69 SUSTAINABILITY RESPONSIBLE SOURCING OUR MANAGEMENT APPROACH The success of our responsible sourcing efforts depends on collaboration with our wide and diverse network of global suppliers. We aim to develop long-lasting, trusting, and mutually beneficial relationships with suppliers that share our strong values and demonstrate the same commitment to operating responsibly and ethically. Our Responsible Sourcing team is part of our Global Procurement function and works closely with the Research and Development (R&D), Global Corporate Citizenship and Sustainability, Packaging, and Legal functions. The team establishes, implements, and monitors environmentally and socially responsible and ethical sourcing practices to ensure that performance is aligned with our goals and objectives. We collaborate with our brands, suppliers, industry groups, and peers to continuously advance our practices. DIVERSE SUPPLIER SPEND $217M $22M SUPPLIER DIVERSITY As an inclusive and diverse company, we are focused on broadening our purchasing choices to better support suppliers representing LGBTQIA+, veterans, ethnic minorities, and people with disabilities, among other populations. Additionally, we have placed a specific focus on women- and Black-owned businesses. Our objective is to help drive economic development and growth of diverse and small businesses in the supplier base. Our membership in international, national, and local advocacy groups allows us to contribute to the social and economic advancement of diverse businesses. We are members of the following organizations, which help us to expand our network of opportunities: • National Minority Supplier Development Council , a membership association that advances business opportunities for certified minority business enterprises and connects them to corporate members. • The Women’s Business Enterprise National Council , a nonprofit organization dedicated to helping women-owned businesses thrive. • WEConnect International , a global network that connects women-owned businesses to qualified buyers around the world. In fiscal 2021, we further invested in this work by appointing a Director of Supplier Inclusion and Diversity dedicated solely to supplier diversity. This role is responsible for expanding our network of diverse suppliers, leveraging our association memberships, and driving progress toward our supplier diversity commitments. SUPPLIER CODE OF CONDUCT Our Supplier Code of Conduct (the Code) is the foundation of our Responsible Sourcing program. It outlines our expectations for suppliers with respect to human rights,the rights of indigenous peoples, and local communities, as well as the workplace. The Code is organized into three sections: • Engage in lawful and ethical business practices • Promote a respectful, fair, and diverse workplace • Provide a safe, healthy workplace and protect the environment and community. It covers areas including Confidentiality and Privacy, Fair Competition, Child Labor, and Forced Labor, among others. To meet the needs of our diverse and global network of suppliers, the Code is available in several languages. One of our Responsible Sourcing Program requirements is for suppliers to acknowledge the Code. Currently, suppliers representing more than 95% of our direct spend have done so. Direct suppliers are those that provide raw materials, ingredients, packaging, and Third-Party Manufacturing to the Company. In addition to the Code, our Supplier Sustainability Guidelines provide suppliers with practical actions they can take to manage the environmental and social impacts of their own operations. These Guidelines help them to build on the foundation of the Code requirements and move towards implementing improved practices in sustainability. Download the Supplier Code of Conduct and Supplier Sustainability Guidelines. Spend with diverse and / or small suppliers in fiscal 2021 Spend with Black-owned businesses in the United States RESPONSIBLE SOURCING
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