Social Responsibility

DUE DILIGENCE ANNUAL STATEMENT: OUR COMMITMENTS ON HUMAN RIGHTS, SUPPLIER STANDARDS, RISK MANAGEMENT AND GOVERNANCE.

22.11.2022

HUMAN RIGHTS STATEMENT
We, at Emma, are dedicated to conducting our business in a socially responsible manner and upholding the highest standards of human rights, labour law, and ethical conduct.

In our operations, we seek to operate in compliance with national laws and international standards: unlocking our full potential and push the boundaries of what is possible for us to be successful, what cannot be achieved without increasing our positive social impact and coordination with our suppliers.

Our Commitments
We embrace the commitment and responsibility of ensuring the protection of human rights throughout our end-to-end value chain, which includes all our internal and external stakeholders.

We condemn unjustifiable discrimination based on nationality, gender, religion, etc., as well as any type of violence and harassment.

In particular, we are committed to compliance with local minimum age laws and requirements (or those prescribed by international standards if more stringent). We also strictly prohibit the use of forced labor and exploitative working conditions.

Supplier Standards and Risk Management
Our commitments extend to the goods and services we purchase and to the choice of suppliers with whom we work. We hold our suppliers to the same standards of social responsibility that we hold ourselves. To ensure they recognize and uphold these standards, we have developed a Supplier Code of Conduct.

We ensure supplierĀ“s compliance with this code by conducting supplier risk assessments and management.

We strive to identify and address any actual or potential adverse impacts with which we may be involved whether directly or indirectly through our activities or our business relationships.

We manage these risks by integrating the responses to our due diligence into our policies and internal systems, acting on the findings, tracking our actions, and communicating with our stakeholders about how we address impacts.

Our values and guidelines communicated to our external partners through our Supplier Code of Conduct, provide the possibility of implementing corrective measures and responsible termination of the business relationship in the event of non-compliance.

Furthermore, our supply chain is controlled and mapped through advanced artificial intelligence systems that allow us to detect risks in our operations, to establish the level of risk for each of our suppliers and interact with them to take remedial action. This system is complemented by Supplier self-assessments, desktop audits, and on-site audits.

Our corrective measures will be taken considering the type of risk, the seriousness of the risk, and according to a case-by-case analysis.

Potential and adverse impact of our activities in the Supply Chain
By selling yearly millions of sleep related products, we are aware that we have a responsibility to every person that our supply chain touches. As a global selling company, we have suppliers all over the world. Our direct suppliers include mainly foamers, textile suppliers, packaging suppliers and furniture suppliers.

Although our suppliers are based worldwide, we have a local supply chain set-up for our main products, like mattresses.

Actions taken to mitigate the adverse impact, as necessary
To reduce the risks in our supply chains we implemented a due diligence risk management system. This includes following components, some of them above mentioned.

Before setting up any business relationship with Emma, potential suppliers are required to sign our Supplier Code of Conduct.

All our direct suppliers are monitored on AI based risk management platform, through which we are conducting a regular and event-based risk assessments. Based on the results of the risk assessment, we take preventive or remedial measures (self-assessments, corrective action plans, audits) in order to mitigate the risk.

Additionally, we set up a complaints channel where business partners can report risks and incidents.

Governance
We commit to creating a work environment that fosters open communication and supports individuals in reporting potential violations of Company policies or the law. Internal and external stakeholders can report ethical or legal violations through our Report Channel.

Our due diligence actions are being continuously documented and maintained, following the law and financial year report requirements.