Last updated: August 7th 2023
1. PREAMBLE
Technicon Design is committed to an ecologically and socially responsible corporate management. We also expect our employees to observe the principles of ecological, social and ethical behaviour and to integrate them into the corporate culture. Furthermore, we strive to continuously optimise our commercial actions and our services in terms of sustainability and expect the same behaviour from our suppliers.
Binding Requirements towards Tier- 1 Suppliers
Suppliers are expected to binding requirements towards Tier-1 suppliers, to pass on standards along the supply chain.
Wherever suppliers are located, all business shall be conducted in compliance with this Supplier Code of Conduct. Suppliers are expected to cascade these principles through their own supply chain (Tier 1 suppliers) and go beyond legal compliance to advance in social and environmental responsibility and business ethics.
As a supplier to Technicon Design, you are a key contributor to one of its objectives to continuously improve the way supply chains are managed.
Suppliers undertake to comply with the principles and requirements of the Code of Conduct and to endeavour to oblige their suppliers to comply with the standards and regulations set out in this document.
The supplier code of conduct is the basis for all future business and forms the basis of our business relationship.
1.1. COMPLIANCE WITH LAWS
The Supplier Code of Conduct is based on national laws and regulations such as the Supply Chain Due Diligence Act (LkSG) and international conventions such as the United Nations Universal Declaration of Human Rights, the Guidelines on Children’s Rights and Business Conduct, the United Nations Business and Human Rights Guidelines, the International Labor Standards Labor Organisation and the United Nations Global Compact.
Suppliers must comply with all laws and regulations applicable to their business, including the local laws and regulations of all countries outside their home country in which operations are managed or services are provided.
1.2. HUMAN RIGHTS AND WORKING CONDITIONS
Suppliers are expected to conduct their business and operations in a way that respects human rights by treating their own workers, and those working for their suppliers, with dignity and promoting fair employment practices. This includes providing fair and competitive wages, prohibiting harassment, bullying and discrimination, prohibiting use of child, forced, bonded, or indentured labour or prison labour and not engaging in trafficking of persons for any purpose.
Suppliers are expected to identify risks and actual adverse human rights impacts related to their activities and through their business relationships. They should take appropriate steps to reduce risk and ensure their operations do not cause or contribute to human rights abuses and to remedy any adverse impacts directly caused, or contributed to, by their activities or through business relationships.
1.2.1. LAND FOREST AND WATER RIGHTS – FORCED EVICTION
Suppliers shall preserve and protect natural resources, such as sources of energy, water, forests, soil, raw materials, etc. Suppliers shall prevent the exploitation, destruction, or neglect of natural resources. Likewise, suppliers shall undertake commercially reasonable efforts to minimise the creation of air emissions, waste water, waste, noise, and light pollution.
Suppliers shall undertake best efforts to ensure that their business activities do not impact natural resources in a way such that the production of food is significantly impaired, a person is denied access to safe drinking water, or a person’s health is harmed. Suppliers shall undertake reasonable efforts to have clear environmental targets, strategies, and policies in place.
Suppliers shall undertake reasonable attempts to have management systems in place to identify and mitigate environmental aspects and impacts of their operations and along their value chains. Suppliers shall ensure and demonstrate continuous environmental improvements. Suppliers shall encourage and apply circular economy practices.
Suppliers shall undertake reasonable efforts to ensure that by using land, forests, and waters, which are essential to a person’s livelihood, the persons may not be unlawfully evicted, and the land or resources may not be taken for the purpose of acquisition, development, or other use.
1.2.2. CHILD LABOUR
Suppliers must ensure that child labour is not used in the performance of work. The term “child” refers to any person under the minimum legal age for employment where the work is performed, and/or the minimum working age defined by the International Labour Organization (ILO), whichever is higher. All workers under the age of 18 must be protected from performing work that is likely to be hazardous or that may be harmful to their health, physical, mental, social, spiritual, or moral development.
1.2.3. MODERN SLAVERY
Suppliers must prevent any involvement in all forms of modern slavery, including human trafficking, forced, bonded, or indentured labour.
All work should be voluntary on the part of the employee. Suppliers are expected to provide all employees with a written contract in a language they understand clearly indicating their rights and responsibilities with regard to wages, working hours, benefits and other working and employment conditions.
Suppliers should not retain any form of employee identification (passports or work permits), nor destroy or deny access to such documentation, as a condition of employment unless required by applicable law. Suppliers must not charge employees fees, recruitment costs or deposits, directly or indirectly, as a precondition of work. Suppliers must respect the right of workers to terminate their employment after reasonable notice and to receive all owed salary.
1.2.4. INDIGENOUS PEOPLE & MINORITY PEOPLE
The protection of minorities is part of the protection of human rights. The rights of indigenous people, minorities and local communities shall be respected, promoted, and protected throughout the supply chain in accordance with the ‘UN Declaration on the Rights of Indigenous Peoples’. Suppliers are required not to engage in land grabbing, to obtain Free Prior and Informed Consent (FPIC), as defined by the UN-REDD Programme from existing land users and to promote adequate compensation where land use has been granted to the supplier.
1.2.5. USE OF SECURITY FORCES
Whenever third parties (private or public) are employed to protect the supplier´s operations and activities, suppliers must ensure that employees are protected through appropriate instruction or control of such third parties. Security personnel must respect the human rights of the individuals they encounter while on duty. Use of torture, cruel, excessive force, inhuman, or degrading treatment or injury to life or limb, as well as impairment of the right to organise and the freedom of association are not accepted.
1.3. ANIMAL WELFARE
Technicon Design require relevant suppliers to implement standards and best-practice methods to comply with animal welfare along the entire supply chain. In general, animal testing must be avoided and alternative methods free of animal testing must be favoured, as long as animal testing is not strictly required by law. In any case, national and international rules regarding animal protection and animal testing, e.g. the German Animal Protection Law (TierSchG) or the EU Directive 2010/63 shall be followed. Technicon expects its suppliers to follow the below principles :
• The ‘3R’ principle regarding animal testing (reduction, refinement, replacement)
• the ‘five freedoms’ of the Animal Welfare Committee (AWC) as a criterion to evaluate animal welfare and
• the standards for the improvement of animal health and welfare (Terrestrial Animal Health Code) of the World
Organisation for Animal Health (OIE).
1.4. EMPLOYMENT PRACTICES
1.4.1. HARASSMENT AND BULLYING
Suppliers are expected to ensure that their employees are afforded an employment environment that is free from physical, psychological, sexual, and verbal harassment, intimidation, or other abusive conduct.
1.4.2. DIVERSITY, EQUALITY & INCLUSION
Suppliers are expected to foster a diverse and inclusive work environment where employees are treated with dignity, respect and fairness, regardless of their race, colour, religion, gender, age, ethnic or national origin, disability, sexual orientation or preference, gender identity, marital status, citizenship status, political preference or other personal characteristic. Suppliers are expected to provide equal employment opportunity to employees and applicants for employment without discrimination and comply with all non-discrimination laws and regulations.
Suppliers must ensure employment, including hiring, payment, benefits advancement, termination, and retirement, based on ability and not any at such a premium rate as is legally required or, in those countries where such laws do not exist, at least equal to their regular hourly payment rate. Suppliers must not permit deduction from wages as a disciplinary measure nor permit any other deductions which are not provided by national law.
1.4.3. WOMENS’ RIGHTS
Women are often faced with special challenges along the supply chains. That is why we are committed to protect women’s rights and their possibility of economic independence and participation, and therefore expect our suppliers to follow the below due diligence actions:
• Consider impacts on women with due regard to their role as food providers, custodians of biodiversity and holders of traditional knowledge when undertaking an impact assessment on environmental, social, human rights, health, and safety risks.
• Ensure that women are treated fairly and equally, recognising women’s respective situations, constraints and needs.
• Recognise the role played by women in the sector and take appropriate measures to eliminate discrimination against women and to help ensure their full professional development and advancement, including by facilitating equal access and control over natural resources, inputs, productive tools, advisory and financial services, training, markets, and information.
• Promote women’s access to training.
• Ensure that the voice of women is adequately represented in the process to verify that company due diligence practices are effective and that risks have been adequately identified, mitigated, or prevented.
1.4.4. WAGES AND BENEFITS
Suppliers must pay workers at least the minimum compensation required by local law and provide all legally mandated benefits. In addition to payment for regular hours of work, workers must be paid for overtime at such a premium rate as is legally required or, in those countries where such laws do not exist, at least equal to their regular hourly payment rate. Suppliers must not permit deduction from wages as a disciplinary measure nor permit any other deductions which are not provided by national law.
1.4.5. WORKING HOURS
Suppliers are expected to operate in consideration of the International Labour Organisation (ILO) standards regulating working, resting hours, maximum consecutive days of work and annual leave. Hours worked beyond the normal work week shall be voluntary and suppliers must provide a rest period of at least 24 consecutive hours in every seven-day period to all their employees.
1.4.6. SOCIAL DIALOGUE AND FREEDOM OF ASSOCIATION
Suppliers are expected to respect the rights of workers to associate freely and communicate openly with management regarding working conditions without fear of harassment, intimidation, penalty, interference, or reprisal. Suppliers are expected to recognise and respect any rights of workers to exercise lawful rights of free association, including joining or not joining any association of their choosing within the appropriate national legal framework.
1.4.7. DISCIPLINARY AND GRIEVANCE MECHANISM
Suppliers are expected to have an employee disciplinary process in place to address concerns regarding employee work, conduct or absence. Suppliers are expected to have a grievance mechanism for employees to raise a workplace problem or concern or to appeal a disciplinary decision.
1.4.8. MIGRANT WORKERS
The term “migrant worker” refers to a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a State of which he or she is not a national. Suppliers must ensure that migrant workers are employed in full compliance with the immigration and labour laws of the host country.
1.5. INTEGRITY & BUSINESS ETHICS
1.5.1. ANTI-CORRUPTION LAWS
Suppliers shall comply with all anti-corruption laws and regulations applicable to the performance of its obligations and activities in its relationship with Technicon Design. Suppliers are expected to put in place a compliance programme tailored to the risks of their business and to conduct reasonable due diligence to prevent and detect corruption in all business arrangements, including purchasing contracts, partnerships, joint ventures, offset agreements, and the use of third parties such as agents or consultants.
1.5.2. ILLEGAL PAYMENTS
Suppliers must not offer, promise, make, accept, or agree to accept any improper payments of money or anything of value to government officials, political parties, candidates for public office, or other persons. This includes a prohibition on so called ‘facilitation’ or ‘grease’ payments intended to expedite or secure performance of a routine governmental action like obtaining a visa or customs clearance unless there is a formal legal governmental fee schedule for such expediting services and the government provides receipts. Personal safety payments are permitted where there is an imminent threat to health or safety.
Suppliers must not offer any illegal payments to, or agree to receive any illegal payments from, any customer, supplier, their agents, representatives, or others. We expect suppliers to prohibit their employees from receiving, paying, and/or promising sums of money or anything of value, directly or indirectly, intended to exert undue influence or improper advantage. This prohibition applies even in locations where such activity may not violate local law.
1.5.3. FRAUD AND DECEPTION
Suppliers must not seek to gain an advantage of any kind by acting fraudulently, deceiving people, making false claims, or allowing anyone else representing them to do so. This includes defrauding or stealing and any kind of misappropriation of property or information.
1.5.4. COMPETITION AND ANTITRUST
Suppliers must not enter into formal or informal anti-competitive arrangements that fix prices, collude, rig bids, limit supply or allocate/control markets. They must not exchange current, recent, or future pricing information with competitors. Suppliers must not participate in a cartel or any activity that would unlawfully restrain or impact competition.
1.5.5. GIFTS/BUSINESS COURTESIES
Suppliers are expected to compete on the merits of their products and services. Suppliers must not use the exchange of business courtesies to gain an unfair competitive advantage. In any business relationship, suppliers must ensure that the offering or receipt of any gift or business courtesy is permitted by applicable laws and regulations, and that these exchanges do not violate the rules and standards of the recipient’s organization and are consistent with reasonable marketplace customs and practices. No cash gifts or cash equivalent should be offered or accepted.
1.5.6. INSIDER TRADING
Suppliers and their personnel must not use any material or non-publicly disclosed information obtained during their business relationship with Technicon Design as the basis for trading or for enabling others to trade in the stock or securities of any company.
1.5.7. CONFLICT OF INTEREST
Suppliers are expected to avoid all conflicts of interest or situations giving the appearance of a conflict of interest. Suppliers will provide immediate notification to all affected parties in the event that an actual or potential conflict of interest arises. This includes a conflict between Technicon Design and personal interests or those of close relatives, friends, or associates.
1.6. ENVIRONMENT & HEALTH AND SAFETY
1.6.1. ENVIRONMENTAL, HEALTH & SAFETY MANAGEMENT SYSTEM
Suppliers are expected to conduct their business in a manner that actively manages environmental risks across their operations, products, and supply chain. Suppliers are expected to establish an appropriate environment management system, including policies and procedures aimed at effectively managing their environmental performance, including integrating environmental considerations into their product design or service.
Suppliers are expected to establish an appropriate health and safety management system including policies aimed at protecting the health, safety and welfare of employees, contractors, visitors, and others who may be affected by their activities by striving to eliminate fatalities, work-related injuries, health impairment and limiting exposure to safety hazards.
Suppliers should take reasonable steps to provide a hygienic working environment and must ensure that employee’s performance and safety is not impaired by alcohol, controlled substances, legal and illegal drugs.
1.6.2. CO2 REDUCTION
Technicon Design is fully committed to the ‘Paris Agreement’ (COP 21). Therefore, one major focus of our sustainability activities is lowering our CO2 emissions. We demand from our suppliers to provide transparency regarding emissions data from their own operations as well as from upstream activities. We expect our suppliers to implement effective measures to reduce their direct and indirect CO2 emissions (including their upstream supply chain) in line with the Paris Agreement.
1.6.3. RENEWABLE ENERGY
Energy consumption must be monitored and documented. Economical solutions must be found to improve energy efficiency and minimise energy consumption.
Suppliers must aim to source renewable energy to power their operations and activities and use electric vehicles rather than combustion engine vehicles where it is possible.
The use and consumption of resources during production and the generation of waste of all kinds, including water and energy, must be reduced or avoided. This happens either directly at the point of origin or through procedures and measures, e.g. by changing the production and maintenance processes or processes in the company, by using alternative materials, by savings, by recycling or with the help of the reuse of materials.
1.6.4. SUBSTANCES CHEMICAL MANAGEMENT AND MATERIAL RESCTRICTIONS
Suppliers are expected to communicate to Technicon Design up to date information in regard to environmental, health and safety (EHS) matters of their products to enable safe usage of the products in the whole life cycle. Suppliers are further expected to cooperate with Technicon Design to enable downstream requirements in relation to suppliers’ products and/or services to be fulfilled. In addition, suppliers are expected to anticipate future regulatory constraints on some chemicals/substances in order to ensure continuity of supply.
Suppliers and sub-suppliers shall comply with all applicable laws and regulation regarding the restriction and registration and where necessary, authorization or notification of chemical substances contained in the end product or production process according to the statutory requirements that apply to the corresponding market Suppliers shall adopt new process and best practice not only securing the supply of parts and components, but also addressing the environment as well as health and safety concerns.
1.6.5. BIODIVERSITY, DEFORESTATION, POLLUTION AND EVICTION
Supply chain activities – including raw material production and processing – shall protect natural ecosystems and halt conversion, deforestation and forest degradation based on identification and management of natural forests and other natural ecosystems.
We expect our suppliers to comply with the applicable local regulations and Environmental standards and environmental regulations at all locations and act in an environmentally conscious manner, in particular with regard to:
• Causing pollution of water, soil, or air, harmful noise emissions, or excessive water use that adversely affects living conditions.
• Unlawful eviction or deprivation of land (Land grabbing).
• Disposal of waste.
• Use and disposal of chemicals.
• Hazardous materials.
1.6.6. SUSTAINABLE PRODUCT AND PROCESS DEVELOPMENT
Technicon Design suppliers shall actively support the sustainability strategy of Technicon Design and make their best effort to develop, manufacture and deliver innovative products and processes that have the lowest possible environmental impact throughout the lifecycle. Suppliers are expected to reduce their climate change impact, improve their efficiency of usage of energy, water, and natural resource, minimise waste and use of hazardous materials, dispatch goods in an adequate outer packaging and foster reusable / recycled packaging materials such as reduced usage of single used plastic and responsibly manage their air emissions.
1.7. INFORMATION PROTECTION
1.7.1. PROTECTING SENSITIVE, CONFIDENTIAL AND PROPRIETARY INFORMATION AND DISCLOSURE
Suppliers are expected to ensure that all sensitive, confidential, and proprietary information is appropriately protected. In its relationship with Technicon Design, Suppliers must comply with all applicable data privacy laws and regulations. Suppliers must protect the sensitive, confidential, and proprietary information of others, including personal data/information, from unauthorized access, destruction, use, modification and disclosure, through appropriate physical and electronic security procedures, including mitigating emerging risk to information systems by implementing appropriate IT cyber security programmes. Suppliers must report to Technicon Design any suspected or actual data breach or security incident as soon they are aware.
1.7.2. INTELLECTUAL PROPERTY
Suppliers must comply with all the applicable laws governing intellectual property rights assertions, including protection against disclosure.
1.8. GLOBAL TRADE AND EXPORT CONTROL
1.8.1. IMPORT
Suppliers must ensure that their business practices are in accordance with all applicable laws, directives and regulations governing the import of parts, components, technical data, and services.
1.8.2. EXPORT CONTROLS AND ECONOMIC SANCTIONS
Suppliers must ensure that their business practices are in compliance with Export Control laws and regulations including the US, EU and any applicable national regulations, including compliance with Sanctions and Embargoes legislations. Suppliers shall provide truthful and accurate export control classification, information and obtain export control licences or otherwise authorisations when required and must communicate any declarations where necessary.
1.8.3. RESPONSIBLE SOURCING OF MINERALS AND RAW MATERIALS
Suppliers must comply with applicable laws and regulations regarding direct and indirect sourcing of critical material and conflict minerals (i.e. when integrated in purchased products). Those materials include “conflict minerals” (tin, tungsten, tantalum and gold), rare earth elements, as well as other minerals or metals (e.g. bauxite, cobalt, titanium, lithium). Suppliers shall establish a policy and a management system to reasonably assure that the “conflict minerals” as well as critical material, which may be contained in the products they deliver are sourced responsibly (i.e. with limited environmental impacts and not detrimental to Human Rights).
Suppliers shall support efforts to eradicate the use of any conflict minerals which directly or indirectly finance or benefit armed groups that are perpetrators of serious human rights abuses. Suppliers are expected to conduct due diligence and provide Technicon Design with supporting data on their sources and supply chain of custody for these minerals when requested, and to identify to Technicon Design any potential doubt on the origin and/or on the production means. In the event that the material ‘chain of custody’ supplied is “indeterminable” or otherwise unknown, the supplier is expected to either attain the appropriate certifications or phase out that source of mineral.
Raw materials should be obtained from audited sources as a matter of principle wherever possible, using independent, third-party assurance, such as the Standard for Responsible Mining from the ‘Initiative for Responsible Mining Assurance’ (IRMA).
1.8.4. PLAGIARISM & COUNTERFEIT PARTS
Supplying companies are obliged to take all necessary and appropriate measures within their area of responsibility, so neither products nor their workable components or raw materials or the corresponding know-how into the hands of unauthorised persons third party enters and/or exits the legitimate supply chain.
Suppliers are expected to develop, implement, and maintain effective methods and processes appropriate to their products to minimise the risk of plagiarism and materials being delivered. Effective processes should be in place to detect, report and quarantine counterfeit parts and materials and to prevent such parts re-entering the supply chain. If counterfeit parts and/or materials are detected or suspected, suppliers should provide immediate notification to the recipients of such counterfeit parts and/or materials.
1.8.5. PAYMENT OF TAXES AND FINANCIAL RESPONSIBILITY
Suppliers must ensure they comply with all applicable tax laws and regulations in the countries where they operate and be open and transparent with the tax authorities. Under no circumstances should suppliers engage in deliberate illegal tax evasion or facilitate such evasion on behalf of others. As such, suppliers must put in place effective controls to minimise the risk of tax evasion or its facilitation, and provide appropriate training, support, and whistleblowing procedures to ensure their employees understand and implement them effectively and can report any concerns.
1.8.6. PAYMENT PRACTICES
Suppliers are expected to be fair and reasonable in their payment practices and pay undisputed and valid invoices on time in accordance with agreed contractual payment terms and applicable laws.
1.9. MAINTAIN ACCURATE RECORDS
Suppliers are expected to create, store and maintain business records, and not alter any record entry to conceal or misrepresent the underlying transaction represented by it. Suppliers are expected to have in place appropriate related controls to ensure the above activities are accurately and securely performed.
All records, regardless of format, made or received as evidence of a business transaction must fully and accurately represent the transaction or event being documented. Records should be retained based on the applicable retention requirements.
1.10. GOVERNANCE & MANAGEMENT SYSTEMS
1.10.1. SPEAK UP CULTURE AND WHISTLEBLOWER PROTECTION AGAINST RETALIATION
According to the legal requirements, whistle-blowers must be protected from the negative consequences and any retaliation of whistleblowing of any kind. This applies in particular to disadvantages and punishments, such as measures under labour law (dismissal, transfer or wage reduction) as well as other reprisals such as bullying. For this purpose, too, the confidentiality of the whistle-blower’s identity and data protection must be ensured.
Suppliers are expected to provide employees and third parties with access to adequate reporting channels to seek advice or raise legal or ethical concerns without fear of retaliation, including opportunities for anonymous reporting. We expect suppliers to take action to prevent, detect and correct retaliatory actions.
1.10.2. CONSEQUENCES FOR VIOLATING THE CODE
In the event that the expectations of this Code of Conduct are not met, the business relationship may be reviewed, and corrective action pursued subject to the terms of the related contract(s).
1.11. COMPLAINTS PROCEDURE
Our complaints procedure is a core element of becoming aware of potential human rights and environmental issues. Any person who is affected by or has knowledge of human rights violations or negative impacts on the environment in the business operations of Technicon Design or in its supply chain may report them immediately.
Complaints should be submitted in writing to [email protected].
