KERING LUXURY ACTIVITIESSUSTAINABILITY PRINCIPLESCONTENTS

02 OUR COMMITMENT, SCOPE AND GOVERNANCE

05 SOCIAL PRINCIPLES

08 ENVIRONMENTAL PRINCIPLES

13 APPLICABLE INTERNATIONAL CONVENTIONSKERING SUSTAINABILITY PRINCIPLES22

OUR COMMITMENT

As a global luxury group, Kering recognises its responsibility to address the challenges we face as a society and its capacity
to tackle these alongside governments, non-profits and industry players. Kering is committed to the protection of humanrights and dignity, the preservation of the environment and the humane treatment of animals. In light of this, and inaccordance with the Group Code of Ethics and international conventions, the Group has set out Kering Sustainability
Principles.

Embedded within the Kering contract framework, the Kering Sustainability Principles require suppliers to adhere to rigorous
codes of conduct inclusive of those set out under the Kering Code of Ethics’ Suppliers Charter. These Principles ensurecompliance with prevailing legislation and goes beyond to set more comprehensive requirements for Kering suppliers withthe aim of driving the luxury industry toward higher environmental, ethical and social standards. In the case of environmental
challenges, when a lack of scientific certainty exists the Kering Sustainability Principles encourage suppliers to follow the
precautionary principle and act carefully and conservatively in order to minimise potential impacts.

In terms of scope, all of Kering and its brands’ suppliers are required to comply with these Principles, and attest that theirrespective supply chains do likewise. This encompasses our suppliers and all of their sub-suppliers, including suppliers ofmaterials, production materials, packaging and services used in the production or performance of activities on behalf of
Kering and its Brands’, and any personnel acting for and/or on behalf of the supplier and its sub-suppliers.

The supplier must understand, and comply with the Kering Sustainability Principles and all applicable laws, regulations,directives, collective agreements and supplementary agreements with respect to human rights, worker’s rights,
environmental protection standards as well as applicable international Conventions and Declarations. In the event any ofthese requirements are more stringent than the provisions in this document, the most stringent standard shall apply. The
supplier and its sub-suppliers will be responsible for monitoring adherence to these requirements within their respective
businesses, and ensuring all of their direct or indirect personnel understand and comply with such.

Furthermore, Kering stipulates the right to check any facility of a supplier or sub-supplier in order to verify compliance withthese Principles, and has instated a Group-wide auditing system. As such, suppliers are required to disclose their subsuppliers with Kering, and both the supplier and its sub-suppliers must l allow access to their respective premises, staff andemployees for inspection audits, checks or information requests made by Kering, its brands’ or any designated third party.

KERING SUSTAINABILITY PRINCIPLES

33

Our principles are divided into mandatory provisions that are compliance based, and other provisions that represent
sustainability best practices.

The mandatory provisions include prohibitions against child labour, forced labour, human trafficking, lack of formal work
contract, and any kind of discrimination while insisting on fair wages, proper working hours, a safe workplace and freedomof Association. The Group requires adherence to Kering’s Product Restricted Substances list and all environmental laws
and regulations. In the case of precious skins and furs, Kering requires all to have a CITES permit and prohibits the use of
precious skins and furs from the International Union for the Conservation of Nature’s Red List. Kering also prohibits theuse of cotton from countries using child labour, leather from amazon biome, and PVC.

Suppliers are asked to trace the source of all materials; to comply with the Kering Manufacturing Restricted Substances
List and eliminate any use of hazardous chemicals; to avoid sourcing raw materials that contribute to deforestation; toensure rubber is not sourced from newly established plantations; to use FSC or PEFC certified paper and packaging; toavoid non-recyclable and Nano-plastics; to adhere to the Kimberly Process for Diamonds and source from Responsible
Jewellery Council (RJC) certified suppliers; to adhere to the Kering Gold Code; to source organic cotton where possible;
to exclusively source down and feathers from within the European Union; and for all animal based materials, to observe
the five freedoms of animal welfare.

KERING SUSTAINABILITY PRINCIPLES

44

SOCIAL PRINCIPLESHUMAN RIGHTS, WORKER RIGHTS, HEALTH &SAFETYof the workplace – that are hazardous or impairs their

All workers, be they on full-time, part-time, temporary,

The supplier and its sub-suppliers must participate andinternship or agency contracts, must have formal

give its contribution to, policies and programs forcontracts of employment that respect local legislation andremediation of children found to be working in order tohuman rights standards. Contracts must include wages,

enable such children to attend and remain in school until

payment frequency, deductions, benefits, working hours,

no longer a child.

holidays, notice periods, sick pay, maternity pay and anyother locally required aspects of employment.

physical and mental health and development.

The supplier and its sub-suppliers must ensure that age
verification procedures are in place and only rely on

Every effort possible should be made to provide regular,

official

government

secure employment. The use of temporary contracts or

educational records.

identification

documents

andagency labour must not be used as a mean of denying
workers their rights or benefits under employment law.
Apprenticeships and training contracts are allowed, butmust be legally compensated and provide adequate

FORCED LABOUR

levels of training or development.

No use of forced labour (including involuntary prison

Home working is permissible only where the employment

labor, indentured labor, bonded labor or any other forms

relationship is governed by a legal contract that isof forced labor) is allowed and employees cannot becompliant with the provisions herein for employment,

asked to pay “deposits” or fees or have their identification

health and safety and must comply with all applicable

documents withheld.

laws and regulations. Homework must be paid based on

No portion of employees’ salaries, indemnities, property

a guaranteed hourly minimum wage with verifiable

or documents may be withheld the purpose of forcing

tracking of wage calculations and production output.

employees to continue their employment relationship withWork that is started in a factory shall not be reallocatedthe firm. Employees are free to leave their employment

for homeworking to be completed offsite.

relationship with reasonable notice as defined bygoverning law and prevailing industry practices.
Employees must be entitled to leave the workplace at theend of the standard working day or in case of medical or

CHILD LABOUR
No person shall be employed under the age of 15 or under
the age for completion of compulsory education,
whichever is higher. Whereas governing law requires ahigher minimum age of employment, the higher age will
apply. If the governing law allows for young workers underfamily emergencies and should be free to terminate theirwork contract by informing the supplier and/or its subsuppliers within reasonable time as provided by governing
law or international labor standards, whichever provides
the most protection to the employees.

the age of 18, they must not work during the night hours

Neither the supplier nor its sub-suppliers shall engage inand must not be exposed to any situations – in or outside

or with any organisation engaged in trafficking in humanbeings.

KERING SUSTAINABILITY PRINCIPLES

55

SAFE WORKPLACE

must ensure that representatives of workers and any

A safe and healthy workplace must be provided and the
supplier and its sub-suppliers must take effective
measures to prevent potential accidents and avoid

personnel engaged in organising workers are notsubjected to discrimination, harassment, intimidation, or
retaliation.

jeopardising the health and safety of workers in the

Where the right to freedom of association and collective

workplace. Accident risk must be regularly assessed in

bargaining is restricted under law, the supplier and its

order to uncover the actual causes and adopt preventive

sub-suppliers

measures;development of parallel means for independent and freealso making

sure

that

standards

areconsistently applied as well as health and safety

willfacilitate,

and

not

hinder,theassociation and bargaining.

guidelines.
The supplier and its sub-suppliers must also provide
workers with Person Protection Equipment (PPE) for any
place where the work is carried out, as prescribed by

DISCRIMINATION

applicable regulations. The supplier and its sub-suppliers

All employees must be hired and treated based on theirshould encourage workers to use PPE.

ability to carry out their work and their performance. There

Regular training will be provided to all personnel on safety
aspects, standards, PPE and procedures to follow so thatthey can be familiar with using safety equipment, andsuch training shall be repeated for new or reassigned
workers.

must not be any form of discrimination or preferential
treatment in recruiting, remunerating, providing training,
promoting, dismissing or in retirement nor on the basis ofrace, social class or nationality, caste, familial situation
including marital status or pregnancy origin, religion,
disability, gender, sexual orientation, civil status, trade

All personnel must also have free access to clean toilet

union affiliation, political opinion, age or in any otherfacilities, access to potable water, and, where applicable,

discriminating condition.

sanitary facilities for food storage. Accommodation,
where provided shall be clean, safe and meet the basic
needs of the workers.

The supplier and its sub-suppliers must not engage in any
conduct that is threatening, offensive or aimed at
exploitation or sexual harassment, including gestures,

Reasonable adaption for employee medical conditions as

language or physical contact, whether in the workplace orprescribed by prevailing law or international conventions

if applicable, in residences or in other areas provided toshould be provided.

employees by the company. All employees must be

A senior management representative must be assigned
responsibility for health and safety.

treated with dignity and respect. Physical punishment,
mental or physical coercion, nor verbal abuse against
employees shall be allowed.

FREEDOM OF ASSOCIATION

WORKING HOURS

Employees must have the right to establish, participate
and organise trade unions based on their own will andtheir right to bargain collectively with the trade unions. In
the event that freedom of association and the right toWorking hours must comply with national laws, collective
agreements, and international conventions, whichever
provides the greatest protection for workers.

bargain collectively become limited by law, the supplier

A standard working week, except for overtime work, must

and its actors must allow its workers to freely elect theirbe established by law; nevertheless, it should not exceed

own representatives. The supplier and its sub-suppliers

48 hours per week. Employment hours and work rules

KERING SUSTAINABILITY PRINCIPLES

66

should be established by written contract with theOvertime

employee. Employees must get at least one off day after

employment. Overtime shall always be compensated at asix consecutive working days.

premium rate, and should not place the employee’s healthAll overtime shall be voluntary. Overtime shall be used

shall

not

be

used

to

replaceregularand safety at risk.

responsibly, taking into account all the following: theextent, frequency and hours worked by individual workers
and the workforce as a whole.

FAIR WAGE

Any exceptions to this rule will only be applicable upon theoccurrence of the following conditions:

The supplier and its sub-suppliersmust respect

employees’ rights to a living wage that guarantees that thea) Governing law provides a work schedule thatsalary paid for a standard working week meets or exceeds

exceeds the above limit.

legal standards or minimum wage standards relevant tob) Existence of a collective bargaining agreement thatthe sector and that is sufficient to satisfy the employee's

provides a flexible work schedule and includes

basic needs as well as providing a discretionary Income.

suitable resting periods: overtime work must be
voluntary and must not exceed 12 hours per week,
or be required on a regular basis. If overtime work is
required in order to meet market demands within abrief period of time and the supplier and its sub-Salary withholdings due to disciplinary purposes are notallowed. Any exceptions to this rule will only be applicable
upon the occurrence of both of the following conditions:a) Salary withheld for disciplinary reasons permitted bynational laws.

suppliers adheres to a contract derived from acollective bargaining agreement with the worker'sb) Existence of an effective collective bargaining

organisation (as defined above), whereby it makes

agreement: the company must ensure thatup a significant part of the workforce, the company

employees' salaries and wage structures are clearly

may request overtime work in accordance with theand duly specified in writing for each wage period.

established agreements.

Moreover, the company must make sure thatc) the employer can demonstrate that exceptional
circumstances apply such as unexpected production

payment of salaries and wages conform toapplicable laws.

peaks, accidents or emergencies.

KERING SUSTAINABILITY PRINCIPLES

77

ENVIRONMENTAL PRINCIPLESAs per the Kering Suppliers’ Charter, all suppliers and sub-suppliers are contractual bound to complying with directly
applicable environmental legislation and to working to implement the three principles of the Global Compact relating toenvironmental protection:-

Support a precautionary approach to environmental challenges;-

Undertake initiatives to promote greater environmental responsibility;-

Encourage the development and diffusion of environmentally friendly technologies.

To ensure they act in compliance with all applicable Environmental Laws, suppliers and sub-suppliers must obtain and maintain
all licenses, authorisations, certifications and approvals required under all applicable Environmental Laws. As such, the use ofany process, operation or material which is not fully compliant with applicable Environmental Laws and the Kering ProductRestricted Substance List (PRSL) is forbidden.

REPORTING

HAZARDOUS MATERIALSAs the first step to reducing environmental impacts is

Kering prohibit the release of any Hazardous Material into

identifying and understanding them, suppliers and sub-the environment by suppliers or sub-suppliers. In the event

suppliers should measure their environmental impacts suchof any such release, the necessary action must be taken toas emissions, energy use, water use and water discharge.

promptly investigate, study, sample, test, cleanup, remedy

Suppliers and sub-suppliers are invited, on a discretionary

and remove any such Hazardous Materials in accordancebasis, to share this information with Kering and its brands’

with the requirements set forth by the applicableas part of the Group’s Environmental Profit & Loss (EP&L)

Environmental Laws.

ongoing analysis and annual reporting.
Suppliers and sub-suppliers must additionally (i) disclose
all communication

DISCLOSURE
Upon request by Kering or its brands’, suppliers and theirsub-suppliers are obliged to promptly share any data anddocumentation, related to safety, Environmental Laws, andtheir respective compliance therewith. Furthermore, any
violation or deviance from such Laws by a supplier or theirsub-suppliers must be immediately reported to Kering, whowill evaluate the situation and take consequential action,
including terminating a supplier relation if necessary.

KERING SUSTAINABILITY PRINCIPLES

with authorities

relating to any

Environmental Law or Environmental Claim, and (ii)8promptly

uponobtainingknowledge

of

any

fact,

circumstance, condition or occurrence that could form thebasis of an Environmental Claim or any pending or
threatened Environmental Claim, arising with respect to the
supplier, a sub-supplier, Kering or any third party. This
includes a detailed description of the incident and thereactive action proposed, as well as regular update reports
until the situation is rectified.

8

HAZARDOUS CHEMICALS-Document all chemicals used in the facility, be it related
to Kering activities or not. This may include but is not
limited to dyestuffs, inks, paints, solvents, primers,
adhesives, surfactants, cleaning agents, or otherauxiliary chemicals.

-

Document all chemicals used in relation to auxiliary
processes. This may include but is not limited to
grounds maintenance, water and wastewater
treatment, fire-fighting practices, and support facilities.

Kering is committed to phasing out and eliminating all
hazardous chemicals from its production by 2020. To
achieve this goal Kering has developed a Chemical
Management Framework, which applies to the ensemble ofits brands, suppliers, sub-suppliers, licensees, processes
and products. The Framework goes beyond regulatorycompliance, and includes specific guidelines for products,
through a Restricted Substance List (RSL), and forprocesses,

througha

Manufacturing

Restricted

Substances List (MRSL).

ANIMAL WELFARE
The Group is committed to ethical practices in the catching,

Kering requires suppliers and sub-suppliers to strictly

maintaining, breeding, raising, transport, handling, andcomply with this framework, as well as all local andslaughter of animals in our leather, fur and precious skininternational regulations and industry standards including

supply chains. We believe that all such animals, while taking

theinto account their species’ needs, should benefit from:

European

Union

Registration,

Evaluation,

Authorisation, and Restriction of Chemicals (REACH); theUS Consumer Product Safety Improvement Act (CSPIA);AFIRM;

andthe

AmericanApparel&-fresh water and a diet for full health and vigour;

Footwear-

Association (AAFA) standards.

freedom from hunger and thirst, by ready access to
freedom from discomfort, by providing an appropriate
environment including shelter and a comfortable
resting area;

As such, suppliers and their sub-suppliers are required to:--

Implement a Chemical Management System (CMS), or
similar system that addresses the chemical inventory
requirements mentioned hereafter.
Regularly review MRSL compliance, within their own
facilities and at chemical suppliers. This should
include due diligence, testing of incoming chemicals,
review and phase-out of non-compliant suppliers,
documentation review, and self-assessments.
Alternatively, in the case of non-direct operations,
Kering suppliers must require that their sub-suppliersand chemical suppliers provide a statement ofcompliance.

-

freedom from pain, injury or disease, by prevention or
rapid diagnosis and treatment;-

freedom to express normal behaviour, by providing
sufficient space, proper facilities and company of theanimal’s own kind;-

freedom from fear and distress, by providing
conditions and treatment that avoid mental suffering.

We ask the supplier to ensure that the capture, maintaining,breeding, raising, transportation, handling and slaughter ofanimals is in compliance with applicable local animal
welfare, social, and environmental laws and regulations as-

Maintain a Chemical Inventory of their use ofhazardous chemicals during production of products,
and disclose this with Kering. The inventory must becontinuously updated and should cover a
retrospective period of three years to ensure theadequate traceability of all chemicals used. This
includes retaining copies of the Technical Data
Sheets (TDS), and an inventory of Safety Data
Sheets (SDS) for all chemicals, packaging, andsamples.

KERING SUSTAINABILITY PRINCIPLES

9well as internationally accepted human and labor rights
standards. In addition, internationally accepted standards
for animal welfare such as the standards developed by theWorld Organization for Animal Health should be followed.

Use of animal skins or other products that originate fromillegal wildlife trade is strictly prohibited.

9

SOURCING OF RAW MATERIALSPRECIOUS SKINS

Kering requires all suppliers and sub-suppliers to source

Kering prohibits the use of skins from all species listed on

raw materials in strict accordance with the following

the IUCN Red List as “near threatened”, “vulnerable”,

principles:“endangered” or “critically endangered”; and require that all
species listed on CITES Appendices have the appropriate-

Protect of biodiversity-

Preserve the functionality of ecosystems-

Manage and conserve water-

Manage land use and conserve soils

We require suppliers to guarantee that they do not trade-

Avoid contributing to deforestation(buy or sell) illegal species (i.e. CITES Appendix I) and that-

Avoid or mitigate impacts on climate change

all trade in skins complies with local and international laws;-

Ensure humane treatment of animals-

Ensure fair, just and safe working conditions-

Build positive relations with local communities

CITES permits that have been verified by the supplier;

We ask suppliers for complete traceability of skins back towild source and/or captive operations and source
preferentially from captive operations that can be verified by
3rd parties in terms of their countries that have well

In addition, suppliers and sub-suppliers are required torespect the following material-specific requirements:

established and enforced legislation covering animal
welfare and trade.

LEATHER

FURS

Kering forbids the use of leather from farms involved in

We prohibit the use of furs obtained by killing fetal

any form of deforestation in the Amazon biome since Julyanimals, as well as the use of any furs of species

2006, or farms included in IBAMA’s embargo list.

classified by the IUCN Red List as “threatened”, andSuppliers

require documentation for wild-caught species listed onarerequiredtoensure,andprovidedocumentation of, traceability so as to;-

CITES including country of origin and method of capture,

guarantee that leather supplies do not come fromfarms which directly or indirectly (through the
production of livestock fodder) use lands recently

though their use is discouraged. In the case of Angora,
we only source from third-party certified farms which
comply with strict animal welfare standards.

(since 2009) converted to pasture from sensitive
natural eco-systems (especially forests andWe ask suppliers for complete traceability of fur back tograsslands) with a high conservation value;

farms and show evidence of the origin of the product andadherence to the animal welfare standards in these-

ensure that leather sourced not come from cattle

principles and ensure a minimal impact on environment

grazing operations that occupy land disputed byand biodiversity.

indigenous groups or areas protected by federal,state or municipal legislation, or farms included in
MTE’s embargo list. www.mte.gov.br

We ask suppliers to avoid sourcing "wild caught" animals,
in particular prohibiting furs from CITES listed species, or
any wild caught animals from Asia.

KERING SUSTAINABILITY PRINCIPLES

10

10

GOLD

COTTONWe ask our suppliers to exclusively source gold that is:

We forbid the use of cotton from producers and suppliers-in accordance with those principles outlined in the
Kering Ethical Gold Framework, via Kering selectedrefiners;-

artisanal gold from mines that are certified by credible
third parties such as Fairtrade or Fairmined;-that directly or indirectly use child labour. In light of this,
we do not use Uzbekistan cotton and limit our sourcing toregions where strict legislation and high standards prevail.
We ask suppliers to source certified organic cotton
whenever possible, and consider FairTrade or organicallygrown cotton as a secondary alternative. We also require

provided by suppliers from RJC certified mines or
RJC certified mining companies;

them to take necessary measures to avoid using
genetically modified cotton and cotton from conflict areas.

DOWN & FEATHERDIAMONDS
We ask supplier to adhere to the Kering Diamond Codeand endeavor, as of now, to source diamonds from direct
and indirect Suppliers who are RJC (Responsible Jewelry
Council) Certified Members accompanied by the World
Diamond Council System of Warranties statement;

We ask our suppliers to ensure sourcing down andfeather from European Union countries; and that down
and feather must not be removed from live animals orfrom animals that are force fed during their life for any
reason; and to provide a full traceability of down andfeather sourced.

Diamonds can also be sourced throughout a supply-chain
composed of actors who implement one or several of thefollowing private ethical standards:

RUBBER-De Beers Best Practice Principles (BPP)

We ask require that suppliers to ensure that rubber-

De Beers Forevermark

sourced should does not come from Plantations that have-

Dominion Diamond CanadaMark TM

been recently established plantations (since 2004)
created by clearing natural forest or mixed agriculturalforestry production areas (e.g. “jungle rubber” as
described below) to monoculture plantations.

WOOL
We ask suppliers to ensure that the sheep farming has

Additionally, we avoid high risk areas for sourcing

not led to recent conversion of sensitive and important

including Gabon, Laos, Cambodia, China and, Indonesia

ecosystems and are not seriously degrading the landin order and to ensure that rubber sourced does not comethrough soil erosion and chemical inputs; and to ensurefrom plantations that have been established on land takenthat the wool sourced meets the EU Eco-label

from local communities without their ‘free and priorrequirements. We have also instated specific wool

informed consent’.

guidelines across our supply-chain, to guarantee thatmulesing techniques have not been employed.

KERING SUSTAINABILITY PRINCIPLES

1111

PLASTIC

PACKAGING

We forbid the use PVC in our products and packaging.

We ask that suppliers ensure that all wood, paper and

We ask suppliers to prefer plastics that are made with

derived products come from FSC or PEFC certified

recycled content or bio-content (non-fossil/petrol content),

sources, with a preference given to fibres from recycled

prefer plastics that are biodegradable or compostable andsources. When recycled or certified wood and paper is not

avoid the use of plastics that are not recyclable and Nano-fit for purpose, we impose a series of requirements toplastics (plastic micro particles). Also we ask them toensure the supply chain does not contribute to deforestation

ensure that the production of the bio-plastic component ofor impact sensitive ecosystems, and does not involve

the plastics (crops, organic wastes, proteins etc.) have notcompanies on the Greenpeace list and is chlorine free.

been genetically modified; and to ensure that the
production used is not a food source but is rather from
non-edible parts of the plant, resources from forestry,
proteins from discarded sources etc.

KERING SUSTAINABILITY PRINCIPLES1212APPLICABLE INTERNATIONAL CONVENTIONS-International Labour Organization (ILO): www.ilo.org-

Intergovernmental Panel On Climate Change (IPCC): www.ipcc.ch-International Maritime Organization (IMO): www.imo.org-

Millenium Ecosystem Assessment: www.unep.org-

Organization for Economic Co-Operation and Development (OECD): www.oecd.org-

Ramsar Convention: www.ramsar.org-

Geneva Conventions: www.icrc.org-

International Covenant on Economic, Social and Cultural Rights-

International Covenant on Civil and Political Rights-

United Nations’ Convention on the Rights of the Child-

United Nations’ Convention on the Elimination of All Forms of Discrimination Against Women-

United Nations’ Convention on the Elimination of All Forms of Racial Discrimination-

United Nations’ Guiding Principles on Business and Human Rights-

United Nations’ Universal Declaration of Human Rights-

Rio Declaration on Environment and Development: www.unep.org/rio20-

United Nations Conference on Trade and Development: unctad.org-

United Nations Educational Scientific and Cultural Organization (UNESCO): unesco.org-

United Nations Environment Programme (UNEP): www.unep.org-

Food and Agriculture Organization: www.fao.org-

Rotterdam Convention: www.pic.int-

World Commission on Environment and Development (WCED): sustainabledevelopment.un.org-

The Fundamental Conventions of the International Labour Organisation (ILO)-The Ethical Trading Initiative (ETI) Base Code-

FLA Workplace Code of Conduct and Compliance Benchmarks

Gucci • Bottega Veneta • Saint Laurent • Alexander McQueen • BalenciagaBrioni • Christopher Kane • McQ • Stella McCartney • Tomas Maier
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