Over the course of 2022, we have taken a number of concrete steps to strengthen our ethical sourcing program:

• Ethical sourcing grading system: Introduced a new traffic light grading system for the purpose of communicating and registering the results of supplier factory ES audits. The new grading system facilitates better reporting of audit results and enables Glowstar to monitor improvement of factory performance in meeting ES standards over time.

• Cotton supply chain traceability: In association with a key retail customer, Glowstar implemented a Modern Slavery Declaration and Survey regarding cotton sourcing and yarn, and fabric manufacturers used in the manufacturing of the retail customer’s own brand apparel and home textile products. The disclosure process aids in the mitigation of modern slavery risks arising from high risk cotton regions and will support Glowstar's continued efforts to map our high risk Tier 2 and 3 processing facilities.

• Better work buyer participant: Glowstar registered with Better Work as a buyer participant. Better Work is a collaboration of the International Labour Organisation (ILO) and International Finance Corporation (IFC), which consists of a comprehensive program bringing together all levels of the garment industry to improve working conditions and respect of labour rights for workers, and boost the competitiveness of apparel businesses.

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