Myer : Modern Slavery Statement 2020Opens in new window

M O D E R N S L AV E R Y S TAT E M E N T

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C O N T E N T S

I N T R O D U C T I O N

MYER IS AN ICONIC AUSTRALIAN RETAIL BRAND WITH A RICH HERITAGE OF STYLE, FASHION AND COMMUNITY ENGAGEMENT SPANNING OVER 100 YEARS.

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INTRODUCTION	ROADMAP SNAPSHOT	COVID-19	OUR BUSINESS

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OUR MODERN	MEASURING		CONSULTATION		MODERN SLAVERY
SLAVERY RISKS AND	EFFECTIVENESS				ACT REPORTING
REMEDIATION					CRITERIA

Myer Holdings Limited (ABN 14 119 085 602) is listed on the Australian Stock Exchange (ASX: MYR), registered at 800 Collins Street Docklands Vic 3008. This Statement is prepared for Myer Holdings Limited including each wholly owned entity such as Myer Pty Limited, sass & bide Pty Limited, and Marcs David Lawrence Pty Limited, and all other Myer Holdings Limited1 controlled entities during year ending 25 July 2020 (2020). References to "Myer, we, our or us" in this Statement means Myer Holdings Limited.

1 List of Myer Holdings Ltd subsidiaries published in Myer Holdings Limited 2020 Annual Report, page 79.

We continue to be committed to the highest levels of integrity and ethics in our business operations and work with suppliers and business partners that share our values of accountability and corporate responsibility. This commitment extends to identifying, assessing and addressing risks of modern slavery and human rights within our business and supply chain.

Modern slavery is a serious exploitation of a person's right to freedom and violation of human rights. It includes situations where offenders use coercion, threats or deception to exploit workers for personal

or commercial gain, undermining workers' freedom. Practices that constitute modern slavery include forced labour, child labour, servitude, debt bondage and deceptive recruitment. Myer supports and respects the rights and freedom of workers and prohibits modern slavery

or modern slavery like practices in its operations and supply chain.

This is Myer's first Modern Slavery Statement and has been prepared in accordance with the Modern Slavery Act 2018 (Modern Slavery Act). Our approach to modern slavery and human rights

is company-wide and the Statement

outlines the actions Myer Holdings Limited has taken over the past year to strengthen and broaden the scope of our Ethical Sourcing Program to assess and address modern slavery risks in our operations and the effectiveness of those actions. This Statement covers and is prepared for Myer Holdings Limited (Myer) encompassing Myer Pty Limited, sass & bide Pty Limited, and Marcs David Lawrence Pty Limited.

The Statement has been reviewed and approved by the Directors of the Myer Holdings Limited Board.

Modern Slavery Statement 2020

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R OA D M A P

SN A P SHOT

WE HAVE A THREE YEAR ROADMAP THAT FOCUSSES ON ENHANCING OUR PRE-EXISTING ETHICAL SOURCING FRAMEWORK, AND INCLUDES ACTIONS TO IMPROVE OUR RISK AND SUPPLY CHAIN MANAGEMENT, DUE DILIGENCE, COMMUNICATION, MONITORING AND TRAINING.

COV ID -19

WE CONTINUE TO NAVIGATE THE UNIQUE CHALLENGES OF THE COVID-19 PANDEMIC, AS THE SAFETY, HEALTH AND WELLBEING OF OUR PEOPLE AND THOSE IN OUR SUPPLY CHAIN WORLDWIDE REMAINS OUR PRIORITY.

2020

ENHANCE

FRAMEWORK

• Update policies and procedures
• Risk assessment, mapping of supply chain and gap analysis
• Engage with high priority tier one suppliers
• Refresh employee training
• Strengthen supplier contracts with additional clauses on compliance with Modern Slavery Act
• Supplier questionnaire

2021

MONITOR

• • ENGAGE
• Monitor targets and KPIs
• Update due diligence program to ensure that it addresses key salient modern slavery risks and is fit for purpose
• Continue to engage tier one suppliers
• Strengthen worker engagement and training
• Engage and collaborate with industry and peer groups

2022

REVIEW &

ASSURANCE

• Validate framework
• Risk based assessment of second tier and beyond
• Explore more effective mechanisms for addressing modern slavery risks
• Review options to move beyond audits and build worker engagement program
• Communicate Ethical Sourcing Program and modern slavery initiatives to customers

The COVID-19 pandemic caused profound and unprecedented challenges to our business operations, with store closures and stand down of staff. Myer acted promptly to ensure the welfare of its staff, as well as to reduce impact to

the future operations of Myer and our supply partners.

We recognise that COVID-19 has had an effect on modern slavery risks and to mitigate these risks we continued to operate our Ethical Sourcing Program

throughout the pandemic. We engaged and encouraged open dialogue with our suppliers to better understand the impacts as well as re-phasing of orders, and implementing extended delivery periods to ensure the pain of disruption was manageable and to ensure ongoing sustainable workforce and supply for future recovery.

The impacts of COVID-19 extended to our overall supply chain, with restricted access and movement due to shutdowns

primarily set by government agencies in the countries we operate. These restrictions resulted in some audits being delayed and Myer employees not being able to visit sites. Further, some aspects of our roadmap for the first reporting period, such as supplier self-assessment questionnaire and targeted training programs were postponed to ensure our team could respond to heightened risks presented by the pandemic.

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Myer Holdings Limited

Modern Slavery Statement 2020

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OUR BUSINE S S

MYER IS ONE OF AUSTRALIA'S LEADING RETAILERS OFFERING PRODUCTS

ACROSS WOMENS, MENS AND KIDS FASHION, BEAUTY, HOMEWARES, ELECTRICAL GOODS, TOYS AND GENERAL MERCHANDISE. THE MAJORITY OF OUR RETAIL OPERATIONS ARE IN AUSTRALIA WITH A SOURCING OFFICE LOCATED IN HONG KONG AND UNTIL APRIL 2020, IN CHINA.

Our Australian operations include 60 Myer department stores, 44 sass

• bide stores1,2, 86 Marcs stores1,3 and 79 David Lawrence stores4 across all states in Australia and the Australian Capital Territory. Each brand also operates its own ecommerce platform. Our workforce consists of over 9,000 Australian based team members across our support office, warehouses and retail stores; as well as contractors and agents engaged either by contractor or under award agreements. Our sourcing office in Hong Kong employs 47 staff, of whom are based across locations in China, Hong Kong and a small number in India and Bangladesh for the purpose of quality and systems assurance.

Our supply chain operation is extensive and comprises a global supplier network of over 10,000 suppliers, 33% of which are merchandise suppliers. The supplier network is categorised as follows:

Merchandise suppliers

• Private brand supplier - Myer owned brands manufactured under a Myer owned trade mark
• National brand supplier - Branded suppliers with local and/or international proprietary rights for resale by Myer where trade mark is not owned by Myer
• Brand partner supplier - Licensed suppliers selling branded product owned by the licensed business, operating a store-in-store business within Myer stores

Non-Merchandise suppliers

• Goods and services not for resale to customers, engaged to support the

operations of the business such as packaging materials, stationery, visual merchandise equipment, marketing, security, transportation, cleaning and professional services.

Our approach to modern slavery is company-wide, with a governance structure overseeing the management of modern slavery risks. The Myer code of conduct outlines the expectations of all employees, including company directors. In particular, the code requires awareness of, and compliance with, laws and regulations relevant to Myer's operations, including occupational health and safety, fair trading and dealing, privacy, and employment practices. The Myer Ethical Sourcing Program, launched over 10 years ago includes the identification, assessment and mitigation of modern slavery risks. Each employee of Myer has a responsibility to ensure compliance with our Ethical Sourcing Program with oversight by the Audit, Finance and Risk Committee of the Board.

The Myer Board is accountable for and approves the Myer Ethical Sourcing Policy and framework, and through the Audit, Finance and Risk Committee of the Board, reviews the ethical sourcing risk processes, activities and initiatives. The Executive Management team is responsible for the execution of the policy and framework in their area of responsibility. The Assurance team, reporting to the Chief Financial Officer, is responsible for the development, implementation and management of the broader Ethical Sourcing Program, including modern slavery initiatives.

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MYER DEPARTMENT

STORES

44

SASS & BIDE STORES1,2

86

MARCS STORES1,3

79

DAVID LAWRENCE

STORES4

1. Comprises of standalone and department store formats.
2. Includes four stores closed during the reporting period.
3. Includes five stores closed during the reporting period.
4. In department store format.

Myer Board

responsible for overseeing the performance and operations, including setting the values

and monitoring of compliance with Myer's code of conduct and ethical standards

Board committees

AUDIT, FINANCE	HUMAN RESOURCES	NOMINATION
AND RISK COMMITTEE	AND REMUNERATION	COMMITTEE
Risk management and financial	COMMITTEE	Succession and
reporting, includes Ethical Sourcing	Executive pay and human	Board appointments
and Modern Slavery	resourcing issues

Policies and Procedures

(includes Code of Conduct, Ethical Sourcing Framework, Risk Management Framework, Whistleblower)

Executive Management Team reporting to Chief Executive Officer

Responsible for delivering the strategic objectives and instilling the values and culture approved by the Board, including ensuring the policies and procedures are adhered to, and management of ethical sourcing framework

Business and functional units

ASSURANCE TEAM

(reports to the Chief Financial Officer)

Oversees and responsible for the development, embedding and management of the Ethical Sourcing Program

with business units including modern slavery initiatives, and the company's whistleblower program

4 Myer Holdings Limited

Modern Slavery Statement 2020

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