7.1 Tchibo Social and Environmental Code of Conduct Principles

for Social and Environmental Compliance

in the Non Food Business

Status: May 2014

Continuous Development Approach

Business partners, their producers and subcontractors agree to continuously work on the improvement of social and environmental standards. They will receive appropriate time for remediation while prioritizing workers’ most urgent needs. Tchibo will provide support and advice. Good audit and training results will reduce the intensity of follow-up auditing.

Costs of Training and Auditing

Tchibo covers the costs for initial audits. Exceptions apply when the initial audit has to be postponed for any reason which the business partner/producer/manufacturer/subcontractor is liable for. In this case, the business partner shall submit awritten statement to Tchibo indicating the reason why the audit was postponed. They shall also bear the costs for the initial audit which has to be carried out within 14 days (from the date of the unsuccessful audit attempt). If the attempt to carry out the  initial  audit  at  a  later  date  fails  for  any  reason  which  the  business partner/producer/manufacturer/subcontractor is liable for, then Tchibo shall be entitled to withdraw from the contract without granting any days of grace and reject the service, claiming damages instead of the service.

Costs for remediation, the provision of the appropriate remediation evidence including follow- up audits have to be coveredby the business partner. The costs for training, support and advice are subject to special arrangements between Tchibo and the business partner.