Issue No. 02

April 2022

Supply Chain ESG Newsletter

In this issue:

· Note from SC Team

· Global Monthly CAP Update Report

· Audits and CAP Updates

· Covid-19 Impact Survey

· Code of Conduct Training

· Incorporation of C-TPAT into Audit

· Mekong Sustainable Marketing Alliance

· ESG News Around the World

A Note from the Social Compliance Team

We are excited (and hopeful) to ramp up our visits to Supplier facilities despite the challenges of COVID-19. We appreciate your continued support of our efforts to capture an understanding of Suppliers’ labor and environmental practices compared to our expectations as outlined in the Code of Conduct. As a reminder, please be sure to notify us of any major changes to current Suppliers or the onboarding of new Suppliers.

Audits and CAP Updates

· 1 onsite audit & 3 remote audits were conducted, YTD.

· 14 CAP items closed in March

2022 Supplier CoC Rollout Update

· Asia Suppliers:

* Phase I & II: 30 signed CoCs collected

· North America / Europe:

* Phase I & II: 55 signed CoCs collected

· Supplier CoC Training – See below for details

“I believe social responsibility begins with a strong, competitive company. Only a healthy enterprise can improve and enrich the lives of people and their communities”

- Jack Welch

Global Monthly CAP Update Report

The Compliance Team has started using the shared email account CodeCompliance@exemplis.com to send out the global monthly CAP update report. The action is meant to keep the Team informed on our engagement with suppliers and their CAP progress so that we are on the same page. <More…>

2022 Covid-19 Asia Impact Survey

Due to an uptick of Covid-19 cases in Asia and new lockdown policies in certain localities, a survey was sent to Suppliers to understand the potential impact on our business and to have precautions. Please email Brock for the results.

Supplier Code of Conduct Training

The Compliance Team is excited to offer Supplier Training to complement the release of the Code of Conduct Version 2.0 where we highlight the CoC updates and provide a refresher of the ExemCare Audit. Check out the training here: <More…>

Incorporation of CTPAT info ExemCare Audit Checklist

Through collaboration with the Logistics Team, the Compliance Team is pleased to formally incorporate updated C-TPAT (Customs-Trade Partnership Against Terrorism) questions and document requirements into the Social Compliance Audit Checklist for our non-U.S Suppliers. <More…>

Mekong Sustainable Marketing Alliance

The Mekong Sustainable Manufacturing Alliance is a $10M program sponsored by USAID for improving the ESG and sustainability performance of factories in the Mekong Delta region. We have forwarded the registration information to timbuk2’s Vietnam factory.<More…>

ELEVATE Releases Supply Chain ESG Risk Outlook 2022

ELEVATE has released the first iteration of its Supply Chain ESG Geography Risk Ratings for 2022. The geographic ratings and associated scores cover over 100 countries and territories, more than 90 subnational regions, and 38 issues. <More…>

ESG News Around the World

Nations Sign up to End Global Scourge of Plastic Pollution

Heads of State, environment ministers, and other reps. from 175 nations, endorsed a historic resolution at the UN Environment Assembly in Nairobi on 3/2 to end plastic pollution and forge an international legally binding agreement by end of 2024…<More…>

Lenovo: International Women’s Day – It’s Time to Break the Bias

On International Women’s Day on March 8th, Lenovo announced its commitment to the UN Global Compact’s Women’s Empowerment Principles, which they said offer guidance for Lenovo and fellow signatories to promote gender equality at the workplace…<More…>

The SEC Unveils Proposed Climate Disclosure Rules

The U.S. Securities and Exchange Commission (SEC) announced the release of its long-awaited proposals for climate disclosures for U.S. public companies. The proposals would, for the first time, require U.S. companies to provide information on climate…<More…>

Target Announces its First Net Zero Store

Retail giant Target unveiled its first net-zero energy store today in Vista, California, which will generate more renewable energy than it uses, and will test emissions reduction innovations.<More…>

Assent’s Top 3 Supply Chain Predictions for 2022

The regulatory landscape is constantly evolving, and 2022 will be no exception. With investors and customers adding environmental, social, and governance (ESG) expectations into the equation, it can be more than a full-time job to keep up.<More…>

Starbucks Advances Plans to Eliminate Single-Use Cups

Starbucks announced new plans to provide its customers globally with reusable cup options, as the coffee retail giant advances on its waste reduction initiatives to eliminate single-use cups. <More…>

EU Member States Agree to Impose Carbon Tax

Member states of the European Union have agreed to impose a carbon tax, according to a Twitter post, Tuesday evening by French President Emmanuel Macron. The new measure will be applied to products imported into the European Union that… <More…>

China Sets up New Bureaus for Innovation and Social Responsibility

China’s SASAC, the state assets watchdog overseeing 130,000 state enterprises, has set up two new bureaus to strengthen the role of state-owned enterprises (SOEs) in the national innovation and social responsibility drive…<More…>

Ukraine War Threatens Global Heating Goals, Warns UN Chief

In a video address to a conference on sustainability run by the Economist newspaper, UN secretary-general António Guterres has warned that the war in Ukraine risks pushing global climate targets out of reach…<More…>

Chinese Consumers Urge Harsh Punishment for Food Safety Violations

Food safety concerns topped China's social media on 3/16 as consumers were shocked and angered by some enterprises' problematic sanitation conditions and lack of food safety management, as revealed on 3/15 World Consumer Rights Day.…<More…>

Asia and the Pacific SDG Progress Report 2022: Widening Disparities

Amid the challenges of the COVID-19 pandemic and natural and human-made disasters in Asia and the Pacific, progress in the region slowed down and the Sustainable Development Goals (SDGs) are further out of reach.…<More…>

China NPC Session Said to Further Promote Green and Low-carbon Development

China will continue to improve its ecological environment by promoting green and low-carbon development, Premier Li Keqiang said as he delivered the government work report at the fifth session of the 13th National People's Congress (NPC) in Beijing…<More…>

Google-Backed Startup Normative Launches Free Carbon Calculator for SMEs

Carbon accounting software provider Normative announced on 3/18 the launch of Business Carbon Calculator, a new tool for enabling small businesses to measure and understand their carbon emissions to support their emissions reduction efforts.…<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