Supply Chain ESG Newsletter Issue No. 04
Publication on 06/02/2022


Issue No. 04

June 2022

Supply Chain ESG Newsletter

In this issue:

Ø 2022 Supplier Social Compliance Training Series Started

Ø 2022 Internal Stakeholder Training Refresher

Ø CTPAT Container Inspection Initiative

Ø Code of Conduct for Freight Carriers

Ø ExemCare Portal Update – Factory Profile & CTPAT

Ø Audits of Timbuk2 Suppliers Scheduled

Ø Webinar: Building An Effective Supply Chain Sustainability Program

A Note from the Social Compliance Team

‘Tis the season for training…social compliance training that is! We are pleased to announce both internal and external Supplier training sessions will soon be offered. Be on the lookout for a meeting request to attend the training for internal stakeholders. The Social Compliance Team continues to find creative ways to work with Exemplis’ Suppliers while dealing with the uncertainty that Covid-19 brings to our Supplier community. We invite you to read on to learn more about what happened from us and around the world, and we welcome your comments and feedback.

Audits and CAP Updates

· 4 onsite audits & 7 remote audits conducted YTD. Audit scheduled for 5/30/22

· CAP Update:

o N. America: 6 findings closed from 2022 and 3 legacy items from 2021 closed in May.

o Asia: 6 legacy findings closed

2022 Supplier CoC Rollout Update

· Signed Code of Conduct Received:

o Asia: 41

o North America / Europe: 99

“Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it… because it is good for our business”

  • Niall FitzGerald, former CEO, Unilever.

2022 Supplier Training Started

The 2022 Supplier Training Series is being rolled out to our Suppliers in Asia and North America/Europe. Weekly training sessions will be offered to Suppliers who wish to learn more about different aspects of Social Compliance per the training needs assessment results. [More…]

Internal Stakeholder Social Compliance Training

Understanding ExemCare and the work the Social Compliance Team does is pivotal to making a difference and to help ensure understanding, we are excited to present a refresher training for internal stakeholders. The training will focus on an overview of ExemCare, 2022 Initiatives, Supplier Onboarding, and Supplier Diversity.

CTPAT Container Inspection Initiative

The U.S. Customs and Border Protection conducted a C-TPAT (Customs-Trade Partnership Against Terrorism) re-validation for Exemplis in March of 2022. CBP recommended that non-U.S. Suppliers perform a trailer/container inspection at origin and submit their findings to Exemplis. Suppliers were trained on the new requirement and how to use the inspection form. To view the form click here.

Code of Conduct for Freight Carriers

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As an expansion of the Supplier Code of Conduct, the Social Compliance Team has worked in concert with the Logistics Team to collect signed Codes of Conduct from Exemplis’ Freight Carrier Community to ensure that Exemplis’ compliance standards are understood and adhered to. To view the adapted CoC click here.

ExemCare Portal Update - Factory Profile and CTPAT

We have further upgraded the ExemCare Portal for suppliers to self-input their factory profile information. The process is similar to that of suppliers completing self-assessment on the checklist. This will reduce the compliance team’s manual work to upload the info to the system. Also as a new project, we are working with IT to get the CTPAT questionnaire on the Portal as well. This will reduce the cost of using a 3rd party system (approx. 9k a year) and Exemplis have full control of the data.

Audits of Timbuk2 Suppliers Scheduled

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Per request from the Timbuk2 team, we will audit two of their suppliers, Aoking in China and Kodex in Vietnam as an annual audit. The one in China will be audited by Brock and the one in Vietnam will be audited by a local auditing firm as international travel is still restricted due to China’s quarantine policy.

Assent’s Webinar on Supply Chain Sustainability

Sustainability is important, but building a supply chain sustainability management program isn’t cut and dry. Assent has offered a great webinar on this topic. The two speakers are experts who have helped build effective programs for some of the world’s largest manufacturers. Check it out here.

ESG News Around the World

100 EU Cities Commit to Reach Climate Neutrality by 2023

May 1st - The European Commission announced that it has selected 100 cities for participation in Cities Mission program to deliver 100 climate-neutral and smart cities by 2030. The cities will receive €360 million over the next 2 years to kick start the initiative with research and innovation address areas including clean mobility, energy efficiency, and green urban planning. [More…]

Chinese Capital Issues Work From Home Orders to Stem Covid-19 Outbreak

May 5th - Beijing city reported 41 Covid-19 cases on Monday, five of them asymptomatic, after a third round of mass testing involving nearly 20 million people ended on Saturday. Companies are restricted to having no more than half of their employees in the office. [More…]

Papa John’s Ties Incentive Compensation to ESG Performance

May 6th - Pizza chain Papa John’s announced that it will begin linking eligible team members’ and executives’ annual bonuses to performance and progress on the company’s ESG goals, a trend also witnessed at other companies including UBS, Caterpillar, Apple, Mastercard and Trane. [More…]

Delivery Services Align with Green Development

May 7th - While the rapid development of express delivery services is making life in China easier and more convenient, the huge amounts of materials used for packaging are putting extensive pressure on the environment. [More…]

ZQ Game Chairman Resigns After Forcing Employees to Work During May

May 8th - Li Ruijie, the board chair of Shenzhen Zhongqingbaowang Network Technology (300052.SZ), also known as ZQGame, a Chinese company that makes massively multiplayer online games, has submitted his resignation letter to the board, according to the company’s announcement. [More…]

Malaysia and the US Set up Committee to Address Forced Labour Issue

The United States Customs and Border Protection (US CBP) has agreed to work with the Malaysian government to address the issue of forced labour through the establishment of a working committee, which would focus on exchanging information, including formulating policies that could support the country's initiatives towards combatting forced labour. The committee will meet every three months. [More…]

BRICS Countries Renew Pledge to Address Climate

May 14th - BRICS countries renewed their joint commitment to tackling climate change and explored approaches to accelerating the low-carbon transition at a meeting on Friday. The BRICS High-level Meeting on Climate Change was attended by ministerial officials responsible for climate change response from Brazil, Russia, India, and South Africa. [More…]

Office Furniture Headache: 15,000 unwanted desks, 172 whitegoods, 1000 blinds

May 18th - Each time Australia’s corporate titans relocate their staff into a new office, they leave a trail of unwanted furniture and fittings, most of which end up in a landfill. For landlords and tenants, conscious of their environmental impact, it’s a huge problem. [More…]

Tesla Removed from S&P 500 ESG Index on Lack of Low Carbon Strategy, Controversy Risk

May 19th - High-profile electric vehicle maker Tesla was removed from the S&P 500 ESG Index in the benchmark’s annual rebalancing, as the company’s ESG score was held back by its lack of a low-carbon strategy, and its exposure to risk stemming from concerns including racial discrimination, working conditions, and safety-related governance. [More…]

Sustainable Furnishing Brand Spotlights Circular Economy in First Pop-Up

May 24th - Sustainable furniture brand Sabai has its first IRL (in real life) space. The pop-up site is the first time customers have been able to touch and see Sabai’s product line of sustainable sofas and chairs. In addition to seeing Sabai’s furniture in person, visitors can learn about the circular economy and how each of the brands engage with it.[More…]

Microsoft, Alphabet, BCG Announce Major Carbon Removal Commitments

May 25th - Tech giants Microsoft and Alphabet, and consulting and advisory firm Boston Consulting Group (BCG) announced a series of carbon removal commitments today, with Microsoft and Alphabet collectively pledging to invest $400 million in carbon removal programs, and BCG targeting the removal of 100,000 tonnes of carbon by 2030. [More…]

Shanghai’s Full Covid Lockdown Ends After Two Months

May 31st - Shanghai has lifted a painful two-month lockdown, to the relief of the city’s 25 million residents, with authorities dismantling fences around housing compounds and ripping police tape off public squares and buildings. Life is set to return to something more like normality. [More…]

This material is intended for internal use only.

Thank you for reading!

For questions and suggestions, please email:

bzhang@exemplis.com & ckolste@exemplis.com