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California Supply Chain Transparency Act

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California Supply Chain Transparency Act

California Human Trafficking in the Supply Chain Disclosure — CA SB 657

Best Buy is pleased to share our guiding principles and the work we do to ensure the integrity and dignity of those who make the products that help consumers worldwide experience the promise of technology in their lives.

Best Buy expects original equipment manufacturers, vendors and suppliers of new goods we sell in Best Buy retail stores and online (collectively "Suppliers") – including Best Buy exclusive-branded product – to maintain fundamental labor and human rights standards. Specifically, we include policies in our Supplier Compliance Standards and contracts specifying that Suppliers will not use any forced labor, whether in the form of prison labor, indentured labor, bonded labor or otherwise. Suppliers failing to meet our Supplier Compliance Standards or the terms of our contracts would be in breach of our agreement. At this time, we do not require our Suppliers to certify that all materials incorporated into the products comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.

Our Social and Environmental Responsibility ("SER") Team in Shenzhen, China, invests significant time and resources to audit the factories where our exclusive-branded products are assembled; to work with these factories to improve workplace conditions and labor practices. The SER team oversees the independent audits of all non-U.S. facilities for compliance with the forced labor and child labor standards in the Supplier Compliance Standards through a third party. Audits are announced and scheduled, so that we can build trust and long-term relationships with our partners. We disclose the results of these audit findings and our procedures in our annual Best Buy Sustainability Report.

We actively work at industry levels to respond to social and environmental concerns for in consumer electronics and retailing. Best Buy is a member of the Electronic Industry Citizenship Coalition ("EICC"), the Global Social Compliance Programme ("GSCP"), industry groups striving to address human trafficking and slavery in the electronics and retail supply chains among many other important issues.

Finally, we maintain standards and procedures for employees in the Best Buy Code of Business Ethics. All employees receive training on the Best Buy Code of Business Ethics. Our exclusive-brand product management team receive additional training on our manufacturing partner expectations and our audit process. Failure by an employee to follow the standards set forth in the Code of Business Ethics may subject such employee to disciplinary action up to and including termination of employment.