RESPONSIBLE SOURCING
At SBH we believe that we are part of something bigger, and have a responsibility to take care of our community and our planet; we want to look outside our company and
seek out ways to contribute positively in the world. We believe that one way we can achieve our purpose and reflect core values in our global operations is to accelerate sustainability in product development, packaging and sourcing, and we are
committed to doing that. We continue to make progress toward our long-term sustainability goals by using best practices in product development and sourcing.
Our
Merchandising and Sourcing teams are regularly in contact with our vendors and suppliers about using more sustainable, cleaner and greener products and packaging. We seek to lock arms with vendors on the approach to
sustainability issues and products. As of FY21, all finished formulas in our owned-brand products are cruelty-free, i.e., not tested on animals. Approximately 95% of our owned-brand products are vegan, meeting the target previously set in FY19. Our
Company strives to avoid product formulations that contain parabens and phthalates.
In FY20, we launched Inspired By Nature, a line of hair color and care
under our Ion brand, that utilizes strict sustainability guidelines as it relates to packaging: hair color is filled in 100% recycled aluminum tubes; hair color caps are made from PCR; unit cartons for all hair color are produced with materials that
are sourced from sustainably-managed forests; and hair care packaging is fully recyclable.
Our commitment to sustained responsible sourcing and ethical practices
throughout our supply chain is also reflected in our Supplier Code of Conduct and Code of Business Conduct and Ethics.
Our Supplier Code of Conduct
(Supplier Code) applies to our vendors and suppliers business activities, including work performed through subcontractors. The Supplier Code requires suppliers to comply with our standards regarding Ethical
Sourcing (e.g., forced labor, child labor, human trafficking, conflict minerals, land rights), Employment Practices (e.g., fair treatment, non-discrimination, wages and benefits,
and freedom of association), and Health and Safety (e.g., occupational safety, occupational injury and illness, sanitation and housing).
In
addition, we expect all suppliers to comply fully with all laws and regulations applicable to their business. Under our Supplier Code we may conduct an investigation or audit to confirm compliance and in some cases may terminate a business
relationship due to non-compliance.
Our commitment to responsible sourcing and ethical business practices is also reflected
in our Code of Business Conduct and Ethics (Ethics Code), which applies to all SBH employees. The Ethics Code makes clear that we intend to operate with regard to the welfare of SBH employees and for the protection of the environment
and the general public. Our Ethics Code requires employees to comply with our hazard communications program and to comply fully with all laws, rules and regulations affecting our business, including the national and local environmental and
labor laws of our host nations and communities.
DATA PROTECTION AND CYBERSECURITY
Our Board of Directors understands the critical importance of managing evolving risks associated with cybersecurity threats. Our Company is committed to protecting the
privacy and security of customer information and the integrity of our information technology systems.
The Audit Committee of the Board has primary
responsibility for overseeing risks related to the cybersecurity threat landscape, including data protection and security breach readiness, although the full Board also exercises oversight over these risks. Our Chief Information Security
Officer (CISO) reports directly to the Chair of the Audit Committee. We believe this accountability structure helps maintain the independence of the CISO while giving the Board direct and meaningful
line-of-sight governance. The Audit Committee Chair regularly reports on cybersecurity discussions to the full Board.