Supplier Code of Conduct of the SIEMPELKAMP Group

With this Supplier Code of Conduct, the SIEMPELKAMP Group communicates its expectations of suppliers with regard to certain behaviors. As a third-party obligation, it forms the interface between SIEMPELKAMP’s corporate values and sustainability objectives and the desired conduct of its suppliers. Against the background of legal requirements along the supply chain, SIEMPELKAMP expects its suppliers to also obligate their own upstream suppliers to comply with this Supplier Code of Conduct and to report on the implementation of the requirements by subcontractors.

1. Introduction

SIEMPELKAMP is committed to environmentally and socially responsible corporate governance. We expect the same conduct from all our suppliers. We also expect our employees to observe the principles of ecological, social, and ethical behavior and to integrate them into the corporate culture. Furthermore, we strive to continuously optimize our entrepreneurial actions and our products or services in terms of sustainability and call on our suppliers to contribute to this within the meaning of a holistic approach.

For future cooperation, the contracting parties agree on the applicability of the following provisions for a joint Supplier Code of Conduct. This agreement serves as the basis for all future deliveries and services. The supplier undertakes to comply with the principles and requirements of the Supplier Code of Conduct and to contractually obligate its subcontractors and sub-suppliers to comply with the standards and regulations set out in this document.

This agreement enters into force upon signature or upon acceptance of a purchase order from SIEMPELKAMP. As a last resort, a violation of this Supplier Code of Conduct may constitute grounds and cause for SIEMPELKAMP to terminate the business relationship, including all related supply contracts.

The Supplier Code of Conduct is based on national and international laws and regulations such as

the 10 principles of the United Nations Global Compact initiative,
the Universal Declaration of Human Rights of the United Nations,
the United Nations Guiding Principles on Business and Human Rights,
the labor standards of the International Labour Organization, and
the UNICEF guidelines on children’s rights and business conduct.

2. Requirements for suppliers

SIEMPELKAMP expects a plan to carry out a sustainability rating in the near future and/or a documented self-commitment by the supplier to introduce a sustainability management system. SIEMPELKAMP also expects all suppliers to comply with minimum social, environmental, and ethical standards. These include in particular, without being exhaustive:

2.1 Social responsibility

Exclusion of forced labor

No forced labor, slave labor, or comparable forms of labor may be used. All work must be voluntary and carried out without threat of punishment. Employees must be able to terminate their work or employment relationship at any time. In addition, there must be no unacceptable treatment of workers, such as psychological hardship, sexual harassment, or humiliation. The commissioning or use of security forces must be refrained from if, in the course of their deployment, persons are treated in an inhuman or degrading manner or injured, or if freedom of association is impaired.

Prohibition of child labor

Child labor may not be used at any stage of production. Suppliers are requested to comply with the recommendations of the ILO conventions on the minimum age for the employment of children. Accordingly, the age should not be lower than the age at which compulsory schooling ends under the law of the place of employment and in any case not under 15 years. If children are found at work, the supplier must document the measures to be taken to provide a remedy and to enable the children to attend school. Employees under the age of 18 may not be employed for work that is harmful to the health, safety, or morals of children. Special protective regulations must be observed.

Fair remuneration

Remuneration for regular working hours and overtime must comply with the national statutory minimum wage or the minimum standards customary in the industry, whichever is higher. Remuneration for overtime must in any case exceed remuneration for regular hours. If remuneration is not sufficient to cover the cost of ordinary living expenses and to allow for a minimum level of savings, the supplier is obliged to increase remuneration accordingly. All statutory benefits must be granted to employees. Wage deductions as disciplinary measures are not permitted. The supplier must ensure that employees receive clear, detailed, and regular written information about the composition of their remuneration.

Fair working hours

Working hours must comply with applicable laws or industry standards. Overtime is only permitted if it is performed on a voluntary basis, complies with the applicable statutory limits, and employees are granted at least one day off after six consecutive working days. Weekly working hours may not exceed the legally permissible limits.

Freedom of association

The right of employees to form and join organizations of their choice, to engage in collective bargaining, and to strike must be respected. In cases where freedom of association and the right to collective bargaining are restricted by law, alternative options for independent and free association of employees for the purpose of collective bargaining must be provided. Employees may not be discriminated against on the basis of the establishment of, membership in, or joining such an organization. Employee representatives must be granted free access to the workplaces of their colleagues to ensure that they can exercise their rights in a lawful and peaceful manner.

Prohibition of discrimination

Unequal treatment of employees in any form is not permitted unless it is justified by the requirements of the employment. This applies, for example, to disadvantages based on gender, national, ethnic, or social origin, skin color, disability, health status, political conviction, worldview, religion, age, pregnancy, or sexual orientation. The personal dignity, privacy, and personal rights of each individual are respected.

Health protection; occupational safety

The supplier is responsible for a safe and healthy working environment. By establishing and applying appropriate occupational safety systems, necessary preventive measures are taken against accidents and health damage that may arise in connection with the activity. Excessive physical or mental fatigue must be prevented by appropriate measures. In addition, employees are regularly informed about and trained in applicable health and safety standards and measures. Employees are provided with access to drinking water in sufficient quantities and to clean sanitary facilities.

Preservation of natural livelihoods

The supplier may not deprive persons of land, forests, or bodies of water in violation of legitimate rights, where the use of such resources secures their livelihood. Harmful soil changes, water and air pollution, noise emissions, and excessive water consumption must be refrained from if they harm the health of persons, significantly impair the natural foundations for the production of food, or prevent persons from accessing safe drinking water or sanitary facilities.

Complaint mechanisms

The supplier is responsible for establishing an effective complaint mechanism for individuals and communities that may be affected by negative impacts.

Employees of the supplier may contact a designated complaints office at SIEMPELKAMP. Employees who file a complaint about violations of this Supplier Code of Conduct or applicable laws may not be subjected to disciplinary measures of any kind.

Handling of conflict minerals

For the conflict minerals tin, tungsten, tantalum, and gold, as well as for other raw materials (such as cobalt), the supplier establishes processes in accordance with the guidelines of the Organization for Economic Cooperation and Development (OECD) for the fulfillment of due diligence to promote responsible supply chains for minerals from conflict-affected and high-risk areas and expects the same from its own upstream suppliers. Smelters and refineries without appropriate, audited due diligence processes should be avoided.

2.2 Environmental responsibility

The following environmental aspects must be taken into account, where relevant:

Handling of air emissions

General emissions from operations (air and noise emissions) as well as greenhouse gas emissions must be characterized, routinely monitored, verified, and treated where necessary before release. The supplier is also responsible for monitoring its exhaust gas cleaning systems and is encouraged to find economically viable solutions to minimize any emissions. Accounting for greenhouse gas emissions is carried out at least for Scope 1 & 2 in accordance with the internationally applied GHG Protocol. The objective of the accounting is to obtain a meaningful balance of the company’s greenhouse gas emissions and of the products supplied.

Water use, in particular in water-scarce areas

The use of the water resource must be limited to the necessary extent, and overloading of the available sources must be avoided. In particular in water-scarce areas, the avoidance of evaporation and/or seepage is of high relevance. The management of local water resources must take into account not only ecological but also social aspects. Permanent overuse of local water resources and disregard of third-party water rights must be strictly refrained from.

Treatment and discharge of industrial wastewater

Wastewater from operations, manufacturing processes, and sanitary facilities must be characterized, monitored, verified, and treated where necessary before discharge or disposal. In addition, measures should be introduced to reduce the generation of wastewater.

Handling of waste and hazardous substances

The supplier follows a systematic approach to identify, handle, reduce, and responsibly dispose of or recycle solid waste. The prohibitions on the export of hazardous waste in the Basel Convention of March 22, 1989, as amended, must be observed. Chemicals or other materials that pose a hazard when released into the environment must be identified and handled in such a way that safety is ensured when handling these substances, during transportation, storage, use, recycling or reuse, and disposal. Mercury must be used in accordance with the prohibitions of the Minamata Convention of October 10, 2013, and persistent organic pollutants in accordance with the Stockholm Convention of May 23, 2001, as amended.

Reducing the consumption of raw materials and natural resources

The use and consumption of resources during production and the generation of waste of any kind, including water and energy, must be reduced or avoided. This can be done either directly at the point of origin or through processes and measures, for example by changing production and maintenance processes or company procedures, by using alternative materials, by savings, by recycling, or by reusing materials.

Handling of energy consumption/efficiency

Energy consumption must be monitored and documented. Economically viable solutions must be found to improve energy efficiency and minimize energy consumption.

Soil contamination

The processes for providing the service must be designed in such a way that contamination of soils (both temporary and permanent) is avoided. In addition to contamination, permanent damage to soils must also be refrained from, in the sense that subsequent use for agriculture or ecosystems is no longer possible. Contamination caused by unplanned events should be eliminated, primarily in accordance with the polluter-pays principle. It must always be borne in mind that contamination of soils can always result in contamination of water.

2.3 Integrity in business conduct

For the individual areas, reference is made to the OECD Guidelines for Multinational Enterprises.

Fair competition

The standards of fair business conduct, fair advertising, and fair competition must be observed. In addition, applicable antitrust laws must be applied, which in dealings with competitors in particular prohibit agreements and other activities that influence prices or conditions. Furthermore, these regulations prohibit agreements between customers and suppliers that are intended to restrict customers in their freedom to autonomously determine their prices and other conditions in resale.

Confidentiality/data protection

The supplier will treat all information received from SIEMPELKAMP as confidential information and trade secrets, unless such information is obviously publicly accessible. All information is to be used exclusively for the purpose of the respective delivery and must be protected against unauthorized access by appropriate measures.

The supplier undertakes to meet the legitimate expectations of its client, suppliers, customers, consumers, and employees with regard to the protection of private information. In collecting, storing, processing, transmitting, and disclosing personal information, the supplier must comply with the applicable data protection and information security laws and regulatory requirements.

Intellectual property

Intellectual property rights must be respected; technology and know-how transfer must be carried out in such a way that intellectual property rights and customer information are protected. Any form of reverse engineering is prohibited.

Integrity/bribery, undue advantage

The highest standards of integrity must be applied in all business activities. The supplier must pursue a zero-tolerance policy with regard to the prohibition of all forms of bribery, corruption, extortion, and embezzlement. The supplier establishes and maintains a process to monitor compliance with anti-corruption laws. A violation of this provision may result in the immediate termination of the supply relationship due to breach of contract and entitles SIEMPELKAMP, upon first request, to compensation for all resulting damages and internal and external expenses. The following are considered particularly sensitive areas for unlawful conduct: consultancy and agency agreements, dealings with public authorities, gifts and invitations, etc. In addition, money laundering and tax compliance are relevant.

2.4 Export control

In the case of imports and exports, the supplier must comply with all national and international foreign trade regulations applicable to it and may not participate in any violations, circumventions, or deceptions. SIEMPELKAMP expects suppliers to carry out and document their imports and exports in a traceable manner.

3. Implementation of the requirements

Systematic risk management is an important component of sustainable supply chain management.

With regard to supply chains, SIEMPELKAMP expects suppliers to identify risks within the supply chain and to take appropriate measures. In the event of suspected violations and to safeguard supply chains with increased risks, the supplier will inform SIEMPELKAMP promptly and, where applicable, regularly about the identified violations and risks as well as the measures taken.

Every supplier is expected to share information about emissions caused with SIEMPELKAMP. This must be done in a form that enables SIEMPELKAMP to meet the related requirements under the EU CSRD without undue effort.

The supplier demonstrates compliance with the standards and regulations set out in this document upon request by means of self-assessments. SIEMPELKAMP reserves the right to verify this in the context of audits. In addition, in complying with the requirements of the German Supply Chain Due Diligence Act, SIEMPELKAMP makes use of external service providers that assess suppliers in abstract terms, based on publicly available information and on questionnaires. The supplier hereby agrees to this and will complete the relevant questionnaires.

On-site audits may be carried out once a year or for a specific reason to verify compliance with the Code at the supplier’s operating sites during normal business hours, following reasonable advance notice, by persons commissioned by SIEMPELKAMP. The supplier may object to individual audit measures if they would violate mandatory data protection regulations.

If a violation of the provisions of this Supplier Code of Conduct is identified, SIEMPELKAMP will notify the supplier of this in writing without delay and grant it a reasonable grace period to bring its conduct into line with these provisions. If a remedy is not possible within a foreseeable period of time, the supplier must notify this without delay and, together with SIEMPELKAMP, draw up a concept with a schedule for ending or minimizing the violation. If the grace period expires without result and the implementation of the measures contained in the concept does not provide a remedy after expiry of the schedule, and if no less severe measure is available, SIEMPELKAMP may terminate the business relationship and cancel all contracts. A statutory right to extraordinary termination without setting a grace period, in particular in the case of violations that must be assessed as very serious, remains unaffected, as does the right to claim damages.

To the extent that individual aspects of the requirements of this Supplier Code of Conduct are subject to review/certification by third parties, this is expressly welcomed by SIEMPELKAMP.

4. Whistleblowers

SIEMPELKAMP gives all business partners and their employees the opportunity to report indications of violations of this Supplier Code of Conduct or other violations of applicable law in the context of the business relationship with SIEMPELKAMP. For this purpose, SIEMPELKAMP sets up a reporting office that can be accessed via the website of the SIEMPELKAMP Group.

SIEMPELKAMP expects all suppliers to establish their own options for whistleblowers, insofar as this is provided for by law in each case, but above all SIEMPELKAMP expects that indications of misconduct from employees or business partners are followed up, that identified legal violations are remedied, and that whistleblowers do not suffer any disadvantages as a result of justified reports.

5. Supplier’s acknowledgment and consent

Upon this document entering into force, the supplier undertakes to act responsibly and to comply with the principles/requirements set out. The supplier undertakes to communicate the content of this Supplier Code of Conduct to employees, agents, and subcontractors in a manner understandable to them and to take all necessary precautions for the implementation of the requirements. The supplier undertakes to pass on this Supplier Code of Conduct or all principles contained therein to upstream suppliers in a form that is no less binding, or to ensure in another form (for example by documented review of the codes of conduct of upstream suppliers) that upstream suppliers are bound to these principles.

This Supplier Code of Conduct is subject to change from time to time, and the current version, which is also accessible on the website of the SIEMPELKAMP Group, applies.