best Practices

Emissions to Air• Develop and document annual targets to reduce
emissions to air, if applicable.
• Develop and document an action plan forachieving air emissions reduction target.
• Utilize online metering and publicly disclose data.

© 2024 Target Corporation

103

Licenses andPermitting

Valid Permits

Suppliers must acquire and maintain all legallyrequired environmental permits and business
operating licenses necessary for the productionof their products and operation of their locations.

Production Records© 2024 Target Corporation

104

Operate with valid environmental permits
and business operating licenses.
Requirements••••

Be aware of, and comply with, all applicable environmental laws and regulations, andmaintain an inventory of environmental laws and regulations.
Have all required environmental permits, licenses and other required approvals for its
current operations.
Plan and provide adequate time to update current environmental permits, licenses, andapprovals.
Maintain valid business operating license per legal requirement. The information on
business operating license should reflect the current operations, including address,
business scope, etc.

Licenses and Permitting© 2024 Target Corporation*

An invalid, missing or
falsified permit is a zerotolerance violation.
An invalid or missing
business license is a zerotolerance violation.

105

Operate with valid environmental permits
and business operating licenses.

Best Practices

Licenses and Permitting• The inventory of environmental laws andregulations is evaluated and updated annually.

© 2024 Target Corporation

106

Responsible Exit or
DeclineTarget production may be exited or declined at a
manufacturing location for a wide variety of reasons (i.e.,changing business needs, performance issues that
continues despite remediation efforts, disruptions such as
natural disasters, etc.). When such an exit or decline inTarget business takes place, we expect business partners
to support our efforts to responsibly exit the manufacturinglocation.

© 2024 Target Corporation

Risk Assessment &Escalation

Communication

Monitoring Compliance107Understand and escalate the risks of worker lay-offs
and/or non-payment of wages or severance prior to
the decline of Target business.

Best Practices•

Inform Responsible.Sourcing@Target.com and sourcing/merchandising partners
when:• A Target business exit or decline at the factory is significant enough that it
may result in worker lay-offs or unpaid wages/severance.
• A Target business exit or decline at the factory is resulting in worker layoffs
or unpaid wages/severance.
• A Target business exit or decline is resulting or may result in the factoryclosure.
• The factory being exited or declined is reducing working hours for longer
than 3 months.
• The factory is delaying payment to workers.
• The business partner or factory is facing bankruptcy or significant financial
challenges.
• A factory is temporarily, permanently, or indefinitely closed due to theimpact of a natural disaster.

• Provide the factory details and a detailed description of the business change andthe potential factory and worker impact.

Responsible Exit or Decline© 2024 Target Corporation

108

Provide advance notice, in writing, to factories ofTarget business exits or declines.

Best Practices

Responsible Exit or Decline• Applicable to business partners when Target does not source
directly from the factory.
• Provide a minimum of 3-12 months of advance notice tothe factory of business decline. The amount of advanced
timing should be on the higher end of this spectrum when there
may be significant disruptions to factory's overall businessor worker income.
• Note that the extended timing does not apply for exits due tofactory performance failures which have exit timelines fromimmediate to three months.

© 2024 Target Corporation

109

Monitor and ensure compliance to the SOVE and local
law during the phase out of Target business.
Requirements••

During location layoffs and/or closures, ensure that all legally required pay and benefits are provided toworkers including but not limited to the following: all wages owed are paid, all severance payments are
made, and adequate notice is provided, and consultation is conducted in accordance with local law.
Escalate any risks of non-compliance to the SOVE or local law to Responsible.Sourcing@Target.com.

Responsible Exit or Decline© 2024 Target Corporation

110Appendix A: Implementation
Guidance on Protections for
Foreign Migrant Workers
The following tables lay out additional guidance for how tomeet Target requirements for the protection of foreign
migrant workers and the prevention of forced labor.

© 2024 Target Corporation

111

Labor Agency Pre-selection Due
Diligence and Regular Audits
Pre-Selection Due DiligencePre-selection due diligence should be carried out for each labor agent that will be involved in the foreign worker recruitment process, both in the receiving or
sending country. Materials reviewed should include the agency’s license, records of any complaints made or penalties imposed, and service agreements withany partner agencies that would be used to recruit workers for the location.

Pre-selection due diligence should determine the following:•••

The labor agency has a current license and is legally permitted to recruit foreign contract workers to meet the location’s labor needs.
The labor agency’s overseas partner has a current license and is legally permitted to recruit foreign contract workers to meet the location’s labor needs.
Independent, unlicensed sub-agents are not used.

•

The labor agency is capable of carrying out workforce recruitment activities that meet location, Target, and applicable legal requirements, particularly about
the requirement that workers pay no fees to secure their job.

Regular Audits
Each labor agent used in the recruitment of workers should undergo a regular audit, at least annually, that reviews the agency’s license, existence ofpartnerships with unlicensed sub-agents, and the agent’s compliance with the location’s requirements on ethical recruitment and the prohibition of forced labor.
Audits should focus, in particular, on uncovering deceptive practices and fee charging. A corrective action process with set goals, tracking of progress and atimeline for completion should follow audits.

Appendix A© 2024 Target Corporation

112

Labor Agency Service Agreements
Formal service agreements with labor agencies must be legally binding and contain thefollowing information:••

Name, address, and contact information of the labor agent;Name, address, and contact information of any partner labor agents that will be engaged, if any;•

A list of services that the recruitment agent and any partnering labor agents agree to perform for the location;— This list must determine which party is responsible for conducting job interviews, the pre-departure briefing, required skills
tests (if any), and any other activities that form part of the overall recruitment and employment process.
The fee amount payable to the agent by the location for each worker recruited;
A commitment by the agent to conform to the location’s ethical recruitment requirements as a condition for continuing the business
relationship, especially the following:— Workers must not be charged fees or deposits;•••— Labor agents must take part in audits and corrective action; and— Labor agents must share relevant documentation of recruitment and management activities upon request.
A prohibition on forced labor and human trafficking; and•A prohibition on the use of independent sub-agents.

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Recruitment-Related Fees
This list serves to illustrate typical costs encountered during recruitment and may not reflect all costs for the specific migration corridor.
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Service fees, recruitment fees, placement fees, and monthly broker service fees of any labor agents used in the sending and receiving
countries;
Legally-permissible deposit;
Insurance;
Legally-required documentation, such as a passport, passport photos, visa, stamping fee, work permit;
Government-required medical clearance and medical examinations;
Government- or company-required training, including skills training, language training, and a pre-departure orientation;
Other government-imposed costs, such as a foreign worker levy, tax, or welfare fund contribution;
International travel from the sending country to the workplace in the receiving country.
Uniforms, tools, or other items required for work.

The location should ensure the cost of items listed above, as well as any other costs that may arise outside of local travel andaccommodation, are covered for workers as part of their recruitment and hiring.

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Sample Worker Onboarding Interview Material
To ensure that the recruitment process met location, Target and legal requirements, location personnel should interview a sample of newly arrived
workers to confirm whether the following is true of workers’ recruitment experience:•

No Fees: Workers did not pay recruitment fees or expenses in conjunction with their recruitment and hiring, other than the cost of local
transportation and short-term lodging during the selection and hiring process.

••No Deposits and Loans: Workers were not asked to submit deposits or take out loans in conjunction with their recruitment and hiring.
No Sub-Agents: Workers were not recruited through agents other than those receiving and sending country agents with which the location has
service agreements in place.

••Pre-departure Briefing: Workers were provided a comprehensive pre-departure briefing in their own language using location-provided content.
Contract of Employment: Workers were provided, signed, and retained a written contract of employment in keeping with Target and legal
requirements on contracts of employment.
No Deception or Coercion: Workers did not experience any form of deception, coercion or intimidation during recruitment and hiring.
No Discrimination: Workers did not experience any discrimination.

•••

No Unwarranted Document Retention: Workers did not experience any document retention, unless this was the temporary collection of adocument to fulfill a legal migration requirement, and was carried out in accordance with Target requirements.

Interviews should be confidential and explicitly protect workers from retaliation for information provided.

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Pre-Departure Briefing
The Pre-departure Briefing should cover the following items:• An overview of the company, workplace, and working and living conditions;• Terms and conditions of employment;• Terms and conditions of contract termination and repatriation;• Any pre-departure requirements that must be fulfilled by workers for legal or employer purposes, including training, medical examinations, anddocumentation;• Protections afforded to workers in the sending and receiving countries by law and in company policies on the following:———

The prohibition on forced labor;
The No-Fees policy;
Identify document retention and safekeeping;——

Freedom of movement;
Contact information of embassies and any other relevant government agencies;—

The location’s grievance mechanisms that are available to workers in the sending and receiving country, and the step-by-step process forreporting unethical practices during recruitment.

Labor agent/broker must provide recruited employees with accurate written information about the conditions of employment in the worker's native
language. It is the employer’s responsibility to make sure that a pre-departure briefing has been conducted and meets these requirements. It ispermissible for an employer to add these requirements in a service agreement with agents and require that agents carry out the briefing activities on
their behalf. The employer is responsible for monitoring that this is carried out appropriately (using photos, documentation, etc.).

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Onboarding Orientation Contents
Within a week of their arrival, new workers should receive training in their own language on, among others, the following topics:• Workers’ terms and conditions of employment;• Methods of wage calculation;• Legal requirements;• Location profile, policies and procedures;— Anti-forced labor, including the prohibition on fee-charging;— Anti-harassment and abuse;——Anti-discrimination;
Any existing worker associations or committees;———

Dormitory regulations;
Grievances, communication and feedback;
Progressive discipline;—

Termination and repatriation.

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Dormitory Management System•••

Develop Accommodation Management System: To meet Target Standards on dormitories, the location
should implement a dormitory management system. Such a system can include, among others, the following
steps:— Identify a staff person who will be responsible for overseeing the management and maintenance of thehouses.
— Integrate the system for maintaining the dormitories with the functioning of the health and safety officer
and department.
— The health and safety officer should maintain a checklist and define a system for conducting periodic
monitoring of health and safety conditions of the dormitories. Findings should be reported back to the
responsible person.
Communication and Grievances: To improve the feedback and complaints coming from the residents of thehostels, suggestion boxes can be provided in the dormitories, and a staff person must made be responsiblefor documenting and addressing the suggestions in a timely manner.
Monitoring: Periodic internal audits or monitoring of the hostels should be conducted by location personnel
to sustain improvement efforts.

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Conditions for Payment of Return Transportation
Conditions for Payment of Return Transportation by the Location
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Foreign workers should be provided return transportation upon completion of the employment contract.
Foreign workers who are terminated due to a location closure, downsizing, or under similar circumstanceshould be provided return transportation.
Foreign workers who resign with reasonable notice should not pay for a penalty or return airfare. Reasonable
notice should be defined, at a maximum, as thirty days.
Foreign workers who resign without reasonable notice may be required to pay for their own return airfare,unless the resigning worker is covered by an exception laid out in Appendix A.
The worker should not be charged for the cost of return transportation under any of the following
circumstances:— Termination due to violation of the worker’s rights;— Termination due to serious personal concerns, including the death of a family member, illness, orpregnancy (per the worker’s request or receiving country law).

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