15 Table of Contents Introduction & Our Approach Operating Responsibly Investing in Our People Diversity, Equity & Inclusion Environmental Sustainability Social Impact Data & Frameworks CORPORATE GOVERNANCE ETHICS RISK HUMAN RIGHTS SUPPLY CHAIN PRODUCT SAFETY GUEST SAFETY INFORMATION SECURITY PRIVACY DIGITAL WELLNESS RESPONSIBLE ADVERTISING JOURNALISTIC INTEGRITY ARTIFICIAL INTELLIGENCE TAX STRATEGY SUPPLY CHAIN International Labor Standards In accordance with the ILS program, licensees and The Disney International Labor Standards (ILS) program vendors producing Disney-branded products in certain CG-AA-430b.3 governs labor standards compliance across the extensive countries must conduct audits and provide audit reports Learn more in our Data & Frameworks supply chain for Disney-branded consumer products. on a regular basis. We use ILS audits as a tool designed Now in its third decade, the ILS program: to identify and address potential labor-related issues. We are committed to working within our global Audits are generally conducted by either third-party supply chains to foster safe, inclusive, and respectful • Establishes requirements for licensees and vendors auditors or Disney staff and 昀椀ndings are reviewed for workplaces. We collaborate with suppliers around the to monitor their supply chains for compliance with compliance with ILS program requirements. Necessary world as part of our efforts to prevent, mitigate, and Disney’s Code, including local labor and corrective action plans may be sent to licensees and remedy adverse human rights impacts as well as to environmental laws vendors, who are expected to review them with their reduce the environmental impacts of our operations, • Speci昀椀es where products may be produced and facilities and implement steps to promptly remedy any products, and services where we operate. maintains the names and locations of factories identi昀椀ed compliance violations; failure to do so in a We purchase an extensive array of products, materials, authorized to manufacture Disney-branded products timely manner can result in removal of authorization and services from thousands of suppliers to support • Sets standards for when, where, and how social to produce Disney-branded products. our operations. In addition, Disney-branded products compliance audits assess compliance with ILS Requirements for our ILS program are described in our are produced in roughly 43,500 facilities in program standards ILS Program Manual, as well as in supplemental guides, approximately 100 countries, creating a highly • Reviews audit and assessment reports regularly and including those for forced labor and health & safety. The complex global network of suppliers. issues corrective action plans, as appropriate, to program is informed by our Human Rights Policy, promote improvement in working conditions Supply Chain Code of Conduct, and Standards of We expect our suppliers to uphold the standards of • Provides guidance, training, and capacity building Business Conduct, along with a range of other our Supply Chain Code of Conduct (the “Code”). The to vendors and licensees on how to improve the labor responsible business expectations. Code is integrated into our business operations, conditions of their facilities including through a range of speci昀椀c measures to The ILS program requires licensees and vendors To promote company-wide integration, our Global monitor and assess compliance as appropriate. involved in the production of Disney-branded goods Products & Labor Standards function, which reports to source and manufacture products from countries that up through our Chief Financial Of昀椀cer, has responsibility are on Disney’s list of Permitted Sourcing Countries, for the ILS program. The Audit Committee of the which is updated on a regular basis. To provide further company’s Board of Directors oversees and periodically transparency and promote program compliance, we reviews the company’s policies and practices related to periodically update our published list of facilities compliance with laws, ethical conduct, and con昀氀icts of producing Disney-branded products that are sold, interest, and receives periodic updates on the distributed, or used in our own retail and wholesale performance of the ILS program. businesses, as well as those used in our internal operations, on Open Supply Hub. Learn more about our ILS program: Supply Chain