Disclosure in Compliance with California Transparency in Supply Chains Act of 2010 (SB 657)

Disclosure in Compliance with California Transparency in Supply Chains Act of 2010 (SB 657)

The Tata Group's philosophy of management has always been, and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the consumers of their products, of the local community and finally of the countries in which the Tata Group companies do business.¹

The California Transparency in Supply Chains Act of 2010 (SB 657) (the "Act") requires large retailers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains for tangible goods offered for sale.

Tata Consumer Products is committed to sustainable beverage production and consumption. The Tata Code of Conduct ("TCoC") guides us in how we purchase raw materials for our manufacturing units. Our Natural Food and Beverages Policy and sustainable sourcing strategy are focused on sustainable agricultural practices providing guidelines to suppliers on sustainable sourcing. Our Natural Food and Beverages Policy also sets minimum requirements for food safety, social and working conditions, occupational health & safety and environmental demands, and agricultural practices at suppliers. Our Supplier Code of Conduct provides our suppliers of goods and services with a compliance framework regarding human rights and dignity of all stakeholders. And our Slavery and Human Trafficking Statement sets out the steps we are taking to combat any risks of slavery and human trafficking taking place within our operations and supply chains.

Tata Consumer Products' sustainable sourcing strategy has been established in order to make Tata Consumer Products' position clear to suppliers and their colleagues, as well as any other parties involved in our supply chain. It is based on the eight core conventions defined in the ILO Declaration on Fundamental Principles and Rights at Work (June 1998) and the Rio Declaration on Environment and Development 1992. Further, Tata Consumer Products recognizes the fundamental principles of human rights as described in the United Nations Universal Declaration of Human Rights (1948) and the TCoC. Tata Consumer Products has also adopted a long-term sustainability strategy that its business shall have an overall positive impact on people and the environment.

Tata Consumer Products recognizes upholding of human rights as an integral aspect of doing business. We commit to respect and protect human rights and remediate adverse human rights impacts resulting from or caused by our businesses as set out in the Company's Business & Human Rights Policy. The Policy is aligned with the principles contained in the Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work and the United Nations Guiding Principles on Business and Human Rights and is consistent with the TCoC.

Tata Consumer Products is proud to be part of 'Tea 2030', a coalition of some of the largest tea companies, sustainability organizations, and academics. Together the members of Tea 2030 identify the long term challenges to tea, and work together to develop solutions and ensure a sustainable global industry.

Regarding the Act, Tata Consumer Products, which has a zero-tolerance policy regarding slavery and trafficking in the Company's supply chain, performs a preliminary risk assessment of suppliers of its products to determine the level of risk associated with slavery and human trafficking in their supply chains. In addition, Tata Consumer Products is a founding member of Ethical Tea Partnership UK and selectively brands products with Rain Forest Alliance marks that have been audited by third parties for compliance with sustainable agricultural standards regarding wages and working conditions, ecosystem, soil, water & waste, occupational health & safety, traceability and other sustainable agricultural requirements.

In compliance with the Act, Tata Consumer Products ensures extensive third-party audits of all food and beverage product suppliers which audits include food safety, environmental and social responsibility. Tata Consumer Products requires high risk suppliers of its products to provide the Company with independent third-party audits specific to social accountability, including slavery and human trafficking.

Tata Consumer Products is committed to providing safe and best quality foods and beverages to its consumers that will enhance their satisfaction. The Company's Tetley® tea brand sold in United States of America is 100% sustainably sourced. Further, Tata Consumer Products' Rooted in Responsibility™ program is partnering with different coffee organizations to support research and coffee farming communities globally. Our goal is environmental preservation and to help educate and improve quality of life.

As part of the Tata Group's commitment to good corporate citizenship and actively assisting in the improvement of the quality of life of the people in the communities in which we operate, Tata Consumer Products partners with the Ethical Tea Partnership to promote child rights and child protection in its supply chain and on an ongoing basis reviews and when necessary amends its programs and policies to address the subject matter of the Act.

Tetley is one of the founding members of the Ethical Tea Partnership, a membership organization which works with tea companies, development organizations and governments with a vision to create a socially just, environmentally sustainable and thriving tea industry. Ethical Tea Partnership members work in partnership to support a number of projects with the intent to improve the lives of those working and living in tea estates - from a collaborative project supporting women and young people in Assam; to the Kuwala 'shine' project in Malawi. Supported by Tetley, this project Kuwala is working to roll Village Savings Loans Associations (VLSAs) across two of Tetley's biggest suppliers in Malawi, Eastern Produce Malawi (EPM) and Satemwa Tea Estates; and provide solar lights to households on these estates.

VSLAs are informal self-managed community lending and savings groups which help improve develop financial literacy and encourage a culture of saving. 2,500 people have signed up to the scheme at Eastern Produce. 256 VLSAs have been set up and through them communities are able to address funds to address basic household needs such as paying for food, education, healthcare and house improvements, as well as having the opportunity to expand or start small businesses to diversify their income sources.

Solar lights have been given to every household on the two estates, helping 5,410 families. Less than 2% of rural households in Malawi have electricity which means many tasks after dark like cooking, household chores or homework for children are very difficult.

Tata Consumer Products is committed to the TCoC, which represents the values and core principles that guide the conduct of every Tata Group business. The Company is committed to ethical and socially responsible conduct in the workplace. The TCOC states that, "We shall respect the human rights and dignity of all our stakeholders." The TCoC further states that, "We do not employ children at our workplaces. We do not use forced labor in any form."

At the commencement of employment, all Tata Consumer Products employees are required to acknowledge that they have received and read the TCoC and certify that they will comply with the provisions at all times during their employment. All Tata Consumer Products employees are required to recertify compliance with the TCoC as amendments are periodically made to it by management. Violations of the TCoC by employees may result in disciplinary action up to discharge. Violations by contractors may result in their dismissal.

Tata Consumer Products' training program educates its team members responsible for buying, blending and supply chain management about the principles underlining its standards relating to social issues including slavery, forced labor and human trafficking, and provides education on how to identify and respond to supply chain issues, such as slavery, forced labor and human trafficking. The company has established a Global Cross Functional Working Group on supply chain transparency with the objective of creating a structured process for demonstrating compliance, identifying challenges, finding solutions, sharing knowledge, expertise and best practices while developing training modules, due diligence and action plans.

To learn more about Tata Consumer Products responsible business practices, please visit https://www.tataconsumer.com/sustainability which details our various social sustainability initiatives.  It is Tata Consumer Products' intent to inform its customers and other interested consumers of our initiatives to ensure that our supply chain is free of forced or trafficked labor.

¹J.R.D. Tata - Chairman, Tata Sons (1938-1991)