Modern Slavery

1. Introduction
2. Organisational Structure & Supply Chain
3. Countries of Operation & Supply
4. Responsibility
5. Due Diligence
6. Performance Indicators
7. Training

1. INTRODUCTION

This statement sets out Essentials Clothing actions to understand all potential modern slavery risks related to its business, and to put in place steps aimed at ensuring that there is no slavery or human trafficking in its own business or its supply chains. This statement relates to actions and activities during the financial year from 1 Jan 2025 to 30 June 2025.

As part of the e-Commerce retail sector, the organisation recognises that it has a responsibility to take a robust approach to slavery and human trafficking.

The organisation and its Board of Directors is absolutely committed to preventing slavery and human trafficking in its corporate activities, and to ensuring that its supply chains are free from slavery and human trafficking.

2. ORGANISATIONAL STRUCTURE AND SUPPLY CHAIN

This statement covers the activities of Essentials Clothing.

Essentials Clothing has seen exponential growth since its launch and continues to see revenue, customers and orders increase. The company is under control of a board of three Directors and has subsequently employed a Management team to ensure the company can easily be scaled to deal with demand.

Essentials Clothing Supply Chain and Product Development Team are responsible for ensuring that its supply chains are free from slavery and human trafficking. The company can and will rely on unbiased third-party experts in this matter as and when required.

Essentials Clothing was established in the Australia and sells its own branded products through its D2C model via essentialsclothings.co. The brand established a high-street presence. The brand currently has 4 arms to its offering, including Clothing, Swimwear, Intimates, and its main focus, Underwear.

Product Design

All products are designed in-house at the Essentials Clothing HQ by a dedicated team of designers and merchandisers based in the Australia.

Manufacturing

Essentials Clothing currently carries out no in-house manufacturing. All manufacturing is outsourced to international partners who work closely with the Sassy Flakes Product Design Team to make the designs a reality.

Distribution

All goods are shipped directly into one of Essentials Clothing warehouses. The company currently operates one Distribution Centres -  located in the Australia.

3. COUNTRIES OF OPERATION AND SUPPLY

Essentials Clothing currently only has direct operations within the Australia, but the company works closely with its international supply chain partners in China.

Essentials Clothing ensures through internal and third-party risk assessments that all employees and partners pay close attention to anti-slavery and human trafficking guidelines. Essentials Clothing has set out plans to improve its employees' knowledge on this subject.

4. RESPONSIBILITY

Responsibility for the organisation’s anti-slavery initiatives is as follows:

Policies

Essentials Clothing Board of Directors review policies on a regular basis and ensure that they are suitable for the company's activities.

Risk assessments, investigations and due diligence

Essentials Clothing Board of Directors approve all suppliers before any business is commenced. In-house designers, merchandisers and supply chain teams carry out required due diligence on proposed new suppliers and feed back to the relevant members of the Board. Ongoing due diligence is also carried out.

Training

Essentials Clothing Board of Directors is committed to stopping modern slavery and human trafficking. The company is investing in more robust training programmes to ensure all partners and employees are better aware of the related issues and operational needs. More company-wide training is required and this is due to be introduced in 2025.

5. DUE DILIGENCE

Essentials Clothing undertakes due diligence when considering partnering with new suppliers, and regularly reviews its existing suppliers. The company's due diligence and reviews include:

• Mapping the supply chain broadly to assess particular product or geographical risks of modern slavery and human trafficking;
• Evaluating the modern slavery and human trafficking risks of each new supplier;
• Reviewing on a regular basis all aspects of the supply chain based on the supply chain mapping;
• Continuing to conduct audits and assessments of suppliers;
• Taking steps to improve substandard supplier practices, including providing advice to suppliers;
• Invoking sanctions against suppliers that fail to improve their performance in line with an action plan or seriously violate the company's supplier Code of Conduct, including the termination of the business relationship.

6. PERFORMANCE INDICATORS

The company has reviewed its key performance indicators (KPIs) in light of the introduction of the Modern Slavery Act 2015. As a result, the organisation is:

• Re-training staff within specific departments to educate relevant staff further on modern slavery;
• Introducing new audits and hiring third-party supply chain auditors to ensure that the correct reports and audits are carried out and reviewed;
• Regularly reviewing the existing supply chain.

7. TRAINING

Essentials Clothing modern slavery training does and will cover the following:

• The company's purchasing practices, which influence supply chain conditions and which should therefore be designed to prevent purchases at unrealistically low prices, the use of labour engaged on unrealistically low wages or wages below a country's national minimum wage, or the provision of products by an unrealistic deadline;
• How to assess the risk of slavery and human trafficking in relation to various aspects of the business, including resources and support available;
• How to identify the signs of slavery and human trafficking;
• Initial steps that should be taken if slavery or human trafficking is suspected;
• How to escalate potential slavery or human trafficking concerns to the relevant parties within the organisation;
• Education on the external help available, e.g. through the Modern Slavery Helpline, Gangmasters Licensing Authority and the "Stronger Together" initiative;
• Education on the messages, business incentives or guidance that can be given to suppliers and other business partners and contractors to implement anti-slavery policies;
• Steps that should be taken by the organisation if suppliers or contractors do not implement anti-slavery policies in high-risk scenarios, including their removal from the organisation's supply chains.