Human Rights Commitment | Carter Industrial Company

Human Rights

Introduction

At Carter Industrial Company, we are dedicated to manufacturing high-quality synthetic leather responsibly and in line with sustainable and ethical business standards. We prioritize the well-being of people and the environment, ensuring that our operations uphold human rights principles and promote a safe and inclusive work environment. Our commitment to human rights is embedded in our Code of Conduct (CoC), which guides our employees, business partners, suppliers, and executive management in adhering to these values.

Compliance and Standards

We firmly adhere to internationally recognized human rights instruments, including the UN Declaration of Human Rights and the ILO's fundamental conventions. We commit to upholding its principles, which encompass human rights, labor standards, environmental protection, and anti-corruption efforts. 

Application of the Policy

This Human Rights policy applies to all entities within Carter Industrial Company, including our employees, business partners, suppliers, sub-suppliers, and clients. We are particularly attentive to the human rights assurance of marginalized or vulnerable groups in our supply chain, such as children, women, indigenous peoples, migrant workers, minority groups, and local communities where we operate.

Identifying Key Human Rights Risks

As a manufacturer, we operate in various markets and collaborate with numerous buyers & suppliers. Upholding human rights is integral to our compliance with universal principles, health and safety standards, ethical sourcing, and environmental considerations. We identify human rights risks based on the UN Guiding Principles on Business and Human Rights (UNGP) and stakeholder consultations. Key risk categories include labor conditions, health and safety, environment, and end-user/customer ethics.

Key Human Rights Risks

In our value chain, encompassing production, supply chain, sales and distribution, and corporate governance, we actively work to minimize key human rights risks. These risks include:

1. Discrimination: We strive to eliminate all forms of discrimination based on race, color, gender, age, religion, disability, sexual orientation, or any other protected characteristic.
2. Child Labor: We strictly prohibit the use of child labor and ensure compliance with applicable laws and regulations regarding minimum age requirements.
3. Forced Labor, Modern Slavery, and Human Trafficking: We have zero tolerance for forced labor, modern slavery, and human trafficking, and we maintain strict controls to prevent their occurrence within our operations and supply chain.
4. Safe Working Conditions: We prioritize the health and safety of our employees and stakeholders, implementing robust safety measures and complying with relevant health and safety regulations.
5. Fair Pay and Freedom of Association: We respect the right to fair pay, freedom of collective bargaining, and freedom of association for all our employees.
6. Responsible Material Sourcing: We are committed to responsible material sourcing, ensuring that the materials we use are not associated with human rights violations, environmental harm, or the expropriation of land or cultural sites.

Continuous Evaluation and Reporting

We regularly evaluate human rights risks as part of our sustainability reporting, ensuring that risks are re-evaluated and analyzed on a need-basis. We maintain open channels of communication and encourage stakeholders to report any human rights concerns they may have. We are transparent in reporting our progress, initiatives, and challenges related to human rights, keeping our stakeholders informed about our ongoing efforts to promote and protect human rights.

How We Implements Human Rights Due Diligence

Carter Industrial Company is committed to upholding human rights throughout our operations and supply chain. We have implemented the following measures to minimize human rights risks:

1. Code of Conduct: Our Code of Conduct serves as a comprehensive guidance document that incorporates due diligence on human rights, labor rights, and working conditions. It outlines the expectations of the Board, executive management, and employees regarding mutual respect, equal treatment, fair employment, working conditions, freedom of association, and collective bargaining.
2. Supplier Code of Conduct: Our Supplier Code of Conduct forms the foundation of our supplier relationships. It promotes fair and safe working conditions, safeguards human rights and labor rights, encourages responsible environmental practices, and upholds high ethical standards in our business activities and relationships.
3. Anti-Discrimination Policy: We have an Anti-Discrimination Policy in place to mitigate discrimination and unconscious bias within our organization. We strive to create an inclusive and equitable work environment for all employees.
4. Modern Slavery and Child Labor: We adhere to the principles of the 2015 UK Modern Slavery Act and have a zero-tolerance policy for modern slavery, forced labor, and child labor within our own operations. We also support children's rights to personal development and education.
5. Corporate Governance and Health & Safety: Our Corporate Governance Manual emphasizes the implementation of core values, including those related to human rights, labor rights, health and safety, environmental responsibility, risk management, and working conditions. We have dedicated Health and Safety Risk Officers to minimize risks in our workplaces.
6. Product Safety and Chemical Management: We prioritize the health and safety of our workers and consumers. We strive to use chemicals, materials, and processes that are safe for human health and the environment. Our Restricted List of Substances and Chemicals complies with the European Prohibited and Restricted (P&R) Substances Framework.
7. Responsible Supply Chain: To minimize human rights risks in our supply chain, we require new supplier self-assessments and conduct in-house or third-party audits. This ensures that our suppliers meet human rights requirements, such as living wages, labor practices, work hours, management practices, health and safety standards, freedom of association, and environmental responsibilities.
8. Responsible Minerals Sourcing: We follow a Responsible Minerals Sourcing Policy aligned with the guidelines of the Responsible Minerals Initiative. We comply with reporting on conflict minerals through the Conflict Minerals Reporting Template (CMRT).

Grievance and Redress Mechanism

Carter Industrial Company aims to provide accessible and transparent avenues for remedy in cases of grievances or human rights violations related to our operations, products, services, or business relationships. Our employees, representatives, and external stakeholders can report any breaches of our Code of Conduct or Supplier Code of Conduct, including human rights violations, in accordance with our Whistleblowing Policy. We are committed to addressing and resolving such grievances promptly and effectively.

June 30, 2023

Carter Industrial Company