Transparency in Supply Chains

Rheem will not tolerate human trafficking or slavery in its operations or its suppliers’ operations. Rheem encourages all of its procurement employees to be vigilant regarding human trafficking and slavery in Rheem’s supply chain and to report any suspected human trafficking or slavery to the General Counsel. The company will not retaliate against employees who report suspected human trafficking or slavery in the Rheem supply chain.

The following disclosures are made pursuant to the California Transparency in Supply Chains Act of 2010 (Section 1714.43 of the California Civil Code) (referred to in this disclosure as the “Act”).

To what extent, if any, does Rheem:

(1) Engage in verification of product supply chains to evaluate and address risks of human trafficking and slavery? Rheem does not at this time engage in verification of product supply chains to evaluate and address risks of human trafficking and slavery.

(2) Conduct audits of suppliers to evaluate supplier compliance with company standards for trafficking and slavery in supply chains. While Rheem employees conduct periodic site visits and audits of certain of our suppliers, Rheem does not specifically audit suppliers for compliance with company standards for human trafficking and slavery. If there is any reason to suspect that a supplier is not complying with human trafficking and slavery standards, then Rheem will address the matter with the supplier.

(3) Require direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business. Rheem generally requires suppliers to be in compliance with all applicable laws and regulations and has requested certification from suppliers that they comply with applicable laws regarding slavery and human trafficking.

(4) Maintains internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking. Rheem employees are required to acknowledge and adhere to its Code of Business Conduct and Ethics (the “Code of Conduct”). While the Code of Conduct does not specifically address human trafficking and slavery, it does require that employees abide by the applicable laws and regulations in each country in which Rheem does business and report any suspected violations.

(5) Provides company employees and management, who have direct responsibility for supply chain management, training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products. Rheem is working to develop and implement training for members of its supply chain workforce to recognize and mitigate human trafficking and slavery risks in the supply chain.