Code of Conduct

1. Objective / Purpose

Due to the Act on Corporate Due Diligence Obligations for the prevention of human rights Violations in Supply Chains (“Lieferkettensorgfaltspflichtengesetz”), applicable as of January 2023, and an EU Directive on the supply chain to be expected in the future, MAGNESIA is increasingly requested to deal with minimum requirements on human rights, working conditions and the environment in the countries of origin/supplier countries. Customers expect compliance with such standards in the countries of origin of the goods to be controlled by the subsequent participants in the supply chain, and legislator expects efforts to be directed towards this.

The sector of human rights, working conditions and environment (section 3 A and B of this Code of Conduct) is covered by the German Due Diligence Legislation. With a view to competitive behaviour and sustainability (section 3 C and D), business partners have been requesting information, confirmation or commitments for quite some time, so those topics has also been included in this Code of Conduct.

2. Objectives according to international conventions

Human rights including fundamental labour standards
(in particular: Conventions and protocols (ilo.org) No. 29, 87,98,100,105, 111,138,182), as well as

Fair and favourable working conditions
(in particular: ICESCR = UN Social Covenant Art.7)

Environmental protection
Minamata Convention — protection against mercury emissions, Stockholm Convention — protection against the negative effects of persistent organic pollutants. — protection against the negative effects of persistent organic pollutants.

Proper competitive behaviour
(in particular: OECD Guidelines for Multinational Enterprises and UN Anti-Corruption Regulations)

Sustainability
(17 UN Sustainable Development Goals (SDGs), insofar as these are listed as requirements and criteria under section 4 below).

3. Requirements for suppliers/manufacturers

A. Human rights, minimum labour standards, working conditions

The supplier/manufacturer ensures that the following is practised in his company and establishes a system at management level for monitoring, receiving complaints and remedying violations:

Living wages are paid that are at least in line with national legal requirements or industry standard remuneration and allow workers and their families to live in dignity under decent living and housing conditions.
Compliance with working hours: The working hours and break times provided for under ILO Conventions and applicable national law, as well as regulations on working at night, are observed.
Safe and hygienic workplaces: There is a safe and hygienic working environment in compliance with and in strictest observance of the national official regulations applicable to the company. Employees are regularly instructed and trained on occupational health and safety measures.
Health-endangering and hazardous activities: The handling of substances hazardous to health is only carried out by specially qualified personnel in compliance with national regulations.
Employment of minors: Employment of people under 15 years of age does not take place. Health-endangering or hazardous activities may only be carried out by specially trained employees who are at least 18 years old.
Forced and compulsory labour, i.e. activities that are carried out under the threat of a serious evil and/or the withholding of personal official documents, are prohibited. This also applies to the use of non-affiliated personnel.
The freedom of association and the right to collective bargaining of workers shall be respected.
Data protection: Compliance with applicable privacy and data protection laws to protect the confidentiality of the data and the rights of their suppliers, customers and employees.
Prohibition of discrimination: Workers shall be treated with dignity and respect. It is ensured that no one is discriminated or subjected to any risk due to race, skin colour, ethnic origin, nationality, gender, age, disability, political opinion, membership in a trade union or comparable interest group. In particular, the payment of unequal remuneration for work of equal value is regarded as unequal treatment.
Prohibition of internal measures: Workers shall not be disciplined or discriminated for claiming rights under the ILO Standards, or for complaining about violations to the management, authorities or advocacy groups.

B. Environmental protection

The supplier/manufacturer shall ensure, through appropriate internal and organisational measures, including regular monitoring, verification and documentation, that in his company

emissions of mercury are prevented or reduced in accordance with national legislation, using best available techniques and best environmental practices,
biodiversity is conserved and used sustainably, waters are protected, deforestation is combated and land use is managed.
chemicals listed as persistent organic pollutants in the annexes to the actual applicable version of the Stockholm Convention, are not stored, used, or applied in production, in accordance with national legislation related thereto,
national legislation for the protection of the environment is observed and implemented in industrial production facilities and warehouses of the manufacturer/supplier, in accordance with the state of the art available at the time, to prevent environmental damage from all forms of emissions and effluents,
internationally defined climate goals are observed and implemented in accordance with national legal provisions, and suitable industrial facilities exist for this purpose or are retrofitted accordingly, based on suitable internal planning and specifications.

C. Proper competitive behaviour

The supplier/manufacturer shall ensure through appropriate internal measures and procedural instructions in compliance with applicable national law, also the members of his management, that in his company

generally applicable rules of fair competition are observed, and the corresponding national legal provisions are complied with,
price agreements and agreements on conditions between competitors are avoided,
any form of influence by third parties on business/commercial or strategic decisions, e.g. through bribery or the granting of advantages, is rejected,
any form of influence on third parties, e.g. through bribery or the granting of advantages, is refrained from.

D. Sustainability

The supplier/manufacturer shall ensure that

the purchase of raw materials for production is carried out in a resource-conserving manner and in compliance with the applicable national regulations,
the use of raw materials and operating materials is designed in such a way that unnecessary material consumption is avoided,
operational facilities and production processes are designed in such a way that the consumption of energy and water is reduced as much as possible with regard to the “environmental footprint”,
environmental emissions are avoided as far as possible in accordance with the state of the art,
waste materials are recycled as far as possible in accordance with national regulations.

4. Verification of compliance with the Code of Conduct requirements

Upon request by MAGNESIA, the supplier/manufacturer proves compliance with the requirements under section 3 A to D by

providing requested documents,
producing any required documentation,
providing information and, if necessary, preparing reports,
making reliable statements,
allowing verification in the form of questionnaires,
allowing certifications to be carried out,
allowing audits and inspections to be carried out in presence or by remote communication,

to the extent necessary for MAGNESIA to meet the information requirements in the supply chain.

5. Remedial measures to be taken by the supplier/manufacturer

If MAGNESIA becomes aware, from the documentation and information or through a third party, of circumstances that indicate non-compliance or insufficient implementation of the requirements referred to in section 3 A to D, MAGNESIA shall request the supplier/manufacturer to take remedial action and shall require evidence/reports of actions taken.

6. Procedure in case of non-compliance with this Code of Conduct

MAGNESIA assesses the supplier/manufacturer on the basis of an internal assessment scheme e.g. taking into account

the previous experience with the supplier/manufacturer with regard to compliance and implementation of this Code of Conduct so far,
the nature of the areas covered by section 3 A to D,
the past experiences with corrective actions required under section 3,
the information and statements obtained under section 4,
the existence or absence of the confirmation required under section 7,

in order to determine, whether a future cooperation is possible or whether the existing cooperation should be discontinued or terminated prematurely.

7. Confirmation from the supplier/manufacturer

Upon request by MAGNESIA, the supplier/manufacturer confirms in a legally binding manner that it is committed to the objectives of this Code of Conduct as stated in Section 2, meets the requirements stated in Section 3, complies with the requirements stated in Section 4, takes all necessary corrective actions as stated in Section 5 and has taken note of the procedure described in Section 6.

Please click here to proceed to our Code of Conduct confirmation and supplier questionnaire.

Valid from 18.04.2023

Integrity channel

Our company is committed to integrity and transparency. We want our employees, customers and business partners to feel safe to report misconduct to us. This is the only way we are able to learn about possible misconduct by our employees and business partners and prevent it. For this reason, we have set up an independent, impartial and confidential whistleblower system that allows external and internal persons to anonymously and securely inform us of any violations of compliance and ethics guidelines.

Why a whistleblower system?

A whistleblower system is an important component of an effective compliance management system. It helps us to identify risks at an early stage and take active countermeasures. It also strengthens the trust of our employees, customers and business partners in the integrity and responsiveness of our company.

How does the whistleblower system work?

Our whistleblower system is simple and user-friendly. You can send us your information either via the mailbox, by telephone or by email. Alternatively, reports can also be submitted anonymously. We guarantee absolute confidentiality. Your reports will be reviewed and processed by independent experts.

How can I submit a tip?

You can send us your report anonymously or non-anonymously either via the mailbox, by telephone or by e‑mail. Please make sure that you enter a password for anonymous reports and keep a secure record of this together with the access code provided by the system so that you can remain in contact with us anonymously at all times and retrieve the result. It is also advantageous for faster and proper processing if you are available to answer any questions. Your data will be treated in the strictest confidence.

In order for your report to be processed and investigated properly, it is also important that the report is as specific as possible. Naming witnesses can also help to process and clarify your information quickly. It is important that your descriptions are also understandable for people from outside the field. It is helpful if you include the five W questions in your report:

Who? What? When? How? Where?

Declaration of data protection

If you have any questions about data protection when submitting reports, please follow the link below: Beschwerde- und Hinweisgeberportal — MAGNESIA GmbH (ak-compliance.de)