Sustainability
Version 1 dated July 1st, 2024
Content
1 Scope of application. 2
2 Social responsibility. 2
2.1 General working conditions. 2
2.1.1 Prohibition of child labour 2
2.1.2 Exclusion of forced labour 2
2.1.3 Prohibition of discrimination. 2
2.1.4 Remuneration. 3
2.1.5 Working hours. 3
2.1.6 Disciplinary sanction. 3
2.2 Workers’ rights. 3
2.2.1 Employment contracts. 3
2.2.2 Freedom of association and the right to collective bargaining. 3
2.2.3 Health and safety. 3
2.2.4 Complaints mechanisms. 4
2.2.5 Information. 4
2.2.6 Control 4
3 Business obligations. 4
3.1 Anti-corruption. 4
3.2 Free competition. 4
3.3 Intellectual property (protection of intellectual property) 4
3.4 Financial compliance. 5
3.5 International commercial law.. 5
3.6 Land rights. 5
4 Ecological responsibility. 5
4.1 Protection of resources. 5
4.2 Ingredients / Materials. 6
4.3 Wood-based ingredients. 6
4.4 Packaging. 6
4.5 Biodiversity. 6
4.6 Animal welfare. 6
4.7 Climate protection. 7
5 Management 7
6 Implementation of the requirements. 7
1 Scope of application
This Sustainability Codex is the basis of the mutual business relationship. It shall apply to our direct business partners as well as to the subcontractors commissioned by the direct business partners who are involved in the production of products for alphacaps, as well as to all links in the production and supplier chain. The business partners ensure compliance with and monitoring of the principles of the Sustainability Codex across the entire supplier and production chain.
2 Social responsibility
National laws and internationally binding requirements as well as national and international industrial standards are applied in the production facilities. Furthermore, the existing production and working conditions there must be in accordance with the ILO Conventions, the UN Global Compact, the OECD Guidelines and the General Declaration of Human Rights of the United Nations. The strictest requirements have to be observed in each case.
If products or upstream products are manufactured outside of the European Economic Area (including Switzerland), our business partners - both for themselves and for all those in the supply and production chain being upstream of them and who have locations outside the European Economic Area or Switzerland – additionally, on request of alphacaps, have to submit a current social standard certificate, which is at least according to the SA 8000 standard or a comparable standard, each time issued by a recognised and independent certification institute. BSCI or Sedex are especially considered as comparable standards.
Compliance with the content of Sections 2.2.1 to 2.2.6 of this Sustainability Codex must not be circumvented by means of contractual agreements or comparable measures. In particular, the following general working conditions and workers' rights must be guaranteed.
2.1 General working conditions
2.1.1 Prohibition of child labour
We strictly reject exploitative work, especially child labour. The minimum age for admission to work must not be less than the age of compulsory schooling and in no case less than 15 years. In particular, young people must not be exposed to dangerous, unsafe and unhealthy situations.
In the event of a violation, the business partner must immediately implement and document appropriate remedial measures. These remedial measures also have to serve the rehabilitation and social integration of the children and adolescents affected and enable them to obtain a general school leaving certificate according to national standards.
2.1.2 Exclusion of forced labour
Forced labour and slavery of any kind are prohibited. No employee is to be forced to work by coercion, threats of violence or intimidation. Each employment has to be voluntary.
Unless it is done without coercion, prison labour is refused.
2.1.3 Prohibition of discrimination
This includes discrimination based on gender, age, religion, ethnic origin, caste, nationality, disability, marital status, sexual orientation, political opinion, membership in a workers' organisation and trade union or other personal features (e.g. skin colour). The decisions of the business partners about employment, wages, social benefits, further training measures, work allocation, promotion and termination may only be based on the skills of the employees, if necessary taking into account the compensation of social differences.
2.1.4 Remuneration
The wages may in no case remain below the local minimum wages. Furthermore, the basic wages must also cover the cost of living and also leave part of it to the employees at their own disposal. Statutory social benefits must be observed. Equal remuneration for men and women for equivalent work has to be guaranteed. Deductions from wages as a form of disciplinary measure are not permitted. The payment of the wages has to be settled in a way that is convenient for the employees. The employees are to be regularly informed about the composition of their remuneration in a form they can understand. Our business partners are aware of their social responsibility and continuously raise the standard of living of their employees by means of the wage structure, social benefits and welfare programs in order to improve the overall quality of life.
2.1.5 Working hours
Working hours must comply with applicable law and industry standards, choosing that one which is stricter. Under no circumstances employees may be required to work more than 48 hours a week on a regular basis. Overtime must be done voluntarily, must not exceed twelve hours per week and must not be demanded on a regular basis. All overtime is to be compensated with allowances and/or in time according to legal or industrial standards. Overtime without adequate wage or time compensation is prohibited. Employees are entitled to at least one day off after six consecutive working days.
2.1.6 Disciplinary sanction
Employees are to be treated with respect and dignity. Any form of physical, psychological, sexual or verbal harassment and abuse, as well as any other form of intimidation, is prohibited. Disciplinary sanction may only be taken in accordance with national laws and internationally recognized human rights.
2.2 Workers’ rights
2.2.1 Employment contracts
An employment contract is to be given to the employees in writing (the employment contract must contain at least: name, date and place of birth, home address, start of employment, duration of the employment contract, working hours, content of the work, salary and remuneration, vacation entitlement, terms of termination, signatures of the employee and employer). In the case of contract work, the business partner has to ensure that the contract partner complies with the above requirements.
2.2.2 Freedom of association and the right to collective bargaining
Workers' representations and trade unions of their choice can be set up by the employees themselves or they can join them. The right to freedom of association and the right to collective bargaining (e.g. collective negotiations) must be recognised and protected. An effective exchange of information between employees and their representatives has to be ensured.
2.2.3 Health and safety
The safety of the employees is to be ensured by the business partner. A safe and hygienic work environment has to be made available. The workplace must not endanger the health and safety of employees in any way. Work safety trainings must be carried out on a regular basis and measures must be taken to avoid accidents at work and occupational diseases. This also includes protection from fire and poisonous substances. Lighting, ventilation and heating systems must be sufficiently available and used as required. Clean toilets and sufficient access to drinking water has to be provided. If dormitories are provided, hygienic and safe conditions must also prevail there.
2.2.4 Complaints mechanisms
The business partners have to ensure that effective complaints mechanisms are in place for individuals and communities that may be affected by negative effects at the operational level across the entire supply and production chain. Employees who make a complaint based on this Codex and/or applicable national/international law shall not be exposed to any form of disciplinary or retaliatory sanction.
2.2.5 Information
The principles on which the provisions of this section 2 are based must be freely accessible and clearly displayed in all business partners' branches/production sites in the respective national language. In the event of illiteracy, these principles have to be explained orally.
2.2.6 Control
The business partners are obliged to carry out or to let carry out controls across the entire supply and production chain in the production facilities to ensure compliance with the requirements of Section 2 of this Sustainability Codex. In addition, alphacaps reserves the right to carry out or to let carry out its own controls in consultation with the production company. The business partners have to ensure the possibility of this. An evaluation of compliance with the requirements of Section 2 of this Sustainability Codex can also be carried out in connection with a company audit by a recognised and independent testing institute specified and/or commissioned by alphacaps or by an independent external auditor commissioned by alphacaps.
If there are indications of violations of the requirements from Section 2 of this Sustainability Codex, the industrial partner is obliged to immediately initiate remedial measures. In addition, such violations are deemed to be a deviation between the actual and the target properties of alphacaps' products. Repeated violations or other violations that can noticeably impair the good reputation and positive image of alphacaps also entitle alphacaps to classify the continuation of the business relationship as partially or entirely unacceptable for alphacaps.
3 Business obligations
3.1 Anti-corruption
Any form or attempt of blackmailing or bribery, as well as other illegal practices, is prohibited. The supplier shall not offer, promise, guarantee or solicit any bribes, directly or indirectly, to obtain business or any other unfair advantage.
3.2 Free competition
The supplier must comply with applicable competition/antitrust laws. In particular, the supplier may not enter into any anticompetitive agreements with competitors or business partners. If the supplier holds a market-dominating position, this position must not be abused.
3.3 Intellectual property (protection of intellectual property)
The supplier respects all intellectual property rights of third parties.
3.4 Financial compliance
Money Laundering: The supplier will have business relationships with business partners of reasonable integrity. The supplier must ensure that the statutory money laundering regulations are not violated. Taxes: The supplier must comply with applicable tax laws and not engage in artificial business practices or transactions established solely for tax fraud purposes.
3.5 International commercial law
The supplier has to comply with the respective customs import and export laws and regulations that apply to any business relationships. The supplier will comply with applicable international sanctions and export control restrictions in relation to combating terrorism (see general terms and conditions of alphacaps GmbH).
3.6 Land rights
The business partner respects the prevailing land rights and refrains from any unlawful eviction and any unlawful deprivation of land, forests and waters, the use of which secures the livelihood of one or more persons, in particular during acquisition or development.
4 Ecological responsibility
The protection of nature and environment is an integral part of our business practice. The business partners must comply with the applicable environmental standards and, in accordance with the principles for sustainable development of the Rio Declaration of 1992, strive to continuously reduce and avoid environmental pollution and to continuously improve environmental protection measures. Applicable procedures and standards for waste management, the handling of chemicals and other hazardous substances and their disposal as well as for emissions and wastewater treatment must be adhered to. Environmentally and socially compatible production is to be encouraged.
Responsible and efficient use of resources is a prerequisite for all phases of the value-added chain. The consumption of resources is to be continuously optimised
If products or upstream products are manufactured outside of the European Economic Area (including Switzerland), our business partners - both for themselves and for all those in the supply and production chain being upstream of them and who have locations outside the European Economic Area or Switzerland – additionally, on request of alphacaps, have to submit a current social standard certificate, which is at least according to the DIN ISO EN 14001 standard or a comparable standard, each issued by a recognised and independent certification institute.
4.1 Protection of resources
We make use of the natural resources soil, water and air and their raw materials and the materials produced from them. The minimum use of resources and the permanent improvement of processes with regard to the resources used for our products are important to us. At alphacaps, we think in cycles, both in the development of the products and in all the necessary processes. In order to act sustainably, we have to be aware of the fact that wherever we take something away, there will be a gap if it does not regenerate naturally. That is the reason why we try to close cycles wherever possible and to develop new ones where it is currently not possible.
4.2 Ingredients / Materials
For the products there may only be used raw materials that meet the legal requirements and are assessed as safe according to the latest scientific standards. In doing so, we always refer to the current scientific status or the recommendations of the relevant national and European scientific institutions.
Raw materials and materials are carefully selected; these are considered as a whole. Negative effects on the environment such as the deforestation of the rainforests to gain farmland, over-acidification of soils and water pollution, for example through large monocultures, must be avoided.
For some raw materials / materials there are special requirements with regard to sustainability:
4.3 Wood-based ingredients
Wood-based materials such as paper, cardboard or cellulose, which are used in the products for alphacaps, should preferably have a high proportion of recycling or consist of certified fresh fibres. Wood as a component of a product for alphacaps must always, and India rubber should be preferred, originate from certified forestry.
The aim of rubber is also that it always originates from certified forestry.
4.4 Packaging
The upmost function of the product packaging for alphacaps must be to protect the product, for example against damage, spoilage, contamination or migration. It must meet the requirements for transport, storage, handling at the customer and communication. Here the focus is also on the responsible use of the resource. The aim is to avoid packaging where possible, to save it or to replace primary with recycled material. At the same time, we observe the packaging throughout its whole life cycle.
The central point for the packaging development of our products is the advancement of the recycling economy. Hereby, the recyclability of our packaging plays a decisive role. The aim is for all of our packaging to be recyclable. When it comes to its evaluation, we comply with the currently valid and recognised German and European standards and guidelines.
So that the saving of packaging material or the transformation to sustainable and resource-efficient packaging can be successful, the business partner continues to undertake to observe the legal norms and international standards when designing the packaging and to continuously improve the packaging in coordination with alphacaps. This applies to the transport, outer and product packaging.
4.5 Biodiversity
Preserving biological diversity is one of the greatest challenges of our time because it is essential for an intact nature. A major point here is the strengthening of organic farming.
Transparency in the supply chains and the traceability of ingredients are a must. This can help to ensure that fewer raw materials are grown in large monocultures by using pesticides. Please support us with your company to preserve biological diversity, because even small measures have an effect, such as creating insect-friendly flower strips or promoting regional nature conservation projects.
4.6 Animal welfare
Compliance with animal welfare standards in animal husbandry is important to us. Insofar as animal products or animal preliminary products are contained in the products, the business
partner has to ensure that these come from species-appropriate and sustainable animal husbandry and that the requirements of animal welfare are complied with in accordance with the guidelines of the European Union. Under no circumstances may animal experiments be carried out or commissioned for the products, unless this is required by law.
4.7 Climate protection
Climate protection is currently the central aspect in the challenges of sustainable development of society and for securing peace. For this reason, the International Community agreed on the Paris Climate Protection Agreement in 2015. We commit ourselves to the International Paris Agreement and we are making our contribution. As a company, we want to increase our commitment to climate stability.
We expect our business partners to make an active contribution to limiting global warming and thus contributing to climate stability. In order to make the products more climate-friendly, the business partners should examine procurement, manufacturing and delivery processes with regard to their effects on the climate and derive measures for their reduction. Legal requirements resulting from the adoption of the Green Deal of the European Union are to be adhered to by all parties involved. We reserve the right to exchange information on climate protection measures every year.
5 Management
The standards defined in this Sustainability Codex must be recognised by the management of each business partner, regardless of his/her position in the production and/or supplier chain, and they have to be integrated into company policy.
6 Implementation of the requirements
With regard to supply chains, we expect our business partners to identify risks within them and to take appropriate measures. In the case of suspected violations and to secure supply chains with increased risks, the business partner will inform alphacaps promptly and, if necessary, regularly about the identified violations and risks as well as the measures taken.
Irrespective of this, the business partner is obliged to provide alphacaps in writing with his measures to meet / implement this Sustainability Codex upon request.
The current valid version of the Sustainability Codex will be part of the delivery agreement. AN is a business partner within the meaning of this Sustainability Codex and commits itself to comply with the requirements of the Sustainability Codex to be met by a business partner. In this sense, AN will act responsibly in this sense and adhere to the listed requirements. AN undertakes to communicate the content of this Sustainability Codex to its employees, agents and subcontractors across the entire supply and production chain in an understandable way and to take all necessary precautions for the implementation of the requirements.
This Sustainability Codex shall apply without prejudice to other binding obligations. In the event of incompatible contradictions, obligations arising from the delivery agreement take precedence over the requirements of this Sustainability Codex, unless otherwise stipulated by mandatory legal requirements.
