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California transparency in supply chains act and modern slavery act

Mead Johnson Nutrition Responds to UK Modern Slavery Act and the California Transparency in Supply Chains Act (SB 657)

As a global leader in pediatric nutrition, Mead Johnson Nutrition believes it is imperative to conduct business in a manner that is consistent with the highest principles of moral and ethical behavior. The company expects all parties – including its suppliers – to hold themselves to the same high standards.

To help ensure suppliers conduct business in a manner that is compliant and consistent with Mead Johnson’s ethical standards, we are taking certain steps to align what suppliers do for us with our own standards of fair and honest dealings.

Supplier Assessment

Mead Johnson Nutrition (“MJN”) is committed to responsible sourcing practices within our supply chain. The MJN Standards of Business Conduct and Ethics for Suppliers (the "MJN Supplier Code"), which we expect all of our suppliers and other third-party business partners (collectively “Suppliers”) to accept and adhere to, helps to implement this commitment by establishing minimum standards in the areas of Business Integrity, Labor Standards, Treatment of the Environment, Health, Safety, and Compliance.

Every two years we evaluate our Suppliers against known-risk categories to assess supplier risk. Forced and child labor is included as a known-risk category in this evaluation.

MJN is also a member of Sedex (Supplier Ethical Data Exchange), a not-for-profit membership organization dedicated to driving improvements in responsible and ethical business practices in global supply chains. Sedex is currently being used by a number of retailers and brand manufacturers, and over 15,000 sites are registered on Sedex.

Audits

MJN reserves the right to verify our Suppliers’ compliance with the MJN Supplier Code through a Responsible Sourcing Audit. Responsible Sourcing Audits are completed by an independent third party using the SMETA (Sedex Members Ethical Trade Audit) protocol.

Through our Sedex membership, MJN supports mutual recognition platforms for audits to encourage our Suppliers to focus on remediation and improvements rather than re-audit by multiple customers. In the event that MJN becomes aware of any actions or conditions not in compliance with the MJN Supplier Code, MJN reserves the right to demand corrective measures. In addition, MJN reserves the right to terminate its agreement with any Supplier who does not comply with the MJN Supplier Code.

Supplier Adherence to Applicable Law and MJN Supplier Code

To ensure that our Suppliers comply with all laws applicable to their business and the MJN Supplier Code, we include as a standard provision in our supply agreements a warranty which stipulates that the Supplier will comply with all applicable laws and the MJN Supplier Code. The MJN Supplier Code includes a clause on Labor and Human Rights which can be read by clicking the hyperlink to the MJN Supplier Code provided in the Assessment Section above.

Accountability

The people of MJN understand the trust that consumers, customers, investors, and community members, put in us every day. We are committed to acting in a manner consistent with the highest principles of moral and ethical behavior, and we expect all parties with which we deal, including our Suppliers, to hold themselves to these same high standards.

The MJN Standards of Business Conduct and Ethics (SBCE) prescribe certain values and principles to which MJN is committed globally. The SBCE establishes certain nonnegotiable minimum standards of behavior in key areas that apply to all MJN employees, agents, and contractors.

MJN employees are required to annually complete training and acknowledge they understand their obligations under the SBCE, as well as other policies and procedures that apply to their responsibilities at MJN. Employees are expected to report known or suspected violations of the SBCE or any applicable law, policy or procedure to their manager, the Human Resources Department, and/or the MJN Integrity Line. Finally, any employee’s failure to follow the law, the SBCE, or MJN policies or procedures will subject the employee to disciplinary action, up to and including termination of employment.

Training

One hundred percent of MJN employees are required to complete an annual training on the SBCE and acknowledge compliance with the SBCE. In addition, key supply chain personnel, including management, receive additional training on MJN’s Responsible Sourcing program presented by an external subject matter expert on an as needed basis.