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

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CONTENTS

INTRODUCTION

MYER IS COMMITTED TO ETHICAL, SUSTAINABLE AND SOCIALLY RESPONSIBLE PROCUREMENT AND BUSINESS PRACTICES, WHICH INCLUDES MANAGEMENT OF MODERN SLAVERY RISKS AND PROTECTION OF EMPLOYEES AND WORKERS WITHIN OUR OPERATIONS AND SUPPLY CHAIN.

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INTRODUCTION

ROADMAP

OUR BUSINESS &

OUR MODERN

SNAPSHOT

SUPPLY CHAIN

SLAVERY RISKS

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14

15

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MEASURING

MODERN SLAVERY

DUE DILIGENCE

CONSULTATION

ACT REPORTING

EFFECTIVENESS

CRITERIA

As one of Australia's largest retailer groups, we have a longstanding history of fostering ongoing relationships with suppliers in order to provide compelling value to our valued customers and

to ensure that we work together to address the challenges associated with safeguarding human rights.

This is Myer's second Modern Slavery Statement, which highlights the progress made against our three-year roadmap outlined in our first Statement in 2021. Following the publication of our first statement last year, we have continued to strengthen our knowledge of possible modern slavery risks within our complex supply chain and enhanced our Ethical Sourcing Program to assess and address risks identified.

Some of the key progress highlights include:

  • Increasing our understanding of modern slavery risks across our operations
  • Continued to risk assess labour and service providers in our operations to strengthen controls and embedding considerations of modern slavery risks in our processes
  • Supplier self-assessment questionnaire sent to high risk suppliers, and forms part of supplier engagement process
  • 423 factory audits assessed against ethical trade criteria's
  • Introduced supplementary grievance mechanism for workers
  • Expanded and delivered bespoke training to employees
  • Updated supplier code of conduct to reinforce our position on human rights
  • Enhanced traceability and transparency program
  • Expanded social compliance audit program scope
  • Partnering with industry peers to align best practice

Modern slavery is a severe violation of human rights and relates to situations where a person is coerced into work and exploited for personal or commercial gain. It also includes conduct that undermines a workers right to freedom and includes offences such as forced labour, child labour, servitude, debt bondage and deceptive recruitment.

This statement has been prepared for Myer Holdings Limited, in accordance with the Australian Modern Slavery Act 2018 (the Modern Slavery Act), and covers reporting entities Myer Pty Limited, sass & bide Pty Limited, and Marcs David Lawrence Pty Limited. The statement describes the risks of modern slavery in our own operations and our supply chain during the period 26 July 2020 to 31 July 2021 (reporting period or 2021). It also details the steps taken by Myer to minimise the risks of modern slavery and its effectiveness of these actions. This Statement has been reviewed and approved by the Directors of the Myer Holdings Limited Board.

Myer Holdings Limited (ABN 14 119 085 602) is listed on the Australian Stock Exchange (ASX: MYR), registered at 1000 La Trobe Street Docklands Vic 3008. This Statement is prepared for Myer Holdings Limited covering Myer Pty Limited, sass & bide Pty Limited, and Marcs David Lawrence Pty Limited during year ending 31 July 2021. References to "Myer, we, our or us" in this Statement refers to Myer Holdings Limited

2021 Statement Slavery Modern

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ROADMAP SNAPSHOT

WE HAVE A THREE YEAR ROADMAP THAT FOCUSSES ON CONTINUOUS IMPROVEMENT OF OUR ETHICAL SOURCING FRAMEWORK AND INCLUDES ACTIONS TO IMPROVE AND EFFECTIVELY MANAGE OUR RISK AND SUPPLY CHAIN MANAGEMENT, MONITORING, COMMUNICATION AND TRAINING. THE ROADMAP CONTINUES TO GUIDE OUR MODERN SLAVERY RISK MANAGEMENT ACTIONS.

OUR BUSINESS & SUPPLY CHAIN

MYER IS ONE OF AUSTRALIA'S LEADING RETAILERS OFFERING PRODUCTS

ACROSS WOMENS, MENS AND KIDS FASHION, BEAUTY, HOMEWARES, ELECTRICAL GOODS, TOYS AND GENERAL MERCHANDISE THROUGH OUR STORE NETWORK AND ONLINE STORE.

FY20

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

FY21

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

FY22

REVIEW & ASSURANCE

•

Validate framework

• Risk based assessment of second

tier and beyond

•

Explore more effective

mechanisms for addressing

modern slavery risks

AUSTRALIA BASED

OVERSEAS BASED

TOTAL DIRECTLY

COUNTRIES

SOURCED

DIRECTLY

EMPLOYEES

EMPLOYEES

SUPPLIERS

SOURCED FROM

9,000+

49

284

15

•

Strengthen supplier contracts

with additional clauses on

compliance with Modern Slavery

Act

•

Supplier questionnaire

suppliers

•

Strengthen worker engagement

and training

•

Engage and collaborate with

industry and peer groups

• Review options to move

beyond audits and build worker

engagement program

• Communicate Ethical Sourcing

Program and modern slavery

initiatives to customers

Our workforce consists of over 9,000 Australian based employees across our support office, warehouses and retail stores; as well as contractors and agents engaged either by contractor or under award agreements.

Our retail store network encompasses 60 Myer department stores1, 41 sass

  • bide stores2, 83 Marcs stores2 and 80 David Lawrence stores3 across Australia and New Zealand, and is supported by our Support Office team based in Docklands, Victoria. We have

a small sourcing office in Hong Kong which employs 49 employees across locations in China, Hong Kong, and a small number in India and Bangladesh for the purpose of quality control and assurance.

RETAIL STORE NETWORK

Queensland

13 9 17 16

Western Australia

6 5 12 10

South Australia

3

2

5

5

Victoria

14

10

19

16

New South Wales

20 12 25 27

Australian Capital Territory

2 1 3 4

2021 Statement Slavery Modern

LEGEND

Myer Pty Ltd

Tasmania

Sass & bide

Marcs

2

0

2

2

David Lawrence

  1. includes Knox City store closed during the reporting period
  2. comprises of standalone and department store formats
  3. In department store formats

New Zealand

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2021 Statement Slavery Modern

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OUR BUSINESS

  • SUPPLY CHAIN (CONTINUED)

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. The code requires awareness of, and compliance with, laws and regulations relevant to Myer's operations, including occupational health and safety and employment practices. The Myer Ethical Sourcing

Program focuses on 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 and monitors effectiveness of 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.

OUR SUPPLY CHAIN

that goods are manufactured, and

of workers in our supply chain. We work

Our supply chain network is extensive,

accordingly rely upon long-term

collaboratively with our suppliers to

relationships we have developed

ensure ethical sourcing requirements

interconnected and complex with

with our suppliers over many years

and milestones are met and continually

global tiered supplier networks. We

together with our due diligence

improved upon.

do not own or operate any factories

processes to ensure the safeguarding

EXAMPLE OF A COMPLEX SUPPLY CHAIN

UPSTREAM (Inputs and materials needed for production)

DOWNSTREAM (final or finished goods)

Tier three

Tier two

Tier one

Distribution centre

Retailer

Raw Materials 1

Inputs

Manufacturing 1

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. Approves annual Modern Slavery Statement

BOARD COMMITTEES

Audit, Finance and Risk Committee

Human Resources and

Nomination Committee

Risk management and financial

Remuneration Committee

Nomination criteria's, succession and

reporting, includes reviewing Modern

Remuneration framework and people

Board appointments

Slavery Statement and recommending to

and culture initiatives and schemes

Board for approval

Policies and Procedures

Includes Code of Conduct, Ethical Sourcing Framework, Risk Management Framework, Whistleblower

EXECUTIVE MANAGEMENT TEAM REPORTING TO CHIEF EXECUTIVE OFFICER

Modern

BUSINESS AND FUNCTIONAL UNITS

Slavery

Statement

ASSURANCE TEAM

2021

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

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

Raw Materials 2

Supplier 1

RDC 1

Manufacturing 2

Retailer 1

Raw Materials 3

RDC 2

Retailer 2

Raw Materials 4

RDC 3

Manufacturing 3

Retailer 3

Inputs

RDC 4

Raw Materials 5

Supplier 2

Manufacturing 4

Raw Materials 6

RDC = Regional

Distribution Centre

Our supply chain operation is categorised as follows:

MERCHANDISE SUPPLIERS

NON-MERCHANDISE

Private brand supplier

SUPPLIERS

Myer owned brands manufactured under a Myer owned trade mark

Goods and services not for resale

to customers, engaged to support

National Brand supplier

our operations such as packaging

Branded suppliers with local and/or international proprietary rights for resale by

materials, stationery, transportation,

visual merchandise equipment,

Myer where trademark is not owned by Myer

marketing, security, cleaning and

Brand Partner supplier

professional services.

Modern

Licensed suppliers selling branded product owned by the licensed business,

Non-merchandise suppliers are

operating a store-in-store business within Myer stores

typically found in industries such

Slavery

Whilst we do not own or control National Brand and Brand Partner suppliers,

as cleaning, security and transport

which these industries are generally

they are contractually obligated to follow Myer protocol including modern slavery

Statement

considered at high risk of modern

and may be required to report under Modern Slavery Legislation. To increase

slavery and exploitation, and likely

our visibility of our supply chain, reviews of the management processes of key

to be migrant workers

suppliers through their Modern Statement is undertaken to assist in identifying

2021

possible areas of risks that may have not been recognised

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Where a person is forced or coerced to work against their will and restricted in movement under threat or punishment and for no or very little pay.

OUR MODERN SLAVERY RISKS

MYER'S MODERN SLAVERY PROGRAM UTILISES

A RISK BASED AND CROSS-DEPARTMENTAL MODEL.

Our operations and supply chains are complex and potentially exposed to human rights risks. We continue to monitor our risk through ongoing assessments including third

party audits and advice, supplier questionnaire, grievances raised, industry trends, media reports and collaboration with our suppliers.

Our internal business units and departments continually monitor relevant risks in order to maintain a risk

suppliers to ensure the risk profile is maintained or reduced.

Ongoing risk assessments allow us to better understand areas of focus and priorities. These assessments consider the relevant changes both internally and externally, accounting for the nature of the relationship with the supplier and its network, the type and spend of goods or services, the geographic location, the level of human rights protection and vulnerability, and

of controls. In the reporting period, we did not have any instances of modern slavery within our operations or supply chain reported.

All countries in which private brand manufacturing takes place have undergone a risk assessment and been approved by our risk framework. No new sourcing country or supplier can be on boarded without a prior risk assessment completed. This country risk profile is based on a number of

PRIVATE BRAND SUPPLIERS

Myer currently engages 284 private brand textile and manufacturing suppliers in over 400 factories across 15 sourcing countries. Private Brand suppliers are suppliers that present the greatest risk as the product is manufactured directly for Myer, providing increased leverage and influence to identify and remediate

non-conformances. During the reporting period, our supplier base was consolidated to a smaller number of countries and suppliers in order to provide greater influence and importance of each of our suppliers and their factories. This also includes ensuring that Myer's requirements are met and assured throughout their operations, fostering a better relationship with final production

suppliers and allowing for greater information shared with regard to mills and raw materials. We are committed to continuously improving the transparency of our tier one Private Brand suppliers, as we recognise this is an important component of our ethical sourcing program.

Products were sourced from

15 countries, with our concentration of tier one sourcing locations as below

profile, prioritise efforts and to validate existing controls. Our buying, ethical sourcing and procurement teams work closely to monitor new and existing

the ongoing monitoring of reputable media reports. It also reviews possible modern slavery risks and general human right issues, and assesses the adequacy

social and economic indicators such as ILO Rights and Protection Index, OECD, Corruption Index etc.

TIER ONE SOURCING LOCATIONS

Our risk assessment identified the key risks to our operations and supply chain, and areas of focus

Forced labour

There is a risk that forced labour could exist in our extended supply chain in manufacturing

and raw materials

Child labour

Where a child is exploited for personal or commercial gain, and exposed and required

to work in hazardous conditions or the work is harmful to the child's physical and mental

development.

There is a risk that child labour could exist in our extended supply chain in manufacturing,

inputs production and raw materials

Bonded labour

Where a person is required to pay debts (such as recruitment fees) to their employer or

recruiter. Workers are often bound to the employer until the debt has been paid and in most

instances such debts are extremely difficult to pay off.

There is a risk that bonded labour could exist where subcontracting occurs or in areas where

low skilled or migrant workers are employed. Migrant workers are generally at higher risk of

Modern

exploitation due to lack of knowledge of local laws, reluctance to raise concerns or questions

for fear of losing their job or facing deportation and possible better conditions compared to

their home country or area

Slavery

Deceptive recruitment

Where a person is enticed to work using false or deceptive practices about the details and

Statement

working condition of a job, and is later left in a vulnerable position once employment has

commenced.

There is a risk that deceptive recruitment could occur where third parties use to recruit

2021

workers, particularly vulnerable workers such as migrant workers, undocumented workers or

workers from areas with high unemployment or poverty

TOP 4 COUNTRIES (BASED ON SPEND)

CHINA

INDIA

BANGLADESH

VIETNAM

80.3% of purchases

9.5 % of purchases

3.8% of purchases

3.5% of purchases

Active factories - 327

Active factories: 52

Active factories: 9

Active factories: 8

Key merchandise - Apparel

Key merchandise - Apparel

Key merchandise - Apparel

Key merchandise - Apparel

Whilst we have a clear understanding of the final stage of our production, currently audits are not common for raw materials and inputs suppliers. In such instance, we utilise the supplier questionnaire and through discussions seek to understand their operations and processes. Contractual arrangements are generally between final stage production and Myer. Additional diligence and validation processes are consistently being explored to ensure transparency and supply chain is free from modern slavery.

2021 Statement Slavery Modern

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Myer Holdings Limited published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 10:18:04 UTC.