Suppliers Code of Conduct

Code of conduct for suppliers and business partners

Tenvik, June 2023
Rev: 1

Hesnes Holding AS and its subsidiaries and associated companies (the «Hesnes Group») want to act transparently and responsibly and base our business on a high ethical standard in all contexts. Central aspects of this are safeguarding fundamental human rights, a decent working environment, sustainable development and environment, equality, diversity, corruption/fair business practices and compliance. The code of conduct («CoC») sets out the minimum standards we expect and require from our suppliers and business partners (hereafter collectively referred to as «supplier(s)») with respect to these topics.

When choosing suppliers, Hesnes Group emphasizes that they act in accordance with current national and international rules, as well as internationally recognized standards such as OECD, UN- and ILO- conventions for human rights, health and safety, labor rights, environment, fair competition, anti -corruption and fair business practices.

The Hesnes Group requires that all of Hesnes Group’s suppliers act responsibly and with openness and dialogue with regard to any challenges linked to these CoC or national or international rules and standards as mentioned above.

When this CoC has been communicated to a supplier, they are considered to have been adopted by the supplier and are then to be considered a contractual obligation for the supplier vis-à-vis the Hesnes Group.

By «Hesnes Group» in this CoC means both the group as a whole, and each subsidiary and associated company, as the context requires.

Fundamental Human Rights

The Hesnes Group requires that all suppliers comply with fundamental human rights and can account for any risks of violations of fundamental human rights that may occur in connection with their operations.

Without limiting the above, Hesnes Group requires that rights that appear in the Universal Declaration of Human Rights from 1948, the European Convention of Human Rights from 1950, the International Covenant on on Economic, Social and Cultural Rights from 1966, the International Covenant on Civil and Political Rights from 1966, the UN Convention on the Elimination of All Forms of Discrimination Against Women from 1979 and the UN Convention on the Rights of the Child from 1989 are complied with.

Hesnes Group requires that all of Hesnes Group’s suppliers are transparent and inform Hesnes Group if a breach or risk of a breach of fundamental human rights is discovered in connection with their operations.

Hesnes Group requires that all of Hesnes Group’s suppliers take measures to minimize the risk of violations of fundamental human rights if there is a risk of such violations related to the business.

Working environment and decent working conditions

Hesnes Group requires that all of Hesnes Group’s suppliers comply with requirements for decent working conditions related to their business and can account for any risks of violations of requirements for decent working conditions that may occur related to their business.

By decent working conditions means work that safeguard fundamental human rights and health, safety and environment in the workplace, and that provides a living wage.

Without limiting the above, Hesnes Group requires that rights that appear in the ILO’s Declaration on Fundamental Principles and Rights at Work 1998, the ILO’s Declaration on Social Justice for a Fair Globalization from 2008, the Global Jobs Pact from 2010, the ILO Centenary Declaration for the Future of Work from 2019 and that all applicable national rules for safeguarding employees’ rights related to the working environment and working conditions are complied with.

The supplier shall ensure that the workers have a healthy and safe working environment in accordance with local and international standards. Sufficient measures must be taken to prevent accidents, fire and other damage that may occur in connection with the work. Employees must receive appropriate training in security and safety measures.

Hesnes Group requires that all of Hesnes Group’s suppliers are transparent and inform Hesnes Group if a breach or risk of a breach of requirements for decent working conditions is discovered in connection with their operations.

Hesnes Group requires that all of Hesnes Group’s suppliers take measures to minimize the risk of breaches of requirements for decent working conditions if there is a risk of such breaches related to the business.

Sustainable development and environment

Hesnes Group requires that all of Hesnes Group’s suppliers are conscious of a sustainable utilization of resources, and seek to minimize waste, climate emissions and other pollution.

Equality and diversity

Hesnes Group requires that all of Hesnes Group’s suppliers have zero tolerance for discrimination based on ethnicity, religion, sexual orientation, age, disability, gender or gender identity.

Hesnes Group requires that all of Hesnes Group’s suppliers work actively for increased diversity in their business.

Hesnes Group requires that all of Hesnes Group’s suppliers take measures to minimize the risk of discrimination related to their business.

Corruption/Fair business practices

Hesnes Group requires that all of Hesnes Group’s suppliers have zero tolerance for corruption, and work actively for fair business practices.

Hesnes Group requires that all of Hesnes Group’s suppliers have ensured that neither Hesnes Group nor any of Hesnes Group’s employees receive, offer, request or accept any form of bribery, personal additional fees, goods or services or any other undue advantage from suppliers, business partners, public employees or other third parties.

Hesnes Group requires that all of Hesnes Group’s suppliers work against any money laundering, terrorist financing, corruption and other economic crime and take measures to minimize the risk of this in connection with their business.

Hesnes Group requires that all of Hesnes Group suppliers work against anti-competitive agreements or practices and not engage in any activities that involve unlawfully obtaining, receiving, using or sharing non-public competitively or commercially sensitive information.

Compliance

Hesnes Group requires that all of Hesnes Group’s suppliers comply with national and international laws and regulations that apply to their operations.

Hesnes Group requires that all of Hesnes Group’s suppliers have guidelines and internal control systems that are suitable to ensure compliance with national and international laws and regulations that apply to their operations.

Sanctions

Hesnes Group requires that the Supplier ensures that no party (including without limitation the supplier, the owner or the ultimate beneficial owner of the suppliers, or anyone in the supply chain of the Suppliers) is a sanctioned entity or person.

Confidentiality

Hesnes Group requires that all of Hesnes Group’s suppliers protect sensitive and confidential information, and we show great care before sharing business information with others.

Follow-up, information, revision and deviations

Suppliers must take active steps to incorporate the CoC into their operations, and to follow up the CoC towards their own suppliers. In the event of changes to Hesnes Group’s supplier or its supply chain that lead to changes in compliance with the CoC or a change in risk under the conditions described in the CoC, the supplier must inform Hesnes Group of this unsolicited, and if possible before the change.

Hesnes Group has the right to carry out on-site audits at the supplier to ensure that the requirements of this CoC is complied with. The supplier must ensure that Hesnes Group has the corresponding right to audit the supplier’s subcontractors. The supplier shall assist Hesnes Group in carrying out the audit.

If an audit reveals non-compliance, or non-compliance from the CoC is detected in some other way, the supplier must take corrective measures without undue delay. Hesnes Group can set a reasonable deadline for correction. Failure or significant delay to implement corrective measures constitutes a material breach of the supplier agreement between Hesnes Group and the supplier, which gives Hesnes Group the right to terminate the agreement (in addition to other rights under Norwegian or other applicable law).