ELECTRONIC INDUSTRY CITIZENSHIP COALITION©

EICC

May 2017

Who We Are

The EICC® is a coalition of the world’s leading companies working together to improve efficiency and social, ethical, and environmental responsibility in the global supply chain.

www.eiccoalition.org

2

The EICC Code of Conduct

The EICC Code of Conduct: Establishes global standards to ensure that working conditions in the supply chain are safe, that workers

are treated with respect and dignity, and that business operations are environmentally responsible

and conducted ethically

EICC Rebrand: Expanding the Definition of Membership

• Other industries share our supply chain • EICC is adapting to include these non-traditional electronic products • We have the expertise & tools to easily embrace these companies

4

Manufacturing happens in High-Risk Areas

Data Source: Maplecroft Global Human Rights Risk Atlas ranked worst (1) to best (198)

Data Source: Verisk Maplecroft

Companies need a way to give their customers and retailers confidence that the products they buy are made responsibly.

Government Requirements Increasing

UNGP FAR Implementation

UK Modern Slavery Act

French Reporting

Law

EU Conflict

Minerals

Dispatch Workers

Malaysian law on safe use of chemicals

Forced Labor Has Been Making Headlines

Changing Landscape of Audits

Beyond Audits

Oversight of 3rd Party

Audits

3rd Party Audits

Customer Audits Self-Audits

EICC is mapping the journey of a factory − Training on the Code (Certified Factory Lead) − Voluntary Initiatives (Workplace of Choice)

− Recognizing Excellence (VAP Recognition Program)

Unique Highlights of EICC VAP Program

4th Party APM Oversight with two independent quality checks

Financial separation between auditee and auditor

Triangulation required to validate all

findings

Nine internationally

recognized Audit Firms

EHS and Labor Expert

required on initial VAPs

Shadow Audits

Auditor & Audit Firm

Performance Review

Oversight of 3rd Party

Audits

The Journey of a Factory

<24 months 24 months 36+ months

Unknown Complete SAQ

VAP Process Comply with the Code

Enter the EICC Process

Factory Onboarding Learn the Code

Factory of Choice Program

Beyond Audits

Out-of-Scope not in 80% of spend Low volume Sub-tier

We recognize that factories are on a journey. − We want to help factories understand current performance to EICC Code. − We help map their ambition level and provide a roadmap for their journey,

supporting requirements of customers, investors and governments.

Beyond Audits

ELECTRONIC INDUSTRY CITIZENSHIP COALITION©

Thank You

Social & Labor Convergence Project Objectives (2 years, Q1 2018) What do we want to achieve? This pioneering project seeks to develop a simple, unified and effective industry-wide assessment framework. This will result in a descriptive (standard-agnostic) tool and verification methodology to collect relevant and essential data with the intent to measure social and labor conditions and replace current proprietary tools. To promote adoption and create scale, the tool and verification methodology will be open source and publicly available. Website: slconvergence.org

What we’ve done and where we’ll be going

14

15

Signatories S&L Convergence Project (126) April 2017 Manufacturers (25): Artistic Milliners, Arvind Mills, Avery Dennison Corp, Chenfeng Group Co., Comfit Composite Limited,

Crystal Group, DBL Group, Delta Galil, Esquel Group, Flex, Hanbo Enterprises Holdings Limited, Hirdaramani Ent., L&E Int.

Ltd., MAS Holdings, Nester Hosiery, Pratibha Syntex Limited, Ramatex Group, SaiTex, Sing Lun Global, SLN Tekstil, Sun

Queen Garments, TAL Apparel Group, W. L. Gore & Associates, VogueTex, Yunus Textile Mills Brands /Retailers (48):

adidas Group, American Eagle Outfitters, Asics Corporation, Bestseller A/S, Brooks Sports, Burton Snowboards, C&A, C & J

Clark International Ltd, Columbia Sportswear Co., Ecco Holding A/S, Eileen Fisher, Fast Retailing/Uniqlo, Gap Inc., G-Star,

H&M, HEMA, Hudson’s Bay Company, IC Group, INDIGENOUS, Inditex, Kathmandu, Kering, Levi Strauss & Co.,

Liberty&Justice, LL Bean Inc., lululemon, Mountain Equipment Co-op (MEC), Miss Green, Mud Jeans, M&S, Nike Inc.,

Outerknown, Patagonia Inc., PrAna Living LLC, Puma, PVH Corp., Randa Accessories, REI, Stella McCartney, Schutt Sports,

Talbots, Target Corporation, The Children’s Place, Tory Burch, VFc-Timberland, Williams Sonoma, Inc., zLabels, Zephyr

Graf-X Agents (2) Li&Fung (Trading) Ltd., Piece&Co National Governments (2): EU Country - Ministry of Foreign Affairs,

Netherlands Government-Minbuza NL Intergovernmental Observer (2): OECD, ILO-BetterWork, Civil Society/Multi-

stakeholder Initiatives/Standard Holders (18): Cradle to Cradle Products Innovation Institute, Danish Fashion Institute,

Ethical Trading Initiative Norway (IEH), Good World Solutions, Fair Trade USA, Freedom Fund, International Apparel

Federation (IAF), IDH, New Earth, NBIM, Responsible Sourcing Network, Sedex, Sustainable Apparel Coalition (SAC),

Solidaridad, The Mekong Club, Verité, Worldwide Responsible Accredited Production (WRAP), Textile Exchange Auditing

Firms/Service providers/Consultancies (25): Asya CC&C, ANM Transformational Solutions, Assent Compliance, Bureau

Veritas, BSI group, Control Union Certifications, CTC Groups, DNVGL, Elevate Extensive, Fire Lantern Consulting,

FutureMade, Impactt Limited, Intertek KSA Leverage Limited, Koopman Works, NEWAsia Solutions Limited, Openview

Services Lmtd., SCS Global Services, Sew Asia, SMT Global, SGS, Ulula, The Sentio Advisory Group, Sumerra, UL

Responsible Sourcing, Workplace Options Industry Associations (4) American Apparel & Footwear Association (AAFA)

European Outdoor Group (EOG), JAAF, Outdoor Industry Association (OIA)

Non-signatory Advisory Group of Standard Holders/Multi Stakeholder Initiatives: FWF, GSCP-CGF, SAI