Animal welfare guideline

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1 Animal welfare guideline 1. Introduction and motivation Animals are used for the production of meat and dairy products as well as for the manufacture of products made of leather, wool or silk. They thus form an important basis for many products consumed by humans. However, the production of these products does not always involve good husbandry or manufacturing conditions. For Galeria Kaufhof, the welfare of animals is an important selection criterion in purchasing as is also the case with a growing number of our customers. Galeria Kaufhof offers its customers more animal-friendly alternatives if they are available. Our product range encompasses various products that are produced in accordance with accepted animal welfare guidelines, as well as a broad assortment of vegetarian and vegan alternatives in the areas of food, cosmetics and textiles. Galeria Kaufhof has also banned certain products that involve particularly critical husbandry and production conditions. With this animal welfare guideline, Galeria Kaufhof is committed to extend its commitment to encouraging animal welfare aspects in products of animal origin and to increase its offer of alternatives. To achieve this, we collaborate closely with our supplies as well as several animalwelfare organizations, train our employees and inform our customers about our actions. 2. The objectives of our strategy We want to make it easier for our customers to do good with their purchases, for themselves as well as for others, animals and the environment. To this end, we offer appropriate alternatives to consumers wishing to consume products in a more animal-friendly manner. Galeria Kaufhof will continuously expand the range of product groups with accepted and established animalwelfare standards. Animal-friendly products in the context of this purchasing policy are products that meet the following requirements: a. Non-food products of animal origin in which the animals are demonstrably kept, shaved and/or slaughtered in accordance with European animal welfare standards. Animal Welfare - Version 1.0 of March 1,

2 b. Products of animal origin that have been manufactured in line with an accepted animal welfare standard, which can be verified by means of a corresponding sustainability seal: a. Products made of wool from organic husbandry (GOTS Global Organic Textile Standard or OCS100 Organic Content Standard 100) b. Products containing down or feathers from geese or ducks from speciesappropriate husbandry that are neither plucked alive nor force fed (RDS Responsible Down Standard) c. Products made of wool from sheep from species-appropriate husbandry that were not treated with the so-called mulesing method (RWS Responsible Wool Standard) d. Certified natural cosmetic products that have been manufactured without the use of animal testing and without any animal ingredients, such as mink oil (Natrue, BDHI and Ecocert) e. The production of meat and dairy products that complies with animal-welfare standards extending beyond the legal requirements ("Tierschutz-kontrolliert" [animal welfare inspected] Four Paws, "Für mehr Tierschutz [For more protection of animals] German Animal Welfare Association, EU Regulation on the Organic Production of Agricultural Products or comparable standards) f. Chicken eggs from alternative laying hen husbandry, whose manufacture complies with animal-welfare standards extending beyond legal requirements (EU Regulation on the Organic Production of Agricultural Products, KAT or comparable standards) We already offer our customers products such as textiles, cosmetics and food in organic quality as well as certified products that have been manufactured in accordance with accepted animalwelfare guidelines. We no longer offer certain products from particularly critical husbandry or production methods. Galeria Kaufhof is a signatory of the Fur-Free Initiative of the animal welfare organization Four Paws (Fur Free Retailer Program) and has committed itself to Albert Schweitzer Foundation objective of refraining from offering foie gras products. We will continue to integrate further aspects of animal welfare in our product range. In the fiscal year 2015, Galeria Kaufhof listed a total of more than 1,400 articles such as meat, poultry, dairy Animal Welfare - Version 1.0 of March 1,

3 products, cosmetics and non-food articles that are certified in accordance with one of the specified animal-welfare standards. Galeria Kaufhof will continuously increase the range of more animal-friendly products. By the year 2022, the offer should encompass nearly 2,300 different own-brand articles. More animal-friendly alternatives wherever these exist will initially be listed in every commodity group, but will only be continued if they are economically successful. Provisions Non-food product range Our non-food product range of animal origin comes from animals, which were either slaughtered primarily for human consumption or whose exploitation does not involve the slaughtering of the animals. Fur: In 2006, Galeria Kaufhof declared its withdrawal from selling fur and products with fur trimmings and reinforced this commitment in early 2015 by joining the "Fur Free Retailer Program". Down and feathers: Galeria Kaufhof excludes any products with down or feathers harvested by means of live plucking and where force-feeding methods are applied in bedding goods and textiles. This applies for own-brand products as well as manufacturer-brand products. Own-brand down coats will be converted to RDS-certified down. By the end of 2019, all ownbrand products will be manufactured in line with this standard. Angora: Galeria Kaufhof excludes any products made of angora from cruel husbandry conditions such as live plucking or the "spicky method" for own-brand products as well as for manufacturerbrand products. We require contractual assurance and verification by means of electronic microscopic examinations of the fibers from our suppliers that angora fibers were not harvested by means of live-plucking. We also require that the husbandry conditions of the rabbits comply with the European animal welfare standard, such as angora fibers in accordance with the Caregora standard. Merino wool: Animal Welfare - Version 1.0 of March 1,

4 Galeria Kaufhof contractually excludes products made of merino wool from sheep that are subjected to mulesing treatment for own-brand and manufacturer-brand products. Exotic leather: Galeria Kaufhof contractually excludes real leather made from exotic animals including, but not limited to snake, alligator, crocodile and lizard. This applies for own-brand products as well as manufacturer-brand products. Food range Foie gras: Galeria Kaufhof does not offer any foie gras products produced by so-called forced-feeding conditions and has declared its commitment to the Albert Schweitzer Foundation. Rabbits: Galeria Kaufhof only offers fresh and frozen rabbit meat from barn-raised animals. Eggs: Since 2006, Galeria Kaufhof has only been offering shell eggs of barn, free-range or organic quality. The chickens are demonstrably kept in a manner appropriate to the species that complies at least with the standard for controlled animal husbandry (KAT). In the case of processed own-brand products containing eggs or egg products, such as bakery products, pasta products, salads and sauces, etc., Galeria Kaufhof prohibits the use of cage eggs. Poultry: Galeria Kaufhof does not offer any poultry meat from animals that are subjected to forcefeeding methods and excludes this form of husbandry from its own-brand products and manufacturer-brand products. Other provisions In the case of pork, Galeria Kaufhof collaborates preferably with suppliers who do not castrate their male hogs without anesthesia, where the animals are kept in a species-appropriate manner and where they are fed with GMO-free feed. Animal Welfare - Version 1.0 of March 1,

5 In 2010, Galeria Kaufhof has also committed to the PETA objective of refraining from performing any presentations and exhibitions with live animals in its department stores and refraining from renting out any shop areas to animal exhibitors. The basis of our provisions is the establishment of transparency in the supply chain with the aid of the supplier database. Galeria Kaufhof communicates this purchasing guideline to its employees and customers and trains buying and sales employees accordingly. 3. Scope of applicability of the guideline Galeria Kaufhof implements this guideline in the procurement of goods for sale at Galeria Kaufhof in Germany. 4. Contractual arrangements All suppliers will be informed about the present guideline and required to deliver products of animal origin in compliance with this guideline. Galeria Kaufhof also requires its suppliers to provide a written and verified confirmation of the compliance of requirements with regard to angora, feathers and down, merino wool and processed products containing egg and poultry. Information on the production facilities and their certifications must be entered by the suppliers in the supplier database. 5. Employee training Galeria Kaufhof will inform its relevant employees on the contents of this purchasing policy and train them accordingly. Galeria Kaufhof requires that all buyers procure products of raw animal material in compliance with this guideline. 6. Informing customers Galeria Kaufhof will inform its customers about animal-friendly products in the sense of this purchasing policy and support them in making a positive contribution with their purchase. Articles that have been manufactured in accordance with an recognized sustainability standard such as GOTS, RDS, Natrue, Tierschutz-kontrolliert [animal welfare inspected], EU Regulation Animal Welfare - Version 1.0 of March 1,

6 on the Organic Production of Agricultural Products, etc. will be identified by Galeria Kaufhof with the aid of the umbrella sustainability label. The buying department can employ standards and the umbrella label when purchasing products that comply with "Natürlich GALERIA" criteria. 7. Implementation and monitoring of the guideline The relevant individuals in the buying department are responsible for implementing the corresponding measures. Vendor Compliance Management (VCM) inspects the supplier data in the supplier database. The Quality Management and Sustainability departments carry out annual trainings for buyers. Galeria Kaufhof will measure the progress of the implementation by means of the following indicator: Number of listed articles manufactured in accordance with one of the standards listed under item 2b, clauses a-f. 8. Enforcement This guideline shall enter into force on March 1, Animal Welfare - Version 1.0 of March 1,

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