Sustainable Sourcing

As a sustainable company, we set and measure our performance goals not only for economic achievements, but also for environmental protection and social well-being.
We expect our suppliers to uphold similar standards. As such, we aim to build and maintain long-term and mutually beneficial relationships with our suppliers and move forward with our suppliers to create long-term sustainable value together. Together with our suppliers we must ensure that we:

• contribute to the sustainability of the earth's resources and the protection of the environment
• comply with the laws and regulations of the countries where we operate and respect local norms and values
• are a responsible member of the communities in which we operate
• respect the rights and safety of our employees as ethical employers

Our Sustainable Sourcing Program will help us to uphold these standards in our value chain. In order to provide clarity on our sustainability expectations for suppliers, we have developed the CSM Supplier Code. This outlines in very general terms our minimum expectations of suppliers in order to ensure that they operate in an ethical manner. It describes the underlying principles which apply to our relationship. Also, we comply and communicate regarding related legislation, such as the California Transparency in Supply Chains Act.

Further, we have begun to implement our Sustainable Sourcing Program by focusing on the most critical raw materials, starting with palm oil, sugar and cocoa. This involves engaging with suppliers of these agricultural raw materials in the form of a self-assessment and/or through recognized multi-stakeholder initiatives, such as the RSPO.