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Modern Slavery Statement

FARFETCH Modern Slavery Statement 2020

This statement is made by FARFETCH UK Limited (hereinafter referred to as the “Company” or “FARFETCH”) pursuant to section 54 of the Modern Slavery Act 2015 and comprises the Company’s slavery and human trafficking statement for the financial year ending 31 December 2020.

At FARFETCH, our values are at the heart of everything we do and we use them as a guide to make decisions about what feels right for our business, our people, our customers and the partners we work with. One of our core values is ‘Be Human’, which means we look after other people, we embrace diversity and we help others to be successful. Our approach to the issue of Modern Slavery speaks to this value.

FARFETCH Marketplace

Our mission is to be the global platform for good in luxury fashion, connecting creators, curators and consumers.

The FARFETCH Marketplace is the first and largest application built on our platform. As of the end of Q1 2021, the FARFETCH Marketplace connected consumers in 190 countries to nearly 1,400 luxury sellers. Our Marketplace model and the aggregation of luxury sellers requires us to build and nurture relationships with hundreds of brands and boutiques from across the world.

Positively FARFETCH

In December 2020, we launched our long-term 2030 sustainability goals. These build on 2019’s ‘Positively FARFETCH’ strategy and the host of initiatives launched under that program, including ‘The Conscious Edit’, ‘Fashion Footprint Tool’, ‘Climate Conscious Delivery’ and the ‘FARFETCH Second Life’ and ‘FARFETCH Donate’ service propositions.

Our 2030 goals focus on four key areas:

POSITIVELY CLEANER: To be ‘Climate Positive’: Achieving Net Zero emissions by reducing our footprint in line with Science Based Targets, offsetting unavoidable emissions, and supporting our wider value chain (outside of our footprint boundary) to achieve additional carbon reductions.

POSITIVELY CONSCIOUS: To sell 100% ‘Conscious’ products: Driving all revenues from products that are independently recognised or certified as being better for people, the planet or animals, and from services that enable positive change.

POSITIVELY CIRCULAR: To be more ‘Circular’ than ‘Linear’: Selling more circular, low waste products or uses of circular services, than sales of products made in traditional, linear ways.

POSITIVELY INCLUSIVE: To be a leader in ‘Conscious Inclusion’. Championing diversity and inclusion both in our workplace and the global fashion community, and broadening the customer offering and providing boutiques, department stores and brands with practical resources to support their own sustainability and inclusivity efforts.

Together with our partner brands and boutiques, we want to revolutionise and reinvent the fashion industry for the future. And we strongly believe that the future for the fashion industry is positively cleaner, conscious, circular, and inclusive.

You can see the progress we made in 2020 here, and read our full ESG Report here.

In 2020 we formed an Environmental, Social and Governance (ESG) Committee (the “Committee”) of the FARFETCH Board of Directors. The Committee is chaired by Stephanie Horton and also includes José Neves (our Founder, CEO and Chairman) and Dana Evan. Its mission is to oversee FARFETCH’s ESG strategies and policies such that FARFETCH becomes a leader in sustainable, ethical, and consciously inclusive and human centered business practices, whilst proactively addressing key ESG-related opportunities and risks, such as Modern Slavery, and responding appropriately to the concerns of all relevant stakeholders. Accordingly, the work of the Committee should help ensure that the Company policies and actions drive positive environmental, social and governance outcomes that foster the wellbeing of FARFETCH employees, customers, vendors, partners, shareholders and community.

Partner brands and Boutiques

At the core of our business are our partnerships with brands and boutiques and we take a collaborative approach to identifying risks and areas where we can work with our partners to build appropriate and effective solutions to combat modern slavery and protect workers’ rights. We recognise that as a marketplace and platform we are uniquely placed to lead, encourage and support ethical purchasing practices in our partner brands and boutiques.

Since 2019, FARFETCH has collaborated with Good on You, the leading sustainability rating platform for fashion, to identify conscious brands on our platform through a credible and robust approach. Good on You evaluates more than 100 different widely-recognised standards,certifications and other criteria to provide simple, easy–to–understand sustainability ratings of fashion brands. These ratings fall under 3 key areas of concern for consumers:

PEOPLE: Brands are assessed against their impact across the supply chain, which includes policies and practices on child labor, forced labor, worker safety and empowerment, gender equality and payment of a living wage.

PLANET: Brands are assessed against their use of resources – such as energy, water and chemicals – and waste management performance, including any commitments to circular practices.

ANIMAL: Brands are assessed against the use of animal products and their animal welfare policies. For example, the use of ‘mulesing–free’ wool is considered, as is whether and how the brand uses leather, or traces their animal materials to source.

We prioritise the rating of all our direct partner brands - and reassess the performance of all brands included in our conscious collection every 18 months. By applying rigorous, independently-assessed criteria to what our customers are buying, we’re able to be transparent about the impact of brands and products on the environment, society and animal welfare.

Over 1000 of the brands on FARFETCH have been rated by Good on You.

In 2020, Conscious product sales grew 3.4x faster than the marketplace average and contributed over 5% of Group GMV. We are committed to our goal of 100% conscious product by 2030.

FARFETCH intends to utilise feedback from the Good on You ratings to encourage our Brands partners to improve practices, in line with the wider Positively FARFETCH strategy and 2030 goal of selling 100% Conscious product on site.

Business Operations and ‘Non-Stock’ Procurement

We have numerous suppliers who support the running of our various business units including (but not limited to) logistics, office management, marketing, and technology.
A critical step in our approach to tackling modern slavery is to gain transparency on our suppliers’ sustainability performance. In 2020, FARFETCH engaged with EcoVadis, a global sustainability rating company that uses international standards, to conduct individual sustainability performance assessments of our key supply chain partners (outside our partner brands and boutiques). EcoVadis combines sustainability expertise and online tools that guide partners to more sustainable and ethical practices, with a particular focus on Labour & Human Rights.

Company Policies and Codes

Our Global Code of Business Conduct and Ethics (“Code”) is embedded with certain policies relating to human rights. This is communicated to all employees by FARFETCH (translated as necessary) and forms part of the employee contract process. 100% of our employees are assigned mandatory Ethics & Compliance training, as well as policy attestation requirements, including attesting to our Code. At FARFETCH we encourage our employees to speak up whenever they have something to say. Our Speak Up culture is our open door policy which allows and encourages employees and external stakeholders (including vendors and suppliers) to always do the right thing, ask questions and report concerns. In an effort to maintain this Speak Up culture, we have five speak up channels, including two anonymous reporting channels - a hotline and online reporting portal which are available 24/7 globally for employees and external stakeholders to raise concerns and ask questions. This ensures a clear and, where legally permitted, confidential route for reporting any violations of the Code.

We have a Vendor Code of Conduct (“Vendor Code”). Based on internationally recognised standards and principles, our Vendor Code sets forth the behaviours, standards and practices we expect from our vendors, their employees and subcontractors. Our Vendor Code addresses Human Rights and Modern Slavery.

Our Ethical Sourcing Policy outlines our expectations for all our partners and other suppliers to consistently provide an environment which protects their employees' health and safety and basic human rights. All Partners and other suppliers are expected to comply with their national employment laws and regulations with particular regard to: minimum age of employment, freely chosen employment, health and safety, freedom of association and the right to collective bargaining, no discrimination, no harsh or inhumane treatment, working hours, rates of pay and terms of employment.

Assessing Our Risks

In 2020, as part of our ongoing monitoring and management of ESG matters, the Company conducted a risk assessment across FARFETCH to evaluate Company practices and identify any new risks or material changes in relation to identified risks, including those associated with ESG and modern slavery. This assessment included a dedicated risk workshop facilitated by the FARFETCH risk team, following which the results were presented to the Board and the Board allocated executive ownership of the key risks for further ongoing monitoring. As reported in 2019, The Global Risk Committee (GRC), a management level committee working alongside the Risk Team, continues to act as an additional layer of assurance by verifying and monitoring risks on a quarterly basis prior to Audit Committee and Board review.

The FARFETCH Modern Slavery Statement 2020 was prepared by the General Counsel and the Director of Sustainability and approved on behalf of the Board of Directors of FARFETCH UK Limited on 05 October 2021.

FARFETCH Modern Slavery Statement 2019

This statement is made by FARFETCH UK Limited (“FARFETCH”) pursuant to section 54 of the Modern Slavery Act 2015 and comprises the Company’s slavery and human trafficking statement for the financial year ending 31 December 2019.

At FARFETCH, our values are at the heart of everything we do and we use them as a guide to make decisions about what feels right for our business, our people, our customers and the partners we work with. One of our core values is ‘Be Human’, which means we look after other people, we embrace diversity and we help others to be successful. Our approach to the issue of Modern Slavery speaks to this value.

FARFETCH Marketplace

FARFETCH is the leading global platform for the luxury fashion industry. Our mission is to be the global platform for luxury fashion, connecting creators, curators and consumers.

The FARFETCH Marketplace is the first and largest application built on our platform. As of end of Q2 2020, the FARFETCH Marketplace connected consumers in 190 countries to nearly 1,300 luxury sellers. Our Marketplace model and the aggregation of luxury sellers requires us to build and nurture relationships with hundreds of brands and boutiques from across the world.

We regularly evaluate the impact of our business through our partnerships with brands and boutiques and take a collaborative approach to identifying risks and areas where we can work with our partners to build appropriate and effective solutions to combat modern slavery and protect workers’ rights. Furthermore, we recognise that as a marketplace and platform we are uniquely placed to lead, encourage and support ethical purchasing practices in our partner brands and boutiques.

In 2019, we launched a partnership with ethical rating agency Good On You to rate our key brand partners sold through our marketplace. The Good On You system assesses a brand’s policies and practices in three key areas; People, Planet and Animal. The ratings are based on publicly available information including industry standards, certifications and a brand’s own reporting. We prioritise the rating of all our brand partners - and reassess the performance of brands included in our conscious collection every 18 months. We are committed to focussing on this area over the coming years.

Business Operations and ‘Non-Stock’ Procurement

We have various suppliers who support the running of our various business units including (but not limited to) logistics, office management, marketing, and technology. We are currently in the process of implementing a software tool that will standardise the procurement and supplier assessment of their sustainability practices. This tool has the functionality to allow us to categorise direct suppliers and identify potential areas of focus / risk within our supply base. This will enable us to develop an approach to risk assessment for existing suppliers as well as begin to establish processes that we can undertake at the outset of any new sourcing activity.

Company Policies and Codes

Our Global Code of Conduct (“Code”) is embedded with certain policies relating to human rights. This is communicated to all employees by FARFETCH (translated as necessary) and forms part of the employee contract process. We have established a “Speak Up Line”, a whistleblowing process accessible to employees and external stakeholders (including vendors and suppliers) to ensure a clear and, where possible, confidential route for reporting any violations of the Code.

We have rolled out our Vendor Code of Conduct (“Vendor Code”). Based on internationally recognised standards and principles, our Vendor Code sets forth the behaviours, standards and practices we expect from our vendors, their employees and subcontractors.

Assessing Our Risks

In our 2018 Modern Slavery Statement, FARFETCH committed to bring modern slavery and compliance with the Modern Slavery Act within the scope of the Risk Oversight Group (ROG), which classified and monitored risk across the FARFETCH Group and allocated mitigation activities to the relevant teams. However, in 2019 the FARFETCH Risk Team assessed the role of the ROG and concluded a new approach was needed. Work to establish a new working committee (the "Global Risk Committee") was started in 2019 and will continue into 2020, working alongside the Risk Team and acting as an additional layer of assurance by verifying and monitoring risks on a quarterly basis prior to Executive Board and Audit Committee review. The Audit Committee is made up of Board members, with our CEO, CFO, General Counsel and Group Reporting Accountants in attendance. We will continue to monitor this process, escalate any material risks and make adjustments where necessary to ensure the effectiveness of our approach to the risk of modern slavery within the Group.

The FARFETCH Modern Slavery Statement 2019 was prepared by the General Counsel and the Director of Sustainability and approved on behalf of the Board of Directors of Farfetch UK Limited on 28 June 2021.

FARFETCH Modern Slavery Statement 2018

This statement is made by Farfetch UK Limited (“Farfetch”) pursuant to section 54 of the Modern Slavery Act 2015 and comprises the Company’s slavery and human trafficking statement for the financial year ending 31 December 2018.

At Farfetch, our values are at the heart of everything we do and we use them as a guide to make decisions about what feels right for our business, our people, our customers and the partners we work with. One of our core values is ‘Be Human’, which means we look after other people, we embrace diversity and we help others to be successful. Our approach to the issue of Modern Slavery speaks to this value.

Farfetch Marketplace

Farfetch is a technology platform for the global luxury fashion industry. We operate a global luxury digital marketplace connecting brands, retailers and consumers. We are a technology company at our core and have created a purpose-built platform for the luxury fashion industry.

The Farfetch Marketplace is the first and largest application built on our platform. As of 1 March 2019, the Farfetch Marketplace connected over 2.8 million Marketplace consumers in 190 countries to over 1,000 luxury sellers. Our Marketplace model and the aggregation of luxury sellers requires us to build and nurture relationships with hundreds of brands and boutiques from across the world.

We intend to regularly evaluate the impact of our business through our partnerships with brands and boutiques and take a collaborative approach to identifying risks and areas where we can work with our partners to build appropriate and effective solutions to combat modern slavery and protect workers’ rights. Furthermore, we recognise that as a marketplace and aggregator of fashion we are uniquely placed to lead, encourage and support ethical purchasing practices in our partner brands and boutiques and this is an area of focus that we have identified going forward over the coming years.

Business Operations and ‘Non-Stock’ Procurement

We have various suppliers (both direct and indirect) which support the running of our various business units including (but not limited to) logistics, cleaning, office management, technology and catering. We are currently in the process of developing a software tool that will standardise the procurement and supplier process. This tool will have the functionality to allow us to categorise direct suppliers and identify potential areas of focus / risk within our supply base. This will enable us to develop an approach to risk assessment for existing suppliers as well as begin to establish processes that we can undertake at the outset of any new sourcing activity.

Company Policies and Codes

Our Employee Code of Conduct (“Employee Code”) has been updated in order to embed certain policies relating to human rights. This will be communicated to all employees, consultants and freelancers that have been engaged by Farfetch (translated as necessary) and will form part of the employee contract process. As part of the roll-out of the new Code we have established a “Speak Up Line”, a whistleblowing process accessible to employees and certain external stakeholders (including vendors and suppliers) to ensure a clear and, where possible, confidential route for reporting any violations of the Code.

We are currently in the process of rolling out our Supplier Code of Conduct (“Supplier Code”). Based on internationally recognised standards and principles, our Supplier Code will set forth the behaviours, standards and practices we expect from our suppliers, their employees and sub-contractors.

Assessing Our Risks

Our Risk Oversight Group (“ROG”) classifies and monitors risk across Farfetch Group and allocates mitigation activities to the relevant teams. This process is undertaken with the participation of the executives who make up the ROG. Each member of the ROG leads a number of teams from across the business, including legal, finance, people, operations, technology and supply chain, each of which feed into this process. The ROG meets quarterly to report on our progress against our objectives for the year and reports into the Group Audit Committee, made up of Board members, with our CEO, CFO, General Counsel and Group Reporting Accountants in attendance. In 2019, modern slavery and our compliance with the Modern Slavery Act 2015 will be brought within the scope of the ROG. This will ensure transparency across the Group as well as the full commitment of the executive in meeting our objectives for the year. We will continue to monitor this process and make adjustments where necessary to ensure the efficiency and effectiveness of our approach to the risk of modern slavery within the Group.

The Farfetch Modern Slavery Statement 2018 was prepared by the General Counsel and the Director of Sustainability and approved on behalf of the Board of Directors of Farfetch UK Limited on 1 April 2019.

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