Due diligence

Royal A-ware’s due diligence policy outlines its approach to preventing, mitigating and eliminating human rights and environmental risks within our value chain. It is aligned with the United Nations Guiding Principles on Business and Human Rights and the International Labour Organisation (ILO) conventions on labour rights and social issues.
The scope of our due diligence policy extends across our entire global value chain, covering both upstream and downstream activities.

Our due diligence policy follows OECD’s six-step due diligence framework, in which the assessment of risks is a key step. The outcomes of this assessment also inform our DMA and prioritisation of sustainability topics. The policy is managed by dedicated due diligence coordinators. A working group meets at least twice a year to oversee the implementation and effect of the due diligence policy. Related policies include the Code of Conduct for Suppliers, which set out our ethical standards and expectations for behaviour.

We conduct supplier due diligence by evaluating them on various topics, including human rights, labour practices and environmental issues. If we receive indications that suppliers may not be complying with our Code of Conduct for Suppliers we take appropriate action, such as initiating a dialogue or conducting an audit. Further details on our 2025 sustainability progress are disclosed throughout the report.

Due diligence element	Description	Section(s) of the report
Due diligence governance	Overall sustainability due diligence framework integrated into the company’s risk management and decision-making processes.	Director’s report - Risk and corporate governance
Materiality assessment	Process used to identify, prioritise, and assess actual and potential sustainability impacts, risks, and opportunities across operations and the value chain.	Sustainability statement – Double materiality assessment
Grievance and complaints mechanisms	Internal and external channels that enable employees and business partners to raise concerns confidentially and without retaliation.	Sustainability statement – Employees – Attractive employer Sustainability statement - Respectful collaboration - Ethical corporate culture
Monitoring and KPIs	Metrics and performance indicators used to track due diligence effectiveness and supplier compliance over time.	Applicable topical sections in the sustainability statement
Human rights policy	Commitment to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.	Sustainability statement – Employees – Attractive employer - Consumer and End-user protection
Environmental due diligence	Procedures to assess and manage environmental risks in the supply chain, such as deforestation.	Sustainability statement – Dairy farming – Biodiversity & dairy farming

Sustainability pillars

Based on six pillars, we are constantly taking strategic measures to make our supply chains increasingly efficient and sustainable, so that all stakeholders benefit in the long term. Four of these – Greenhouse Gases, Product, Raw Materials and Dairy Farming – are closely linked to the links in our chain. The other two pillars – Employees and Respectful Collaboration – form the foundation and are essential for making our chains more efficient and sustainable.