Supplier chain: Code of conduct

At Skamol we promote corporate responsibility and sustainability for our supply chains as well. We have a close cooperation with our suppliers and business partners in pursuit of this aim. Therefore, we have prepared our code of conduct to illustrate, what we expect of our suppliers and business partners. When selecting new suppliers, emphasis will be given to social and environmental standards. This indicates that our Code of Conduct covers human rights, workers’ rights, children's rights, the environment and corruption.

Suppliers to Skamol Group are only to supply goods and services that are produced in compliance with applicable laws, regulations and our code of conduct. Moreover, the suppliers are to communicate the Code of Conduct to their sub-contractors, and to monitor implementation.

A supplier must be able to document its compliance with the Code of Conduct at Skamol's request. Such documentation may take the form of self-declaration, follow-up meetings, due diligence by external service provider and/or inspections of the working conditions at production sites in the sole discretion of Skamol. The supplier will be obliged to name and provide contact information for any sub-supplier that Skamol wishes to inspect.

In the event of a breach of the Code of Conduct, Skamol and the supplier will jointly prepare a plan for remedying the breach. Remediation must take place within a reasonable period. The supply contract may be terminated without prejudice, if the supplier remains unwilling to remedy the breach, or in the event of a material breach of this Supply Chain Code of Conduct.

1. No Forced or Compulsory Labor (ILO Conventions Nos. 29 and 105)

• There must be no forced, bonded or involuntary prison labor.
• Workers must not be required to lodge deposits or identity papers with their employer and must be free to leave their employer after reasonable notice.

2. Freedom of Association and the Right to Collective Bargaining (ILO Conventions Nos. 87, 98, 135 and 154)

• Workers without distinction, must have the right to join, or form, trade unions of their own choosing and to bargain collectively. The employer must not interfere with or obstruct the formation of unions or collective bargaining.
• Worker’s representatives must not be discriminated and must have access to carry out their representative functions in the workplace.
• Where the right to freedom of association and/or collective bargaining is restricted under law, the employer must facilitate, and not hinder, the development of alternative forms of independent and free workers representation and negotiations.

3. No Child Labor (UN Convention on the Rights of the Child, ILO Conventions Nos. 138, 182 and 79, and ILO Recommendation No. 146)

• The minimum age for workers must be the higher than 15 years old or:
  • the national minimum age for employment, or;
  • the age of completion of compulsory education,
• If local minimum is set at 14 years, in accordance with developing country exceptions under ILO Convention 138, this lower age may apply.
• There must be no recruitment of child labor, which is defined as any work performed by a child younger than the age(s) specified above.
• No person under the age of 18 must be engaged in labor that is hazardous to their health, safety or morals, including night work.
• Policies and procedures for remediation of child labor prohibited by ILO conventions no. 138 and 182, must be established, documented, and communicated to personnel and other interested parties. Adequate support must be provided to enable such children to attend and complete compulsory education.

4. No Discrimination (ILO Conventions Nos. 100 and 111 and the UN Convention on Discrimination Against Women)

• There must be no discrimination at the workplace in hiring, compensation, access to training, promotion, termination or retirement based on ethnic background, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.
• Measures must be established to protect workers from sexually intrusive, threatening, insulting or exploitative behavior, and from discrimination or termination of employment on unjustifiable grounds, e.g. marriage, pregnancy, parenthood or HIV status.

5. No Harsh or Inhumane Treatment

• Physical abuse, punishment, threats of physical abuse, sexual and other harassment, verbal abuse, as well as other forms of intimidation, is prohibited.

6. Health and Safety (ILO Convention No. 155 and ILO Recommendation No. 164)

• The working environment must be safe and hygienic, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Hazardous chemicals and other substances must be carefully managed. Adequate steps must be taken to prevent accidents and injury to health arising out of, associated with, or occurring in, the course of work, by minimizing, so far as is reasonably practicable, the causes of hazards inherent in the working environment.
• Workers must receive regular and documented health and safety training, and such training must be repeated for new or reassigned workers.
• Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage must be provided.
• Provided accommodations must be clean, safe and adequately ventilated, and must have access to clean toilet facilities and potable water.

7. Wages (ILO Convention No. 131)

• Wages and benefits paid for a standard working week must, as minimum, meet national legal standards or industry benchmark standards, whichever is higher. Wages must always be high enough to meet basic needs, including discretionary income.
• Before entering employment, all workers must be provided with a written and comprehensible contract, outlining their wage conditions and method of payment.
• Deductions from wages as a disciplinary measure must not be permitted.

8. Working Hours (ILO Convention No. 1 and 14)

• Working hours must comply with national laws and benchmark industry standards, and no more than prevailing international standards. On a regular basis, weekly working hours must not be more than 48 hours.
• Workers must be provided with at least one day off for every 7-day period.
• Overtime must be limited and voluntary. Recommended maximum overtime is 12 hours per week, i.e. that the total working week including overtime must not exceed 60 hours. Exceptions to this are accepted when regulated by a collective bargaining agreement.
• Workers must always receive overtime pay for all hours worked over and above the normal working hours (see 8.1 above), minimum in accordance with relevant legislation.

9. Regular Employment

• Obligations to employees under international conventions, national law and regulations concerning regular employment must not be avoided using short term contracting (such as contract labor, casual labor or day labor), sub-contractors or other labor relationships.
• All workers are entitled to a contract of employment in a language they understand.
• The duration and content of apprenticeship program must be clearly defined.

10. Marginalized Populations

• Production and the use of natural resources must not contribute to the destruction and/or degradation of the resources and income base for marginalized populations. This applies when claiming large land areas, use of water or other natural resources on which these populations are dependent.

11. Environment

• Measures to minimize adverse impacts on human health and the environment must be taken throughout the value chain. This includes minimizing pollution, promoting an efficient and sustainable use of resources, including energy and water, and minimizing greenhouse gas emissions in production and transport. The local environment at the production site must not be exploited or degraded.
• National and international environmental legislation and regulations must be respected, and relevant discharge permits obtained.
• The supplier is expected to continuously improve its environmental performance, in the value chain by means of operational control and monitoring and by focus on awareness and training.

12. Corruption

• The highest standard of integrity is expected in all business interactions. Therefore, the supplier must comply with all applicable laws and regulations on bribery and corruption.
• Corruption in any form is not accepted, including bribery, extortion, kickbacks and improper private or professional benefits to customers, agents, contractors, suppliers or employees of any such party or government officials.
• The supplier must refrain from offering gifts and entertainment to Skamol purchasers or other employees, to influence business decisions.