WORKER WELLBEING: FAIR TRADE O INTR children to continue education online. These are vendor hosted a circular design competition to As the first home retailer to launch the meaningful actions that have helped factories to repurpose textiles for zero-waste pillows. Not retain workers during COVID-19. Like many of our only did the factory divert waste bound for landfill, Fair Trade Certified Factory program, Fair Trade Certified factories, one in Vietnam used but the project empowered employees to design their Premiums to pay workers their full salaries products themselves, coming up with creative while closed due to COVID-19. The factory said ways to tackle sustainability challenges. we continue to increase our ambition, they had more workers return when they reopened, compared to other factories in the area. In India, a Fair Trade Certified factory used ANET announcing goals to pay an additional Premiums to purchase solar panels for each PL One of the trends we saw this year was the use household, investing in alternative energy to $10M in Fair Trade Premiums by 2025. of Fair Trade Premiums for climate resilience and provide electricity during blackouts, while another justice. In China, a Fair Trade Certified bedding hosted a vaccination clinic. FAIR TRADE We certified four new Fair Trade factories For every Fair Trade Certified product sold, we this year, bringing our total to 19 Fair Trade pay a Premium that goes directly back to workers, Certified factories in five countries, impacting OPLE who collectively decide how to spend the funds nearly 19,000 workers. PE to improve the lives of themselves and their communities—supporting a sustainable and Over 75% of the general population trusts the resilient supply chain. Fair Trade Certified label, and more consumers recognize the logo when compared to other social “This type of commitment certifications. When asked if they had purchased Fair Trade products in the last 3 months, millennial at scale is exactly the responses increased from 2019 to 2021. kind of leadership we need More consumers are willing to pay more for Fair Trade Certified products than 6 years ago, right now—for workers, averaging 3% year-on-year growth. Millennial PURPOSE and Gen Z consumers lead this trend: 55% of for the environment and millennials and 50% of Gen Z consumers for conscious consumers indicated they will pay a Premium for Fair Trade Certified products. who demand responsibility T 2021 from brands today.” PREMIUMS IN ACTION India experienced a devastating COVID-19 surge —Paul Rice, Founder & CEO during June 2021, and vaccines were in low supply. T REPOR Most of our Fair Trade Certified factories are in C of Fair Trade USA A APPENDIX India and they mobilized their Premiums to offer IMP direct relief to workers throughout the pandemic, providing food and health kits for workers and their families, and buying tablets for workers’ 57 58