Introducing Thai Union s sustainability strategy: SeaChange changing seafood for good. SeaChange will deliver against three of the UN SDGs:

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1 Introducing Thai Union s sustainability strategy: SeaChange changing seafood for good SeaChange will deliver against three of the UN SDGs:

2 SeaChange: An Overview LINK Our overarching objectives: The seas are sustainable now and for future generations; Our workers are safe, legally employed and empowered; The vessels we buy from are legal and operate responsibly Safe & Legal Labor Responsible Sourcing Responsible Operations People & Communities Providing safe, legal Ensuring the health, Minimizing harmful Improving the lives and freely-chosen productivity and environmental impacts and conditions of the employment in resilience of the from our global communities where our facilities and oceans and world s operations. we operate. supply chains. seafood supply.

3 Safe and Legal Labor Relationships: Providing safe, legal and freely-chosen employment in our facilities and supply chains is critically important to Thai Union. We guard the safety and welfare of our employees and partner with specialist organizations and NGOs to help protect those working in the wider industry. Protecting laborers Our efforts include bringing shrimp preprocessing in-house, eliminating recruitment fees, establishing workerelected welfare committees, and more. Codes of Conduct All suppliers & employees must comply with our rigorous Ethics and Labor Code of Conduct, and the VCoC for fishing vessels. Connectivity at Sea traceability is the backbone of our sustainability strategy. Factories tracked via SEDEX for SMETA requirements + BSCI audited.

4 Demonstration boat Nestlé S.A. and Thai Union, together with Verité & DoF, refurbished a traditional Thai fishing boat to transform it into a vessel that demonstrates good living and working conditions. The renovated boat demonstrates the standards set for boats >24m by the ILO C188, as well as Thailand s Ministerial Regulation (2016). The vessel was inaugurated in February To learn more about the project: LINK To watch a video about the project: LINK

5 Connectivity at sea Thai Union partnered with USAID, Mars Petcare, Xsense & Inmarset to design and implement a catch documentation and traceability (CDT) system to combat Illegal, unreported and unregulated (IUU) fishing, promote sustainable fisheries & counter labor exploitation. As per this trial, Thai Union supports the new Regulation to enhance Worker Voice, which is now part of Thailand s Labor Law since March Thai Union supports new government regulation to protect workers in Thailand fishing industry LINK To watch a video about the Thai Union and Mars Petcare project LINK

6 Fishing Vessel Improvement Program and Code of Conduct 2018 Principles 1. Business is conducted lawfully and with integrity. 2. Work is freely agreed and documented terms of employment, legally. 3. Workers are treated equally, with respect and dignity. 4. Work is conducted voluntarily with no forced or compulsory labor. 5. Workers are of an appropriate age. 6. Workers are paid fair wages. 7. Working hours for all workers are reasonable. 8. Workers can exercise their right to form / join unions and to bargain collectively. 9. Workers health and safety are protected at work. 10.Workers have access to fair procedures. 11.Business embraces sustainability and reduces environmental impact. 12.Progress and compliance are monitored.

7 Fishing Vessel Improvement Program 1. Create a checklist or questionnaire for assessment against the VCoC clauses. 2. Using the questionnaire, conduct a benchmarking exercise for the vessel(s). 3. Complete an analysis of the benchmarking exercise and for every noncompliance, identify the actions required to close them out. 4. Based on the identified actions, draw up a detailed action plan which would include time frames for completing the actions and the resources required. 5. Complete the work in the action plan and monitor progress against the action plan. 6. Conduct another benchmarking exercise.

8 Fishing Vessel Improvement Program Challenges: 1. Moving beyond audits; 2. Prioritizing topics which is most important, cant do everything at once; 3. Creating culture shift; 4. When the issue is bigger than the vessel being audited e.g. implementation of regulations. Opportunities: 1. Being clear & transparent about the standards we expect; 2. Creating evidence & case studies of the advantages of doing this work e.g. recruitment fees; 3. Working with suppliers through a step by step approach to improve; 4. Understanding issues with partners; 5. Process is open for anyone to join and use code to reduce repetition and redundancy with audit programs.

9 Fishing Vessel Improvement Program Health and Safety Work Shop in Pattani in June: Invited our suppliers to learn about H&S, ILO C188 and VCoC. 60 attendees: vessel owners, crew, office employees, captains, crew supervisors and others. 40 sets of the first aid kits were given away.

10 Tracy Cambridge Responsible Sourcing Manager Thai Union E: M: