Victoria's Secret & Co. maintains policies and procedures for associates and suppliers that govern the consequences of noncompliance with Victoria's Secret & Co.'s sourcing and labor standards, as outlined in our Supplier Code of Conduct and Guidebook. When a factory or supplier is found to be in violation of these standards, IPS engages them through a structured remediation process focused on collaboration, accountability, and continuous improvement.

Our remediation platform creates a corrective action plan (CAP) for non-compliant issues identified during an audit, and suppliers are notified of the CAP instantaneously. In certain cases, a CAP may be waived, specifically for shared audit reports, provided they meet our requirements, are accepted as valid replacements for our own audits and remediation is underway or already completed. For example, Better Work assessment reports are accepted and do not require a separate CAP, as the Better Work (BW) program guides factories through an ongoing improvement process, which includes assessments, advisory sessions, and industry-specific training. As such, we rely on the comprehensive nature of BW's assessments to ensure continuous compliance and improvement, reducing the need for separate corrective actions.

In cases of critical violations, immediate remediation is required within 30 days. For such serious violations, a formal warning letter may be issued and, in most cases, accompanied by a financial penalty. We provide the supplier with the option of waiving the penalty and continuing to work with us but only if they invest the money into building a robust and sustainable compliance program. If the factory agrees, we provide access to a third-party labor standards consultant who works in concert with the factory to identify the root cause of an issue and helps the factory build up their compliance program and management systems to ensure issues do not reoccur.

All corrective actions must include measures to address findings, eliminate root cause(s), assign accountability, and meet clear deadlines. VS&Co's dedicated corrective action management team reviews CAP submissions daily. Approvals are granted once evidence demonstrates full compliance or significant progress toward it. All CAP-related communications and supporting evidence are documented to ensure transparency and traceability.

VS&Co maintains a strict escalation process for suppliers that fail to make timely improvements. This includes progressive consequences such as a warning letter, reduction of business, and ultimately, termination of the business relationship. We will not continue partnerships with suppliers or factories that are unwilling or unable to meet our compliance expectations. An accelerated escalation protocol is in place for cases involving suspected or confirmed forced labor, allowing for immediate intervention and action.

To verify the implementation of corrective measures, IPS in many cases conducts unannounced follow-up visits. These ensure that new procedures and systems have been properly adopted and are functioning effectively within the factory.