13. Responsible Sourcing Policy

  1. GOALS

Aluminij Industries d.o.o. has no legal responsibility for the business standards of its suppliers. However, according to UN and OECD standards, we are expected to act with due diligence towards our suppliers to avoid contributing to human and labor rights violations, environmental degradation, or anti-corruption violations within the supply chain.

Aluminij Industries defines responsible sourcing as conducting purchases in a way that enables the company to identify the risk that violations of human and labor rights, environmental protection legislation or anti-corruption legislation may occur in the company's supply chain and - if such violations are detected - initiate actions against the supplier to end the mismatch.

This document describes the key principles of responsible procurement in Aluminij Industries.

We believe that by adhering to these principles, we will not only contribute to more sustainable supply chains but also reduce commercial risk and strengthen our long-term competitiveness.

2.   SCOPE

This procedure covers all procurement activities within Aluminij Industries.

3.   LIABILITY

The senior management of the Company is responsible for updating this policy.

The Sales Department, the Procurement Department and the Legal Department are responsible for being guided by the principles of this policy.

4.   DESCRIPTION

4.1. PRINCIPLES FOR RESPONSIBLE SOURCING IN ALUMINIJ INDUSTRIES

Responsible sourcing in Aluminij Industries involves risk-based engagement with suppliers, meaning that efforts should be directed toward the product categories and suppliers that pose the greatest risk. Aluminij Industries is dedicated to continuous improvement, both in terms of setting internal goals and in terms of expectations for suppliers to achieve progress.

4.2. SUPPLIER REQUEST

Aluminij Industries Code of Business Conduct for Suppliers describes requirements for suppliers in relation to management and ethics, labor and human rights, occupational health and safety, and the environment. This Code should be communicated to all suppliers with a special focus on risky suppliers. Suppliers should be encouraged to present the same type of requirements to their suppliers.

4.3. RISK EVALUATION

Aluminij Industries will carry out a risk assessment of its suppliers to identify suppliers that may pose a risk of non-compliance with the requirements presented in Code of Business Conduct for Suppliers.

Supplier evaluation will be conducted according to our supplier evaluation procedure which includes the “Supplier Evaluation Form”. The supplier's risk assessment will be carried out based on the specified form. It will be categorized as low risk, medium risk or high risk. Suppliers that are assessed as medium or high risk suppliers should be subject to a more detailed risk assessment.

4.4. REACTIONS TO VIOLATIONS OF THE CODE OF BUSINESS CONDUCT FOR SUPPLIERS

The purpose of responsible sourcing is to use our purchasing power to better influence supplier business standards. Therefore, when violations of the Code of Business Conduct for Suppliers are discovered, the contract with the supplier should not be automatically terminated, even when the contract gives us the right to do so. Instead, the company will assess the severity of the breach. The usual response to non-compliance should be to follow up with suppliers through requirements, dialogue, and guidance.

Suppliers who do not meet our requirements will demonstrate a willingness to comply by documenting improvements within a specified timeframe. In case of a serious breach of requirements or lack of progress over time, the contract should be terminated. Risk issues associated with complex supply chains, such as for commodities, should be addressed on a case-by-case basis. Potential actions may include product certification, collaborative projects with other industry players, or government dialogue.

 

 

 

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