California Transparency in Supply Chains Act of 2010

The California Transparency in Supply Chains Act of 2010 (SB 657) requires certain companies manufacturing or selling products in the state of California to disclose their efforts (if any) to address the issue of forced labor and human trafficking in their supply chains. The law was designed to increase consumers’ knowledge about products they buy and the companies they choose to support.

PAFCO’s commitment to respecting human rights wherever we operate is embedded in our culture and conduct. Our Business Conduct and Ethics Code provide information about how we conduct our day-to-day business activities according to the principles of PAFCO. An audit of PAFCO U.S. facility is conducted at least annually by an independent 3rd party to assist fulfillment of this commitment. The audits cover health, environmental and safety standards and compliance. Particular labor issues or concerns may be emphasized as part of this process. Failure to comply with company policies and procedures may result in disciplinary actions up to and including termination.

Our vendors are also required by contracts to follow The Business Conduct and Ethics Code. PAFCO encourages contractors, suppliers and service providers to conduct their business in a manner consistent with PAFCO standards. These expectations are communicated through a variety of channels, including PAFCO’s contracts. We have specific language in our contracts related to engagement with suppliers on labor issues, reinforcing expectations related to labor standards that address the use of forced or involuntary labor. We require that our suppliers adhere to all applicable domestic laws and encourage them to be consistent with recognized core labor principles.

Through our Environment and Safety Management and Supplier Qualification processes, we work with suppliers to increase accountability and continually improve their performance.