APPENDIX A INDICATOR CRITERIA

APPENDIX A

Indicator Criteria

Criteria Category Indicator Criteria Criteria Description

Commitment to Human Rights and Labor Standards Demonstration of commitment to human rights and labor standards through public statement, business model, membership and endorsement, leadership behavior

Governance and Accountability

Management System - Planning

Management System - Monitoring and Evaluation Assignment, composition, competency, and operation of a governing body, including board of directors, senior management, and functional department/ personnel responsible for implementing, assessing, monitoring, responding, and reporting on labor and human rights issues and standards

Availability or documentation of management policies and procedures to implement, assess, monitor, respond, and report on labor and human rights issues and standards

Monitoring and evaluation of the company’s management system on labor and human rights

Management Practice

Management System - Execution Implementation of human rights due diligence activities

Management System - Remedy and Corrective Action Implementation or documentation of the results of implementing grievance mechanisms and remedying activities, including corrective and preventive actions to human rights impact assessment

Stakeholder Engagement

Supply Chain Management

Reporting and Transparency

Freedom of Association and Collective Bargaining

Forced Labor and Trafficking in Persons Communication of or involvement in the development of the company’s labor and human rights policies, processes and procedures with general or specific stakeholders, including the employees, shareholders, suppliers, business partners, affected communities, governments

Application of the supplier’s labor and human rights performance in procurement and sourcing decisions, including supplier onboarding, contract renewal and termination

Public disclosure or third-party inspection of the reports and data on the company’s performance on labor and human rights issues and standards, including integrated reporting, sustainability reporting, third-party assurance and attestation

Practice or status within the company’s extended supply chain regarding protection of workers’ right to form or join trade unions and to engage in collective bargaining

Practice or status within the company’s extended supply chain regarding the use of forced labor, encompassing issues such as human trafficking, debt bondage, recruitment fees, wage delays, freedom of movement, retention of personal documents

Child Labor Practice or status within the company’s extended supply chain regarding the use of child labor

Diversity and Employment Discrimination Equal rates of remuneration for the work of equal value and other forms of discrimination in occupation and employment (ILO Convention No. 100, 111)

Worker Rights

Fair Wage

Practice or status within the company’s extended supply chain regarding the amount of compensation for work, such as minimum wage, living wage, overtime pay and other fringe benefits including health insurance and retirement benefits Hours of Work Number and time of working hours

Ethical Recruitment and Termination Practices in hiring and terminating employees, including use of recruiting agencies, recruitment fees

Worker Abuse and Harassment Employee abuse and harassment beyond the scope of employment discrimination

Worker Training and Career Development

Worker Health, Safety and Well-being Employee training on the job function and support of career development, including performance reviews and education support

Healthy and safe working conditions, healthcare provided to workers, and additional benefits related to worker well-being

Criteria Category Indicator Criteria Criteria Description

Community Rights

Indigenous Rights Rights of the people who are indigenous to the region where the company and its suppliers operate or extract resources from

Land Rights Land and tenure rights held by the communities associated with the company’s acquisition and development of property

Security Arrangements Use of public or private security at the premises of the company and its suppliers

Conflict Areas Business operation and materials sourcing in areas of conflict Community Stewardship The company’s impact on and involvement with the development of communities that the company and its suppliers operate or extract resources from

Anti-Corruption Measures and activities against corruption, bribery, fraud, money laundering

Business Ethics

Regulation Compliance Compliance with international and national regulation

Marketing & Labeling Use of a certification scheme or product labeling related to supply chain sustainability or social performance

Shareholder Rights Rights concerning the company’s shareholders

Corporate Citizenship & Philanthropy Volunteer, charitable giving and other activities unrelated to the company’s core operations