California Transparency in Supply Chains Act

Lilly Pulitzer manages its supply chain carefully and continually assesses suppliers’ compliance with the highest standards of legal and ethical conduct, which include, among other things, zero tolerance for slavery and human trafficking. As part of our efforts, we comply with The California Transparency in Supply Chains Act of 2010, which is focused on ensuring that retailers improve their practices to ensure there is no slavery or human trafficking in the supply chain. We do this through the following activities:

Verification

Lilly Pulitzer conducts its own verification of its direct suppliers to assess risks related to human trafficking, slavery and other social compliance metrics. In some limited cases, third-party verification is utilized.

Auditing

Lilly Pulitzer utilizes a dedicated in-house factory compliance team which, under the direction of executive leadership, is charged with assuring that the factories meet Lilly Pulitzer’s standards. We supplement the in-house team with support from a globally recognized, third-party factory compliance audit firm. On an ongoing basis, we conduct risk assessments and formal and informal on-site audits of our factories to ensure compliance with our standards, which include forbidding the use of labor from victims of human trafficking or slavery.

Certification

Lilly Pulitzer assumes the responsibility of ensuring that our products are manufactured only in safe, humane and ethical working conditions. This starts with identifying, screening for and utilizing supply chain partners who share our core values of respect and equality in the treatment of their employees and agree as a condition of doing business to abide by the Lilly Pulitzer Code of Conduct. Among other requirements, the Code of Conduct clearly mandates that there be no use of labor from victims of human trafficking or slavery.

Internal Accountability

Internal accountability for Lilly Pulitzer procedures and processes that ensure company standards on slavery and human trafficking are met is assigned at Executive and operational levels of the company. These processes and procedures determine whether, and to what extent our supply chain partners are complying with Lilly Pulitzer standards as defined in the Code of Conduct. Immediate and complete remediation would be required by any supply chain partner who failed to meet the standards regarding slave or trafficked labor. In the absence of acceptable improvement, the business relationship will be terminated. Lilly Pulitzer Manufacturer’s Code of Conduct

Training

Internal training on the Code of Conduct is conducted to ensure that employees who are directly involved in the Lilly Pulitzer supply chain are aware of the issues surrounding human trafficking and slavery and that processes are implemented to mitigate this risk.