Co-op Sourcing Policy Statement: International Conflict, Human Rights Abuses and Violation of International Law

Assessment Criteria

There are three policy criteria against which the Co-op Group will assess whether a situation is one we believe we should take action - those criteria are:

• Agreement across respected assessments (the UN and others), that there is consistent behaviour which would constitute community-wide human rights abuses or violations of international law

• The actions we take would make a difference directly or indirectly to those affected and would alleviate suffering

• The actions we take would not negatively affect our integrity as a commercially successful co-operative business aligned with our co-operative values and principles

To support this, we have developed a clear, evidence-based methodology to identify countries with particularly severe human rights or humanitarian concerns.

We do not conduct primary research into global human rights situations. Instead, we rely on six recognised and authoritative sources. These are:

1. UK Foreign, Commonwealth & Development Office (FCDO) list of human rights priority countries
2. UN Special Rapporteurs with country-specific mandates
3. UN Human Rights Council investigations
4. UN Security Council sanctions regimes
5. UK Government financial sanctions
6. UN Security Council resolutions concerning humanitarian law or military aggression

Where a country appears on four or more of these sources, we consider it a country of concern and may take further steps in line with our responsible sourcing commitments.

Based on the latest available data and our assessment criteria, we have identified the following 17 countries of concern to the international community:

Afghanistan; Belarus; Central African Republic (CAR); Democratic People’s Republic of Korea (North Korea); Democratic Republic of Congo (DRC) Haiti; Iran; Israel; Libya; Mali; Myanmar; Russia; Somalia; South Sudan; Sudan; Syria; and Yemen.

Policy Implementation

This policy applies to sourcing activity across Co-op Food, as well as goods and services not for resale across all Co-op Group business operations.

For countries identifies as of concern:

• We do not pursue new sourcing arrangements from these locations

• Where existing products and whole ingredients are identified, we engage with suppliers and take steps to phase out and remove such products

• While, branded products are not subject to the same level of supply chain visibility, if a product clearly states it originates from a country of concern, we will seek to remove it

FAQs

How has this policy come about?

Over recent years, Co-op members have made clear through surveys, engagement and motions that conflict is one of their biggest concerns and that their Co-op should do all it can to advocate and build peace.

Responding to this clear call from members, the Co-op Board initiated a review of Co-op’s role in building peace leading to the launch of the “Hate Divides Communities, Co-operation Builds Them” campaign. The review also included the development of a sourcing policy aligned with established co-operative values, upholding human rights and the rule of law to promote fair trading and peace.

How often will these countries be reviewed given the speed at which conflicts can start/escalate, or when countries in conflict find peace?

We formally review the list of countries of concern on a regular basis. However, we recognise that circumstances can change rapidly. If credible new data emerges or international consensus clearly shifts – for example, in response to a conflict or major human rights development or should a conflict deescalate – we would look to update the list sooner to reflect those changes.

When will I start to see products from these countries removed from your shelves?

Products from the countries listed will be removed on a phased basis, with the process expected to start in the summer and could take many months to complete.

This process will be completed in a way that respects existing contracts and complies with Groceries Supply Code of Practice (GSCOP) regulations.