CA Transparency in Supply Chains Act

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On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) went into effect in the State of California. Under the law, large manufacturers and retailers are required to disclose their efforts to eradicate slavery and human trafficking within their supply chains. The law's underlying purpose is to educate consumers, so they can make informed decisions and purchase goods from companies that responsibly manage their supply chains.

Verification of Product Supply Chains and Certification of Compliance with Laws

At Target, we hold ourselves and our vendors accountable to high ethical standards wherever we do business. Target works diligently to ensure Target's products are produced ethically by our suppliers and in accordance with Target's Standards of Vendor Engagement ("Target's Standards") and Target's Vendor Conduct Guide, which Target suppliers are subject to as a condition of doing business with Target. Target's Standards expressly prohibit our suppliers from utilizing any forced or compulsory labor. They also mandate that workers receive fair wages and benefits in compliance with all applicable local laws. Target suppliers also warrant that all the products they supply to Target are manufactured in accordance with all applicable laws, regulations and standards – both of the United States as well as their country of origin.

Risk-based Supplier Assessments, Supplier Audits and Accountability Standards

As part of our efforts to verify our suppliers' compliance with Target's Standards and applicable laws, suppliers must complete a human rights and compliance assessment as part of the factory registration process. All factories must be registered before Target will accept goods produced from the factory. For more information about Target's assessment of suppliers, please review Target's Social Compliance Roles & Program Components. In addition, Target or its qualified third-party auditors will frequently conduct factory audits to verify compliance with Target's Standards. All such audits are performed unannounced and are prioritized based upon a risk-based approach, which takes into consideration the general conditions of the country where the factory is located. For more information, please review Snapshot of a Social Compliance Audit. Target has a zero-tolerance policy regarding forced labor. If forced labor is found in a factory, the factory is immediately deactivated from Target's approved factory list and any merchandise in production there will not be accepted. Target also makes an Integrity Hotline available to Target team members and our suppliers. The purpose of the Integrity Hotline is to provide a vehicle for anonymously reporting concerns dealing with potentially unfair, unlawful, or unethical business practices and to maintain a system by which Target investigates claims and addresses complaints.

Target Team Member and Supplier Training

Target administers mandatory training for team members responsible for sourcing and merchandising decisions on an array of topics, including Target's Standards and Target's Social Compliance program generally. We also require all team members to comply with our Business Conduct Guide, which includes a review of Target's Standards. Target has an extensive library of Social Compliance training available for our suppliers, as well as a factory education guide that includes a social compliance section. Our training materials emphasize strong social compliance management practices and focus on preventing and managing related issues, including human trafficking and slavery. For more information, please visit Target.com/HereforGood.