Responsible Sourcing and Purchasing Policy

PURPOSE

Consistent with the Forever New Supplier Code of Conduct, we are committed to responsible sourcing and recognize we have a shared responsibility with our supply chain partners to ensure the sourcing and production of our products uphold the rights of all workers.

Acknowledging that purchasing behaviour can influence the workplace conditions of those making Forever New products, this policy outlines our approach to responsible purchasing practices and is supported by Responsible Sourcing & Purchasing Guidelines.

Members of the Forever New buying cycle must align practices in accordance with the Supplier Code of Conduct, this policy and the accompanying Responsible Sourcing & Purchasing Guidelines.

OUR POLICY COMMITMENT

The Forever New Supplier Code of Conduct establishes our minimum expectations with regard to the labour standards and workplace conditions of our supply chain partners.

To ensure our purchasing conduct does not prevent compliance with our Code of Conduct and avoids adverse impacts, all relevant departments are required to include responsible sourcing and purchasing behaviour across all functions to ensure:

• Factory capacity and capability are factored into forecasts and orders
• Forecasts are as accurate as possible
• Lead times are adequate and agreed milestones adhered to
• Price negotiations and payment terms are fair and balanced
• Commercial terms and provisions allow for compliance with local and international laws and the Forever New Supplier Code of Conduct
• Purchase orders and payments are made on time
• Technical details are accurate, complete and provided on time
• Orders with strategic suppliers are as consistent as possible
• Responsible exit guidelines are followed

ROLES AND RESPONSIBILITIES

• This policy applies to all departments involved in the buying cycle of all Forever New products
• This policy is supported by Responsible Sourcing Guidelines which details purchasing behaviour at each stage of the buying cycle
• All relevant personnel must complete training on this policy at the commencement of their employment and attend refresher courses as directed
• Supplier feedback is sought to undercover areas of improvement on an annual basis
• Daily responsibility for adherence with this policy rests with relevant Managers and overall accountability for compliance rests with Heads of Department

ASSOCIATED POLICIES

• This policy should be applied in conjunction with the Forever New Supplier Code of Conduct