We strive to act responsibly within our communities and expect the same from our associates and business partners

We have strong policies in place to protect the integrity of our supply chain, including a Pepco Group Supplier Code of Conduct which applies to all suppliers and contractors. The Code of Conduct is aligned with the Ethical Trading Initiative (ETI) Base Code, an internationally recognised code of labour practice founded on the conventions of the International Labour Organisation (ILO). It includes expectations concerning human rights (with specific reference to child labour), ensures colleagues in factories are treated fairly, and lays out our position on bribery, transparency and unauthorised subcontracting as well as environmental provisions.

Supplier engagement

Pepco Group’s own vertically integrated sourcing business, PGS, is responsible for over 92% of the own brand products we offer in our stores.

All active factories are audited at least once per year by Pepco Group Compliance in accordance with local law and our Code of Conduct.

The Supplier Code of Conduct ensures colleagues in factories are treated fairly and lays out our position on bribery, transparency and unauthorised subcontracting. It is aligned with the Ethical Trading Initiative Base Code, an internationally recognised set of labour standards based on International Labour Organisation conventions.

Supplier Code of Conduct

The Group has strong policies in place to protect to protect the integrity of our supply chain. We regularly engage with our suppliers and conduct audits. The Group operates a Supplier Code of Conduct for its supply chain and factories. All active factories are audited at least once per year by Pepco Group Compliance in accordance with local law and our Code of Conduct.

Our approach to foreign exchange

Transactional foreign currency exposures arise both from the import of goods directly sourced from overseas suppliers and from the sale of goods within the group to other subsidiaries,. Group treasury hedge these exposures on a portfolio basis using principally forward foreign exchange contracts and layering in cover over an 18 month period. The Group is primarily exposed to foreign exchange in relation to the Polish Zloty and the Euro against movements in the US dollar and the Renminbi.

Forward foreign exchange contracts in relation to the Group’s forecast exposures are designated as cash flow hedges with fair value movements recognised directly in equity.

The fair value movements previously recognised in equity are recorded in the income statement in conjunction with the underlying asset or liability.

The Group also hedges foreign currency intercompany loans where these are material to the group. Forward foreign exchange contracts in relation to the hedging of these intercompany loans are designated as held for trading with fair value movements being recognised in the income statement.

Our policies

Anti-Bribery Policy

Robust anti-bribery and corruption policy along with a supplier Code of Conduct modelled on ETI Code.

Right to Work Policy

Robust recruitment policy including conducting eligibility checks for all new colleagues to safeguard against human trafficking or individuals being forced to work against their will.

Whistleblowing Policy

Robust whistleblowing policy so that colleagues know that they can raise concerns about how they or other colleagues are being treated, or practices within our business or supply chain, without fear of reprisals.

PGS works hand in hand with key suppliers and develops them as trusted and long-term partners. Pepco Group Compliance also uses regular audits to drive improvements in factories.

In FY25 we broadened our audit programme to include own-brand Tier 2 suppliers, as well as Tier 1 suppliers, resulting in 1,829 audits and 1,266 factories. Following an audit, each factory receives a rating from Category 1 to 5, along with a Corrective Action Plan (CAP) if required. Our Ethical Sourcing Audit team advises and supports the suppliers and factories to address the CAPs effectively, particularly for critical or high-risk issues (Category 4 and 5). Follow-up audits are also conducted for the critical and high-risk rated factories. The outcomes of our supplier factory audits are monitored closely by our sourcing and commercial teams as well as our Board and Audit Committee.

Our Pepco brand is also a member of Sedex, one of the world’s largest supply chain compliance platforms for sharing responsible sourcing data on supply chains across its members. This enables us to make the right supplier choices and facilitates transparency among our retail peers.

Outside of clothing and general merchandise, the overwhelming majority of FMCG products on sale in Dealz are sourced from leading global suppliers such as Nestlé, Unilever and Proctor & Gamble.

These companies have established robust and audited sourcing policies that allow customers to buy their brands with confidence.

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