MODERN SLAVERY STATEMENT June 2020
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MODERN SLAVERY STATEMENT June 2020 In compliance with the regulations of the California Transparency in Supply Chains Act (SB 657), the UK Modern Slavery Act of 2015 Section 54 and the Australia Modern Slavery Act 2018, the following document discloses the ASICS Groups policies in place and actions taken to prevent forced labor, slavery and human trafficking in our business activities and supply chains during the fiscal year 2019 (January 1st 2019 till December 31st 2019) 9 INTRODUCTION • Upholding fair business practices, improving labor to our customers. Many of our Tier 1 suppliers themselves ASICS GROUP conditions and work to prevent the violation of human have an extensive supply chain, connecting the ASICS rights throughout our organization and in our supply Group indirectly with many more operations and MODERN SLAVERY chains are responsibilities we take very seriously. The businesses worldwide. The majority of manufacturing of ASICS Group strongly condemns the use of force or ASICS global products is taking place in Southeast Asia. involuntary labor. STATEMENT 2019 We take a zero-tolerance approach to this issue and The ASICS Group supports and respects human rights, as ASICS1 is a global sports performance and deploy a rigorous supply chain management program to set out in the Universal Declaration of Human Rights. We lifestyle brand. For the manufacturing of our ensure compliance throughout our supply chains. see it as an important responsibility to use our influence as ASICS and Onitsuka Tiger products, the ASICS a global brand to help maintain and improve standards MODERN SLAVERY STATEMENT 201 Group depends on a large supply chain that ASICS does not tolerate modern slavery in our supply throughout our supply chains, both among direct and includes material and product manufacturers, chain in any form. As part of our wider commitment to indirect suppliers. creating products safely and sustainably, we are We operate a rigorous supply chain management program their workers, unions, NGOs and others. committed to using our influence to identify and to increase transparency, monitor standards and ensure The current COVID-19 pandemic is having a collaborate with our partners on eradicating modern compliance with ASICS policies and all other relevant ASICS GROUP major impact on business, economies and the slavery across our supply chains. This extends even to regulations and laws, local and international lives of people globally. While the ASICS Group the areas of the supply chain where we have no direct is working hard on recovering our own business relationships. We do this work both Governance and Policies independently, and together with other stakeholders business, we are committed to contributing to a Our system of governance ensures that our human rights within and outside the sporting goods industry. principles and objectives are embedded throughout our more resilient, sustainable garment and business. This is a shared responsibility involving all footwear industry once the crisis is over. We Business activities and our supply chains. company divisions and colleagues at every level. endorse the International Labor Organization Headquartered and classified as a public corporation in We conduct our corporate activities on the basis of clear (ILO)’s COVID-19: Action in the Global Garment Japan, ASICS is producing, marketing and selling its codes of conduct that are based on internationally Industry, which aims to support manufacturers footwear, apparel and accessories products and its recognized standards and conventions. Suppliers have to to survive the disruption caused by the related services through ASICS-owned retail stores, understand and acknowledge these standards and are COVID-19 pandemic and to protect workers’ online business, via retail accounts, independent formally obliged to meet them. We seek to work only with income, health and employment. distributors, licensees and representatives globally. We business partners who share our commitment to operate 60 businesses in 33 countries. Our reach sustainability and fair labor practices. With COVID-19 becoming a pandemic causing extends further through our supply chain business disruption globally since the start of 2020, this partners, sponsored events and connections to other Our Policy of Engagement (PoE), which at ASICS is our Group Statement is covering our efforts to stakeholders worldwide. supplier Code of Conduct, sets out the minimum prevent forced labor, slavery and human requirements regarding human rights, labor standards, trafficking in our business activities and supply More than 150 direct, Tier 1 suppliers in over 22 occupational health and safety and environmental chains during the fiscal year 2019. countries provide us with the facilities, expertise and practices for any ASICS business partner. The other resources that allow us to bring the best products requirements include specific expectations that address 2 9 forced labor and child labor and human trafficking. Our to review, understand and comply with this Code. We have a list of over 22 approved sourcing countries. PoE requires any partner involved in the manufacturing of Before our sourcing divisions can enter product and ASICS Group branded products to: We continuously improve audit functions and internal material sourcing arrangements with any new country • Respect worker rights and be in full compliance controls of our corporate management. Our aim is to outside our approved list, they must first carry out a with all laws, regulations and administrative create a management approach that goes beyond country risk assessment in collaboration with our CSR & instructions applicable to their business operations. compliance and reflects the perspectives of our Sustainability Department and other internal and external • Maintain all relevant documents necessary to stakeholders. stakeholders. This includes analysis of human rights risks, demonstrate compliance with our policies. When We encourage employees and business partners to as well as particular industry/sector and geographical deemed necessary ASICS or its contracted report code or policy violations using our confidential, risks. All sourcing divisions within our Group are aware of independent monitors shall be allowed, regardless anonymous whistleblowing services. This allows us to this guideline. MODERN SLAVERY STATEMENT 201 of prior notice, to conduct compliance assessment detect the first signs of wrongdoing quickly and carry out audits. corrective measures without delay. Prior to entering any partnership agreement with a new • Employees shall be provided with safe and decent footwear, apparel or accessories supplier, we assess the working conditions, fair wages and secondary Due Diligence and assessment of Modern supplier's social and environmental sustainability benefits and be treated with respect. Slavery Risk performance against ASICS standards. Only if the supplier ASICS GROUP This also means that our partners: ASICS operates a Group-wide risk management system meets our minimum standards on human rights, safety • Shall not use forced labor, whether in the form of to identify, analyze, evaluate, mitigate, monitor and and ethics we will consider engaging with them in a prison labor, indentured labor, bonded labor, or report risks. This includes the risk of human rights business relationship. otherwise. No Employee can be compelled to work violations. through force, the threat of force or intimidation of The human rights related risk mitigation planning is In addition to information from our own, on the ground any form. owned by the head of CSR & Sustainability Division. The supplier visits, information from our internal sourcing and • Employees should not bear the cost for their risk and the mitigation actions are reviewed and product development divisions and local sourcing employment whether in the form of recruitment fees monitored in the Risk Management Committee led by partners, ASICS also utilizes information from external or other; should retain control of their travel President and COO Yasuhito Hirota. resources. These include information from authorities such documents and have full freedom of movement. as the U.S. government from NGO partners such as ILO In March 2019, our Policy of Engagement was updated In addition to ASICS’ Risk Management Committee, Better Work and The Institute for Human Rights and to reflect our continuously evolving ambitions and ASICS established in 2019 a new Sustainability Business or industry bodies (the Social Responsibility expectations to suppliers. This included specific updates Committee led by ASICS President and COO Yasuhito Committee of the American Apparel & Footwear relating to forced labor and migrant workers. Hirota to advise the Board of Directors on sustainability Association (AAFA)and the Sustainable Apparel Coalition specific risks and opportunities. (SAC). We maintain an open, constructive relationship with Over and above ASICS’ Policy of Engagement and other The Sustainability Committee will work to solve social unions, NGOs and other advocacy groups that focus on supplier requirements and expectations, our ASICS Code and environmental issues through business activities. human rights in our supply chains like Know the Chain and of Conduct sets out the basic standards by which all These business activities will, in turn, increase our Transparentem. Further, ASICS is a signatory to the members of ASICS Group must comply during their daily engagement with customers