20th of August 2021

At Thankyou, our vision is to see a world where not one person lives in poverty. We, alongside the global community hope to achieve this goal by 2030, which is the first UN Sustainable Development Goal.

While Thankyou Group has officially become a signatory to the UN Global Compact in 2020, we have been committed to implementing its principles, as well as aligning ourselves to the UN Millenium Development Goals (now the UN Sustainable Development Goals), since the beginning of our organisation in 2008.

We fully support the United Nations Sustainable Development Goals (SDGs) and are committed to implementing the Ten Principles of the United Nations Global Compact in the areas of human rights, labour, environment and anti-corruption.

In our first Communication of Progress report, we are proud to highlight our work across the four-issue areas (human rights, labour, environment and anti-corruption) as we continue to integrate these principles in all areas of our work.

Yours sincerely,

Daniel Flynn

Managing Director - Thankyou Group Pty Ltd

Thankyou Group actively supports the UN Declaration of Human Rights and has implemented our Responsible Business Goals to ensure fair, equitable and honest treatment of workers occurs at all levels of our business.

We are continuing to implement our business code of conduct across our organisation and for all of our direct partners, which takes into account internationally recognised standards aimed at protecting individuals within our business and supply chain. The standards include providing safe working conditions, fair wages and hours of work for workers, and ensuring women rights are upheld.

We also have a Responsible Sourcing Policy which ensures our suppliers are working to identify human rights risks in their procurement practices, and establish goals to ensure raw materials are procured ethically.

As a social enterprise responsible for distributing funding to our partners, we have implemented the Australian Charities and Non-for-profit commission External Standards. These standards look at ensuring the appropriate management practices, processes, policies, and procedures are implemented by the NGO, and ensure the protection of the vulnerable people these NGO’s work with when conducting overseas operations.

Our impact partners who work with communities living in extreme poverty must also adhere to our code of conduct, and are further subjected to Thankyou’s vulnerable persons policy. This policy safeguards and protects the vulnerable community members, and outlines steps for Thankyou and our impact partners to mitigate these risks.

Internally, we implement our child protection policy, workplace conduct and equal opportunity policy, and a grievance and complaints policy to ensure human rights considerations in our operations.

All direct suppliers and partners (inclusive of our impact partners) are required to sign-off and adhere to the Code of Conduct before any formal partnership is entered into. They must also submit any relevant documentation, such as an internal code of conduct, for our Responsible Business Team to benchmark and assess their capacity to meet the standards of Thankyou’s Code of Conduct.

Our significant commercial partners are also socially audited and must be found to be compliant with our Code of Conduct standards within 12 months within the date of the first production.

When approaching new product development, our Responsible Business Team highlights human rights risk at the initial phases of discovery, and provides recommendations to senior stakeholders on mitigation steps. This involves finding and aligning with manufacturers and partners and countries who adhere to these standards, and manufacturing with adequate human rights legislation, as well as using raw materials that align with the standards outlined in our code of conduct.

Our People and Culture team and Board of Directors have also ensured that our company values, which reflect our high standards when it comes to the treatment of our employees, are communicated to every new member of our team. These values are further implemented in the workplace conduct and equal opportunity policies, child protection policies. We have implemented a grievance and complaints policy to handle human rights grievances fairly, transparently, and in a timely manner.

We have also created and implemented our protection of vulnerable person policy across our portfolio of impact partners, which fulfils the ACNC External Standards requirement.

In FY21:

A significant supplier in a new category has completed our Responsible Business process. This means they are adhering to, and have signed off on our Code of Conduct, Responsible Business Goals, Responsible Sourcing Policy. They have also completed a SMETA Audit and will meet our goal of non-compliances being resolved 12 months after the date of the first production.

We are on track to meeting the target to ensure all existing significant product suppliers for Thankyou managed products are socially and environmentally audited and found to be compliant with Thankyou’s Code of Conduct standards by December 2022.

We have gained 100% visibility of inputs for all new categories of Thankyou products. As well as ensuring that all inputs that are deemed as socially ‘high risk’ by an internal materiality assessment, or a product input that is more than 50% of the total inputs procured by Thankyou annually, are responsibly sourced through either a certification scheme or a third-party audit.

We have ensured that any significant input in our personal care range that contains palm oil uses certified sustainable palm oil (which also focuses on ensuring the fair treatment and upholding of rights of workers involved in the procuring and manufacturing of palm oil).

We have also made the strategic decision to use certified cotton for our products.

The board has reviewed our progress on our Responsible Business Strategy inclusive of human rights risks across our supply chain.

We have assessed and found all of our impact partners' internal vulnerable people policy to be compliant against Thankyou’s standards.

As our Responsible Business Goals and code of conduct standards cuts across both Human Rights and Labour concerns, Thankyou Group actively supports the UNGC Principles 3,4,5,6 by implementing our business code of conduct across our organisation and all new and existing direct partners, which takes into account internationally recognised standards aimed at protecting individuals within our business and supply chain.

The standards, which are based upon the Ethical Trading Initiative’s base code and therefore, the International Labor Organisation’s standards, detail our stance on having zero tolerance on all forms of forced labour. This includes bonded and child labour, and allows for freedom of association, ensuring workers receive fair wages, reasonable hours of work, and there is zero tolerance to workers being subjected to discrimination and harassment. Our significant suppliers are externally audited against these standards and must rectify any non-compliances found.

We have also implemented a Responsible Sourcing Policy which ensures our suppliers are working to identify and mitigate any labour risks in their procurement practices. Benchmarked to thr code of conduct, the responsible sourcing policy helps Thankyou to mitigate risks across the first three tiers of our supply chain, to the point of procurement.

As a social enterprise that exists to use our dividends to fund partners working in low-income countries, we are also involved in funding a global NGO, International Justice Mission, which strengthens labour laws in developing countries to protect vulnerable communities groups in their work.

Within our internal team, we implement our child protection policy, workplace conduct and equal opportunity policy as well as a grievance and complaints policy to ensure the UNGC Principles 3 to 6 are enshrined in our operations.

Similar to the section above, Thankyou requires that all direct suppliers and partners (including our impact partners) sign off and adhere to the Code of Conduct before entering any formal partnership. They must also submit any relevant documentation such as an internal code of conduct for our Responsible Business Team to benchmark and assess their capacity to meet Thankyou’s Code of Conduct standards.

Our significant manufacturers are also socially audited to our code of conduct, and must be found compliant to our standards within 12 months within the date of the first production.

As part of implementing responsible business goals within new product development, our Responsible Business Team highlights human rights risks at the initial phase of discovery, and provides recommendations to senior stakeholders on mitigation steps. This involves finding an aligned manufacturer & partners to work with, finding a country to manufacture in with adequate human rights legislation, and using raw materials that align with the standards outlined in our code of conduct.

We have also implemented our workplace conduct & equal opportunity policies, child protection policies and a grievance and complaints policy to handle labour grievances in a fair, transparent and timely manner.

In FY21:

A significant supplier in a new category has completed our Responsible Business process. This means they are adhering to, and have signed off on our Code of Conduct, Responsible Business Goals, Responsible Sourcing Policy. They have also completed a SMETA Audit and will meet our goal of non-compliances being resolved 12 months after the date of first production.

We are on track to meeting the target to ensure all existing significant product suppliers for Thankyou managed products are socially and environmentally audited and found to be compliant with Thankyou’s Code of Conduct standards by December 2022.

We have gained 100% visibility of inputs for all new categories of Thankyou products. As well as ensuring that all inputs that are deemed as socially ‘high risk’ by an internal materiality assessment, or a product input that is more than 50% of the total inputs procured by Thankyou annually, are responsibly sourced through either a certification scheme or a third-party audit.

Our personal care range uses certified sustainable palm oil (which also focuses on ensuring the fair treatment and upholding of rights of workers procuring, and harvesting palm oil)

We have also made the strategic decision to use certified cotton for our products.

We gave $500,000 (AUD) towards International Justice Mission, an organisation working in India rescuing workers who are in forced/bonded labour, and strengthening the justice system in pursuing prosecutions and convictions of perpetrators of forced/bonded labour.

At Thankyou, we affirm and uphold the UNGC Principles 7, 8 and 9 by focusing on these three areas of our business: 1) offsetting our carbon footprint, 2) ensuring we minimise our impact on waste, and 3) minimising our water impact

Our Carbon Emissions Target - Thankyou measures and offsets 100% of its operational and scope 3 GHG emissions annually, which is externally validated by a third-party environmental auditor.

Our Waste Targets - For all existing and future Thankyou products to meet these goals by December 2025:

- 100% reusable, recyclable or compostable packaging
- 70% of plastic packaging being recycled or composted
- 50% of average recycled content included in packaging
- To phase out of problematic and unnecessary single-use plastics packaging

Our Water Targets
- All new and existing Thankyou product suppliers to ensure they are adhering to local environmental protection regulations by safely disposing of hazardous chemicals during the manufacturing process, to ensure waterways are protected
- Measure and report on Thankyou’s direct total water usage (operations and products) annually by December 2023

Our Responsible Business Goals ensure that both our internal operations and our external supply chain partners adhere to these targets (including providing visibility of data needed to measure progress).

Similar to this point in the section above, Thankyou requires that all direct suppliers and partners (inclusive of our impact partners) sign-off and adhere to the Code of Conduct before any formal partnership is entered. Our code of conduct ensures that our partners must follow local environmental regulations.

Our significant manufacturers are socially audited to our code of conduct and must be found compliant to our standards within 12 months within the date of the first production. Our audit methodology ensures that our suppliers dispose of materials correctly, and safely, mitigating harmful impacts their operations have on the surrounding environment they work in.

As part of implementing responsible business goals when developing new products, our Responsible Business Team highlights environmental risks at the initial phases of discovery, and provides recommendations to senior stakeholders on mitigation steps. This also includes employing subject matter experts and sustainability consultants to identify potential risks and provide recommendations.

We belong to the Australian Packaging Covenant, which ensures we align and publicly report on the progress of our waste targets mentioned in the section above.

We also use external consultants to independently assess our carbon footprint each year, while also applying for external certification by Climate Active.

In FY21:

We have offset our entire operational and products’ carbon emissions and are certified Carbon Neutral by Climate Active.

We have completed our latest Australian Packaging Covenant Report and action plan against the national packaging targets, and the results are publicly viewable on our website.

We are on track to ensure all existing significant product suppliers for Thankyou managed products are environmentally audited and found to be compliant to Thankyou’s Code of Conduct standards by December 2022.

Our personal care range uses certified sustainable palm oil, certified cotton, and certified renewable paper across all of our products
Over the last year, we introduced refills to some of our most popular personal care products, extending the lifespan of our personal care range while decreasing our waste.

We have developed a plastic-free collection of solid body bars, lotion bars and hair bars. The range is vegan friendly, made with recirculated water, is fully recyclable, made up of recycled material, and represents another step forward in looking at minimising our waste footprint.

At Thankyou, we have a zero-tolerance on corruption, bribery and extortion. Enshrined within our code of conduct, under Principle 1 - Legal and Ethical Business Practices:

Thankyou’s authorised suppliers/partners must fully comply with all applicable laws of the countries in which they are located, including all laws, regulations and rules relating to wages, working hours, employment, labour, health and safety, the environment, and immigration.

Thankyou’s authorised suppliers/partners must act in an ethical manner, ensuring that corruption in all its forms, including extortion and bribery, is not permitted within their supply chain. Our significant suppliers are externally audited against these standards and must rectify any non-compliances found.

We engage with external financial auditors who perform tests on our internal financial systems and controls in order to minimise the risk of corruption and financial impropriety occurring.

As we are a social enterprise responsible for distributing funding to our partners, we have implemented the Australian Charities and Non-for-profit commission External Standards. These standards look at ensuring the appropriate management practices/process/policies and procedures:

- For activities implemented, finances and other resources, it uses overseas
- Ensuring adequate record-keeping mechanisms are set-up
- Ensuring processes and procedures that work to combat fraud and corruption in its overseas operations.

All direct suppliers and partners (inclusive of our impact partners) are required to sign-off and adhere to the Code of Conduct before any formal partnership is entered. They also submit any relevant documentation such as an internal code of conduct for our Responsible Business Team to benchmark and assess their capacity to meet the standards of Thankyou’s Code of Conduct.

Our significant commercial partners are socially audited to our code of conduct and must be found compliant to our standards within 12 months within the date of the first production.

As part of implementing responsible business goals when approaching new product development, our Responsible Business Team also highlights anti-corruption risks at the initial phases of discovery, and provides recommendations to senior stakeholders on mitigation steps. This involves finding an aligned manufacturer and partners to work with, finding a country to manufacture in with adequate anti-corruption legislation, and using raw materials that align with the standards outlined in our code of conduct.

Every year, our external financial auditors annually perform tests to ensure that the financial controls we have put in place are robust enough to minimise the risk of corruption and financial impropriety occurring.

In line with our ACNC external standards requirements for all partners we fund, we have created and implemented a conflict of interest policy, gifts and entertainment policy as well as outlined the minimum safeguards required by our partners to process our funding.

In FY21:

The organisation has performed SMETA Audits for all new significant suppliers and will meet the goal of non-compliances being resolved 12 months after the date of the first production.

100% Thankyou’s direct partners (partners with who Thankyou has a contract) onboarded in FY21 have committed to Thankyou’s Responsible Business Statement and Goals, Responsible Sourcing Policy and Code of Conduct.

We are on track to ensure all existing significant product suppliers for Thankyou managed products to be socially and environmentally audited and found to be compliant with Thankyou’s Code of Conduct standards by December 2022.

We have assessed and found all of our impact partners’ anti-corruption policies (specifically conflict of interest, gifts and entertainment, payment processes policies) to be compliant against our own standards of anti-corruption and fraud.

Our auditors have reviewed our internal financial controls and procedures in signing off on our annual financial report.