To our stakeholders:

I am pleased to confirm that Adare International Limited 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 sharing this information with our stakeholders using our primary channels of communication.

Adare is committed to developing, maintaining and supporting a policy of equal opportunities in employment. It aims to create the conditions in which its staff are treated equitably regardless of age, race, colour, nationality, ethnic origin, creed, disability, staff category, sexual orientation, gender, marital or parental status, political belief or social or economic class, or any other criteria that cannot be shown to be properly justifiable.

Ongoing Goals for 2017 - Adare will seek to develop programmes and procedures which comply with current and future legislation, ensure that its values and purposes are maintained and enhanced by emphasising equality of opportunity while also sustaining and accepting diversity.

Adare, as a recognised Investor In People organisation since 2003 is regularly assessed to ensure that its staff are developed, informed and rewarded appropriately.

New Goals for 2017 - Adare is in the process of developing a detailed Modern Slavery and Trafficking policy which will set out our actions to understand all potential modern slavery risks related to our business and to put in place steps that are aimed at ensuring that there is no slavery or human trafficking in its own business and its supply chains. We are 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.

Implementing equal opportunities for staff is a continuing process that needs to be kept under constant review. The process involves devising codes of practice; establishing procedures; describing good practice with Adare; setting goals to ensure the momentum of implementation is maintained.

Adare seeks to ensure that, so far as is reasonably practicable, staff and applicants for employment are informed of the Diversity and Equal Opportunities Employment Policy and, as appropriate, any associated procedures and action programmes. A copy of the Policy will be included in all Staff Handbooks, and attention drawn to it at the Induction for new staff.

Adare will seek to provide Diversity and Equal Opportunities training for all staff who have a particular responsibility for implementing the Diversity and Equal Opportunities Employment Policy, i.e. senior managers, Board members.

Adare will fully complete and implement its new Modern Slavery and Trafficking Policy across the business, and through its global supply chain. This will be upheld through a comprehensive set of Key Performance Indicators to ensure the Policy is implemented and managed effectively.

Measurement for on-going Goals in 2017
• Staff who believe they have not been treated equitably in accordance with the Diversity and Equal Opportunities Employment Policy may make their complaint either informally or by pursuing a formal complaint in accordance with the Grievance Procedure, as included in the Staff Handbook.
Measurement for new Goals in 2017
• Key Performance Indicators for the Modern Slavery and Trafficking Policy:
 - Staff working in South America, supply chain managers/HR professionals are expected to have completed training on modern slavery by December 2017;
 - System for supply chain verification expected to be in place by July 2018, whereby the organisation evaluates potential suppliers before they enter the supply chain; and
 - Existing supply chains review expected to be completed by October 2017, whereby the organisation evaluates all existing suppliers.

Adare International Limited regards the occupational health, safety and welfare of its employees as of the utmost importance and recognises its duties under the Health & Safety At Work etc. Act 1974, the Management of Health & Safety At Work Regulations 1992 and other associated regulations.

On-going Goals for 2017 - It is our policy to promote and ensure the highest standards and conditions at our sites in order to minimise risk, prevent injury, and ill health to our employees to minimise property damage, and to protect the general public as they are affected by our operations.

Adare believes that all aspects of its own operation should be carried out in such a way as to uphold the highest standards of ethics. Adare has therefore adopted the following ethical policy that provides a framework for setting and reviewing its ethical responsibilities.

The key ethical issues for Adare are:
• Business Integrity
• No Improper Advantage
• Disclosure of Information
• Intellectual Property
• Fair Business, Advertising and Competition
• Protection of Identity

New Goals for 2017 - We are in the process of a full policy review and update in 2017 where all staff will be required to read and confirm their understanding and adherence to our business policies via a new interactive web portal training facility. This will be done annually to ensure ongoing compliance for all staff. The new training portal functionality also reflects our desire to grow our investment in staff wellbeing & career development.

Adare assesses all areas of its activities, products and services to ensure that the company meets its social and ethical responsibilities.

Adare complies with all applicable legal requirements which relate to ethical business practices.

Adare ensures that this policy is communicated to all persons working for or on behalf of the company.

The new portal ‘My Pathway’ has been launched and is staff training will be complete by May 2017. New policy documents will be added to the portal as they are implemented.

Measurement for on-going Goals in 2017
• Adare complies fully with the Modern Slavery Act 2015 and publishes its statement on the company's website. We will ensure compliance with all legislation relating to the fair treatment of staff and will maintain data to evidence that it meets those requirements.

Measurement for new Goals in 2017
• Audit of Policy Governance via a regular review of activity on ‘My Pathway’

Adare believes that all aspects of its own operations should be carried out in such a way as to have a minimal adverse effect of the environment. Adare has therefore adopted the following environmental policy that provides a framework for setting and reviewing its objectives and targets.

The key environmental issues for Adare are:
• Suppliers’ environmental aspects
• Consumption of energy and water
• Correct waste disposal practices

On-going Goals for 2017 - Adare will assess all areas of its activities, products and services with respect to its impact on the environment and incorporate those practicable procedures and controls necessary to ensure continual improvement and prevention of pollution.

Adare will comply with applicable legal requirements, and with other requirements to which the company subscribes which relate to its environmental aspects.

In order to achieve these objectives it is the policy of Adare Limited to establish and maintain an effective environmental management system based on the requirements of BS EN ISO 14001:2004

New Goals for 2017 - It We are in the process of a full policy review and update in 2017 where all staff will be required to read and confirm their understanding and adherence to our business policies via a new interactive web portal training facility. This will be done annually to ensure ongoing compliance for all staff. The new training portal functionality also reflects our desire to grow our investment in staff wellbeing & career development.

New environmental objectives/targets have been set for 2017, detailed in the Implementation section below;

Objective 1: To maintain the recycling and waste minimisation practices for redundant stock, paper, drinks cans and toner cartridges operating at Basingstoke, Laindon, Southam and Hinckley.
Reason: To minimise the environmental impacts of waste produced at Adare.

Objective 2: To monitor electricity and gas consumption in 2017, to compare consumption to business activity, and to evaluate options for minimisation.
Reason: To ensure a reduction in the environmental impacts of energy consumed by Adare.

Objective 3: To assess the environmental and corporate social responsibility performance of suppliers on an on-going basis.
Reason: To encourage suppliers of products and services to Adare to be environmentally and socially aware

Objective 4: To integrate the Hinckley and London sites into the Adare International Environmental Management system.
Reason: To improve the implementation of environmental management across all Adare International sites.

Measurement for on-going Goals in 2017
• Audit of Policy Governance via a regular review of activity on ‘MY Pathway’

Measurement for new Goals in 2017
• Objective 1 Target: To maximise recycling and minimise landfilling of waste during 2017.
• Objective 2 Target: To reduce Greenhouse Gas Emissions relating to electricity and gas consumption by 5% per £1 million of company turnover managed through UK locations during 2017.
• Objective 3 Target: Supplier-spend in 2017:
o ISO 9001 certified suppliers 80%
o ISO 14001 certified suppliers 80%
o FSC certified suppliers 90%
• Objective 4 Target: To move to one ISO 14001 certification for UK operations in 2017.

• Audit of Policy Governance via a regular review of activity on ‘MY Pathway’

Adare is committed to the prevention of bribery and corruption and endeavours to conduct all its business with integrity and within the requirements of the Bribery Act 2010.

Ongoing Goals in 2017 - All staff, service providers and other third parties associated with Adare are required to engage in the highest standards of ethical business behaviour to ensure that appropriate and honest corporate decisions and actions are consistently taken.

Adare does not tolerate, permit or engage in bribery, corruption or improper payments of any kind in our business dealings, anywhere in the world, both with public officials and within the private sector.

Adare promotes transparency and insists all staff and associated third parties adhere to the Company's Anti-Bribery Policy. We have implemented a rolling programme of risk assessments, business-process reviews and awareness training for all staff to reduce any risk of potential non-compliant activity.

The Company's business policies and practices support Adare's adherence to the anti-bribery and corruption legislation. They encourage every employee and associated third party to practice and promote ethical and honest business practices at all times.
Any employee found in breach of the associated policies will be subject to disciplinary action up to and including summary dismissal; third parties associated with Adare who are found to be exposing Adare to bribery and corruption risk will be investigated and appropriate action taken.

New Goals in 2017 - We are in the process of a full policy review and update in 2017, where all staff will now be required to read and confirm their understanding and adherence to our business policies via a new interactive web portal training facility, ‘My Pathway’. The new training portal functionality also reflects our desire to grow our investment in staff wellbeing & career development.

• We manage a rolling programme of risk assessments, business-process reviews and awareness training for all staff to reduce any risk of potential non-compliant activity.
• We Include any-corruption requirements and integrity clauses within contracts with intermediaries or suppliers/subcontractors and business partners as appropriate
• We regularly communicate with “at risk” employees and associated persons
• We undertake appropriate due diligence of third parties and associated persons
• We communicate our zero-tolerance approach to bribery to third parties, including actual and prospective customers, suppliers and partners
• We provide copies of the anti-bribery and whistle-blowing policies to all associated persons, including consultants, agents and others who act on behalf of Adare, at the outset of new contractual relationships or by way of an update for existing relationships
• Our Compliance Committee manages the implementation and communication of this Policy
• New Policy Documents will be made available to all staff on the Company Intranet, and the ‘My Pathway’ web portal

Measurement for on-going Goals in 2017
• Regularly monitor “at risk” employees, associated persons and business activities
• Regularly communicate with “at risk” employees and associated persons
• Undertake appropriate due diligence of third parties and associated persons
• Regularly review all documentation detailing expenditure where such payments and bribes could be contained

Measurement for new Goals in 2017
• Audit of Policy Governance via a regular review of activity on ‘MY Pathway’