Code of Conduct for Suppliers

Mälarenergi´s mission is to contribute to long-term sustainable development by creating social value through a business-driven approach. With this Code of Conduct, Mälarenergi aims to ensure that we, together with our suppliers, are working towards sustainable development. This Code of Conduct will form an integral part of the Supplier’s agreement with Mälarenergi.
It is the Supplier’s responsibility to apply the Mälarenergi Code of Conduct for Suppliers in its own business operation. In the event of conflict between the Code of Conduct for Suppliers and applicable laws, the Supplier is to comply with the more stringent requirements.

1 Human rights

All internationally recognised human rights, as expressed in the UN Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and the ILO Declaration on Fundamental Principles and Rights at Work, shall be complied with.

2 Labour rights

2.1 Freedom of association and the right to collective bargaining are respected

a) Employees, without distinction or discrimination, have the right to join or form trade unionsof their choice and to engage in collective bargaining.
b) Employers adopt an open position on the activities of trade unions and their organisational activities.
c) Employee representatives are not discriminated against, and can perform their representative functions in the workplace.

2.2 Employment is freely chosen

a) There is no forced labour or any form of slavery.
b) Employees are not obliged to leave deposits or their identity documents with their employer, and are free to leave their employer after a reasonable period of notice.

2.3 Child labour must not be used

a) Child labour must not occur. Child labour is any form of activity or work that is harmful to the intellectual, physical, social, and moral development of persons under the age of 18, and that undermines their education, preventing them from attending school, forcing them to leave school too early, or requiring them to work and study at the same time.
b) The employer develops or participates in and contributes to policies and programmes that govern the transition of any child found to be engaged in child labour, to enable them to participate in and remain in education until they are no longer a child.
c) However, an employee under the age of 18 may be entitled to work if they fulfil the age requirements for the applicable type of work:
- For general work, the minimum age is 15.
- For non-hazardous work, the minimum age may be temporarily set to 14 years in
  countries where the school leaving age is lower than 15.
d) Persons under the age of 18 may not be employed to work at night or in hazardous
conditions.

2.4 No discrimination is practised, and inhumane treatment is not permitted

a) There is no discrimination in recruitment, wages and salaries, access to training, advancement or promotion, termination of employment, or retirement on the grounds of national origin, religion, age, disability, gender, marital status, sexual orientation, union membership, or political affiliation.
b) Physical abuse or disciplinary measures, threats of physical abuse, sexual or other harassment, and verbal abuse or other forms of intimidation are forbidden.

2.5 Working conditions are safe and hygienic

a) A safe and hygienic work environment shall be provided, taking into account the knowledge of the relevant business area and awareness of any particular hazards. Appropriate measures shall be taken to prevent accidents and damage to health resulting from or related to the work, by minimising the causes of the hazards associated with the work environment as far as is practically possible.
b) Employees shall be given regular and registered health and safety training.
c) Access to clean toilets and drinking water and, where applicable, sanitary arrangements for storage of foods, shall be provided.
d) Accommodation, if provided, shall be clean and safe, and satisfy the employees’ basic needs.
e) Responsibility for health and safety shall be assigned to a representative of the executive management.
f) All employees shall be free from the influence of drugs and alcohol during working hours.

2.6 Living wages are promoted

a) Wages and benefits paid for a normal working week shall at least meet national legal standards or industry benchmark standards, whichever is higher.
b) All employees shall receive written and comprehensible information about their terms of employment regarding pay before they start work, and about the pay details for the relevant wage period each time they are paid.
c) Wage deductions as a disciplinary measure are not permitted. Deductions from wages that are not stipulated in national legislation are not permitted.

2.7 Working hours are not excessive

a) Working time must comply with national laws, any collective bargaining agreement, and the provisions in points b) to f) below, depending on which gives the greatest protection to the employee.
b) Working time, excluding overtime, shall be specified in a contract, and may not exceed 48 hours a week.
c) Overtime shall be used responsibly, taking into account the extent, frequency and number of hours worked by individual workers and the workforce as a whole. Overtime may not be used to replace regular employment.
d) The total number of worked hours during a seven-day period may not exceed 60 hours,
except when point e) below applies.
e) Working time may exceed 60 hours during a seven-day period only in exceptional cases when the following provisions are satisfied:
- This is permitted according to national legislation.
- This is permitted according to a collective bargaining agreement that has been freely negotiated with an employee organisation that represents a significant proportion of the workforce.
- Appropriate safety measures are taken to protect the employees’ health and safety.
- The employer can show that exceptional circumstances apply, such as unexpected production peaks, accidents, or emergency situations.
f) The employees shall be given at least one rest day during every seven-day period or, if permitted according to national legislation, two rest days in every 14-day period.

2.8 Regular employment is provided

a) To every extent possible, the work performed shall be based on a recognised employment relationship established by national legislation and practice.
b) Obligations towards employees according to laws and other statutes relating to work or social security arising from the regular employment relationship shall not be avoided by the use of subcontractors or home working, or through apprenticeship systems where there is no genuine intention to impart skills or provide regular employment. Such obligations shall not be avoided through overuse of short-term employment contracts.

3 Environment

3.1 Environmental and climate impact

a) National environmental legislation is followed.
b) Climate measures that help to attain national and international climate goals are promoted.
c) The use of virgin raw materials is reduced through continual optimisation of raw material use, greater recycling and reuse of raw materials, minimisation of waste, and through offers and solutions in line with a circular economy.
d) No raw materials are used from species listed in CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora, also called the Washington Convention) or that are classified as endangered or vulnerable on the IUCN Red List of Threatened Species (International Union for Conservation of Nature).
e) The use of chemicals is monitored or evaluated. Where possible, substitution and/or alternative processes are implemented, to reduce hazards to health and the environment and to improve resource efficiency.
f) Waste is stored, managed, transported, and disposed of in a way that protects employees’ health, people in the surrounding communities, and the environment.
g) Strategies for efficient water use are promoted where applicable.
h) Discharges and emissions that comprise a hazard for health and the environment are reduced or eliminated.

3.2 Environmental rights

a) All peoples have the right to self-determination and to freely dispose of their natural wealth and natural resources. In no case may a people be deprived of its means of subsistence.
b) Illegal eviction or taking over of land, forest or water may not occur.
c) The rights of indigenous peoples to land, territories and natural resources that they have traditionally owned, occupied or otherwise used or acquired are respected, including the right to free and informed prior consent.
d) The right to a safe, clean, healthy, and sustainable environment is respected. This right is an integral part of full enjoyment of the right to life, health, food, water, and sanitation.

4 Business ethics

4.1 Corruption, anti-competitive behaviour, and taxation

a) No involvement in bribery, embezzlement, trading in influence, abuse of office, illegal enrichment, money laundering, concealment or obstruction of justice occurs.
b) No agreements may be entered into that are aimed at distorting competition or misusing a position of dominance.
c) No tax arrangements are made if it is uncertain whether the arrangement is within the scope of the law. The same applies to tax planning that takes advantage of shortcomings in tax regulations.

5 Due diligence

Requirements for due diligence aim to ensure responsible supply chains and minimize negative impacts on people, the environment, and society. The requirements are based on international guidelines and include:

a) The supplier is responsible to ensure that processes and policies are in place, assign responsibilities, and ensure compliance with this Code Of Conduct throughout the supply chain.
b) Risks to meet the requrements of this Code Of Conduct must be identified, assessed, and managed through action plans and documented.
c) The supplier must report serious deviations and cooperate in Mälarenergi’s follow-up, including transparency regarding subcontractors.

6 Severe deviations

Forced labour, child labour, working conditions that endanger life, serious environmental damage, large-scale corruption, and attacks on environmental and human rights defenders are examples of severe deviations.
Serious environmental damage is defined as damage caused by polluting activities that have a serious negative impact on people, water sources or groundwater, species, and habitats.

Large-scale corruption is defined as involvement in bribery, embezzlement, trading in influence, abuse of authority, illegal enrichment, money laundering, concealment or obstruction of justice.

7 Continued engagement

7.1 Deviations

If the Supplier has reasonable grounds to assume that there is or has been a case of severe deviation in its own business operation or in the supply chains, the Supplier shall, within four weeks, report the actual circumstances as well as the implemented and planned measures to Mälarenergi. Severe deviation is defined in Section 6.

7.2 Commitment

The Supplier shall participate in and collaborate with Mälarenergi’s assessment of the commitments in the Code of Conduct for Suppliers. The assessment may be conducted using various methods, such as dialogue, self-reporting, and audits.

7.3 Dialogue

The Supplier shall, within four weeks of a request from Mälarenergi, participate in dialogue on how the Supplier is complying with its commitments.

7.4 Reporting

Mälarenergi can request that the Supplier submits a written report on any issues raised by Mälarenergi.

7.5 Audit

The Supplier shall, within four weeks of a request from Mälarenergi, enable Mälarenergi, either itself or through a representative, to conduct audits of the Supplier’s own business operation. The Supplier shall also enable Mälarenergi, either itself or through a representative, to conduct audits of any subcontractors’ business operations. In conjunction with audits, the Supplier and any subcontractors shall provide the information requested by Mälarenergi.

7.6 Right to share results of audits

a) Mälarenergi has the right to share the results of completed audit of the Code of Conduct with other stakeholders in order to facilitate collaborations for sustainable procurement, reduce the number of assessments of the Supplier, and contribute to cost savings for the Supplier.
b) Mälarenergi shall inform the Supplier of this before the results of the audit are shared.

8 Management of deviations from the Code of Conduct

8.1 Measures

The Supplier shall take remedial action in the event of deviations from the commitments in the Code of Conduct for Suppliers and the due diligence process. The focus shall be on improvements in the Supplier’s business operation and in the supply chains.

8.2 Action plan

In the event of non-compliance with the commitments in the Code of Conduct for Suppliers, the Supplier establish an action plan, with schedule, which is to be approved by Mälarenergi. The Supplier shall establish the action plan no later than four weeks after the case of non-compliance has first become known. The action plan shall be proportionate to the severity of the noncompliance, and will describe how the deviation will be remedied within the time schedule.

8.3 Exclusion from contracts

If the Supplier does not submit a report in accordance with Sections 7.1 and 7.4, does not participate in assessment or audit in accordance with Section 7.2, neglects to take measures in accordance with Sections 8.1-8.2, or does not manage deviations in accordance with the action plan, Mälarenergi is entitled to exclude the Supplier from framework agreements as long as the circumstances remain. The same applies during the time that Mälarenergi is investigating possible grounds for exclusion from framework agreements. During the time the Supplier is excluded from framework agreements, Mälarenergi has the right to utilize from another framework agreement or procure the specified items from another supplier.

8.4 Termination of contract

Regardless of any other provision in [the contract/framework agreement] Mälarenergi has the right to terminate [the contract/framework agreement] with immediate effect if Mälarenergi has found it likely that a severe deviation is occurring in the Supplier's business operation or in the supply chains, and the party causing the severe deviation does not take immediate measures to prevent and limit it.