Nirapon As a founding member of the Alliance for Bangladesh Worker Safety (Alliance) in 2013, we continued our commitment to sustaining the culture of facility safety in Bangladesh by joining Nirapon in 2019. Nirapon, the next generation of the Alliance, is committed to helping the facilities from which its members source develop a sustainable culture of safety. Nirapon provides safety oversight, partnership with well-respected training providers, remediation, and capacity building and maintains an effective helpline. Nirapon is supported by 51 brands and serves over 330 factories. For more details on Nirapon’s efforts please see Nirapon.org. Supplier Compliance Audit Network Supplier Compliance Audit Network (SCAN) is an organization of U.S. and Canada-based importers with a common goal of facilitating international supply chain security compliance and endorsing the efiorts of U.S. CBP, CTPAT and MSC. Social Supply Chain 68 2021 ESG REPORT We have been a member of SCAN since August 2018. SCAN provides invaluable assistance in helping to standardize supply chain security audits to prevent multiple audits from being conducted over the same facility. SCAN members, including many of the world’s top importers, can now participate in a “shared audit” to help reduce duplicative audits at facilities. SCAN has performed more than 18,410 supply chain security audits in 78 countries and has 21,335 facilities within the SCAN Audit Sharing Network. Kohl’s Participation in Better Work Programs We participate in the International Labour Organization’s (ILO) Better Work Vietnam (BWV), Better Work Nicaragua (BWN) and Better Work Indonesia (BWI) programs that cooperate with facilities to improve human rights performance and strengthen labor standards in export garment industries. Better Work assesses facilities and provides advisory services to improve compliance with ILO core labor standards and national laws regarding compensation, contracts, occupational health and safety, and working hours. Select facilities are monitored by BWV, BWN and BWI to minimize audit fatigue from our own scheduled visits. This process allows facility management more time to focus on corrective action and sustainable, continual improvement. Institute of Public and Environmental Affairs (IPE) To supplement our responsible sourcing strategy, we leverage the Institute of Public and Environmental Affairs (IPE) to screen our suppliers in China for environmental compliance. IPE is a nonprofit environmental research organization that collects and analyzes government and corporate environmental information to provide transparency on supplier compliance. On a regular basis, we screen our suppliers within IPE’s Blue Map website to identify violations and, if found, create a corrective action plan for the respective vendor and facility to remediate within an assigned timeframe. In 2021, we screened over 81% of our China facilities and over 46% have rectified their violations. In 2022, we plan to continue expanding the scope of our supplier screening and push our suppliers to remediate outstanding environmental noncompliance.
Kohl's 2021 ESG Report Page 67 Page 69