California Transparency in Supply Chains Act and UK Modern Slavery Act

Company Mission

To unite our compassion and ambition to positively impact how people sleep, work, and help each other.

UK Modern Slavery Act 2015 ("UK Act")

Under the UK Act, companies providing goods and services with a turnover of £36m or more are obliged to publish an annual Slavery and Human Trafficking Statement setting out the steps the company has taken to ensure slavery and human trafficking is not taking place in its supply chain or its own business.

California Transparency in Supply Chains Act 2010 (SB-657) ("California Act")

Under the California Act, companies of a certain size doing business in the State of California are obliged to disclose their efforts to eradicate slavery and human trafficking from their direct product supply chains for the goods that they offer for sale.

Company Overview

As a CVB, INC., balances profit and purpose by upholding the highest standards of social and environmental performance, transparency, and legal accountability. Our commitment to customers, employees and all other stakeholders includes our continued compliance with applicable laws and regulations.

As part of this commitment, we exclusively seek suppliers, distributors, manufacturers, and other supply chain collaborators (collectively, "Suppliers") who share our values regarding human labor and commit to upholding our standards.

To provide transparency about our products, and to assure customers that we responsibly manage our supply chains, CVB, INC., provides the following information to discuss the activities and efforts of CVB, INC., and our current subsidiaries (collectively, "CVB", "we", "us", and "our") in addressing forced labor and human trafficking in our business and supply chains. This statement is published pursuant to the California Transparency in Supply Chains Act.

Verification

CVB engages in verifications of product supply chains to evaluate and address risks of human trafficking and forced labor. Prior to any engagement with a Supplier, a screening process takes place to evaluate a variety of social and environmental factors, including compliance with all applicable laws and regulations, especially those that prohibit the use of forced labor, child labor, prison labor and human trafficking. During engagement, we conduct annual assessments of our product suppliers to verify their continued compliance with our Supplier, Code of Conduct, including adherence to best practices to combat human trafficking.

Accordingly, it is our expectation that the Supplier will only do business with those who share the same fair and safe labor practices.

We use both internal auditors and external third-party auditors to assist in the verification process of our Suppliers adherence to our social and environmental commitments.

Audits

Both Malouf™ and our third-party auditors conduct announced, and unannounced, audits at Suppliers' facilities. Our Supplier Code of Conduct establishes CVB's expectations regarding the behavior and treatment of Suppliers' workers.

Audits consist of facility inspections, as well as individual and group interviews with manufacturing facility workers and management.

Certification

Suppliers must abide by our Code of Conduct standards. This is a condition for doing business with us. All Suppliers certify their compliance with CVB's policies, including our prohibition on human trafficking and the use of convict, forced labor, indentured labor, or illegal child labor.

Inputs and materials commonly procured using forced labor, such as cotton from China's Xinjiang province, are not used in CVB products. We require certification from our Suppliers that such components are not used in their production facilities.

Internal Accountability

For consistency, CVB has developed internal accountability standards and procedures for employees and Suppliers who fail to meet our company workplace standards. If non-compliance issues are reported or uncovered, we provide written notice, establish a timeframe to comply with the standards, and/or end the working relationship with the Supplier depending on the severity of the situation.

Training

CVB provides training and awareness to employees who have direct responsibility for supply chain management. The training includes identification of human trafficking and slavery, as well as response and mitigation of the risks within the supply chain. Furthermore, as part of our company values and charitable humanitarian focus, we provide training to all employees regarding the detection and reporting of human trafficking. Our education platform teaches employees to spot, report and prevent trafficking where they live, work and play.

CVB proudly supports humanitarian efforts alongside our flagship cause to fight human trafficking and exploitation. We hope to eradicate slavery and human trafficking from all aspects of life, and we do our part in reviewing and auditing our direct supply chain and partnerships.

This statement has been approved by the company's Board of Directors.