Social Compliance Audits Social Compliance Audits help maintain factory compliance to minimize legal and brand reputation risks. We actively train and work directly with our suppliers to identify and address the root cause of all violations detected during factory audits. Factories with consecutive “needs improvement” scores receive mandated training as part of our Continuous Improvement Program, and we follow up to verify that sustainable solutions have been implemented for all detected violations. 251 Social Compliance Audits conducted 90 % satisfactory/ minor progress 10 % needs improvement CTPAT Security Audits CTPAT Security Audits enforce security within our supply chain and maintain our membership within the Supply Compliance Audit Network. Read about our compliance, audit process, and training programs related to the California Transparency in Supply Chains Act. 109 CTPAT Security Audits conducted Certification and Collaboration Program In a continuous effort to reduce audit fatigue, we improved collaboration efforts with our suppliers, further expanded our Certification and Collaboration Program, and employed multiple 3rd party audit providers to maintain factory compliance during COVID. 93 % of factories sustained results following the completion of the Needs Improvement Program 77 % preferred 21 % subject to improve 2 % needs improvement 2 % increase in security audit results due to a more stringent corrective program implemented in 2021 10. INTRODUCTION GOVERNANCE PLANET PEOPLE PROSPERITY SASB INDEX 10. INTRODUCTION GOVERNANCE PLANET PEOPLE PROSPERITY SASB INDEX