California Transparency in Supply Chains Act Statement
At Coastal Cool USA, LLC, we are dedicated to upholding the principles of ethical business practices, including a commitment to the humane treatment of all individuals throughout our supply chain. We recognize the importance of addressing and preventing human trafficking and slavery in all forms, and we have taken proactive steps to mitigate the risks associated with these issues within our supply chain.
We affirm our commitment to the principles of freedom from forced labor, child labor, human trafficking, and non-discrimination. Our efforts are designed to promote and protect the rights and dignity of all individuals involved in the production of our products.
Verification of Supply Chains
To ensure that Coastal Cool USA, LLC’s supply chains are free from the use of forced or child labor, all factories must go through a thorough approval process before they are added to our supply chain. This includes working closely with our Sourcing and Quality Assurance departments to ensure factories meet our strict ethical standards.
As part of our verification process, both new and existing factories undergo audits conducted by independent, third-party monitoring firms. These audits assess potential risks related to human trafficking and slavery, including ensuring compliance with local labor laws and the ethical employment practices of any third-party employment agencies used by the factory. Any instances of non-compliance are immediately addressed by our leadership, and corrective actions are required before any further production takes place. New factories must undergo a third-party audit before production begins, and existing factories are audited at least once a year. We may conduct additional visits as needed based on a factory’s performance and track record.
Auditing of Suppliers and Vendors
To ensure that all factories within our supply chain adhere to Coastal Cool USA, LLC's Vendor Code of Conduct, we require that all suppliers engage independent, third-party monitoring firms for regular audits. These audits include on-site factory inspections, confidential worker interviews, and a thorough review of documentation such as payroll, time records, and employee age verification.
These audits are unannounced to ensure that our suppliers are consistently meeting our standards. While all factories are audited at least once a year, we may increase the frequency of audits depending on performance and compliance.
Supplier Certification
We require all direct suppliers to certify that the materials incorporated into the products they supply to Coastal Cool USA, LLC comply with applicable laws regarding slavery and human trafficking in the countries where they do business. Vendors must confirm their compliance with our Vendor Code of Conduct, which includes a zero-tolerance policy toward forced labor, human trafficking, and child labor. By accepting our purchase orders, suppliers acknowledge their commitment to comply with these standards.
Internal Accountability
Coastal Cool USA, LLC has a zero-tolerance policy for forced labor, human trafficking, and child labor. If any such practices are found during an audit, we require the factory to immediately address and correct the issue before production continues. The factory must provide a corrective action plan to our Senior Compliance Manager, and follow-up audits will review the factory’s progress to ensure the issue is fully resolved.
Training and Awareness
We believe in equipping our team with the knowledge necessary to effectively mitigate the risks of human trafficking and slavery in our supply chains. All managers directly responsible for supply chain and compliance management are required to undergo training on human trafficking and slavery, including how to recognize the risks and take appropriate action.
Additionally, our vendors maintain dedicated compliance teams to review and enforce our Vendor Code of Conduct, particularly concerning the prevention of forced labor and human trafficking. These teams are also responsible for conducting internal training within their factories to raise awareness and address risks associated with slavery and human trafficking.
