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LAST UPDATED JUNE 29, 2021

Supply Chain Transparency

California Transparency in Supply Chains Act of 2010

Ulta Beauty requires all vendors who wish to conduct business with Ulta Beauty to sign a binding Vendor Purchasing Agreement that denotes acceptance of all terms and conditions within such agreement. Under the Vendor Purchasing Agreement, vendors must comply with all applicable U.S. and foreign laws, rules and regulations. Similarly, all Ulta Beauty manufacturers must execute a Manufacturing/Formulation Agreement that requires compliance with all U.S. and foreign laws, rules and regulations. This includes any and all laws and regulations, domestic and foreign, that pertain to human trafficking and forced labor. Ulta Beauty also requires all private label vendors to certify that they are in compliance with the laws regarding slavery and human trafficking in the countries in which they do business.

Verification and Certification

Ulta Beauty requires all vendors who wish to conduct business with Ulta Beauty to sign a binding Vendor Purchasing Agreement that denotes acceptance of all terms and conditions within such agreement. Under the Vendor Purchasing Agreement, vendors must comply with all applicable U.S. and foreign laws, rules and regulations. Similarly, all Ulta Beauty manufacturers must execute a Manufacturing/Formulation Agreement that requires compliance with all U.S. and foreign laws, rules and regulations. This includes any and all laws and regulations, domestic and foreign, that pertain to human trafficking and forced labor. Ulta Beauty also requires all private label vendors to certify that they are in compliance with the laws regarding slavery and human trafficking in the countries in which they do business.

Audits

Ulta Beauty reserves the right under its Manufacturing/Formulation Agreement to audit the facilities of its vendors that are used in the manufacturing, receiving, sampling, analyzing, storing, handling, packaging and shipping of products ordered by Ulta Beauty. A purpose of these audits would be to assure good manufacturing practices and compliance with applicable laws and regulations at these facilities.

Internal Accountability

Vendors are held accountable for non-compliance with Ulta Beauty's Manufacturing/Formulation Agreement and Vendor Purchasing Agreement. Vendors subject to the Manufacturing/Formulation Agreement are required to provide Ulta Beauty a written response to any audit observations Ulta Beauty's auditors issue to the vendors, and are to immediately implement any corrective actions or enhancements to their manufacturing, packaging and labeling operations and processes, as requested by Ulta Beauty.

If Ulta Beauty discovers that a vendor is not in compliance with the expected ethical standards, which include the elimination of human trafficking and forced labor within its supply chain, Ulta Beauty will provide such supplier with the opportunity to remedy any potential non-compliance through the implementation of a corrective action plan. If the supplier fails to remedy the non-compliance, Ulta Beauty reserves the right to eliminate such vendor from its supply chain. Ulta Beauty employees are held accountable for non-compliance with Ulta Beauty's Code of Business Conduct. In accordance with the code, any employee who is aware of a violation or suspected violation of the code, will refer the violation to the Senior Vice President of Human Resources or the Ethics Hotline. Violations of the code are addressed promptly by Ulta Beauty, subject to compliance with applicable laws or regulations, and may subject persons to corrective and/or disciplinary action, including termination of employment.

Training

Ulta Beauty recently launched an employee training program. Included in the program is a training module on ethics, which includes social responsibility topics.

Conclusion

Ulta Beauty will not tolerate any instances of human trafficking or other forced labor within its supply chains. Ulta Beauty expects that its employees, directors, suppliers and service providers conduct all relationships in accordance with the highest ethical standards. Failure to comply with Ulta Beauty's standards will result in appropriate actions being taken against such individuals and companies to preserve Ulta Beauty's high standards of business conduct.