Kmart Group - Human rights and ethical sourcing

The Kmart Group Ethical Sourcing Program includes a detailed compliance framework designed to support suppliers to meet its Ethical Sourcing Code. This year, 1,146 Tier 1 Kmart Group supplier factories were subject to 1,293 third-party ethical sourcing audits down from 1,200 Tier 1 supplier factories and 1,379 third-party ethical sourcing audits in 2023. The decline in Tier 1 supplier factories and third-party ethical sourcing audits for 2024 has been driven by the consolidation of the Kmart and Target supply chain.

Kmart Group continued its membership in Action, Collaboration, Transformation (ACT), a living wage collaboration between 20 international brands and retailers, and IndustriALL Global Union, the international trade union federation. In May 2024, Kmart Group, along with the other 19 ACT members, signed a binding agreement with IndustriALL to support a new collective bargaining agreement in Cambodia in the Garment and Footwear sector.

Kmart Group continued to support three BSR HER programs (HER Heath, HER Essentials/RISE Digital and RISE Respect) in line with its public commitment to provide professional skills, health or education training to at least 100,000 women in the Kmart Group supply chain by December 2025. As of May 2024, there were 109,920 women enrolled in different BSR HER programs across 57 Kmart Group supplier factories in Bangladesh, India and Vietnam.