Definitions used within this statement

Modern slavery: Practices that include slavery, servitude, forced or compulsory labour, and human trafficking.

Slavery: A situation where a person is owned, controlled, or treated as property and cannot refuse or leave due to threats, coercion, or deception.

Servitude: A condition where a person’s freedom is significantly restricted and they are required to provide services under coercion.

Forced or compulsory labour: Work or services exacted from any person under menace of penalty and for which the person has not offered themselves voluntarily.

Human trafficking: The recruitment, transportation, transfer, harbouring, or receipt of persons by improper means for the purpose of exploitation.

Supply chain: The network of organisations and activities involved in sourcing, manufacturing, logistics, and delivery of our products and services.

Supplier: Any third party that provides goods, materials, or services to us, including their sub-suppliers.

Distributor Network: Any third party with whom we have a commercial relationship for the retail distribution of our products.

Due diligence: Risk-based checks and ongoing monitoring to identify, prevent, and mitigate modern slavery risks, and to track the effectiveness of actions taken.

High-risk supplier/region/sector: A supplier, geography, or industry with elevated modern slavery risk indicators, which may include weak governance, migrant or temporary labour, or raw materials with known risks.

Whistleblowing (Speak Up): Confidential channels for raising concerns about wrongdoing, including modern slavery, without fear of retaliation. Princess Yachts maintains a Speak Up Policy to protect those who report concerns.  

Remediation: Steps to address harm, which can include stopping abuse, correcting practices, supporting affected workers, and improving systems to prevent recurrence.

Organisation’s structure

Princess Yachts is a luxury yacht manufacturer based in Plymouth, England. We are part of the KPS Capital Partners portfolio of companies who are headquartered in New York, USA and are regulated by the Securities and Exchange Commission (SEC). We have over 2,300 employees and sell to 42 authorised distributors worldwide.

Our business

Our business is arranged over five sites in and around Plymouth, Devon and each site has distinct responsibility for certain manufacturing processes, including component parts build, mouldings, fit out assembly lines, product testing and despatch. We are committed to continuously improving our practices and policies as we recognise their impact upon our employees, customers and suppliers as well as the wider community. We consult with our employees through our employee opinion survey to evolve our practices and policies more generally.

Our supply chains

We have developed our broad network of global suppliers over a span of over 60 years. We maintain a preferred supplier list and conduct due diligence on all suppliers before approving and onboarding them as a preferred supplier. As part of our agreements with all of our suppliers, they are required to confirm that all parts of their operations meet the standards of our policy or adhere to their own policy which is of a similar standard.

We also recognise the importance of us taking a proactive role in making our supply chain more transparent, including attending facilities and conducting ongoing Supplier Management activity.

This is underpinned by our Supplier Code of Conduct that ensures our suppliers, and their supply chains, comply with our values and ethics in order to conduct business with us. The Supplier Code of Conduct is available on our website and can be accessed here. 

Our distributor network

Having developed fantastic relationships with successful distributors globally, we are keen to understand their operations and approach to issues including Modern Slavery and Human Trafficking and to encourage a consistent approach across all areas of the business. We recognise the challenges of working across many legal jurisdictions and practices and are dedicated to improving our transparency and communications channels.

A formal meeting cadence exists with every Distributor to discuss various commercial aspects of the relationship. These meetings are recorded within our CRM system and provide an opportunity to reinforce Princess Yachts’ policies, including Modern Slavery. We communicate the consequences of non-compliance with our policies to Distributors, including potential termination of business relationships where serious breaches occur.

Our policies on slavery and human trafficking

We have appropriate policies in place that underpin our commitment to ensure that there is no modern slavery or human trafficking in our supply chains or in any part of our business. We continuously review and update all our policies.

Our Anti-slavery and Human Trafficking Policy reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in our supply chains.

We also have the following policies in place relevant to modern slavery, which we continuously review and update:
•    Whistleblowing (Speak Up) Policy, which aims to encourage employees to raise any genuine concerns about certain wrongdoings without fear of reprisal, and how to raise those concerns.
•   Employee Code of Conduct & Ethics, which explains the Company’s values and how they relate both to our day-to-day work and the key ethical issues we face. It also provides guidance in relation to how employees should conduct themselves and sets out the responsibilities of all employees.

Both can be found on the employee internal app “Wavelength”.

Due diligence processes for slavery and human trafficking

We understand that the following areas give rise to the highest modern slavery risks:

•   Supply Chain Risks
o    Raw Materials Sourcing – materials such as timber and metals could come from suppliers with unethical labour practices.
o   Electronics and Components – many nautical electronics such as navigation systems and communication devices, rely on minerals (e.g., cobalt or lithium) that could be sourced from conflict zones using forced labour.
o   Upholstery and Textiles – The sourcing of luxury leather, fabrics and other interior materials could involve exploitative labour practices.
Mitigation - We appropriately commission third-party audits of suppliers in higher-risk sectors to augment our internal assessments.

•   Workforce Risks
o   Migrant & Temporary Labour – Yacht manufacturing can require a large workforce, including highly skilled tradespeople such as welders, carpenters and GRP specialists. Some workers, especially migrants, could be at risk of exploitation.
o   Recruitment Agencies – Some agencies hiring workers may engage in deceptive recruitment or charging illegal fees.
Mitigation – We only engage recruitment agencies that can evidence compliance with our standards through their own Code of Professional Ethics (or similar code of conduct).

As part of our initiative to identify and mitigate risk we:
•    have implemented strong policies and governance processes;
•    conducted due diligence and risk assessments on our supply chain;
•    strengthened our supplier engagement and contracts which include the adherence to our Supplier Code of Conduct;
•    conduct ethical recruitment and fair employment practices, including using responsible recruitment agencies, ensuring employees are provided with clear employment contracts and ensuring wages meet or exceed the national minimum wage;
•    provide mandatory training and awareness to employees on how to identify and address red flags;
•    protect those who speak up on potential acts of wrongdoing, ensuring confidentiality and no detriment to those who raise issues in good faith; and
•    regularly review and update policies based on industry best practices.

Training

To ensure a high level of understanding of the risks of modern slavery and human trafficking in our supply chains and our business, we provide training to our staff. Every person who is newly employed by the business has a full induction on the first day of employment which includes details of our stance on modern slavery and how to report concerns surrounding modern slavery using the Whistleblowing (Speak Up) procedure.

Details of our approach to modern slavery are also communicated in our Employee Code of Conduct which employees receive regular bitesize training session on.

Our effectiveness in combating slavery and human trafficking

During the reporting year, there were no instances of modern slavery raised or identified in our operations or supply chains. Should an instance of modern slavery be identified, we will investigate fully and take immediate action, including supplier engagement, remediation and reporting to authorities if required.

We annually review the effectiveness of our policies and steps that we have implemented to ensure that no element of slavery and/or human trafficking is taking place within our business or its supply chain. We will consider:
•    the number of reports received from employees, the public, or law enforcement agencies which have identified modern slavery practices; and
•    the awareness and understanding of modern slavery across the business, its supply chain and the distributor network.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group's slavery and human trafficking statement for the financial year ending 31 December 2025.

 

Will Green
Chief Executive Officer