California Transparency in Supply Chains Act of 2010 Disclosure

Introduction

This statement is made pursuant to the California Transparency in Supply Chains Act of 2010 which requires retail sellers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking in their direct supply chain. 

This statement sets out of the steps taken by CELINE SA and Celine Inc. (collectively, “CELINE”) to ensure that slavery, servitude, forced or compulsory labour and human trafficking (collectively, “Modern Slavery”) is not taking place in any part of its business or in its supply chains.

Business

Celine Inc. (“Celine US”) is a subsidiary of CELINE SA, part of the Louis Vuitton Moet Hennessy Group (“LVMH”).

Celine US distributes premium apparel on behalf of CELINE SA to clients in the United States including the State of California.  CELINE is among the most iconic brands worldwide and its unique positioning encompasses most high quality product categories, such as Leather, Women’s RTW, Accessories, Jewellery and Shoes, and relies on exceptional savoir-faire.

Celine US purchases:
1. Leather, Women’s RTW, Accessories, Jewellery and Shoes from CELINE SA; and
2. Marketing, packaging and point of sale materials from suppliers located in various European countries, including France.

CELINE SA directly or indirectly manufactures, distributes and sells luxury women’s RTW, leather goods, shoes and fashion accessories under the trademarks CELINE or CELINE Paris.

Policies and Practices

CELINE’s commitment is to act with integrity in all its business dealings and to promote ethical conduct to enhance compliance with applicable law and to provide guidance with respect to business conduct.  CELINE has a number of policies that are relevant to this commitment, which set out what CELINE expects from its employees, internal business and its external suppliers.

Key policies are:

• CELINE Suppliers’ Code of Conduct (copy available upon request)

CELINE expects its suppliers to share its commitments and to act in full compliance with all applicable laws, including all national, local and international laws relating to the management of their businesses.

CELINE requires its suppliers to seek approval before subcontracting any part of their supply chain process and CELINE’s approval is subject to acceptance by the subcontractor of the Suppliers’ Code of Conduct and such other conditions that CELINE determines.

• CELINE Code of Conduct (copy available upon request)

The CELINE Code of Conduct includes relevant sections on “Honesty & Ethical Conduct”, “Compliance with Laws & Regulations”, “Safe Working Conditions” and “Sales & Commercial Transactions”.

Our anti-modern slavery policy reflects our commitment to act ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking are not taking place anywhere in our supply chains.

CELINE expects its employees and suppliers to engage in and promote honest and ethical conduct, comply with all applicable laws, rules and regulations in their own area and act responsibly, with due care, competence and diligence when dealing with colleagues, customers, suppliers, agents and intermediaries.

The CELINE Code of Conduct reiterates the LVMH Code of Conduct and commitment to act with the highest standards of integrity, respect and engagement in our behaviours and in the way that we conduct business every day, everywhere.

This Code of Conduct further states that the group companies will inform all of their commercial partners of these ethical principles and expectations and will ask its suppliers to comply with the principles set out in the Suppliers’ Code of Conduct.  In particular, this code specifies compliance with social issues to abide, respect and adhere to the company moral and ethical values in the management of the company concerning human rights, working conditions and environmental issues.

Supplier and Contractor Due Diligence

CELINE has been carefully reviewing its suppliers and a lot of its suppliers are carefully chosen for the entire group by LVMH.

Moreover, a new procedure has been put in place prior to engaging in any new contractual relationship with a supplier or contractor.  CELINE requires suppliers and contractors to satisfy us that they are complying with the Suppliers’ Code of Conduct.

CELINE reserves the right to check adherence of its suppliers and contractors to the principles set out in the Suppliers’ Code of Conduct and to conduct compliance audits at any time without notice.  Upon reasonable request, CELINE suppliers and contractors shall supply the necessary information and grant access to CELINE representatives to verify compliance with the requirements of the Suppliers’ Code of Conduct.  Suppliers and contractors shall further keep proper records to provide compliance with this Code and provide access to complete, original and accurate files to CELINE representatives.

Upon reasonable request, CELINE suppliers and contractors must improve and correct any deficiency discovered during any such audits.

CELINE shall use its reasonable endeavours to ensure that all CELINE supplier and contractor template contracts contain clauses requiring CELINE’s suppliers and contractors to adopt similar anti-modern slavery standards and practices.

Training and Awareness

CELINE is planning to conduct regular training for its employees to ensure legal and human compliance across CELINE.  The training enables CELINE to reduce business risk of non-compliance through efficient processes and reliable data and reporting.  All documentation, policies and updates are available to all employees.

CELINE’s aim is to eliminate any risk of modern slavery in its business operations and in its supply chains.