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 75% of the general merchandise and apparel items that 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.

The ETI Base Code

Employment is freely chosen
Freedom of association and the right to collective bargaining are respected
Working conditions are safe and hygienic
Child labour shall not be used
Living wages are paid
Working hours are not excessive
No discrimination is practiced
Regular employment is provided
No harsh or inhumane treatment is allowed

Our approach to tax

We understand that the taxes we pay to governments in the countries in which we operate are an important source of revenue in providing a stable infrastructure, social fabric, and economic environment for citizens of those countries who are also our colleagues and customers. We are also committed to conducting our business in an honest and ethical manner.

Our core tax principle is to manage our tax affairs responsibly, which means ensuring that we pay the right and fair amount of tax at the right time in the countries in which we operate, in compliance with local and international law.

Our UK tax strategy is published on our website and, whilst published as a requirement under UK law, is intended to summarise our overall tax strategy as a Group.

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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, the British Pound 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 FY21, we conducted 1,574 factory audits with a pass rate of 78%. When a factory fails an audit, it is given a corrective action plan (CAP). When the factory provides sufficient evidence that CAP has been delivered, Pepco Group Compliance then performs a re-audit.

Our Poundland and PEPCO brand are also members of Sedex, the world’s largest collaborative platform 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 apparel and general merchandise, the overwhelming majority of FMCG products on sale in Poundland and 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.

Business model

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Where we operate

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Careers

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