California Transparency in Supply Chains Act

Coconut is committed to conducting business in a responsible and ethical manner, ensuring that its supply chain practices are aligned with the highest standards of transparency and accountability. As part of this commitment, Coconut adheres to the California Transparency in Supply Chain Act of 2010 (SB 657), which requires certain businesses to disclose their efforts to combat human trafficking and slavery within their supply chains. This law was enacted to ensure that companies take proactive steps in addressing these critical issues and make information about their supply chain practices publicly available.

The California Transparency in Supply Chain Act applies to businesses that have annual gross revenues of over $100 million and that do business in California. The law requires companies to disclose their efforts in five key areas related to the prevention of human trafficking and slavery. Coconut, which operates with a strong commitment to ethical business practices, provides transparent reporting on its actions to ensure that human rights violations are not part of its supply chain.

Key Provisions of the California Transparency in Supply Chain Act

Under the California Transparency in Supply Chain Act, companies are required to disclose information regarding the following five areas:

Verification of Supply Chain: Companies must disclose whether they verify their supply chains to assess risks related to human trafficking and slavery. This includes using third-party auditors or other verification methods to monitor the suppliers’ adherence to ethical labor practices.
Audit of Suppliers: Businesses must disclose whether they conduct audits of their suppliers to evaluate compliance with company standards and applicable laws related to slavery and human trafficking. This may involve regular or unannounced site visits and reviews of labor practices across the supply chain.
Certification of Compliance: Companies are required to disclose whether they require their direct suppliers to certify that their products and services comply with all relevant laws regarding human trafficking and slavery. This includes ensuring that suppliers uphold ethical labor standards in their own operations and throughout their networks.
Internal Accountability and Training: Companies must disclose the internal accountability mechanisms they have in place to ensure compliance with their anti-slavery and anti-trafficking policies. This includes providing training for employees, especially those involved in procurement or supply chain management, to recognize signs of trafficking and slavery and to act accordingly.
Supplier Engagement: Businesses are required to disclose whether they engage with their suppliers to ensure that they are working together to eliminate human trafficking and slavery from their supply chains. This may involve working with suppliers to implement corrective actions, provide resources for improvement, or sever relationships with suppliers found to be non-compliant.

Coconut’s Efforts Under the California Transparency in Supply Chain Act

Coconut takes its responsibility under the California Transparency in Supply Chain Act seriously and is fully committed to ensuring that human trafficking and slavery have no place in its operations or supply chain. The company has implemented a comprehensive approach to address these issues, incorporating best practices for transparency and ethical business conduct. Below are the key steps Coconut takes to comply with the act:

Supply Chain Verification: Coconut has implemented a detailed supply chain verification process. The company works with third-party experts to assess the risks of human trafficking and slavery in its supply chain. This process includes reviewing the labor practices of suppliers and evaluating the conditions under which products are made. Suppliers are asked to provide detailed information on their labor practices, and Coconut also monitors their adherence to ethical standards through regular assessments.
Supplier Audits: Coconut conducts periodic audits of its suppliers to assess compliance with its ethical sourcing standards. These audits are often carried out by independent third-party auditors who specialize in labor rights and human trafficking prevention. The company reviews both direct and indirect suppliers in order to ensure that human rights standards are upheld throughout its entire supply chain.
Supplier Certification: As part of its supplier agreements, Coconut requires its suppliers to sign a certification that they are in compliance with applicable anti-human trafficking and anti-slavery laws. This certification is incorporated into the company’s contracts and outlines the obligations of suppliers to meet ethical labor practices. Suppliers who fail to meet these requirements risk losing their business relationship with Coconut.
Internal Accountability and Employee Training: Coconut has developed a robust internal accountability framework to ensure that all employees, particularly those in procurement and supply chain management, understand their role in upholding the company’s anti-trafficking policies. Employees are regularly trained to identify potential signs of human trafficking and slavery and are encouraged to report any concerns through established whistleblower channels. Additionally, Coconut’s senior management reviews the company’s compliance with these standards on a regular basis to ensure accountability at all levels.
Engagement with Suppliers: Coconut recognizes the importance of building strong partnerships with its suppliers to ensure long-term compliance with ethical sourcing standards. The company works closely with its suppliers to address any issues related to human trafficking and slavery, providing resources and support for improvements where necessary. Suppliers are encouraged to implement their own policies and practices to prevent trafficking, and Coconut actively collaborates with suppliers to share best practices and improve transparency across the supply chain.
Transparency and Public Reporting: In line with the requirements of the California Transparency in Supply Chain Act, Coconut publishes an annual report that outlines its efforts to combat human trafficking and slavery. This report includes detailed information on the company’s supply chain practices, the steps taken to monitor and verify supplier compliance, and any challenges encountered in ensuring ethical sourcing. Coconut is committed to maintaining transparency in its supply chain operations and welcomes external scrutiny to improve its practices.

Ongoing Commitment to Ethical Sourcing

Coconut views its commitment to preventing human trafficking and slavery as an ongoing effort, one that requires continuous evaluation and improvement. The company recognizes that ethical sourcing is not a one-time action but a long-term responsibility. To ensure that its practices remain effective, Coconut regularly reviews its policies, updates its supplier guidelines, and engages in industry initiatives aimed at promoting human rights and sustainability.

Coconut is also actively involved in industry groups and partnerships that focus on promoting responsible sourcing and addressing modern-day slavery. These collaborations help the company stay up-to-date with global best practices and ensure that it remains at the forefront of ethical sourcing efforts.

Coconut is fully committed to compliance with the California Transparency in Supply Chain Act and works diligently to ensure that human trafficking and slavery have no place in its supply chain. Through robust supply chain verification, audits, supplier certification, employee training, and transparency in reporting, the company upholds its ethical obligations and contributes to the broader movement toward responsible business practices.

By adhering to the California Transparency in Supply Chain Act, Coconut not only complies with legal requirements but also demonstrates its ongoing commitment to social responsibility and human rights. The company’s proactive approach serves as an example of how businesses can take meaningful steps to address the issue of human trafficking and slavery in global supply chains, making a positive impact on both its industry and the communities it serves.