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Sustainable Purchasing Policy

1. PREMISE

FRICON has taken the strategic decision to position itself as an active advocate of promoting a culture of sustainability. Aware of the importance of guaranteeing responsible and sustainable supplies in order to achieve its objectives, over the last few years FRICON has established a structured process for managing its suppliers.

The company requires its suppliers to comply with a series of precepts, such as respect for regulatory requirements, laws and standards in force, as well as respect for human rights. In addition, these suppliers are expected to prioritize and protect the health and safety of their employees and the community, adopt responsible environmental protection policies and meet quality requirements in a timely and flexible manner.

The continuous search for innovation and technical solutions aimed at improvement, combined with safeguarding the security and integrity of the data and information exchanged, are highlighted as a priority. The company also emphasizes the need for

their suppliers to guarantee the competitiveness demanded by the target market through a LifeCycle Cost (LCC) approach.

This policy reflects FRICON’s ongoing commitment to the aforementioned objectives and will be subject to regular updates to ensure its relevance, compliance and continued alignment with the initiative. This shows the company’s responsibility and commitment to contributing to a more sustainable future.

2. OBJECTIVE OF THE SUSTAINABLE PURCHASING POLICY

The purpose of this Sustainable Purchasing Policy is to promote responsible and sustainable purchasing practices throughout FRICON’s supply chain. FRICON, committed to adopting the standards and principles outlined in this document, also requires its Suppliers to recognize, adopt and ensure compliance with these guidelines throughout the supply chain, including sub-suppliers.

Compliance and adherence to this Policy are essential conditions for establishing and maintaining business relations with FRICON. Any breach of this Policy entitles FRICON to terminate the business relationship.

3. SCOPE OF APPLICATION

This Policy applies to all FRICON Suppliers, whether national or international.

4. REGULATORY FRAMEWORK

This Policy is based on the values of FRICON’s Codes of Conduct, aligned with the UN Universal Declaration of Human Rights, the Tripartite Declaration of Principles on Multinational Enterprises, the ILO Social Policy, the OECD Guidelines for Multinational Enterprises and the principles recognized by ISO Standard 20400.

Suppliers must comply with local regulations and standards, undertaking to adopt the necessary measures to comply with the principles of this Policy, whenever local regulations present less stringent criteria.

5. WORK AND HUMAN RIGHTS

In accordance with international standards and with a view to social protection and sustainability, FRICON requires its suppliers to:

  • Do not use child labor, except in professional internships or training programs authorized by the government;
  • Do not tolerate any form of forced labor, physical or psychological violence, and oppose human trafficking;
  • Recognize, respect and fully guarantee the right to work and free association;
  • Don’t tolerate harassment and/or discrimination based on various characteristics.
  • Collaborate constructively and actively with their employees in promoting and enhancing the value of diversity.
  • Observe the rules in force regarding the regulation of working hours;
  • Encourage the material well-being of employees as much as possible, ensuring that remuneration and allowances comply with applicable regulations.

6. ETHICS

FRICON does not accept any form of corruption and demands transparency and integrity from its suppliers. They must also act with transparency and integrity, complying with the
anti-corruption regulations in force in all the countries where they operate;
Fair competition is essential, and Suppliers must act in compliance with the applicable regulations;

Any practice of corruption, incitement to crime, extortion or misappropriation is strictly forbidden. Suppliers are prohibited from offering, promising, paying or demanding, directly or indirectly, monetary value (through bribes, gifts, cash incentives or other benefits) in order to obtain undue advantages, either directly or through third parties.

Suppliers must report conflicts of interest, oppose all forms of money laundering and respect intellectual property rights.

7. QUALITY

FRICON promotes the constant improvement of its suppliers’ performance, encouraging their participation in product innovation processes with a strategic partnership approach. To guarantee the maximum safety and quality of its products, FRICON seeks to involve suppliers from the earliest stages of project development, adopting a proactive and preventive approach to anticipate and resolve any critical issues identified.

FRICON gives priority to all suppliers with a certified Quality Management System. The aim is for all suppliers of direct materials, services and/or product-related services to be certified to at least the international standard ISO 9001.

8. HEALTH AND SAFETY AT WORK

FRICON, as outlined in the Occupational Health and Safety Policy, places the protection of occupational health and safety as a fundamental principle in its business practices and approach. To this end, it requires suppliers to establish and maintain occupational health and safety policies aimed at providing safe and healthy working conditions for their employees, in compliance with applicable legal requirements.

Suppliers must adopt the principles of Management Systems, seeking to continually improve performance.

They undertake to promote a safety culture that encourages responsible behavior on the part of workers.
In the case of subcontracted production processes, suppliers undertake to follow applicable legislation, eliminate risks to workers’ health and safety wherever possible, and assess residual risks, implementing solutions to reduce them to minimum levels.

In particular, suppliers operating on FRICON premises are obliged to adopt FRICON’s Health and Safety Standards.

9. ENVIRONMENTAL SUSTAINABILITY

FRICON is fully committed to the principles of sustainable development, aiming to reduce the consumption of non-renewable resources to a minimum and maintain the use of renewable resources within the limits of their renewal. In this context, the contribution of the entire supply chain is considered a fundamental and indispensable element.

Reducing CO2 emissions throughout the product’s life cycle is one of FRICON’s priorities. In order to mitigate the impact of the Supply Chain on the carbon footprint of its products, FRICON asks suppliers for transparency and willingness to communicate the emissions generated by the company’s processes and upstream activities, as well as a commitment to implement effective measures to reduce direct and indirect CO2 emissions.

In addition, to minimize the environmental impact of their production activities, suppliers are encouraged to:

  • Develop and maintain the practices of an Environmental Management System, preferably obtaining third-party certification.
  • Commit to optimizing the use of natural resources, reducing emissions that are harmful to the environment, especially those related to the “greenhouse effect”.
  • Designing products and processes that minimize the environmental impact in their life cycle, with a special focus on water resources, seeking a progressive reduction in consumption and avoiding contamination.
  • Gradually reduce the use of energy from fossil sources by promoting local self-generation projects and the supply of energy from renewable sources.
  • To suggest to FRICON the adoption of alternative products and processes that improve the environmental impact in their life cycle, such as materials of secondary origin, in line with the principles of the circular economy.
  • Properly manage the treatment and disposal of waste in accordance with current regulations, with the aim of reducing the production of waste destined for landfills as much as possible, in favor of recoverable waste.
  • Avoiding the use of hazardous substances, where technically possible, and managing them in accordance with applicable regulations, not only at the production site, but also considering the final destination of the products.
  • Adopt optimized logistics procedures and promote the use of means of transport that minimize environmental impacts.
  • Encouraging the supply chain to minimize environmental impacts, in line with the commitment made by FRICON and requested of its suppliers.

10. INFORMATION SECURITY

Information security is crucial for FRICON. Suppliers must treat FRICON information rigorously, implement security controls and notify of information security breaches.

11. TRAINING

FRICON undertakes to train its employees in the principles of this Policy and encourages Suppliers to disseminate these principles through training.

12. REPORTING VIOLATIONS

Suppliers are responsible for promptly informing FRICON of any infringements of the principles set out in this policy by their employees. In addition, FRICON requests notification of any conduct contrary to the aforementioned principles practiced by FRICON employees in the context of the supply relationship.

13. MONITORING AND CORRECTIVE ACTIONS

FRICON requests information from its suppliers on the aforementioned issues by means of specific questionnaires and surveys, and reserves the right to conduct verifications through audits carried out by FRICON personnel and/or third parties, after due notification, covering the areas addressed by this policy.

In the event of non-compliance, FRICON will take the following measures:

It will require suppliers to draw up and implement a Non-Conformity Recovery Plan.
It will carry out documentary checks and/or additional audits to ensure the effective implementation of the aforementioned recovery plans, with adequate notice.
If a supplier violates the principles of this policy, does not actively contribute to providing the requested information or does not implement adequate improvement plans to correct identified non-conformities, FRICON reserves the right to preventively suspend and/or terminate early, with immediate effect, any business relationship. In addition, FRICON may take compensation measures for losses, damages, expenses or other costs arising from violations and/or conduct of the supplier.

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©FRICON, 2024