Canadian Forced and Child Labour Transparency Statement (Fiscal 2024)
This statement has been published in accordance with the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”) and constitutes the statement required under the Act for Haemonetics Corporation and OpSens Inc. for the fiscal 2024 period (i.e., April 2, 2023 to March 30, 2024). References to “Haemonetics,” the “Company,” “we,” “us” or “our” refer to Haemonetics Corporation and its subsidiaries as a whole unless otherwise stated.
Introduction
Haemonetics is committed to high standards in ethical conduct and the prevention of forced and child labour in its business and supply chains. Haemonetics will not tolerate or condone forced or child labour in any part of our global organization and our suppliers are expected to comply with the guidelines set forth in our Global Anti-Human Trafficking Policy that prohibit such activities.
Organization, Business Structure and Supply Chains
Haemonetics is a global healthcare company dedicated to providing a suite of innovative medical products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite and hospital transfusion services. We view our operations and manage our business in three principal reporting segments: Plasma, Blood Center and Hospital.
Haemonetics conducted business in approximately 90 countries and had distributors in approximately 80 of these countries during fiscal 2024. As of March 30, 2024, we employed the full-time equivalent of 3,657 persons globally (including approximately 283 employees of OpSens Inc. and its subsidiaries), with approximately 82% of our employees located in North America and the remaining 18% located across 19 other countries. As of March 30, 2024, our principal manufacturing centers were located in Pennsylvania and California within the U.S., as well as internationally in Mexico and Malaysia, and our products were distributed worldwide from primary distribution centers in the United States, Europe as well as smaller locations globally. In general, we design our equipment and consumables and use contract manufacturers to build the devices, while the majority of consumables are manufactured by us. Haemonetics has a complex global supply chain that involves integrating key suppliers and our manufacturing capacity into a global movement of components and finished goods.
Haemonetics Corporation is headquartered in Boston, MA (USA) and is publicly listed on the New York Stock Exchange. Contact information for our global offices is available on our website at www.haemonetics.com.
OpSens Inc., a medical device cardiology-focused company delivering solutions based on its proprietary optical technology, was acquired by Haemonetics on December 12, 2023. OpSens Inc. offers commercially and clinically validated optical technology for use primarily in interventional cardiology. OpSens also manufactures a range of fiber optic sensor solutions used in medical devices and other critical industrial applications. As of the end of fiscal 2024, Haemonetics has integrated OpSens Inc. and its subsidiaries under its forced and child labour compliance policies and procedures.
Policies in Relation to Forced and Child Labour
We are committed to upholding the laws and regulations that apply to our products and services around the world and will not tolerate or condone forced or child labour in any part of our global organization. Haemonetics maintains several policies and practices that reinforce this commitment across our organization, including:
- Code of Conduct – This document outlines Haemonetics’ commitment to conduct business in a manner that respects human rights, including prohibiting any practices (by the Company or any third party) that allow forced labour, child labour or human trafficking. Any person or entity that works on Haemonetics’ behalf is expected to follow our Code of Conduct, including members of our board of directors, executive officers, employees, vendors and other third parties.
- Global Anti-Human Trafficking Policy – This policy articulates our commitment to a work environment that is free from slavery and human trafficking, including forced labour and unlawful child labour. The policy prohibits Haemonetics employees, suppliers, distributors and other third-party partners from engaging in practices related to forced and child labour. Haemonetics also prohibits the aforementioned parties from (among other actions):
- Destroying or otherwise denying access to an employee’s identity or immigration documents;
- Using misleading or fraudulent practices to recruit employees; and
- Charging applicants/candidates recruitment fees.
- Expectations for Suppliers – This document reaffirms Haemonetics’ commitment to an environment that is free from human trafficking and slavery, including forced and child labour, and our expectation that all Haemonetics’ suppliers comply with the guidelines set forth in Haemonetics’ Code of Conduct and Global Anti-Human Trafficking Policy that prohibit such activities.
- Reporting Concerns – Our Code of Conduct and Global Anti-Human Trafficking Policy each specify that our employees, vendors and any third parties who work on Haemonetics’ behalf have a responsibility to speak up if they see or suspect a violation of the law or Haemonetics policies with respect to forced and child labour. These documents outline multiple resources available if such persons have questions or want to report a concern, including Haemonetics’ Integrity Helpline that is available 24 hours a day, seven days a week by phone or online. Haemonetics’ Integrity Helpline is managed by an independent third party. Reports can be submitted in most languages and offers the possibility to remain anonymous (except in the rare cases where local law prohibits it).
Supplier Adherence to our Values
Haemonetics’ Code of Conduct is a manifestation of the values that unite us across our business globally. We expect our suppliers to share our commitment to the same high ethical standards and to follow our Code of Conduct.
Haemonetics’ Expectations for Suppliers statement reinforces specific expectations for Haemonetics suppliers, including compliance with the guidelines set forth in our Global Anti-Human Trafficking Policy. Haemonetics seeks to partner with suppliers who operate in a manner consistent with these expectations and to support our suppliers in understanding and conforming with them. Haemonetics may take steps to assess a supplier’s conformance with these expectations and will consider a supplier’s progress in meeting these expectations in its sourcing decisions.
Due Diligence Processes
For our own operations, including our manufacturing and distribution facilities, Haemonetics maintains programs and procedures that foster a culture of compliance with our Code, our Global Anti-Human Trafficking Policy and the law. We conduct due diligence on all third-party distributors which involves reputational background checks and screenings to assess, among other things, the distributor’s efforts to assure that forced and child labour do not exist in its operations. Within our supply chain, Haemonetics targets completion of quality audits (either in person or virtually) of approximately one third of our direct suppliers annually.
Training
All employees are required to complete annual online training on our Code of Conduct, which includes a standalone module on human trafficking and slavery, which includes forced and child labour. The training module defines modern slavery and human trafficking, identifies potential warning signs and articulates ways employees can help combat modern slavery and human trafficking and report suspected violations in accordance with Haemonetics’ Code of Conduct and Global Anti-Human Trafficking Policy. For our global distributors, Haemonetics periodically conducts trainings that address their obligation generally to comply with our Code of Conduct. Additionally, we have taken steps to incorporate the Expectations for Suppliers statement into our supplier reviewed processes.
Risk of Forced and Child Labour
We believe that the risk of forced and child labour in our own workforce is minimal due to the strength of our internal employment policies and procedures.
Haemonetics believes there is a low risk of forced and child labour in its supply chain due to the specialized and complex nature of producing Haemonetics’s equipment and consumables. However, we recognize that forced and child labour could occur without Haemonetics’s knowledge in violation of Haemonetics’s policies and principles. We also recognize that our highest risk distributors and suppliers for purposes of forced and child labour are likely to be found in countries and industries cited for having the highest prevalence of forced and child labour violations.
Measurement and Effectiveness of Steps Taken
Haemonetics remains committed to continually improving our policies and practices related to forced and child labour. This commitment includes periodic reviews of our policies and practices and adoption of relevant key performance indicators within our organization.
In fiscal 2024 we maintained key performance indicators under which we would:
- Target 100% global employee participation in our annual Code of Conduct training, which (as discussed above) includes a dedicated section on modern slavery and human trafficking; and
- Target quality audits of approximately one-third of our direct suppliers annually either in-person or virtually.
In fiscal 2024, neither Haemonetics Corporation nor OpSens Inc. identified forced labour or child labour in their operations or supply chain.
Next Steps
In April 2023, we published our first Corporate Responsibility Report. This inaugural Corporate Responsibility Report serves as a foundation on which we plan to build. We will continue to operate with transparency and report our progress as we take additional actions and set sustainability goals that advance our commitment to Corporate Responsibility and support our Purpose as we help customers to continue to make it matter.
We will also continue to monitor changes to applicable laws and regulations concerning forced labour, child labour and modern slavery and evaluate corresponding changes to our current policies and practices.
Approvals and Attestations
Solely for purposes of compliance with the Act, in accordance with section 11(4)(b)(i), this statement has been approved by the board of directors of Haemonetics Corporation and OpSens Inc. for the fiscal 2024 period ended March 30, 2024.
In accordance with the requirements of the Act, and in particular section 11 thereof, I attest that I have reviewed the information contained in the report for the entity or entities listed above. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.
Christopher A. Simon
President, Chief Executive and a Director of Haemonetics Corporation
Date: May 28, 2024
I have the authority to bind Haemonetics Corporation.
/s/ Christopher A. Simon
Christopher A. Simon
James C. D’Arecca
Director, OpSens Inc.
Date: May 28, 2024
I have the authority to bind OpSens Inc.
/s/ James C. D’Arecca
James C. D’Arecca