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Date Adopted: January 2022 Department Responsible: Materials Purchasing
ETHICAL SOURCING AND ANIMAL WELFARE POLICY
I. INTRODUCTION
At Deckers Brands (“Deckers”), we want to bring transparency to our supply chain. We want consumers to know about the materials and craftsmanship used to create our unique brands. This policy is a statement of our commitment to Ethical Sourcing and Animal Welfare. It guides Deckers, as well as our suppliers and manufacturers (collectively, “business partners”), to act responsibly when sourcing materials on behalf of Deckers.
II. SCOPE
This policy applies to all suppliers who source materials on behalf of Deckers Brands including UGG ®, HOKA ONE ONE®, Teva ®, Sanuk ®, and Koolaburra ®.
III. PERMITTED/PROHIBITED ANIMAL HIDES
A. Permitted Animal Hides
Deckers ONLY accepts Animal Hides that are a byproduct of the meat industry and are not raised exclusively for their pelts. This includes, but is not limited to:
- Cow (leather + hair-on hides)
- Sheep (leather + hair-on hides)
- Pig
- Goat
- Water Buffalo
B. Prohibited Animal Materials
- Fur or exotic leather from species not listed above. This includes, but is not limited to, fox, mink, raccoon dog, rabbit, vicuna, Astrakhan/karakul, python, kangaroo, crocodile, alligator or caiman.
- Angora or rabbit hair (this restriction shall apply to Products manufactured after the Fall 2014 season)
- Seal, Polar bear, leopard, ocelot, tiger, cheetah, jaguar, sable antelope, wolf (Canis lupus), zebra, whale, cobra, python, sea turtle, colobus monkey, kangaroo, vicuna, sea otter, free-roaming feral horse, dolphin or porpoise (Delphinidae), Spanish lynx, or elephant
Date Adopted: January 2022 Department Responsible: Materials Purchasing
- Iguana, skink, caiman, hippopotamus, or a Teju, Ring, or Nile lizard
- Endangered species, based on the Convention on International Trade in Endangered Species (CITES) (see www.cites.org for a list of species) or the IUCN red list as Critically Endangered, Endangered or Vulnerable (www.redlist.org).
C. All Animal Hides used in Deckers Brands products must originate from a Deckers approved tannery. For clarity, no Animal Hides shall be sourced outside of Deckers approved tanneries. This is a requirement for approved suppliers, factory-sourced suppliers, licensees and agents.
IV. SOUND ANIMAL HUSBANDRY AND MULESING
A. Sound Animal Husbandry Suppliers must source animal hides from processors which use sound animal husbandry, humane animal treatment, and slaughtering practices. Deckers does not accept hides from animals that have been slaughtered exclusively for their pelts or skinned alive. We define sound husbandry as the internationally recognized Five Freedoms^1. a. Freedom from hunger or thirst by ready access to fresh water and a diet to maintain full health and vigor; b. Freedom from discomfort by providing an appropriate environment including shelter and a comfortable resting area; c. Freedom from pain, injury or disease by prevention or rapid diagnosis and treatment; d. Freedom to express (most) normal behavior by providing sufficient space, proper facilities and company of the animal's own kind; and e. Freedom from fear and distress by ensuring conditions and treatment which avoid mental suffering.
B. Mulesing: Deckers does not support the practice of mulesing as a means of protecting sheep from flystrike. Deckers engages with Humane Society International to ensure we understand how to best support progress for sheep welfare in Australia. We do not source wool or sheepskin from mulesed sheep and support a shift away from mulesing by breeding flystrike resistant sheep. Deckers sources materials from flystrike- resistant non-mulesed sheep because it’s a readily available alternative and supports woolgrowers who practice better sheep welfare_._ Further, our sheepskin and wool suppliers must certify that they do not supply any materials or products to Deckers
(^1) “The Five Freedoms”, Royal Society for the Prevention of Cruelty to Animals, accessed December 2, 2015. https://www.rspca.org.uk/servlet/Satellite?blobcol=urlblob&blobheader=application/pdf&blobkey=id&blobtable= RSPCABlob&blobwhere=
Date Adopted: January 2022 Department Responsible: Materials Purchasing
X. LEATHER
Deckers believes that the responsible sourcing of leathers has an important role in generating development and contributing to the livelihood of the communities in leather producing countries and regions. At the same time, by being an important player in the consumer goods sector, Deckers can exert positive influence, helping to drive improvements in the sector. Deckers recognizes that responsibly managed farming has an important role in the development of a more sustainable world, building climate resilience, supporting conservation and biodiversity. We support and encourage better standards in the leather supply chain, and the development of responsible practices, in which leading standards at farm level ensure the better use of natural resources, contributing to lower emissions and carrying strict animal welfare standards. We also value programs that provide robust traceability systems, that can trace raw material all the way back to the birth farm and enhance transparency through independent certifications.
XI. DEFORESTATION
As of the Spring 2023 season, in countries where deforestation is present including, but not limited to those countries listed on Attachment A, Deckers will require 100% traceability to the birth farm for hides used in its products. Leather suppliers must provide verified documentation identifying birth farm and that such birth farm is not located within deforested areas, involved in rural conflicts, with labor analogous to slavery or invasion of indigenous and protected areas. We are committed to continuing to work with Leather Working Group, and other organizations, to seek industry-wide solutions to the challenges associated with deforestation. We purchase hides which are a byproduct of the meat industry and, as such, do not have direct relationships with the birth farm which is why we require 100% traceability to such farm. Regardless, leather suppliers must: (1) investigate with their sub-suppliers as to where the hides come from, (2) actively check in detail for the sources of leather, and (3) terminate relations with any sub-supplier that is not compliant on these points.
XII. HUMAN RIGHTS
Deckers Brands has strict requirements in our Ethical Supply Chain Supplier Code of Conduct prohibiting any form of child labor or forced labor whether in the form of prison labor, indentured labor, bonded labor, human trafficking or otherwise.
XIII. RESPONSIBILITIES OF DECKERS BUSINESS PARTNERS
A. Annual Certification: On an annual basis, Deckers business partners must certify their compliance with all applicable policies (including this Animal Welfare Policy).
Date Adopted: January 2022 Department Responsible: Materials Purchasing
B. Source Origin and Traceability: Suppliers must be able to trace raw hides back to its country of origin and provide source origin documentation upon request. Deckers does not accept sheepskin sourced from countries in the Middle East and North Africa. Deckers does not support the practice of transporting live animals overseas. C. Labeling: All Animal Hides must adhere to product labeling requirements including, but not limited to, the Fur Products Labeling Act and the Wool Products Labeling Act. D. Legislation: Suppliers must comply with all applicable global legislation which applies to animal hides. E. Trade Regulation: Suppliers must comply with country specific import/trade regulations which apply to animal hides. Where applicable, products made with animal hides will be accompanied by the appropriate export certificate.
XIV. DECKERS ETHICAL SOURCING AND ANIMAL WELFARE GOVERNANCE
Deckers Materials Purchasing department is responsible for ensuring our business partners and our employees are fully compliant with this Policy.
XV. INDUSTRY COLLABORATION
A. United Nations Global Compact Deckers has been a member of the United Nations Global Compact (“UNGC”) since
- The UNGC is the world’s largest voluntary corporate citizenship initiative with over 8,000 participating companies. B. Textile Exchange’s Kickstart Program Deckers joined the Textile Exchange’s Kickstart Program in FY18 in order to bring smaller farm operations into the Responsible Wool Standard initiative and increase the availability of certified wool in supply chains. C. Textile Exchange’s Responsible Wool Standard Deckers is a founding member of the Responsible Wool Standard International Working Group. In 2015, Deckers joined other brands, animal welfare groups, farmers and supply chain members and the Textile Exchange to develop the Responsible Wool Standard – a global standard that protects animal welfare, influences best practices, ensures traceability, and ultimately gives consumers clear and trustworthy information to guide their buying preferences. D. Leather Working Group Deckers is a member of the Leather Working Group (“LWG”), an industry organization that developed and maintains a rating system and certification program for environmental performance in tanneries. 100% of all leather used in Deckers products will be sourced from a LWG certified tannery by 2022. E. Leather Working Group’s Animal Welfare Group The primary objective of the Animal Welfare group is the education of the leather value chain on the long and short of animal welfare. This group prioritizes their efforts around traceability, slaughter protocols, assurance schemes and risk mapping.
Date Adopted: January 2022 Department Responsible: Materials Purchasing
Suppliers must:
- Provide slaughterhouse names, locations, federal or state ID numbers (SIF), and catchment area for sourcing cattle, and
- Provide information on the slaughterhouses’ due diligence process to ensure they are not sourcing cattle from deforested areas.
- Our preference is sourcing material from tanneries that have scored high on their LWG traceability audit (e.g., > 80%).
Examples of steps slaughterhouses are taking to implement due diligence checks
could include:
- Signatories to the G4 agreement; or signatories to the TAC with plans underway to adopt G4-aligned zero deforestation sourcing criteria
- Procedures to check farms not included on IBAMA embargo list
- Utilizing tools to track direct and indirect supplying cattle ranches, such as VISIPEC
- Requiring complete property boundary maps (i.e., CAR) for supplying farms
- Explanation of plans and/or activities to improve visibility of indirect supplying
ranches (e.g. calving and backgrounding farms)
- Detailed plans, concrete steps and activities to incorporate other regions in Brazil
(beyond the Amazon biome), such as the Cerrado biome, into existing due diligence checks and supply chain monitoring systems.
Leather sourcing from Brazilian Amazon Biome
In addition to the above requirements for sourcing from Brazil, Deckers has specific
sourcing criteria for bovine hides sourced from the Brazilian Amazon biome:
- Bovine hides must not be sourced from animals reared on ranches involved in any deforestation in the Brazilian Amazon. It is also required that hides are not sourced from
ranches involved in slave labor, invasion of indigenous lands and/or protected areas, or
have any governmental embargoes or farms included in IBAMA’s embargo list
(www.ibama.gov.br).
- Wet Blue tanneries, agents and other suppliers must source bovine hides exclusively from
slaughterhouses or suppliers that have established and can provide evidence of credible
supply chain monitoring systems for their direct suppliers to ensure zero deforestation
cattle sourcing, and they must have plans in place to expand their monitoring systems to
include indirect suppliers.
Date Adopted: January 2022 Department Responsible: Materials Purchasing
Leather sourcing from Paraguay
Suppliers providing any articles with a country of origin of Paraguay, must make Deckers
aware and must be able to:
- provide the names, locations, and medal rating (if applicable) of their wet blue tanneries or agents,
- have their wet blue supplier provide slaughterhouse names, locations, federal or state ID numbers, and catchment area for sourcing cattle, and
- provide information on the slaughterhouses’ due diligence process to ensure they are
not sourcing cattle from deforested areas.
- The preference is sourcing material from tanneries which have scored high on their
traceability audit (e.g., >80%)
Suppliers must also be able to provide evidence, according to the below timelines,
demonstrating that the supplying meatpackers have established systems, and that there is
evidence of credible supply chain monitoring systems for individual properties
(farm/ranches), not located in the high-risk municipalities, using validation and
classification of geographic coordinates of all suppliers in the Database located in the
American biome Gran Chaco, including the departments of Alto Paraguay, Boquerón and
Presidente Hayes, to verify its suppliers in the Chaco biome.
Examples of steps slaughterhouses are taking to implement due diligence checks, to demonstrate that bovine hides do not originate from animals farmed on ranches that are
involved in deforestation, invasion of indigenous lands and/or protected areas in the Chaco
biome, could include:
- Utilizing monitoring tools to enhance supply chain governance and visibility, tracking animals to the birth farm (direct and indirect cattle ranches).
- Requiring complete property boundary maps for supplying farms, following the
deforestation polygon indications*, through multi-temporal analysis of satellite images.
- Explanation of plans and/or activities, with verifiable evidence, to improve visibility of
indirect supplying ranches (e.g., calving, and backgrounding farms).
The documentation delivered for assessment must be supported by cross-reference and
analysis of documents and data and, if necessary, complementary documents requested to
tanneries. The set of documents will be composed of official files and datasets, published
and available on the website of institutions and authorities, with additional registry
information obtained by the meatpacker from its cattle suppliers.
