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Code of Conduct

Code of Conduct for Procurements

HAFSLUND E-CO’s Supplier Code of Conduct applies to all suppliers and their subcontractors. The Code is based on prevailing laws and regulations, central UN conventions and ILO conventions and establishes minimum standards.

We expect HAFSLUND E-CO’s suppliers and their subcontractors to comply with all laws and regulations in the countries in which they perform business activities. Where national laws and regulations deal with the same subject as these guidelines, the highest standard shall always apply.Infringement of these guidelines may have consequences, see Section 14.

1.Forcedlabour/slavelabour(ILOConventionNos.29and105)1.1 No form of forced labour, slave labour or involuntary work shall take place.1.2 Workers must not have to hand over a deposit or identity papers to the employer and shall be free to end the employment relationship at reasonable notice.

2.Right to organise and collective bargaining (ILO Convention Nos. 87, 98, 135 and 154)

2.1 Workers shall without exception be entitled to join or establish trade unions of their own choice and to bargain collectively.

2.2 The employer shall not discriminate against union representatives or prevent them from carrying out their trade union duties.2.3 If these rights are restricted under law, the employer shall facilitate, and not in any event hinder, the development of parallel means for independent and free association and bargaining.

3.Childlabour (UN Convention on the Rights of the Child; ILO Convention Nos. 138, 182 and 79; ILO Recommendation No. 146)

3.1 Children under 18 may not perform work that jeopardises their health or safety, including night work.

3.2 Children under 15 (14 or 16 in some countries) shall not perform work that may be harmful to their education.

3.3 No new recruitment of child labour in contravention of the above conventions may take place. If such child labour is already used, efforts shall be made to phase it out quickly. At the same time,arrangements shall be made to give the children the opportunity to receive subsistence and education until they are no longer of school age.

4. Discrimination (ILO Convention Nos. 100 and 111 and the UN’s Conventionon the Elimination of All Forms of Discrimination against Women)

4.1 No form of discrimination shall take place at work based on ethnic affiliation, religion, age, disability, gender, marital status, sexual orientation, trade union membership or political affiliation.

4.2 Workers shall be protected against sexually intrusive, threatening, abusive or exploitative conduct, and from discrimination or termination of employment on unjustifiable grounds, e.g. marriage, pregnancy, parenthood or status as HIV-positive.

5. Brutal treatment

5.1 Physical abuse or punishment, or threats of physical abuse, shall be prohibited. The same applies to sexual or other abuse and other forms of humiliation.

6. Health, safety and the environment (ILO Convention No. 155 and Recommendation No. 164)

6.1 Efforts shall be made to ensure that workers have a safe and healthy working environment. Necessary measures shall be taken to prevent and minimise accidents and injuries resulting from, or related to, workplace conditions.

6.2 Workers shall receive regular and documented health and safety training. Health and safety training must be repeated for the benefit of new employees.

6.3 Workers shall have access to clean sanitary facilities and clean drinking water. If applicable, the employer shall also ensure access to facilities for safe food storage.

6.4 If the employer offers accommodation, this must be clean, safe and adequately ventilated, with access to clean sanitary facilities and clean drinking water.

7.Wages (ILO Convention No. 131)

7.1 Workers’ pay shall as aminimum be in line with national minimum pay provisions or industry standards, and always be sufficient to cover basic needs.

7.2 Wages and payment of wages shall be contractually agreed in writing before the work starts. The agreement shall be formulatedso that the worker is able to understand it.

7.3 It is not be permitted to make deductions from wages as a disciplinary measure.

8. Working hours (ILO Convention Nos. 1 and 14)

8.1 Working hours shall be in accordance with national legislation or industrystandards, and not exceed the number of working hours stipulated under applicable international conventions. It is recommended that working hours per week do not exceed 48 hours (8 hours a day).

8.2 Workers shall have at least one free day a week.

8.3 Overtime shall be limited. A total of 12 hours of overtime per week is recommended.

8.4 Workers shall always receive overtime supplements, as a minimum in accordance with applicable laws.

9. Proper terms of employment

9.1 Obligations to workers, in line with international conventions and/or national legislation and regulations concerning proper terms of employment, shall not be circumvented through the use of short-term contracts (such as contract labour, casual labour and day labour), subcontractors or other employment relationships.

9.2 All workers are entitled to an employment contract in a language they understand.

9.3 Apprenticeship programmes shall be clearly defined in terms of duration and content.

CONDITIONS OUTSIDE THE WORKPLACE

10. Marginalised population groups

10.1 Production, and use of natural resources for production, shall not contribute to the destruction of the resource and income base for marginalised population groups, e.g. by claiming title to large land areas or other natural resources on which such populations depend.

11. Environment

The purpose of HAFSLUND E-CO’s Policy for the External Environment is: “to establish principles for ensuring that the company complies with statutory requirements, civil-law agreements and self-imposed instructions”.

11.1 Environmental measures shall be assessed along the entire production and distribution chain, from the production of raw materials to the end-sale to the consumer. Local, regional and global environmental factors shall be taken into account. Important environmental challenges that suppliers are expected to counteract include loss of biodiversity, long-term damage to ecosystems, air pollution impacting the climate, damage to marine ecosystems and soil degradation caused by the use of chemicals. The supplier is expected to improve waste management and to phase out the use of non-renewable resources. The local environment at the production site shall not be exploited and care shall be taken to ensure that there is no local pollution. Suppliers are expected to choose modern and efficient technology that reduces emissions of greenhouse gases and other product-and service-based emissions.

11.2 National and international environmental legislation shall be upheld.

11.3 Relevant discharge permits shall be obtained where necessary.

11.4 Harmful chemicals and other substances shall be managed in a proper manner.

12. Bribery and corruption

12.1 Suppliers shall maintain high ethical standards and sound business practices. Applicable laws and other legal regulations and agreements shall be followed. Simply “following the letter of the law” is not enough to maintain high ethical standards. Suppliers may not give or receive incentives that could be deemed to constitute unacceptable remuneration in order togain, retain or control business activities. Examples of such incentives include cash, goods, travel or other types of services.

13. Inspections and reports HAFSLUND E-CO has the right, either by itself or through a third party, to conduct audits and inspections at the supplier and subcontractors in order to check that the supplier is complying with HAFSLUND E-CO’s Code of Conduct. The Supplier undertakes to assist with implementing audits and inspections, including presenting necessary information.

14. Consequences of breaches of HAFSLUND E-CO’s Code of Conduct Breach of HAFSLUND E-CO’s Code of Conduct is deemed to be a serious matter that could result in rescission of the contract, requirements for proportionate compensation, disqualification of the supplier and reporting to relevant authorities.