December 2021

To our stakeholders:

I am pleased to confirm that Sarco nv reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Luc Sarens
Managing Director, Sarco nv

Sarco nv offers high quality clothing's for healthcare and various other sectors. Thereby we combine functionality with modern and fashionable looks. Due to the increased awareness of our customers and consumers towards sustainability, we assure a responsible care in our company and our supply chain. Furthermore, we work closely with our suppliers and business partners to make sustainable products with a minimum impact throughout their life cycle.

Sarco nv guarantees good working conditions for all employees in the supply chain.
Therefore, we demand form our suppliers and business partners to develop a good and safe working place and support the continuous improvement of it.
Workers, without distinction, shall be treated with no harsh or inhumane treatment, according to the principles of the International Labor Organisation conventions, such as:

- no forced labour/child labour or any form of discrimination
- freedom of association and collective bargaining
- health, safe and hygienic working conditions
- living wages are paid
- working hours are not excessive

For 2022, we're planning to applicate the amfori BSCI Code of Conduct.

We own our production units in order to have more effective control on working conditions. Staff consists of both Belgian and local managers.

We've adopted a strong supplier code of conduct. This Code of Conduct is a contract between Sarco nv and its suppliers to enhance continuous improvement on sustainability aspects such as respect for social and environmental legislation, transparency and fair business practices. The requirements are related to national and international agreements such as the principles UNGC, SDG's, ILO Conventions and the Universal Declaration of Human Rights.

The outcome is periodically measured and reviewed by the company's management.

Once per month our Quality Manager is visiting our factory in Tunisia.

No violations have been reported at the date of issuing this report.

No investigations, legal cases, rulings, fines and other relevant events related to Labour Rights have been encountered.

Sarco honorably declares that their professional clothing comes from companies that impose the following criteria on their affiliates, contracting parties and subcontractors:
- freedom of association (ILO convention 87)
- right to collective bargaining (ILO convention 98)
- no forced labour (ILO convention 29 and 105)
- no discrimination (ILO conventions 100 and 111)
- minimum age convention (ILO convention 138)
- worst forms of child labour convention (ILO convention 182)
- minimum wage fixing (ILO convention 26 and 131)
- hours of work convention (ILO convention 1)
- occupational safety and health convention (ILO covention 155)

A study of the psychosocial well-being of our employees will be organised in 2022.

Sarco nv complies with local legal standards on working conditions.
We can ensure that no child labour, nor bonded labour is taking place in our production sites.
Once per month our Quality Manager visits Tunisia and makes sur that all the working conditions are being respected.

Our human capital is very important to our company. In order to guarantee their wellbeing we have an external organisation taking care of the psychosocial and healthcare prevention, managing health issues and prevention.

We work together with local labor unions for continuous improvement of the working conditions and health at work.

We offer first aid courses to our employees.

Sarco keeps its employees informed about ergonomics and the optimal way of executing tasks to avoid injury.

We have internally fixed procedures and dedicated trust persons within the company to assist and council in case of conflicts, incidents of violations, or complaints about unethical or sexual harassment.

The high seniority (on average, people remain loyal to us for 11 years), the low absence rate and the few accidents at work shows us that our efforts pay off.

Sarco wants to minimize their impact on the environment. Consequently, our suppliers and business partners must be duly committed to protect the environment and shall comply with the standards and requirements in the country of operation. They should wherever possible support a precautionary approach to environmental matters, undertake initiatives to promote greater environmental responsibility and encourage the diffusion of environmentally friendly technologies implementing sound life-cycle practices. Especially, through activities with possible impact on climate change, environmental pollution or chemical contamination.

We strive to minimize our carbon emissions in our logistics through the Lean & Green program.
Consequently, we demand our suppliers to be committed to reduce their carbon emissions through their logistics and/or apply evaluation systems as the Lean & Green or equivalent.

Sarco invests in innovative and sustainable textile production by choosing the best available techniques to design its products as sustainably as possible, to reduce waste and stimulate maximum reuse of its products.

Sarco can offer fabrics with an Ecogreen label.
Ecogreen‐fabrics are made from 100% bio-cellulose fibers from FSC wood and from 100% recycled polyester from PET bottles. This has the advantage of eliminating all negative aspects associated with cotton production, such as depletion of water resources and massive use of pesticides.

We make our production processes more efficient in terms of energy‐ and water consumption. Sarco has a management system that continuously strives
towards improving the environmental performance of core processes (ISO 14001).

The biggest impact during the use of the clothing is the maintenance. We recommend our customers to adapt their washing programs,
to keep their energy footprint as low as possible, and to maximize the duration of the clothing.

All our fabrics are 100% Oekotex certified and contain no harmful substances.

Sarco has a management system that continuously strives towards improving the environmental performance of core processes (ISO-14001). The audit is annually performed by Bureau Veritas.

We invested in solar panels and reduce now 50% of our electricity consumption.

We obtained the CO2-neutral label (monitored by CO2 Logic). This label guarantees that we are actively calculating, reducing and compensating for our local and global climate impact.

Corruption can harm communities, cause damage to our reputation, and disrupt markets. That’s why we’re committed to winning customers and business based on the merit of our products and never because of bribery or other illegal activity. We never accept of provide anything of value (a “gift”) that may create a conflict of interest or suggest something improper.

We each have a responsibility to maintain ethical relationships with third parties. Practice due diligence and treat third parties fairly. Never offer or exchange anything with a third party that could appear to have been offered to obtain a business advantage. Understand that we may be held liable for acts of bribery committed by third parties, so if you are aware that a third party is or may be engaging in unethical or illegal activities, do not participate and alert Legal Staff. Never ignore warning signs that a third party may be engaging in illegal or unethical activities.
An internal person of confidence is available to handle grievances. Every effort will be made to protect confidentially.

Internal audits are incorporated.
Our management reviews on regular basis the results.