COSTA LIMITED

Policies described

Freedom of workers to terminate employment Freedom of movement Freedom of association Prohibits any threat of violence, harassment and intimidation Prohibits the use of worker-paid recruitment fees Prohibits compulsory overtime Prohibits child labour Prohibits discrimination Prohibits confiscation of workers' original identification documents

Training described

Your front line staff

Worker engagement and working conditions

Your suppliers Civil society organisations Professional auditors Workers within your organisation

Social audits

Third party audit arranged by your organisation Third party audit arranged by your supplier Announced audit

Grievance mechanisms

Using anonymous whistleblowing services, such as a helpline or mobile phone app Through trade unions or other worker representative groups

Other monitoring

We have partnered with a global ethical audits specialist to support supplier monitoring. These audits have begun, covering 95% of suppliers previously identified as “significant risk”.

Demonstrated progress

For full transparency, we have provided below an overview of the steps taken towards the targets we set last year and the targets from the previous year which required additional actions. As we continue to develop our human rights approach, we have worked with STOP THE TRAFFIK to develop a set of KPIs for 2022-23 which build on our 2021-22 targets, aligned with best practice.

Reported risks and mitigations

• Risk: Supply chains - As a coffee company with global suppliers, we recognise the risk in our supply chains. We have conducted an independent review of key risks to coffee supply chains.
• Area: Within your supply chains
• Tier: Tier 1 suppliers Tier 2 suppliers
• Mitigation: We have partnered with a global ethical audits specialist to support us in our supplier monitoring. These audits have begun in our UK&I suppliers, with work progressing into audits for Global Teams’ suppliers. Since implementing this ethical social auditing (SGP audits), we have completed additional due diligence, including audits across 95% of the suppliers previously identified as “significant risk”, which we have reported on in our key performance indicators.
• Risk: Team members - Costa Coffee puts people at the core of everything we do, and we work to ensure our team members are at lower than typical risk of exploitation, trafficking, and modern slavery.
• Area: Within your own operations
• Mitigation: We delivered comprehensive training for store team members in 2021-22, including online learning modules with focus on modern slavery. The training enables our team members to build good foundational knowledge of modern slavery and human trafficking. So far, 1244 Store Managers in our UK company-owned stores have completed our training.
• Risk: Consumers - We recognise the sad reality that food and beverage sites can sometimes be used as a location for traffickers to groom or exploit victims.
• Area: Consumers
• Mitigation: Addressing this risk was a key focus for us in 2021-2022 as we seek to ensure that our human rights work extends beyond our business to our communities. With our partner, STOP THE TRAFFIK, we have launched our first ever awareness-raising poster campaign on human trafficking. The posters explain key indicators of trafficking and a unique QR code directs customers to find out more about trafficking, the risks, the signs and what to do if they or someone else needs help.