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Baggs, Inc. DBA Azerpak ( FSC®-C188144 ) FSC® Policy Statement    17th February 2023

Baggs, Inc. DBA Azerpak promotes the principles of the Forest Stewardship Council® (FSC®). The company strives to source forest-based products manufactured with raw material originating from well- managed, certified and non-controversial sources. This includes a commitment to avoid the following unacceptable activities now, and in the future.:

1. Illegal logging or the trade in illegal wood or forest products;
2. Violation of traditional and human rights in forestry operations;
3. Destruction of high conservation values in forestry operations;
4. Significant conversion of forests to plantations or non-forest use;
5. Introduction of genetically modified organisms in forestry operations and;
6. Violation of any of the ILO Core Conventions as defined in the ILO Declaration of Fundamental Principles and Rights at Work

Baggs, Inc. DBA Azerpak subscribes to and implements the FSC® Core Labor Requirements giving due consideration to the rights and obligations established by national and state law, while seeking to meet the objectives of these requirements. Baggs, Inc. DBA Azerpak:

1. Does not use child labor;
2. Avoids all forms of forced and compulsory labor;
3. Ensures that there is no discrimination in employment and occupation, and;
4. Respects freedom of association and the effective right to collective bargaining.

More specifically, Baggs, Inc. DBA Azerpak conforms to the FSC® Core Labor Requirements according to the International Labor Organization's (ILO) Eight Fundamental Conventions.:

In the application of the FSC® core labor requirement, Baggs, Inc. DBA Azerpak gives due consideration to the rights and obligations established by national law, while at the same time fulfilling the objectives of this requirement.

1. Baggs, Inc. DBA Azerpak does not use child labor.

   1. Baggs, Inc. DBA Azerpak does not employ workers below the age of 15/ below the minimum wage stated under federal, state, local regulationsllaws.
   2. National law or regulations permit the employment of persons between the ages of 13 to 15 years in light work, such employment should not interfere with schooling nor be harmful to their health or development. Notably, where children are subject to compulsory education laws, they shall work only outside of school hours during normal day-time working hours.
   3. No person under the age of 18 is employed in hazardous or heavy work except for the purpose of training within approved national laws and regulations.
   4. Baggs, Inc. DBA Azerpak prohibits the worst forms of child labor. The International Labor Organization (ILO) core convention #182 defines the worst forms of child labor to be slavery and similar issues such as the trafficking of children, debt bondage, serfdom, and children in armed conflict, including sexual exploitation.

2. Baggs, Inc. DBA Azerpak does not engage in forced and compulsory labor.

   1. Employment relationships are voluntary and based on mutual consent, without the threat of a penalty.
   2. There is no evidence of any practices indicative of forced or compulsory labor, including but not limited to the following:
      • Physical and sexual violence
      • bonded labor
      • witholding of wages including payment of employment fees and or payment of deposit to commence employment
      • restriction of mobility/movement
      • retention of passport and identity documents
      • threats of denunciation to the authorities

3. Baggs, Inc. DBA Azerpak ensures there is no discrimination in employment and occupation.

   1. Employment and occupation practices are non-discriminatory.

4. Baggs, Inc. DBA Azerpak respects workers' freedom of association and the effective right to collective bargain.

   1. Workers are able to establish or join workerorqanizations of their own choosing.
   2. The Contractor respects the full freedom of workers' organizations to draw up their constitutions and rules.
   3. Baggs, lnc, DBA Azerpak respects the rights of workers to engage in lawful activities related to forming, joining, or assisting a workers' organization or to refrain from doing the same, and will not discriminate or punish workers for exercising these rights.
   4. Baggs, Inc. DBA Azerpak negotiates with lawfully established workers' organizations and/ or duly selected representatives in good faith and with the best efforts to reach a collective bargaining agreement.
   5. Collective bargaining agreements are implemented where they exist.