California Supply Chain Act

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT DISCLOSURE

Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products in the USA. As such, we have a responsibility to demonstrate good corporate citizenship. The Saputo Promise is our commitment to live up to this responsibility and the values on which our business was founded in 1954. Our Promise consists of seven (7) Pillars that form the backbone of our approach to social, environmental and economic performance. 

Consistent with The Saputo Promise, we have adopted a Supplier Code of Conduct. Among other things, our Supplier Code of Conduct communicates Saputo’s requirements to its suppliers that human trafficking and slavery, in any shape or form, is strictly prohibited and will not be tolerated throughout our supply chain.

In accordance with the values that are reflected in The Saputo Promise and our Supplier Code of Conduct, we are committed to supporting the objectives of The California Transparency in Supply Chains Act of 2010 (the “Act”) by managing our relationship with our suppliers to ensure no human trafficking or slavery, in any shape or form, is present in our supply chain. Accordingly, we are pleased to make the following disclosures, as required by the Act:

1. Verification

   All Saputo suppliers must adhere to and act in a manner consistent with the provisions of our Supplier Code of Conduct, which, among other things, prohibits human trafficking and slavery in any shape or form. Our Supplier Code of Conduct is distributed to Saputo’s suppliers on a periodic basis and will be adapted and revised from time to time, as needed.




2. Audits

   Saputo has a zero-tolerance policy for human trafficking and slavery. Should any suspicion arise about the actual or potential presence of human trafficking or slavery at a supplier facility, we would immediately send a third-party auditor to investigate the issue and take appropriate action, which would include the termination of the business relationship with any supplier that violates this aspect of our Supplier Code of Conduct and refuses to implement appropriate corrective actions following the audit.




3. Certification

   Saputo’s purchase orders and agreements with its suppliers contain a clause stipulating that they must abide by our Supplier Code of Conduct, which requires compliance with all applicable laws, including those prohibiting human trafficking and slavery. Saputo has never dealt with a supplier that has refused to comply with such measures, nor have we been notified of or witnessed issues relating to human trafficking or slavery in our supply chain. If such a situation should occur, however, including any suspicion relating to human trafficking or slavery, we would immediately investigate the issue and take appropriate action, which would include the termination of the business relationship with any supplier that violates this aspect of our Supplier Code of Conduct and refuses to implement appropriate corrective actions following the audit.




4. Internal Accountability

   Saputo has a dedicated Procurement Department that ensures due diligence processes are performed when selecting and dealing with its suppliers. Guidelines are also in place to ensure the quality and safety of all ingredients and dairy products sourced from our suppliers.

   Moreover, Saputo’s employees are required to sign and abide by the Saputo Code of Ethics, which, among other things, states that suppliers are expected to act in a manner consistent with the Saputo Code of Ethics when dealing with or acting on behalf of Saputo and to adhere to principles consistent with those set out in the Saputo Code of Ethics. Consequently, employees monitor and may verify the activities of our suppliers and have the obligation to inform the Executive Vice President of Human Resources if they have any concern regarding compliance with, or are aware of an action, omission or practice of a supplier that contravenes or could possibly contravene, the Saputo Code of Ethics, or any Saputo policy, procedure or guideline.

   Adequate resources are available internally should our employees require further information or explanation about the content of the Saputo Code of Ethics. Employees are accountable for any deviation to the Saputo Code of Ethics. Specifically, disciplinary measures can be taken against them for violations of the Saputo Code of Ethics, which may even result in the termination of their employment if warranted by the circumstances.




5. Training

   A primary objective of Saputo’s Procurement Department is to ensure the reliable supply of goods and services from reputable suppliers. In this regard and to ensure such objective is met, training within the Procurement Department is provided by senior employees, under the leadership of the Vice President, Corporate Procurement. In particular, employees are informed of the importance of ensuring responsibility for supply chain management in the area of human trafficking and slavery, as well as the importance of upholding the other values contained in our Supplier Code of Conduct.