California Supply Chains Act

NSP Quality Meats produces its protein products at all of its three U.S. plants under the inspection of the United States Department of Agriculture and in compliance with applicable federal, state and local laws, including laws governing labor and workplace safety. The California Transparency in Supply Chains Act (the “California Act”) applies to businesses selling products in California. The California Act does not require businesses to implement standards to ensure that its product supply chain is free from human trafficking and slavery. Rather, the California Act only requires a covered business to disclose to what extent, if any, that it does the following: (1) verifies product supply chains to evaluate and address risk of human trafficking and slavery; (2) audits suppliers to evaluate compliance with company standards for trafficking and slavery in supply chains; (3) requires direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business; (4) maintains internal accountability standard and procedures for employees or contractors failing to meet company standards regarding slavery and human trafficking; and (5) provides company employees and management, who have direct responsibility for supply chain management, training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products. As to each category, we do not take any separate actions.