Human rights including labour rights that suppliers must manage (continued):
21. Right to be free from retroactive criminal law
22. Right to recognition as a person before the law
23. Right to privacy
24. Right to freedom of thought, conscience and religion
25. Right to freedom of opinion and expression (including freedom of information)
26. Right to freedom from war propaganda, and freedom from incitement of racial, religious or national hatred
27. Right to freedom of peaceful assembly
28. Right to freedom of association
29. Right to protection of the family and the right to marry
30. Right to protection of the child and right to nationality
31. Right to participate in public affairs
32. Right to equality before the law, equal protection of the law and rights of non-discrimination
33. Rights of minorities (culture, religious practice and language)
2. Environmental principles
Suppliers are expected to establish adequate processes to manage all significant potential and actual impacts on the external environment and support the principles in the Rio Declaration on Environment and Development. These principles are further described in the UN action plan Agenda 21. This corresponds to the environmental principles described in the OECD Guidelines for multinational enterprises.
The environmental principles listed in the following table should as a minimum be managed.
Environmental principles that suppliers must manage:
01. Demonstrate continuous improvements of the overall environmental performance related to its operations
02. Have basic management tools in place, consolidated at top management level and have a designated person responsible for coordination of environmental management activities.
03. Legal compliance with all regulated environmental issues related to waste management, air pollution, wastewater, soil contamination, and biodiversity.
04. Maintain and update on a regular basis a list of the relevant environmental legislation to comply with.
05. Assure compliance with prohibited chemicals list (e.g. for agrichemicals from World Health Organization, WHO).
06. Assure compliance with international environmental conventions and protocols, e.g. the Montreal Protocol about ozone depleting substances or Protocol on Persistent Organic Pollutants (POP).
07. Keep record of all pollution incidents and report these to relevant authorities as required by applicable permits and legislation.
08. Provide necessary organization, training of employees, awareness raising, operational control and monitoring to assure and maintain legal compliance.
09. Support a precautionary approach to environmental challenges, which involves a systematic risk assessment (hazard identification, hazard characterization, appraisal of exposure and risk characterization), risk management and risk communication.
10. Support activities that involve waste reduction and resource optimization from suppliers’ operations.
11. Support activities that promote green procurement of more eco-efficient products.
12. Protect the environment by using environmentally sound technologies that are less polluting, and use all resources in an efficient way.
13. Strive for integration of environmental attention into all elements of business planning and decision-making.
14. The approach to environmental responsibility should foster openness and dialogue with employees and the public.
15. Minimize the adverse impacts from activities, products and services through a proactive approach and responsible management of the environmental aspects (including but not limited to):
- > Use of scarce natural resources, energy and water
- > Emissions to air and releases to water
- > Noise, odour, and dust emission
- > Potential and actual soil contamination
- > Waste management (hazardous and non-hazardous substances)
- > Products issues (design, packaging, transport, use and recycling/disposal)
16. Establish and maintain emergency procedures.
17. Have a site emergency plan in place with detailed guidelines/training for major incident response, to effectively prevent and address all health emergencies and industrial accidents that can affect the surrounding community or have an adverse impact on the environment.
18. Emergency response plan communicated to local authorities, emergency services and potentially affected local communities, as required.
19. Maintain an inventory of hazardous substances used in the operation and stored, and assess substitution options toward more environmental friendly substances.
20. Ensure that access to relevant up-to-date Material Safety Data Sheets (MSDS) for chemical substances.
21. Assure safety procedures/controls in place for hazardous substances.
22. Assure minimizing the potential contamination of air, fresh water, soil and groundwater from chemical substances.
3. Anti-corruption principles
SUPPLIER should establish adequate processes to counter corrupt practices. Such processes should support and be in line with the United Nations Convention against Corruption.
Anti-corruption principles that suppliers must manage:
01. Documenting, recording and keeping income and expenditure data available for periods determined by law, and if not regulated for a minimum of three years;
02. Not permitting corruption of public officials or private-to-private corruption, including both ‘active’ and ‘passive’ corruption (also referred to at times as ‘extortion’ or ‘solicitation’);
03. Not permitting payment of bribes or trading in influence in relation in relation to business partners, government officials or employees; including through the use of intermediaries;
04. Not permitting use of facilitation payments, unless you are subject to threats or other coercion;
05. Not hiring government employees to do work that conflicts in any manner with the former official obligations of that employee;
06. Not permitting political contributions, charitable donations and sponsorships in expectation of undue advantages;
07. Not offering or accepting excessive gifts, hospitality, entertainment, customer travel and expenses (e.g. above the cumulative value of the equivalent of USD 200 per person/relationship in any twelve month period, if approved by a senior officer and explicitly recorded in the books of the business, naming the recipient or giver);
08. Abstaining from nepotism and cronyism;
09. Not permitting or participating in money laundering.
IV. Implementation of the Code of Conduct
Records and Documentation
Suppliers shall maintain appropriate records to demonstrate compliance with the requirements of this Code. Records shall be available to the BUYER upon request. Appropriate records include, but are not limited to:
Documentation of due diligence processes, including impact assessments and records from the tracking process;
Information on grievance mechanism(s);
Records of any significant instances of non-compliance encountered in relation to this Code, including a summary of corrective actions taken.
Definition of Roles and Responsibilities
Suppliers must assign responsibility within their organisation for the implementation of this Code. As a minimum, the following representatives shall be designated:
One or more management representatives with the responsibility and authority to ensure compliance with the Code
A qualified compliance officer responsible for planning, implementing and monitoring compliance with the Code.
Scope of Application
The requirements of this Code extend to all the BUYER’s suppliers and all of their workers, regardless of their status or relationship with suppliers. This Code therefore also applies to workers who are engaged informally, on short-term contracts, or on a part-time basis.
Suppliers are responsible for ensuring that their business relationships including their sub-suppliers also have adequate processes to manage their adverse impacts on human rights including labour rights, environmental, and anti-corruption principles in place. This includes sub-suppliers classified as home-based workers or small farmers. As part of this obligation, a supplier shall:
- > Require sub-suppliers to inform the supplier about other business entities in the supply chain taking part in the production of each order
- > Use its leverage to make sub-suppliers work towards meeting the requirements of this Code
- > Undertake reasonable efforts to check that sub-suppliers operate in conformance with this Code.
The BUYER may monitor the operations of suppliers with the purpose of gaining insight into how suppliers manage their impacts on human rights including labour rights, environmental, and anti-corruption principles.
The BUYER expects all suppliers at any time to be able to declare in writing its stage of implementation in relation to the requirements contained in this Code. Suppliers are expected at any point to willingly cooperate in answering further questions, self-assessments and if deemed necessary cooperate with the BUYER in improving systems to manage adverse impacts on human rights including labour rights, environmental, and anti-corruption principles.
Suppliers shall accommodate visits from the BUYER. This includes providing physical access to any representative from the BUYER or assigned by our company. The BUYER reserves the right to let an independent third party of our choice make on-site inspections to verify compliance with the requirements of this Code.
Where instances of non-compliance are detected as a result of supplier visits, suppliers will be given a fixed period of time to self-correct the deficiency. In the event of failure to self-correct a problem, the BUYER is willing to engage in a constructive dialogue with suppliers to develop and implement action plans, with appropriate time scales for implementation and improvements to be achieved. Agreement to abide by action plans allows for continuation of a business relationship, as long as the BUYER finds that suppliers are implementing the plan in good faith. In the event of repeated and serious breaches of the requirements of this Code, the BUYER reserves the right to cease business relationships with its suppliers and possibly cancel any production or delivery in progress.
 In this context, due diligence is an ongoing management process designed to avoid and address adverse impacts on internationally recognized sustainability principles. Due diligence should be carried out in light of a company’s circumstances (including sector, operating context, size and similar factors).