MODERN SLAVERY STATEMENT

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MODERN SLAVERYSTATEMENT
2021

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MODERN SLAVERY STATEMENT

This statement is made pursuant to the UK Modern Slavery Act 2015, theAustralian Modern Slavery Act (No. 153) 2018, and the California Transparency
in Supply Chains Act of 2010. It sets out the steps that Kering SA and its affiliates
have taken up to and during the financial year 2021 (i.e., the year ending on 31
December 2021) to identify and prevent modern slavery - including forced labor,human trafficking, and child labor - from taking place in any part of its businessactivities or within its supply chains.
“Kering SA” refers to the French public limited company (“société anonyme”)
registered with the Paris Trade and Company Register under the number 552 075
020, with its registered office at 40 rue de Sèvres, 75007 Paris, listed on the Paris
Stock Exchange and a member of the CAC 40 index.
“Kering Group” (or “Kering” or “Group”) refers to Kering SA and all the entities
directly or indirectly controlled by Kering SA. Kering Group is a global luxury
group managing the development of the following renowned companies in fashion,leather goods, jewelry, and watches: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin,
Ulysse Nardin, Girard-Perregaux and Kering Eyewear (collectively, the“Houses”). By placing creativity at the heart of its strategy, Kering enables its
Houses to set new limits in terms of their creative expression while crafting
tomorrow’s luxury in a sustainable and responsible way. In 2021, Kering employedover 42,000 employees and generated a revenue of € 17.6 billion.
This 2021 Modern Slavery Statement covers all Kering Group Houses and legal
entities, although it should nonetheless be noted that certain of the Group’s Houses
may also issue their own modern slavery statements.
This Statement has been prepared in consultation with relevant reporting entities
directly or indirectly controlled or influenced by Kering SA within the scope of
this Statement. In this respect, it has been shared with Gucci Australia PTY Ltd, a
proprietary limited company incorporated in Australia, with its registered office at
Level 26, 201 Elizabeth Street, Sydney, NSW 2000, registered under AustralianCompany Number 093 354 548, indirectly owned and controlled by Kering SA and
identified as a reporting entity under the Australian Modern Slavery Act. The
Board of Directors of Gucci Australia PTY Ltd has reviewed and approved thisStatement on 7 March 2022. The Kering Group entities with an annual turnover of£36 million or more carrying on a business, or part of a business, in the UK arelisted in Annex I to this statement.

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MODERN SLAVERY STATEMENT

Kering’s ambition is to be the world’s most influential luxury group in terms ofcreativity, sustainability, and long-term economic performance. Sustainability,
including human rights, is at the core of Kering’s strategy. As such, we arecommitted to improving the labor standards of those who work in our supply chainsand our business activities. This includes taking steps to both identify and address
the risks of modern slavery and human trafficking.
Kering’s 2025 Sustainability Strategy is currently being implemented within eachof its Houses through practical action plans, including on human rights, as part oftheir sustainability initiatives.
The relevant Kering reporting line structures of the Ethics and Sustainability
functions are illustrated in Figure 1 below.

Reporting lines of the Ethics and Sustainability functions(1) APAC = Asia-PacificThis 2021 Modern Slavery Statement issued by Kering SA has been approved bya meeting of the Kering SA Board of Directors held on 28 April 2022.

Francois-Henri Pinault
Chairman of Kering SA
and Chief Executive Officer
of Kering Group3

MODERN SLAVERY STATEMENTPRESENTATION OF OUR GROUPOUR BUSINESS ACTIVITIESThe Kering Group works with 42,811 employees (as of 31 December 2021)
and has subsidiaries in over 50 countries. As a global luxury group, Kering
manages the development of a series of renowned Houses in fashion,leather goods, jewelry and watches and of Kering Eyewear. Our Houses
develop innovative, creative and exceptional products, animate networks
of directly operated stores, and provide unique client experiences.
Distribution channels include retail and wholesale, and are both physicaland digital. As of 31 December 2021, Kering operated 1,565 stores directly,
750 of which were in emerging countries.
The organizational structure of the Kering Group can be seen in Figure 2
below.

The Kering Group Organizational Chart (31 December 2021)(1) Corporate is defined in the Kering 2021 Universal Registration Document(2) The Sowind Group owns the Girard-Perregaux brand

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MODERN SLAVERY STATEMENT

Additional information on the Kering Group is publicly available online at
Kering’s website (https://www.kering.com/en/).
With specific regard to Gucci Australia PTY Ltd, the company is part of
the Gucci division and is responsible for retail and online sales of Gucci
luxury fashion goods and wholesale distribution of Gucci luxury
timepieces and jewelry in Australia. The control chain of Gucci Australia
PTY Ltd, which has no subsidiaries, is shown hereinbelow.

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Though the Group mainly relies on a network of several thousand suppliers(mainly located in Italy), it operates a growing number of ateliers.
Beginning in 2013, Kering has strengthened its upstream positioning in theluxury goods value chain via the targeted acquisition of leather tanneries tosecure raw material sourcing.
Our Houses benefit from the Group’s integrated model and corporate
functions: the Group pools resources and streamlines certain key functions
for the Houses, such as logistics – both integrated and outsourced – nonproduction purchasing, legal affairs, property, accounting, media relations,
IT and the development of new tools. In relying on the Group, the Houses
are able to focus on their core expertise.
Kering Houses also operate in the perfume & cosmetics segment throughlicensing agreements with leading industry players to develop and sell
perfumes and cosmetics.
Kering has in addition been running the Kering Foundation to combat
violence against women.
The key financial information of the Kering Group is shown in Figure 3
below.

(1) “Comparable” revenue is defined in the Kering 2021 Universal Registration Document(2) The “Corporate and other” segment is defined in the Kering 2021 Universal Registration Document
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MODERN SLAVERY STATEMENTOUR SUPPLY CHAIN
The Kering Group manages the Houses’ suppliers in a central database at
Kering level (see Figure 4 below). While this database does not yet include
all suppliers, it does include all production suppliers, the main suppliers of
raw materials (leather, fabrics, ribbons, precious stones, etc.), Kering
Eyewear suppliers and suppliers deemed to be strategic. Suppliers of theJewelry and Watches Houses are gradually being phased into the system.
The system (as of 31 December 2021) covers 4,107 suppliers, with thefollowing breakdown:- 20% direct suppliers (a supplier is deemed to be direct when it has adirect business relationship with the Houses rather than working via asubcontractor);- 18% contractors (direct suppliers working for one or more Houses
and that subcontract part of their production); and- 62% subcontractors (suppliers that work for contractors and have no
direct business relationship with the Houses).
Direct suppliers with or without subcontracting are T1 suppliers (38% in2021). Subcontractors are T2 suppliers (62% in 2021). 10% of suppliers
were deemed strategic in 2021.
The size and geographical distribution of the Kering Group supply chain isshown below (Figure 4).

(1) Geographical breakdown in 2021 of direct suppliers and contractors,
managed within the centralized system introduced by Kering in 2016.

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MODERN SLAVERY STATEMENT

GOVERNANCE

Kering is fully aware of its duty to embrace extensive ethicalresponsibilities and to act at Group and House level, and with its suppliers
and other business partners, in such a way as to promote the highest ethicalstandards in all circumstances, and to identify and effectively handle any
situation likely to involve risk in terms of ethics or respect for human rights.
The Group’s Chief Executive Officer has overall responsibility for humanrights.
Kering takes a cross-functional approach to governance over human rights
challenges. Specifically, day-to-day human rights governance spansvarious departments, including the following:• The Group Compliance Department is in charge of coordinating theimplementation of Kering’s Human Rights Policy;• The Human Resources Department ensures that our social standards
comply with (or exceed) applicable regulations, including with respect tohuman rights;• The Supply Chain Audit Department is responsible for ensuring thathuman rights are respected throughout our supply chain;• The Security Department maintains the safety and security of employees;
and• The Sustainability Department leads Kering’s efforts towards sustainable
and social development throughout its operations and supply chain.
Kering’s Sustainability Department defines the Group’s sustainability
strategy and policies, and supports the Houses by operating as a resource
center and sounding board, with a view to set out and build on theinitiatives taken individually by each House. The Kering Sustainability
Department has developed an internal network dedicated to sustainability,
known as the Sustainability Network Meeting (the “SNM”), which meetsonline every six weeks to present the Group’s developments in the field,
share best practices internally and spur thinking on new issues, sometimes
with the help of external professionals and experts.

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MODERN SLAVERY STATEMENTHUMAN RIGHTS RISKASSESSMENTS
In 2017, Kering’s Sustainability Department analyzed the practices of theGroup by comparing them to the United Nations Guiding Principles on
Business and Human Rights (the “UNGP”). This assessment enabled Kering
to identify specific points for progress in areas such as public commitment andpolicy, the scope of internal control procedures, grievance and remediation
mechanisms, and external communications. Moreover, Kering’s ComplianceDepartment, together with Kering’s Internal Audit Department andSustainability Department, took steps to ensure compliance with therequirements of the French Duty of Care Law to identify risks and prevent
severe impacts on human rights and fundamental freedoms.
Keen to refine its understanding of human rights issues throughout the supply
chain and to learn from good practices on the matter, Kering’s Sustainability
Department conducted a new study in 2020 focusing on the governance andmanagement of human rights within the supply chain at Group and Houselevel. Carried out with GoodCorporation, an independent organization
specializing in business ethics, this study included consultations with various
internal stakeholders to gather their feedback. To identify new avenues for
progress, the findings from the study were analyzed in light of therecommendations provided for in the UNGP and the OECD Due Diligence
Guidance for Responsible Supply Chains in the Garment and Footwear
Sector.
In 2020, Kering’s Sustainability Department also conducted a study aimed at
identifying and assessing human rights risks linked to the supply of certain
raw materials. This analysis was carried out in the countries in which theGroup’s suppliers are located. The findings from these various studies enabled
the Group to identify a number of key points and subjects, and the resulting
recommendations were shared with members of the Executive Committee.
In January 2021, Kering conducted a new and more in-depth assessment of
the risks of severe impacts to human rights and fundamental freedoms, severe
harm to the health and safety of individuals, and serious environmental
damage, resulting from the operations of the Kering Group as well as of its
suppliers or subcontractors. The risks pertaining to child labor and forcedlabor (including, but not limited to debt bondage, migrant labor, humantrafficking, and illegal, clandestine or undeclared employment), as well as
decent working conditions (including but not limited to fair wages, working
hours, and dignity at work) were expressly evaluated as part of this exercise.
These assessments restate Kering’s commitment to ensure that the humanrights risks associated with its operations worldwide be properly assessed andmitigated.

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MODERN SLAVERY STATEMENTOUR STANDARDS, RISK MANAGEMENT
AND RELEVANT ACTIONS ON MODERNSLAVERY AND HUMAN RIGHTSOUR STANDARDS

We manage risks and impacts related to modern slavery and humantrafficking as part of our existing programme on labor rights, ethical trade, andhuman rights.
Kering’s approach to responsibility with regard to stakeholders is shaped by
the principles set out in its Code of Ethics and by a strong determination to
implement these principles internally and externally. The Code of Ethics,
which includes the Suppliers’ Charter, setting out what is expected of all
Kering suppliers, forms the cornerstone of the commitment made by Kering,its Houses and its suppliers, especially with regard to human rights,
fundamental freedoms, human health and safety and the environment.
Suppliers are required to abide by these principles and to extend theserequirements to their own suppliers and subcontractors. Following the 2018
update to the Code of Ethics, the document was reissued to all employees
worldwide in 2019. This update reaffirmed Kering’s commitment to apply all
major international conventions in the pursuit of its activities and to strengthen
and clarify its requirements, especially with regard to human rights andfundamental freedoms, health and safety and the environment. These include
the International Labor Organization (“ILO”) conventions on the eradicationof child labor and the abolition of slavery and forced or compulsory labor. The
Suppliers’ Charter further restates the prohibition of slavery, humantrafficking, debt bondage and the use of forced or compulsory labor, and now
includes a requirement to pay special attention to categories of workers, suchas migrants, who are vulnerable to exploitation. The Code of Ethics and theSuppliers’ Charter have been translated into the 14 most widely spoken
languages within the Group.
The Human Rights Policy, published in 2021, aims at defining the means bywhich the Group can ensure its commitments on human rights andfundamental freedoms, health and safety, and the environment are fulfilled. It
sets out the fundamental principles with respect to human rights and outlines
the Group’s policies that go together to form Kering’s commitments on thematter. In this respect, the Human Rights Policy restates Kering’s
commitment to eliminating child labor and prohibiting slavery, humantrafficking, debt bondage and the use of forced or compulsory laborthroughout the entire supply chain.

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MODERN SLAVERY STATEMENT

Kering has significantly developed its sustainability strategy over the last 20
years. In 2017, it published its 2025 sustainability strategy, which is based on
three pillars – environmental, social, and innovation – and which setsambitious targets for all of the Houses that are part of the Group.
The Sustainability Principles, established for all the Houses in 2015 and last
updated in 2021, span human rights and fundamental freedoms, including theelimination of child labor, forced labor, and human trafficking in all its forms.
The Sustainability Principles are applicable across all Houses and are part ofthe contractual relationship with suppliers.
In the pursuit of its commitment and approach to human and environmental
concerns, Kering has prepared and published dedicated Standards for Raw
Materials and Manufacturing Processes (that are updated on an annual basis),as well as Animal Welfare Standards. The key factors covered by the Kering
Standards include environmental impacts, working conditions and humanrights in production, and extraction processes for the main raw materials it
uses, be they mined, otherwise extracted or of plant or animal origin.
The Charter on the Working Relations with Fashion Models and their WellBeing was introduced in September 2017 to ensure that Kering and its Houses
comply with various major principles, including requiring models to present
valid medical certificates attesting to their good health, discontinuing themodelling of size 32 clothes for women and size 42 for men, and improving
working conditions (e.g., providing a dedicated changing area as well as foodand drink). In 2019, Kering and its Houses decided to take their commitments
a step further, committing to only hire models aged 18 and over to represent
adults at fashion shows and photo shoots as of 2020.
For its part, the Kering Foundation has pursued its commitment to combating
violence against women throughout the year. It published a policy on domestic
violence in coordination with the Group’s Human Resources Department,
following its support for the approval of ILO Convention 190 on violence andharassment in the workplace.

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MODERN SLAVERY STATEMENTRISK MANAGEMENT SYSTEM
In 2015, Kering and its Houses established a compliance management
system, which is intended to provide supply chain analysis within Kering’s
production processes, as well as create and share relevant best practices.
The system is based on the following six key pillars.
• SUSTAINABILITYThe Sustainability Principles include mandatory expectations, due torequirements imposed by international and national laws, as well as
Kering’s additional expectations. Suppliers are required to abide by theseprinciples and supplier compliance is evaluated on this basis. Each supplieris in turn tasked with passing on these principles to its own subcontractor
network, if it has one. Along with the Code of Ethics, including the
Supplier’s Charter, the principles are embodied in the Group’s templatecontract with suppliers. They are systematically issued to suppliers andboth form an integral part of their contractual relationship with Kering.
• CENTRALIZED MANAGEMENT
Kering has centralized oversight through a team of 24 people (including
twelve auditors specialized in conducting supplier audits and monitoring
anomalies). This team may also be assisted by an external service provider.
• UNIFORM PROCEDURES
There are clear and uniform procedures for all Houses that correspond to
the different stages of the supplier relationship, including the activation
procedure, monitoring procedure and contract termination procedure.
• RISK-BASED AUDITING
Risk assessments and audits plans are constructed based on predefined
criteria. Audit plans are regularly updated to take into account new
suppliers.
• STANDARDISED AUDITS
Kering uses a single and comprehensive audit methodology with aquestionnaire of 97 questions, divided into 13 categories (including childlabor and forced labor), which are aligned with the best standards in thefield, in particular the SA8000 and SMETA standards. Follow-up audits
include a smaller scope focusing on the area(s) in which breaches ofcompliance were identified or observations made during the firstcomprehensive audit. In any case, the announced or unannounced audits
consist of document reviews, site tours, and worker interviews. Workers are
selected to offer a representation of the workforce, notably concerning age
and union affiliation, if any. These interviews are confidential.

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MODERN SLAVERY STATEMENT

The frequency of the audits depends on the findings of previous audits.
Nevertheless, periodic audits are undertaken regularly to ensurecompliance.
5.5% of suppliers were deemed to be at risk in 2021 because they are locatedin countries considered by the Group to be at risk. A country is deemed to be“at risk” when the indicators contained in various external databases imply
that human rights risks are high or very high.
15.3% of suppliers were deemed to be critical in 2021. Suppliers are deemed“critical” when they are strategic and/or at risk. They are given special
attention in light of their importance to the business and their location.
Subcontracting without prior authorization is not permitted.
Among its suppliers, Kering also singles out raw material suppliers. Raw
material suppliers identified as key to the Group represent roughly 20% of all
such suppliers, corresponding to approximately 80% of purchases.
For a limited portion of its activities (fragrances and cosmetics), KeringGroup also works with licensed suppliers, i.e., those that are under license
to the Houses.
Within this portfolio of suppliers, 3,420 audits were conducted in 2021
despite the COVID-19 pandemic (2,399 in 2020), breaking down as 1,727
comprehensive audits and 1,693 follow-up audits. A total of 39% of theseaudits were carried out by the Kering Internal Audit Department, and 61%
by external auditors, with the Group audit protocol applied uniformly for
all audits conducted. This means that 64% of suppliers were audited in
2021.
Over the 2015-2021 period, 90% of suppliers were audited, 2% more thanin 2015-2020. Moreover, Kering has undertaken to audit all of its key
suppliers every two years. It should be noted that “activation” audits for
new suppliers are comprehensive audits, and they therefore cover the entire
scope of a comprehensive audit. In 2020, audits were extended to Kering
Eyewear suppliers.

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MODERN SLAVERY STATEMENT• TAKING ACTION
Supplier non-compliance is classified into four categories:• Zero tolerance breaches (relating to the most serious potential violations,
including child labor, forced labor, irregular work, undeclared
subcontractors, threats, discrimination, serious breaches of regulations,counterfeiting, etc.);• Serious compliance breaches where the supplier is given one month toresolve the serious compliance breach, and a follow-up audit is scheduled
to confirm that the issue has been resolved;
Identification of zero tolerance or serious compliance breaches triggers
the immediate establishment of a committee comprising the Kering audit
team and the relevant House(s) to decide on the future of the relationshipwith the supplier. If the supplier is in the process of being activated but
has not started working, the response is the immediate shutdown of theapproval process. If the supplier is working on one or more orders, thecommittee will discuss either the possibility of remediation and support
for the supplier, or the need to terminate the contractual relationship. The
House is the ultimate decision-maker on the most appropriate response;• Moderate compliance breaches by suppliers. The supplier is given threemonths to resolve a moderate breach of compliance, and a follow-up audit
is scheduled to confirm that the issue has been resolved; and• Observations. These give rise to a corrective action plan and are thesubject of a dedicated checklist at the next audit. The supplier has six
months to remedy the observation.
A detailed description of what constitutes zero tolerance breaches, serious
breaches of compliance, moderate breaches of compliance andobservations has been prepared for each of the 13 categories of thecomprehensive audit. Depending on the results of audits, suppliers may beclassified as: compliant; partially compliant; progress expected; or zerotolerance.
Additionally, Kering and the Houses encourage a certain number ofsuppliers to obtain third party certifications covering, inter alia, humanrights-related issues such as child and forced labor.

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MODERN SLAVERY STATEMENTCOMPLEMENTARY TOOLS AND ACTIONS

To complement the core Hercules risk management system, Kering has
deployed multiple efforts and tools.

RAISING AWARENESS
Conscious of the importance of raising awareness within its workforce,
Kering has established multiple training activities covering multiple humanrights-related topics.
• All Group employees take a compulsory annual Ethics & Compliancecourse based on the principles set out in Kering’s Code of Ethics. The
course is available in the 14 most widely spoken languages within theGroup. The situations and subjects covered vary from year to year, withthe common objective of ensuring that employees will adopt appropriate
behavior when faced with the ethics dilemmas they might come acrossin their everyday working experience. In 2021, the course covered(i) compliance and anti-corruption related topics, (ii) diversity andinclusion, and (iii) biodiversity and animal welfare. This training also
represented an opportunity to raise awareness on the newly published
Human Rights Policy.
• Training on the Kering Standards for employees of Kering and its Houses
and their suppliers was developed and published via the Group’s internal
website in 2018. This ongoing program takes an informative andeducational approach to explaining Kering’s minimum requirements onsourcing and processes. It provides illustrations and details, notablysocial, that provide context for why the standards are necessary.
• Kering and its Houses also share their commitment towards sustainability
through the company internal social networks and leverage them tocreate and communicate on relevant events.
• Several times each year, the Kering Foundation also runs training courses
for employees of Kering and its Houses on the issue of domestic
violence. These courses cover the complexity and impact of domestic
violence and provide insight into ways to develop a safe work
environment.

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MODERN SLAVERY STATEMENTWHISTLEBLOWING SYSTEM
Introduced in 2005, Kering’s whistleblowing system was strengthened in2018 to ensure full compliance with France’s Sapin II law. It is accessible
to all people working for the Group and external and temporary personnel
working for external partners or service providers under contract with theGroup and/or its Houses. All employees and direct suppliers may use thesystem to submit reports. It may be used to report any suspicion related tomodern slavery and human trafficking – among other offenses or violations.
A plan for reaching the employees of Kering’s and its Houses’ direct
suppliers was drawn up and rolled out in 2020. Translated into 15
languages, the campaign took two forms: a poster to be displayed in
relevant locations at supplier and service provider sites, in order to gain thegreatest visibility (cafeteria, locker rooms, site entrance, etc.); and a flyer
to be given directly to employees. Both the poster and the flyer listed thesix key ethical principles: compliance with laws and regulations;prohibition of any form of corruption, fraud, money laundering or conflictof interest; respect for human rights and fundamental freedoms; protectionof the health and safety of all; respect for the integrity and dignity of all;and protection of the environment. The level of detail used in thecommunication was adapted depending on the recipients to give specificexamples of what was expected in each case (including, in particular, theprohibition on forced labor, the prohibition on recruitment fees paid byemployees, special attention paid to vulnerable persons, access to suitable
washroom facilities and to decent dormitory conditions, where applicable,
the availability of pay and personal documentation, the respect for privacy,
access to appropriate personal protective equipment, etc.).
The communication plan on the Kering whistleblowing system reachedmore than 1,500 direct suppliers in 2020, and additional 1,080 direct
suppliers in 2021.
Kering is committed to protecting whistleblowers who raised an issue ingood faith and prohibits any form of reprisal in its Code of Ethics andassociated policies and procedures.

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MODERN SLAVERY STATEMENTWORKING WITH STAKEHOLDERS

As a major player in the luxury goods industry and aware of its social
responsibility in respect of a wide range of suppliers, subcontractors, andraw material production chains, Kering engages in continuous andcollaborative dialogue on human rights and modern slavery with key
internal and external stakeholders in its supply chains and beyond.
Kering is a member of the following initiatives, groups and programs:• The Sustainable Apparel Coalition, which works to reduce the negativeenvironmental and social impacts caused by the industry worldwide;• Textile Exchange Europe, which works to drive sustainabletransformation in the industry. Kering is actively involved in a number of
its sub-groups, including the Responsible Cashmere Roundtable,
Responsible Leather Roundtable, Responsible Wool Standard, Organic
Cotton Roundtable and Responsible Down Standard;• Business for Social Responsibility (“BSR”);• The Mekong Club, which tackles problems of modern slavery;• The OECD consultative group on due diligence for the garment andfootwear sectors as part of the sector-by-sector roll-out of the OECD’sguidelines for multinational enterprises;• The Pledge against Forced Labour in Uzbekistan Cotton and the Pledge
against Forced Labour in the Cotton Sector of Turkmenistan;• Business for Inclusive Growth (B4IG), a coalition of more than 40
multinationals committed to fight against inequality and advancing
human rights; and• The Coloured Gemstones Working Group, designed to build knowledge
and capacity around key sustainability topics towards improving social,environmental, and governance performances.

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MODERN SLAVERY STATEMENTMONITORING EFFECTIVENESS
No control system, regardless of how mature and tested it is, can guarantee
the absence of risks, whether relating to modern slavery, human trafficking,or other labor or human rights issues. As such, our risk management systemand the other mitigation measures in place entail regular assessments of theeffectiveness of the measures in place, as well as continuous improvements
taking into account feedbacks and best practices.
• RISK ASSESSMENTS UPDATES
Kering regularly renews and updates the risk assessments described above
in order to ensure that the controls in place adequately mitigate relevant
human rights risks throughout its operations and supply chains worldwide,
including with respect to forced and child labor.
• IMPLEMENTATION OF ACTION PLANS AND PERFORMANCEOF FOLLOW-UP AUDITS
The identification of a compliance breach as part of supplier audits requires
the definition of a robust corrective action plan. Zero tolerance breaches
are dealt with immediately, while serious compliance breaches must be
resolved by suppliers within one month. Follow-up audits are subsequently
conducted to verify that the breaches have been resolved. The identificationof a zero tolerance or serious compliance breach also triggers theestablishment of a committee (so-called Brand Steering Committee)
comprising representatives from Kering Production, Legal, Finance andSupply Chain Audit Departments and the relevant House(s) to discuss
potential remediation and decide on the future of the relationship with the
supplier. To ensure an efficient resolution of the breaches identified as partof supplier audits, more than 340 Brand Steering Committee meetings were
held in 2021. Supplier audits are renewed periodically depending on therelevant risk profile and on the outcome of previous audits. Moreover,Kering has undertaken to audit all of its key suppliers every two years.
• COST PER MINUTE ANALYSISThe Kering Supply Chain Audit Department performs a periodic analysis
designed to assess the cost of the suppliers’ work per minute, which takes
into account, inter alia, the number of worked hours and the corresponding
cost for Kering. A high cost per minute might be an indicator of the use ofundeclared suppliers or underpaid workers, which leads to the performanceof targeted investigations by the Kering Supply Chain Audit Department todetermine the opportunity of corrective actions.
• ENHANCED MONITORING OF SUPPLIERS
In 2020, Kering established a portal designed to enhance communication
with suppliers, as well as to reinforce the monitoring of their operations,based on a self-assessment. Indeed, in addition to providing suppliers withaccess to relevant training and key Kering documents, the portal fosters agreater transparency on supply chains operations since suppliers areannually asked to complete three questionnaires designed to collectinformation necessary to further evaluate their practices, including withrespect to mitigating the risks of forced and child labor.
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MODERN SLAVERY STATEMENT• INTERNAL MONITORING AND OVERSIGHT
In line with Kering’s cross-functional approach to human rights challenges,
the implementation of the risk management system and of the othermitigation measures in place is monitored by the Executive Committee, as
well as by other committees established at the Kering Group level. These
committees include the Sustainability Committee and the Audit
Committee, to whom the Group Internal Audit Executive, the Chief People
Officer and the Chief Sustainability Officer regularly provide reportingwith respect to human rights. Moreover, a dedicated committee composedof representatives from the Legal, Internal Audit, Sustainability, Security,
Sourcing and Procurement functions ensures oversight of theimplementation of the Hercules compliance management system anddiscusses significant findings from the audits performed by the Kering
Supply Chain Audit Department.

KEY PERFORMANCE INDICATORS
A summary of key performance indicators regarding the mitigation
measures described above for both the Kering Group and its supply chain
is provided below.

KERING GROUP OPERATIONSKERING GROUP SUPPLY CHAINS• Update and reissue of the Code of
Ethics to all Group employees
worldwide in 2019
• Completion rate of the annual Ethics &Compliance program for 2021: 96.4%• Number of supplier audits conducted
in 2021 by the Kering Supply Chain
Audit Department: 3,420• Percentage of suppliers for which
Kering has identified zero tolerance(0.51%), or serious compliancebreaches (4.55%)• No proven cases of child or forcedlabor detected at the end of 2021
• The 2021 communication plan on the
Kering whistleblowing system reachedmore than 1,000 direct suppliers• Systematic
inclusionoftheSustainability Principles and theSuppliers’ Charter in the contracts
entered into with suppliers• The Kering Standards for Raw
Materials
andManufacturing
Processes were last updated in 2021

Key indicators: human rights and fundamental freedoms

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ANNEX IThe following is a list of the Kering Group entities carrying on a business,or part of a business, in the UK that in 2021 had an annual turnover of £36
million or more:• Autumnpaper Ltd• Balenciaga UK Ltd• Bottega Veneta UK Co. Ltd• Gucci Ltd• Kering Eyewear UK Ltd• Luxury Goods Outlet Srl• Yves Saint Laurent UK Ltd

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