We continue to embed our commitment to respect human rights in all business areas and pro- cesses, and continue to work on implementing human rights due diligence processes. We do not accept forced labour and human trafficking and are committed to acting with integrity and ethically in our corporate activities and supply chain. We specify our expectations to suppliers in our Code of Conduct for Suppliers (link). As a farmer-owned cooperative we also recognise that we need to ensure human rights are respected on our owners ’ farms, and we have begun farmer engagement and raising awareness. Our principles for tackling modern slavery both in the UK and globally include: In the UK, we only use specified, reputable suppliers to source labour as this is helping to re- duce our exposure as these agencies are subject to regular assessments or audits. Continuous registration checks are also undertaken in line with the Gangmasters’ Licensing Authority wher- ever applicable to verify the practices of any new agency before engaging with them. All our Arla processing and production sites delivering to the UK market are registered with SEDEX, an ethical supply chain database, which is updated annually. Our sites are audited against ethical and human rights standards on a risk-based frequency, usually in the form of SEDEX Mem- ber Ethical Trade Audit (SMETA). The SMETA is based on the Ethical Trading Initiative (ETI) Base Code and local UK laws. It is important to us that we continuously identify risks and areas for improvement and implement follow-up actions. We have a global modern slavery steering committee to formalise internal governance on modern slavery risks. We are committed to implementing and enforcing effective systems and controls to ensure forced labour and human trafficking does not take place in our supply chains. Further the principles include: • Robust internal data checking processes in the UK. This includes checking of employee bank details and addresses to identify risk areas. • Our General Membership Terms include our commitment to work against Modern Slavery including forced labour. • Migrant worker colleagues in the Middle East retain their passports and identity docu- ments, unless they sign a letter of consent if they want Arla to safekeep these. • Upskilling of our leaders and colleagues about modern slavery. In the UK this includes new people managers and site leaders are required to compete an E-learning module on Mod- ern Slavery Awareness. As a selection criteria we ask new suppliers to provide a link to their Modern Slavery Statement. • We continuously review our suppliers . Our expectations We are committed to respecting human rights and preventing forced labour and human traffick- ing, and acknowledge and embrace our responsibility in all our operations. We expect the same from business relationships (incl. joint ventures, suppliers and contractors) and our employees. If any of our employees or anyone who has a business relationship with Arla identifies potential cases of forced labour and/or human trafficking within our business or supply chain, we expect them to inform Arla immediately, so we can take action, and we have established procedures in place for reporting such concerns. Arla Foods Modern Slavery Statement – updated June 2021
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