Modern Slavery Statement 2021 - 2022

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

1. INTRODUCTION

This statement sets out Lounge Underwear’s actions to understand all potential modern slavery risks related to its 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. This statement relates to actions and activities during the financial year [1 April 2021 to 31 March 2022].

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 Lounge Underwear Ltd: Lounge Underwear Ltd has seen exponential growth since its launch in 2016 and continues to see revenue, customers and orders increase year on year, the company is under the control of a board of 3 Directors and has subsequently started to grow out a large management team to ensure that the company can easily be scaled to deal with the demand. Lounge was established in the UK and sells its own-branded products through its D2C model via loungeunderwear.com to its core market of 16-30 year olds in the UK and internationally through it’s 8 online stores. The brand currently has 4 arms to its offering including Apparel, Swimwear, Intimates and its main focus, Underwear.

Product Design

All products are designed in house at the Lounge HQ by a dedicated team of designers and merchandisers, based in the UK.

Manufacturing

Lounge currently carries out no in house manufacturing, all manufacturing is outsourced to international partners who work closely with the Lounge design team to turn designs into reality.

Distribution

All goods are shipped directly into Lounge’s self owned UK distribution centre and then shipped worldwide.

3. COUNTRIES OF OPERATION AND SUPPLY

• Lounge Underwear currently only has direct operations within the UK, however works closely with its international supply chain partners in China, Cambodia, Sri Lanka and Mauritius.
• Lounge ensures through internal and 3rd party risk assessments that all employees and partners pay close attention to anti-slavery and human trafficking guidelines - Lounge has set out improvement plans to increase its employees knowledge on this subject, this training will be rolled out over FY21-22.

4. RESPONSIBILITY

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

Policies

Lounge’s Board of Directors review policies on a regular basis and ensure that they are suitable for our activities - Lounge Partners with 3rd party compliance frms to ensure these are of the highest standard.

Risk assessments, investigations and due diligence

Lounge’s Board of Directors approve all suppliers before any business is commenced. In house designers, merchandisers and procurement teams carry out required due diligence on proposed new suppliers and feed this back to the required persons. On going due diligence is also carried out annually.

Training

Lounge Underwear’s board of Directors are committed to stopping Modern Slavery and Human Trafficking, therefore Lounge is putting in more robust training programmes to ensure all partners and employees are better aware of the issues and operational needs in regards to stamping out this on going international issue. More training is required company wide and this is due to be completed by the end of FY22. A Head of People has been appointed to help ensure that correct levels of training are delivered around all corporate responsibilities. Lounge recognises that resource has been an issue in training employees in this subject and is therefore going through a recruitment drive to ensure that the correct infrastructure is in place.

5. DUE DILIGENCE

The organisation undertakes due diligence when considering taking on new suppliers, and regularly reviews its existing suppliers. The organisation’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;
• Conducting and reviewing suppliers audits and assessments;
• Taking steps to improve substandard suppliers’ 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 our supplier code of conduct, including the termination of the business relationship.

6. PERFORMANCE INDICATORS

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

• Requiring staff working in specific roles to have completed training on modern slavery by the end of FY22;
• Developing a system for supply chain verification expected to be in place by the end of FY22, whereby the organisation evaluates potential suppliers before they enter the supply chain; and
• Constantly reviewing its existing supply chain.

7. TRAINING

The organisation’s modern slavery training does and will cover;

• Our business’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;
• What initial steps should be taken if slavery or human trafficking is suspected;
• How to escalate potential slavery or human trafficking issues to the relevant parties within the organisation;
• What external help is available, for example through the Modern Slavery Helpline, Gangmasters Licensing Authority and “Stronger together” initiative;
• What messages, business incentives or guidance can be given to suppliers and other business partners and contractors to implement anti-slavery policies; and
• What steps the organisation should take if suppliers or contractors do not implement anti-slavery policies in high-risk scenarios, including their removal from the organisation’s supply chains.

This Modern Slavery Statement 2021 - 2022 was last updated June 28, 2021.