California Transparency in Supply Chains Act of 2010

Introduction

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 went into effect in the State of California. This law requires large retailers and manufacturers conducting business in California to disclose their efforts to eliminate slavery and human trafficking in their supply chain. The purpose of the law is to allow citizens to make informed consumer choices based on the information retailers and manufactures publicly disclose regarding their efforts to address slavery and human trafficking. Please read further to learn about CME’s commitment to address the issue of slavery and human trafficking in our supply chain.

CME’s Standards of Business Conduct

CME’s Standards of Business Conduct expressly prohibits the use of forced or involuntary labor, including child labor. CME also has a Suppliers’ Business Conduct Guide to clarify to CME suppliers our expectation that they abide by applicable employment laws and not use any forced or involuntary labor, including child labor, in the provision of goods and services to CME. This Business Conduct Guide is part of our agreements with suppliers.

CME’s Compliance Measures

We undertake the following measures to assure compliance to our business standards:

• Verification: CME has no formal verification process to evaluate and address the risks of human trafficking and slavery in its supply chain. However, CME requires that all suppliers comply with CME’s Code of Business Conduct and Ethics, which require its suppliers to adhere to relevant laws relating to slavery, human trafficking, and child labor. A copy of these standards may be found at www.cmewire.com. CME reserves the right to verify that its suppliers are in compliance with these terms and conditions.
• Auditing: CME predominantly relies on affiliated companies and suppliers located in the United States, and CME does not typically directly engage suppliers from countries with an increased risk of human trafficking and slavery based on the U.S. Department of Labor’s List of Goods Produced by Child Labor or Forced Labor (2014). As such, CME does not currently audit its suppliers for compliance
• Certification: CME requires direct suppliers to comply with our Business Code of Conduct, which prohibits the use of forced or involuntary labor, including child labor, in the production of goods and materials supplied to CME. Our Suppliers Code also states that we expect our suppliers to comply with local laws.
• Internal Accountability: CME requires its employees to biennial certify that they comply with CME’s Code of Conduct and Ethics, which may be found online at www.cmewire.com. This code requires compliance with all laws, which includes laws related to slavery and human trafficking. Failure to comply will result in appropriate action, up to and including dismissal.
• Training and Awareness: CME endeavors to train its employees to act with the highest ethical and business standards. CME commits that it will continue to evaluate the training of employees in its sourcing and procurement departments to ensure their attention to these and other compliance concerns.