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SunPower Corporation and all of its subsidiaries (collectively “SunPower”) are committed to human rights and, as such, are focused on the elimination of human trafficking and slavery from its direct supply chain. Accordingly, SunPower requires its direct suppliers to ensure that they do not engage in any form of human trafficking and slavery. In order to mitigate the risk of human trafficking and slavery occurring in its supply chain, SunPower has adopted the measures discussed below.
• Product Supply Chain Human Trafficking Risk Assessment: SunPower is in the process of conducting a human trafficking risk assessment of its supply chain. Information obtained from such an assessment will be mapped against the US State Department’s list of locations at high risk for human trafficking. Such an analysis will be conducted internally through our supply chain organization without a third-party organization or company.
• Supplier Audits: SunPower intends to retain the right to conduct audits of suppliers to evaluate supplier’s compliance with SunPower’s standards regarding human trafficking and slavery in supply chains. SunPower may audit suppliers deemed as high risk based on applicable factors and on the US State Department’s list of high-risk locations for human trafficking. If such audits are conducted, SunPower will conduct a preliminary audit of the supplier and, if warranted, a third-party audit firm would be retained to do a follow-up audit. In both scenarios, audits will likely be announced in advance.
• Supplier Certification: SunPower requires its first tier direct material suppliers to sign a contract amendment verifying that they are not engaged, either directly or indirectly, in human trafficking or slavery. In the event that SunPower has a business relationship with a direct material supplier but no master contract agreement in place, suppliers are required to sign a policy statement demonstrating their commitment not to engage, either directly or indirectly, in human trafficking or slavery.
Fundamental to complying with SunPower's requirement that its direct suppliers do not engage in human trafficking and slavery, a supplier, in all of its activities, must operate in full compliance with laws, rules, and regulations applicable to human trafficking and slavery in the countries in which it operates, as well as any other related applicable laws. Indeed, SunPower expects its direct suppliers to go beyond legal compliance, drawing upon internationally recognized standards, such as the Universal Declaration of Human Rights and the United Nations Global Compact, to ensure that human trafficking and slavery do not occur in SunPower's direct supply chain. Further, SunPower expects its direct suppliers to undertake the necessary measures to ensure that their direct suppliers do not engage in human trafficking and slavery. Violation of any of SunPower's standards, regarding human trafficking and slavery, set forth above, may result in the termination of SunPower’s business relationship with Supplier.
• Accountability & Management Systems: In addition to having the right to audit suppliers to evaluate suppliers’ compliance with SunPower’s standards regarding human rights and slavery, SunPower has also explicitly stated in its contracts with suppliers and in SunPower’s Commitment to the Elimination of Human Trafficking and Slavery that any violations of SunPower’s standards, regarding human trafficking and slavery, may result in the termination of SunPower’s business relationship with a supplier.
SunPower holds its employees to the same standards as its suppliers. Human rights violations by our employees are unacceptable and impermissible pursuant to the principles and values embodied in our Code of Business Conduct and Ethics (“Code of Conduct”). SunPower has also formalized our commitment to human rights by adopting the UN Global Compact. An employee’s conduct (or failure to act), which is inconsistent with the principles and values embraced in SunPower’s Code of Conduct and the UN Global Compact, will result in disciplinary action, up to and including, termination of the employee’s employment.
• Anti-Human Trafficking Training and Communications: SunPower will review human trafficking concerns in the context of its supply chain with executive staff through the Sustainability Council and with employees who manage suppliers.