CG-AA-430b.3 - Labour, Environmental, Health, and Safety Risks in Supply Chain

For Milliken, sustainability due diligence is an on-going practice that responds to changes in our strategy, business models, activities, business relationships, operating, sourcing, and controls, in alignment with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Sustainability matters are embedded in our governance roles and responsibilities. We recognize that we cannot address all impacts at once, so we prioritize impacts based on severity and likelihood of the impacts.

Please review our 2024 Sustainability Report, our seventh annual report, to learn more about our actions to address impacts on people and the environment and track the effectiveness of our efforts.

As a global manufacturing company with diversified supply chains, we have a responsibility to manage our supply chain impacts. We increasingly monitor metrics and data and offer tools to support our suppliers. Our Supplier Code of Conduct outlines our expectations, which nearly 100% of new suppliers affirm during onboarding. Our supplier code addresses people, labor, human rights, integrity, health, safety, and the environment, and provides our suppliers with additional resources for implementing related principles and guidelines. We require suppliers to put management systems and controls in place to comply with principles set for in our code. Suppliers are also required to maintain reasonable documentation demonstrating compliance with the principles of our supplier code to allow for inspection or independent audits.  We encourage our suppliers to report externally about their social and environmental impacts in line with the principles set forth in this code. At this time, there are no specific trends to report outside of the disclosures and metrics included in our 2024 Sustainability Report. 

Our supplier code includes a duty to report concerns or violations of our principles, policies, or other issues directly to Milliken's management team or online via our third-party managed Helpline. Our Helpline contact information is made available in the Supplier Code of Conduct, within our Terms and Conditions, and linked at the top of our Supplier Resources website for ease of access. In addition to the requirements in our Supplier Code of Conduct, we monitor supplier compliance and measure performance, including considering social and environmental criteria for supplier selection using two cloud-based sustainability platforms, including IntegrityNext and Sedex.

We have also implemented the United States Homeland Security's CTPAT® program. CTPAT is a voluntary public-private sector partnership program recognizing that the U.S. Customs and Border Protection can provide the highest level of cargo security only through close cooperation with principal stakeholders of the international supply chain like importers, carriers, consolidators, licensed customs brokers, and manufacturers.