We expect our suppliers to respect and support the protection of universal human rights in all their activities. This means to follow legislation, treating employees and other members of society with dignity and acting responsibly towards neighboring society.

We also expect our suppliers to make sure they are not indirectly part of human rights abuses in their dealings with other companies and organizations.

Questions to ask yourself:

• Do we have a written company policy or Code of Conduct that clearly states our commitment towards supporting and respecting the protection of Human Rights?
• Do we have systems and procedures in place to make sure that our policy is known, accepted and followed in all our operations?
• Do we have systems and procedures in place in order to assess risks and evaluate our activities, including our choices of business partners, from a human rights perspective?
• Do we have a grievance mechanism in place in cases our policy is not adhered to?

United Nations - Universal Declaration of Human Rights

United Nations - Global Compact, principles 1 and 2

Human Rights explained (video)

Responsible purchasing means taking into account social, environmental and ethical considerations, as well as cost, quality and delivery time. Our goal is to minimize negative impacts and make a positive contribution to the businesses, people and communities that make up our supply chain.

We expect our suppliers to likewise act responsibly towards their stakeholders and in their supply chain.

In practice this means to have a system to evaluate supplier performance and to actively work to accomplish improvements where a certain supplier does not comply with demands or meet acceptable standards.

It is no longer enough that companies understand their risks. We all need to ramp up our efforts and work to achieve positive and measurable change.

Questions to ask yourself:

• Do we choose our suppliers based also on their performance within areas such as human rights, labour standards, environment and anti-corruption, or do we merely look at price, quality and delivery terms?
• Do we systematically evaluate our suppliers' performance against social, environmental and ethical principles?
• Do we act on underperforming suppliers to urge them to accomplish improvements?

Global Compact about Supply Chain Sustainability

We expect our Suppliers to work systematically to minimise negative environmental impact from their activities and products.

Suppliers shall have an environmental management systems in place, where material aspects are identified and the environmental impact is controlled and minimised.

Suppliers must be able to show evidence that environmental performance is measured and controlled, as well as compliance towards legislative demands where applicable.

Questions to ask yourself:

• Do we have an environmental management system?
• Do we measure and control the environmental impact from our activities, products and services?
• Do we regularly assess what environmental legislation is applicable and how successfully we comply to that legislation?

Global Compact about Environment

We promote involvement in the local communities where our operations are located and prioritise grants and sponsorship agreements that are aligned with our values, strengthen the relationship with our stakeholders and benefit the local society where we operate.

We do not give political contributions, engage in political organisations or support individual politicians.

We want to actively co-operate with educational institution in order to keep a solid the recruitment base. We also want to develop local employees and managers to strengthen their career opportunities within the Group.

We expect our Suppliers to likewise be good citizens and friendly neighbours wherever they operate. This means to support the society by paying taxes, sponsoring local initiative that promote sustainable development and consider stakeholder expectations when decisions are taken.

Questions to ask yourself:

• Do we have a system to undertake due diligence to avoid harming human rights and to address any adverse impacts on human rights that may be related to our activities?
• Do we contribute to improve the lives of the people we affect, such as by creating decent jobs and services that help meet basic needs?
• Do we make strategic social investments and promote public policies that support social sustainability?
• Do we partner with other businesses or organisations to make a greater positive impact?

UN Global Compact about Social Sustainability

We expect our Suppliers to have a management system that support internationally accepted social and labour policies.

It means to integrate ethics into core business practices and to have a policy to follow internationally agreed principles concerning labour standards, such as written employment contracts, specified terms concerning working hours, compensation, vacation, working hours, insurances and respecting employees' rights.

Suppliers must be able to show evidence that acceptable human resources practices exist and that records are kept in order.

Questions to ask yourself:

• Do we have a system to control that legislation is followed concerning minimum wages, working hours, overtime, health and safety?
• Do we have a policy to follow internationally agreed labour standards, even in cases when legislation does not demand so?
• Do we have a system for managing Human Resources concerning written employment contracts, non-discrimination, specified employment terms, insurances and specified salary slips?
• Do we have employment procedures to ensure that no children are hired?

United Nations - Global Compact about Labour

Ethical Trading Initiative - Base Code

Our products must always fully comply towards legal standards regarding health and safety during use.

We give relevant and clear information about safe and environmentally adapted installation, use, maintenance, storage and final disposal.

We ensure that the customer gets fast responses to product questions and requests for information.

We expect our Suppliers to likewise ensure that their products are safe to use and that processes to design, manufacture and inform about the products are strictly controlled to ensure legal, safety and environmental compliance, as well as high quality standards and compliance towards customer specifications.

Suppliers must be able to show evidence that warranties and insurances are sufficient and in order.

Our business relationships and business methods are based on compliance with legislation and the application of good business ethics. Bribes, facilitation payments, excessive gifts and any other form of improper or illegal business behaviour is strictly prohibited.

All forms of remuneration to business partners must only refer to actual goods or services. Gifts and other benefits must not exceed local customs and must be in line with legislation.

We expect our Suppliers to likewise have an anti-corruption policy that states zero tolerance towards bribery and other forms of corruption, and that they demand the same from their suppliers and other business partners.

NIBEs policy is to never:

• Offer, promise or give financial or other advantages to customers, suppliers, other business partners or public officials that could be considered given to influence or reward disloyal or improper behaviour or performance.
• Request or accept any financial or other advantage that could be considered given to influence or reward disloyal or improper behaviour or performance by the recipient or any other third party.
• Make facilitation payments (usually cash paid to a public official to facilitate routine government action).

We will not discipline or condone negative treatment of any employee or business partner who reports non-conformities towards our anti-corruption policy, nor will we discipline any employee or business partner who complies with our anti-corruption policy, no matter the financial or other consequences for us.

We will take appropriate action against any director or employee, as well as against any business partner who do not comply with our anti-corruption policy.

All employees must respect the applicable regulations regarding confidentiality of information that is owned by the company and our business partners. This also applies to information that could potentially distort competitiveness, share price sensitive information or other types of business information that could be classified as confidential.

Questions to ask yourself:

• Do we have an anti-corruption policy that states zero tolerance towards any form of corruption?
• Have we assessed the corruption and bribery risks in our value chain and mitigated the identified risks with controls?
• Do we have a system in place to evaluate our business partners from a business ethical point of view?
• Do we conduct a due diligence before engaging an agent och a third party to perform services for us, or on our behalf?

United Nations - Global Compact, principle 10

NIBE's communication is straight, honest and follows applicable legislation, regulations and standards.

We keep our integrity in all situations and all transactions we make are duly supported by necessary documented verifications to fulfil legal demands and ensure compliance to our anti-corruption policy.

We keep our shareholders informed about the Groups' operations, results and strategies according to stock exchange regulations where NIBE shares are listed.

We transparently communicate with our stakeholders through regular reporting, via internet and other publications. We also arrange for meetings with different stakeholder groups.

Transparency, implying consistently candid and open management communication and accountability, plays a positive part in maintaining an engaged, motivated work force.

We expect our suppliers to likewise be accountable for their activities by communicating their performance honestly and openly and by operating visibly according to high ethical standards.

Questions to ask yourself:

• Do we have a program to foster a business culture that is characterised by honesty and integrity?
• Do we communicate openly, informing our internal and external stakeholders of events, progress and results?
• Do we transparently report our financial results according to legal demands, including taxes and fees to governments?
• Do we transparently report our performance within human rights, labour standards, environment and anti-corruption?

Integrated Reporting