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Supply Chain ESG Newsletter
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In this issue:
Ø New C-TPAT Assessment System Now Live
Ø Q2 Supplier CSR Report Highlights
Ø Mid-year Report Presentation
Ø New Supplier Onboarding: Wanxiang Bedding.
Ø ESG Steering Team Committee Highlights
Ø Supplier Training (Asia completed; N.A ongoing)
Ø ESG News Around the World in July
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A
Note from the Social Compliance Team
It’s hard to believe
that we are past the mid-point of 2022 – time flies when you’re having
fun! It’s been a fast and exciting first half of 2022 and the
Social Compliance Team is pleased with how much has been accomplished so
far…Codes of Conduct, Supplier Capacity Training, Mid-Year ESG Report,
Social Compliance Audits, ExemCare System Updates….the list goes on and
on! The back half of 2022 will certainly be a success too with
a focus on conducting more Social Compliance Audits and encouraging
Suppliers to complete their CAPs (corrective action plans).
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YTD
Audits and CAP Updates
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Region
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Audits
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CAP
Update
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Onsite
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Remote
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YTD
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2021
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Closed
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Opened
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Closed
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Still
Open
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N.A.
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8
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3
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16
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15
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0
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4
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Asia
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2
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5
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9
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26
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7
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59
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Audit Plan for Next Month
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Region
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Supplier Name
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Location
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Audit Date
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N.A
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Reflex
Packaging
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CA
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2022/8/3
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Reliable
Container
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MX
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2022/8/16
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Ureblock
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MX
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2022/8/16
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AMS
Plastics
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MX
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2022/8/16
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Foam de Mexico
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MX
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TBD
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JE Wood &
Metal
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MX
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TBD
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Maaplin
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MX
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TBD
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Sanko
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MX
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TBD
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Asia
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Asber
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Zhongshan
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2022/8/5
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Leadex
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Foshan
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2022/8/10
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Wanxiang
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Hangzhou
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2022/8/16
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Lumi
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Ningbo
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2022/8/18
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 “Employees will choose companies, as well as remain loyal to
companies, based on the perception of that company’s whole corporate social
responsibility,…Corporate Social Responsibility: Doing the Most Good
for your Company and Your Cause.”
-Nancy Lee
(President, Social Marketing Services)
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CTPAT Assessment
Tool Now Live
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As
mentioned in the June newsletter, we started working with our IT engineer
to internally develop our own CTPAT Assessment Platform in May as the
paid platform is going to expire. The new system has been completed and
it’s now live online! A demo meeting was held on July 8th with
CTPAT manager Ana Cannavina to go through the system features as
well. Additionally, switching from a third-party platform to an
internal system will result in cost savings!
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Q2 Asia Suppliers CSR Highlights
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There are 16 suppliers
that submitted CSR reports for Q2 2022. Some of the highlights taken from
their reports are as follow: <More…>
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Ø In March 2022, to support the
local community’s efforts to prevent COVID-19 spread, Genius Champion
sent out volunteer staff to help medical workers conduct PCR tests, guide
the test registration and maintain group order.
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Ø In May 2022, Asber refurbished
their workers’ dormitory rooms, including replacements with new bunkbeds,
lockers, desks, and wall shelves. The investment is expected to further
increase workers’ satisfaction rate and help retain workers since hiring
new workers is becoming more difficult than
before.
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Ø To celebrate the traditional
Chinese festival – the Dragon Boat Festival on June the 3rd –
factories across China had different benefits besides Zongzi, a
traditional Chinese rice pudding, e.g. UE had Zongzi making competition,
Omni served fruits, and Culp gave out cash gifts to their employees.
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2022 Mid-Year
Report Presentation
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On
July 11th, the Social Compliance Team presented the ESG
Mid-year Report to our Supply Chain colleagues. Our aim is to update the
Supply Chain Team on our progress, and achievements, and to discuss the
challenges we face within the Supply Chain ESG program. There were 11
people that joined the call and we had some good interactions. Thank you
for the continued support.
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New Supplier
Onboarding: Wanxiang Bedding Co.
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Wanxiang
Bedding Co. Ltd is a new supplier for our acquired brand Albany Park. The
Supplier will provide urgently needed pillow casings and fibers. On July
12th, we had an orientation meeting with them to introduce the
Exemplis Code of Conduct and the assessment system. The Wanxiang Bedding
Team will complete the online self-assessment first and we will conduct
the site verification at a later date.
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ESG Steering Team
Committee Highlights
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The
ESG Steering Committee is comprised of members from the Human
Resources and Supply Chain Departments, respectively. The Team
currently meets monthly with the goal to implement an overall corporate
function responsible for ensuring sustainability goals across our
enterprise, clear actions around Social Responsibility / Diversity &
Inclusion, and to provide oversight for our organization’s governance.
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2022 Supplier
Training Update
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As of July 22nd,
we have completed all 7 sessions of the training topics scheduled for
Asia suppliers since the end of May. The number of participants totaled
171, on average 25 attendees per session. North American training
was kicked off in mid-July and the 6-week training course will be
completed in mid-August.
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ESG News Around the World
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Supreme Court Decision a Big Setback for US Climate
Strategy
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July 1st: The
U.S. Supreme Court ruled on Thursday that the Environmental Protection
Agency (EPA) did not have the authority to regulate limits to carbon
emissions from coal plants, in a case that may have significant
repercussions on the U.S. government’s ability to pursue its climate
agenda. In a statement following the release of the decision, President
Biden called the ruling “another devastating decision that aims to take
our country backwards.” [More...]
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UN Report: Global hunger numbers rose to as many as
828 million in 2021
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July 6th: The
number of people affected by hunger globally rose to as many as 828
million in 2021, an increase of about 46 million since 2020 and 150
million since the outbreak of the COVID-19 pandemic, according to a
United Nations report that provides fresh evidence that the world is
moving further away from its goal of ending hunger, food insecurity and
malnutrition in all its forms by 2030. [More...]
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iPhone maker denies
accusations of discrimination against recovered COVID-19 patients
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July 6th: Several
large companies, including the iPhone maker Foxconn, denied accusations
that they have imposed discriminatory hiring restrictions against people
who have recovered from COVID-19. Experts stressed that any form of
hiring discrimination, direct or implicit, against persons with
infectious diseases or recovered persons is illegal and should be
resisted and punished. [More...]
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India Implements Single Use Plastic Ban
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July 7th: The Government of India announced the
implementation of a ban on a series of single-use plastic items,
including plates, cups, and straws, in an initiative aimed at addressing
pollution caused by unmanaged plastic waste. According to government estimates,
India generates approximately 3.5 million tonnes of plastic waste
annually and per capita, plastic waste generation has almost doubled over
the last five years. [More...]
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Walmart Builds out EV Fleet with Order of 4,500
Electric Delivery Vans from Canoo
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July 12th: In a move
aimed at further extending the electrification of its fleet and
supporting its climate goals, retail giant Walmart announced today an
agreement to purchase 4,500 all-electric vehicles for last-mile delivery
from high-tech advanced mobility company Canoo. The purchase agreement
will begin with Canoo’s Lifestyle Delivery Vehicle (LDV), which is a
commercial electric vehicle (EV) optimized for sustainable last-mile
delivery use cases…[More...]
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World’s largest
hybrid hydropower-photovoltaic station in Sichuan China
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July 12th: Yalong River
Hydropower Development, a state-owned hydropower developer, has started
building the 1 GW Kela PV power station in Sichuan province, southwestern
China. Upon completion, the new hybrid PV-hydropower complex will be the
world's largest power plant of its kind. The hydropower side of the
project has an adjustable capacity of up to 6.56 billion cubic meters of
water.: [More...]
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Xiaomi Named One of
Forbes China’s Best Employers 2022
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Beijing, CHINA, July 13, 2022 –
Forbes China placed Xiaomi on its "China’s Best Employers of the
Year" list for 2022. Xiaomi, a global technology leader and the
third largest smartphone manufacturer, was named one of the top 10
employers in China. Xiaomi had 33,000 full-time employees worldwide at
the end of last year. Other companies on the list include Ant Group,
Haier Group, Schneider Electric, Hitachi Energy, Bank of China, etc.: [More...]
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Trans woman fired from Chick-fil-A sues for sexual
harassment and discrimination
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July 14th: A woman who
worked at a Chick-fil-A in Decatur, Georgia, has filed a federal lawsuit
claiming she was wrongfully fired after being harassed for four months by
her co-workers for being transgender. The suit was filed in U.S.
District Court for Northern Georgia in late June by Erin Taylor, 29, who
told NBC News she transitioned about three years ago. She is referred to in court documents by her
legal name, which is different from the name she uses. [More...]
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Fitch: Apparel, Durables & Electronics are Most
Exposed Sectors in Retail to Climate Risk
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July 14th:
Credit rating agency Fitch Ratings announced today the publication of
Climate Vulnerability Scores for the retail sector, examining the
exposure of companies in the sector to long-term low-carbon transition
risks. The report identifies the apparel, and the durable goods and
consumer electronics (DGCE) segments as the most vulnerable to climate
risk. Fitch’s
Climate Vulnerability scores provide the agency’s view of the
creditworthiness... [More...]
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Biden Calls Climate Change an Emergency, Considers
Use of Executive Powers to Take Action
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July 21st: President Biden indicated that he may
declare climate change a national emergency, enabling him to use
executive powers to force actions to advance his climate agenda, which is
facing obstacles in Congress. Speaking on Wednesday at a former coal
plant in Massachusetts that is in the process of being converted to a
facility producing cables for the offshore wind sector, Biden said, “let
me be clear: Climate change is an emergency,”...[More...]
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Why a Sustainable Supply Chain Is Vital To Business
Success
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July 27th: The cogs of any business must run smoothly to be
efficient and profitable. Introducing sustainability at every turn is now
also an essential requirement. Some business owners might groan at the
word sustainability or at the phrase "environmental, social and
corporate governance (ESG)," but it is better to embrace them and
see how they can work for your business rather than push against them. [More...]
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Gov. DeSantis takes aim at ‘ideological’ investing,
wants ESG prohibitions
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July 27th: Continuing
to target what he calls “woke” corporations, Gov. Ron DeSantis wants to
prohibit state investments that use “environmental, social and
governance” ratings, which can include taking into account impacts of
climate change. DeSantis plans to have the State Board of Administration,
which oversees investments, direct pension-fund managers against “using
political factors when investing the state’s money.” [More...]
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