Disclosure

KUT from the Kloth is committed to the highest standards of social responsibility. As part of this commitment we are obligated to ensure our products are produced in an ethical and legal manner. KUT from the Kloth takes seriously the federal and international efforts to end human trafficking and slavery, and we strive to ensure that our suppliers do not engage in such unlawful practices.

Supply Chain Verification and Audits

KUT from the Kloth’s policy is to evaluate potential contracted factories before they enter the supply chain to assess compliance with standards including country-related risk for issues including human trafficking and slavery. KUT from the Kloth has previously commissioned external third party audits. Prior to partnering with any new suppliers, and annually thereafter, we conduct a screening of these suppliers, taking into account their geographic location, workforce profile and history of human trafficking and slavery in the sector. If a supplier is suspected or found to be in violation of such policies, the relationship is discontinued until such time as KUT from the Kloth has verified that any potential or actual non-compliance issues have been resolved. Our employees have also conducted announced visits to a majority of the suppliers identified to be at risk based on the criteria provided above.

Supply Chain Certification

To ensure that our contractors and suppliers respect and enforce our company standards, we include a clause in our supplier agreements governing our contractual relationships with our suppliers requiring each of our suppliers must abide by our anti-slavery and human trafficking standards. Thus as a condition of doing business with us, and as a means of self-certification, the supplier agreement clause provides that each supplier represents that it complies with all applicable local and international laws and regulations regarding slavery and human trafficking of the country or countries in which they are doing business.

Training and Internal Accountability

In light of the knowledge and experience of our existing supply chain partners and in light of the extensive audits that we undertake, we have not instituted formal employee training programs, but we are currently evaluating our options for implementation of additional training. Those employees and management with direct responsibility for supply chain management and audits are provided information on KUT from the Kloth’s policies with regard to forced labor, including human trafficking and slavery. These employees and management cooperate with suppliers to correct any breaches of employment, health, safety and environmental precedent and practices, and specifically for any type of forced labor. If employees of KUT from the Kloth who are responsible for direct responsibility of supply chain management fail to fulfil their duties, they may be subject to discipline.