GOVERNANCE AND COMPLIANCE
COMPLIANCE WITH DATA PROTECTION LEGISLATION
The supplier must never disclose personal data other than to employees or partners with a legitimate business need for the information, and in these cases always in accordance with the data protection legislation in force.
RESPONSIBILITY FOR THE SUPPLIER CODE OF CONDUCT
The supplier is expected to have a clear organisation and division of responsibility. There must be written procedures to ensure implementation and continual compliance with the requirements in LKAB’s Supplier Code of Conduct or equivalent requirements/guidelines.
BUSINESS ETHICS AND ANTI-CORRUPTION
ANTI-CORRUPTION
The supplier must take measures to prevent corruption. Among other things, this means that the supplier must have an anti-corruption policy or equivalent governing document in which the supplier dissociates itself from all forms of bribery, corruption, money laundering, conflicts of interest and tax crime. The document must be implemented and continually followed up in the company, and the supplier must ensure that the employees are given regular training in the internal anti-corruption rules. Any suspected cases of corruption are to be investigated promptly and documented by the supplier. The supplier must also have a suitable system for risk analysis and checks on intermediaries.
Employees of the supplier are not to offer or receive any improper benefits in the form of e.g. cash, gifts, services, travel or entertainment in connection with assignments for LKAB.
CONFLICTS OF INTEREST
Suppliers must avoid conflicts of interest which could pose a risk to the supplier’s credibility with LKAB or other parties’ confidence in LKAB.
COMPETITION LEGISLATION
Suppliers are to respect and comply with all applicable laws and regulations, including the obligation not to exchange commercially sensitive and strategic information with competitors or enter into agreements with any business partner that restrict competition.
TAXES
All legal taxes and charges, as well as any royalties, must be paid and reported transparently in the country where the business is conducted. Any tax liabilities in relation to public authorities must be settled.
TRAINING AND INFORMATION
All relevant employees must be trained in and kept informed concerning their company’s policies, governing documents, rules and responsibilities relating to business ethics. The content of the training must be documented and a register of participants must be kept.
SUPPLIER MANAGEMENT
SUBCONTRACTORS
The requirements in LKAB’s Supplier Code of Conduct, or equivalent requirements, must be communicated by the supplier to all tier one subcontractors. The supplier is to secure the right to carry out audits based on the Supplier Code of Conduct or equivalent requirements at all tier one subcontractors. In the event of repeated, serious breaches by a subcontractor, the supplier is to end the business relationship with the subcontractor.
INFORMATION TO EMPLOYEES
All employees of LKAB’s suppliers are to be informed of the content of LKAB’s Supplier Code of Conduct or the supplier’s equivalent document. The content must always be available to the employees in a language that the employees understand.
THE SUPPLIER’S OWN AUDITS/CONTROLS
Procedures for internal audits/controls based on the requirements in LKAB’s Supplier Code of Conduct, or equivalent requirements, must be implemented by the supplier. The supplier is to perform internal audits at scheduled intervals with measurable targets, and an action and responsibility plan is to be drawn up based on the results of the audit. This document is to be provided to LKAB’s representatives on request.
CONTINUAL IMPROVEMENT
Based on the results of internal audits and other activities, plans for preventive measures and continual improvement are to be produced and implemented.
HUMAN RIGHTS
GOVERNING DOCUMENTS AND PROCEDURES
A policy or equivalent governing document and relevant procedures for preventing and correcting any discrimination, harassment or exploitation, and for disciplinary measures, must be implemented and communicated to all employees, including temporary workers.
DISCRIMINATION
Employees must not be subjected to any kind of discrimination or abuse on the basis of religion, faith, gender, pregnancy, age, political views, trade union membership, nationality/ethnicity, disability, health, sexual orientation or other factors. All employees, including temporary workers, must have the same rights and social benefits.
PENALTIES
All forms of physical punishment and threats of physical or mental violence are strictly prohibited. The supplier may not use any public warning or penalty system, including wage deductions, and all employees must be entitled to appeal against warnings, penalties and dismissals. The appeals must be documented.
RESPECT FOR PEOPLE IN THE LOCAL AREA
In its business the supplier must act responsibly and with respect for people in the local area, and must respect the rights of indigenous peoples.
CONFLICT MINERALS
Conflict minerals is a term used for minerals that come from areas in the world where there is major internal strife, where the extraction of minerals risks contributing to or financing conflict and breaches of human rights. There must be a policy or equivalent governing document as well as relevant and implemented procedures relating to the conflict minerals tin, tantalum, tungsten and gold (3TG) and other minerals that are classed as conflict minerals. These shall clearly describe how compliance with the OECD guidelines for companies with dealings involving minerals extracted from conflict areas is ensured. Relevant parts of the OECD’s five-step framework[2] for responsible supply chains must be complied with. This applies to suppliers whose activities include any kind of dealings involving minerals.
FORCED AND INDEBTED LABOUR
All forms of modern slavery, forced and indebted labour are unacceptable. Prison labour must not be used. Work must take place on a voluntary basis, and personal documents and possessions must not be confiscated in order to force somebody to work. Employees must be free to leave the workplace at the end of their shift.
CHILDREN AND YOUNG WORKERS
Child labour
All forms of child labour are unacceptable, and documentation certifying the age of all employees must be available. All forms of work that may have a negative impact on the child’s right to a healthy childhood and development, or that prevent the child’s education, are classed as child labour. All forms of violence, compulsion and exploitation of children are unacceptable. Any person under 18 years of age is to be regarded as a child. Management and other employees in positions of responsibility must have a good knowledge of how they are expected to act in the event that a situation involving child labour is discovered.
Preventive measures
There must be documented procedures to prevent child labour in the supplier’s own business and as well as in subcontractors’ operations.
Action in the event that child labour is discovered
The supplier must have documented procedures for discovering and taking immediate action in the event of child labour being used in its own operations or among subcontractors. If child labour is found, the child must immediately leave the workplace and the supplier must ensure that the child is provided with the right conditions for their future development. LKAB must be informed immediately that child labour has been discovered and the supplier must implement the procedure responsibly and transparently. The supplier is expected to contribute to investigating what is the best solution for the child/children in each case discovered.
Young workers
Young workers are minors who are allowed to work under relevant local legislation. The supplier must ensure that employment and work duties conform to applicable laws and that the work duties are not carried out at night, do not entail a risk to health and safety, are not economically exploitative and do not interfere with the child’s schooling.
LABOUR LAW AND EMPLOYMENT CONDITIONS
EMPLOYEES’ RIGHTS
Recruitment and termination
Employees must not be charged any fee in conjunction with their recruitment, and they must be fully entitled to give notice to terminate their employment in accordance with the applicable employment contract without any penalty or wage deduction. Indebtedness must not be used to bind employees to the employment.
Safety committee
There must be a well-established safety committee or similar forum where employees can contribute and thereby influence developments regarding health and safety in the workplace. Identified risks and implemented measures must be documented.
Complaints
There must be documented procedures for dealing anonymously with complaints relating to discrimination, harassment and abuses. All employees, including temporary workers, must be familiar with these procedures and have access to them (e.g. whistleblower system).
Right to join a union
All employees are to have the right to join, or to choose to refrain from joining, a trade union or other employee organisation without risk of reprisals, harassment or penalty. In countries where the right to join a union is restricted or prohibited, the supplier must not prevent alternative forms of independent employee representation.
Collective bargaining
Employees must have the right to conduct collective bargaining without risk of reprisals, harassment or penalty. In countries where the right to carry out collective bargaining is restricted or prohibited, the supplier is encouraged to strengthen forms of independent bargaining.
EMPLOYMENT CONDITIONS
Official inspections
When an authority has carried out a working environment inspection, the results and action plan – including a timetable and measures implemented – are to be documented.
Employment contract
All employees must have a signed employment contract before the employment may begin. As a minimum, the employment contact must include the employer’s name, the employee’s name and personal identity number/date of birth, position, salary, working hours, overtime compensation, benefits and notice period.
Payroll & attendance records
Information about wage payments and hours worked must be documented for all employees. The information must be saved for at least 24 months, and must as a minimum include regular hours worked, overtime, any piecework pay and bonuses, subsistence allowances, any wage deductions as well as the net wages paid.
Overtime work & leave
The total working hours must not exceed 48 hours per week. All overtime worked must be voluntary and must not exceed 12 hours per week. All employees must be given at least one day off per week as well as annual leave, parental leave and leave in accordance with applicable legislation and local traditions. Exemptions from the above may only be made by agreement with trade unions or other employee organisations.
Wages
Wages must equal at least the statutory minimum and are to be paid out regularly, at least once a month. Every time wages are paid employees must receive a payslip containing details of regular hours worked, overtime, any piecework pay and bonuses, subsistence allowances, any wage deductions and the net wages paid. In addition, all suppliers are encouraged to pay a living wage to their employees.
Benefits
All employees must receive statutory benefits such as sickness and accident insurance and pension benefits.
WORKER ACCOMMODATION
Standard
Accommodation that is provided by the employer must be secure and of a good standard. Single women and men must be offered accommodation that is shared with other employees of the same sex. The employees must be completely free to leave the accommodation 24 hours a day, and must have use of an area measuring at least 3.8 m2. The accommodation must be provided with a bed or mattress to sleep on, and must be ventilated and/or heated based on local climate conditions. Sleeping areas must be lockable from both the inside and the outside, and each employee must have access to an individually lockable storage facility for their personal belongings. Workers’ accommodation should be designed so as to allow employees to have children living with them or visiting them.
Cleaning
All areas must be cleaned regularly and be well maintained. There must be an appropriate number of toilets and washing areas, which must be well looked after and well equipped. The areas where food is served must meet local requirements of sanitation and hygiene.
Safety
There must be at least two escape routes and exits per floor, to ensure rapid and safe evacuation of all employees. These are to be kept unlocked from the inside. Fire protection is to meet the requirements described in the section on Health and Safety.
HEALTH AND SAFETY
WORKER PROTECTION & SAFETY
Risk analysis
Risk analysis and risk reduction covering all the operations is to be carried out, documented and updated in the event of significant changes to the operations. Preventive measures must be implemented where possible to reduce the need for personal protective equipment.
Reporting, analysis & measures
A procedure for reporting, analysis and measures in the event of incidents and accidents must be implemented, with the aim of reducing the number of incidents and accidents.
Working conditions
The workplaces must offer good working conditions as regards e.g. good order, hygiene, ergonomics, noise, temperature, lighting and air quality. Measurements and assessments are to be documented. Toilets, washing facilities and break areas must be easily accessible for all employees.
Work procedures & training
Work procedures to minimise the risk of injury and ill health must be implemented. Employees who operate machinery or other equipment where there is a risk of serious incidents or accidents must receive relevant training that is updated as necessary or in accordance with applicable legislation.
All new employees must receive relevant training in health and safety as a part of their induction. Training completed is to be documented on an ongoing basis with a description of the content. A register is to be kept of employees that have completed the training.
Machinery & equipment
All mechanical equipment, vehicles and other equipment used in production and work processes must be safe to use and equipped with the necessary safety equipment to prevent injuries. Written procedures for preventive maintenance must be implemented and the equipment must be inspected. The equipment must also be certified if this is required by applicable legislation.
Safety information
Safety information, warning signs and markings must be easy to see in all risk areas. The written information and/or signs, which are to be in a language that the employees understand, must describe the risk and what the employees have to do to minimise or avoid it.
Protective equipment
Personal protective equipment must be provided free of charge for all employees who have work duties where there is a potential risk of injury, and the equipment must be right for the task and used correctly. The areas where protective equipment is to be used must be clearly marked, e.g. with illustrative signs.
First aid
Relevant first aid equipment must be easily accessible to all employees. The equipment must be stored in a clearly marked location, be unlocked, and the contents must be checked and supplemented regularly. Selected employees in all departments/shifts must complete first aid training. The training must be provided by certified training staff at least every 24 months. The content of the training must be described and there must be a register of trained employees.
Drinking water
Clean drinking water must be easily available free of charge to all employees.
Alcohol & drugs
There must be a drug policy or equivalent governing document aimed at preventing work from being carried out under the influence of any kind of alcohol or drugs. This must be implemented and all employees must be aware of it. The document must be written in a language that everyone understands.
Traffic safety
There must be a traffic safety policy or equivalent governing document to prevent accidents. A programme of action must be drawn up and measures must be implemented to achieve the traffic safety goals.
EMERGENCY PREPAREDNESS
An emergency plan based on identified risks must be drawn up and implemented. Procedures for preventing and dealing with emergency situations must be implemented. Special procedures must be produced to ensure communication with employees’ loved ones.
FIRE PROTECTION
Documentation
In the event of any incident or fire, the cause must be analysed and preventive measures must be taken and documented.
Competence
A relevant number of employees within each work area must learn to use the fire safety equipment. This training must be repeated at least every 24 months and there must be a description of the content as well as a register of trained employees. All employees must receive relevant training and information about the fire safety procedures.
Fire safety equipment
Relevant fire safety equipment must be available within the work area and all manual equipment must be easily accessible, easy to identify from a distance, well maintained and unlocked. The operation of the equipment must be tested, assured and documented at least every 12 months. Approved equipment must be marked, stating the date of approval.
Evacuation
There must be marked escape routes and exits to ensure the efficient evacuation of all employees from the work area. The marking must be either illuminated or luminous. Escape routes and exits must not be blocked, and doors must be unlocked from the inside and must open outwards. There must be well-signed assembly points that are known by all employees.
Evacuation alarm
There must be a working evacuation alarm that emits a continuous sound that can be heard by all employees within the work area. In premises where there are high noise levels, the alarm must be supplemented with a light signal. The alarm can be activated manually, and automated alarms must have an independent power supply to ensure they continue working in the event of a power cut.
Evacuation drills
Evacuation drills must be carried out for all departments/shifts, with as many employees as possible, at least every 12 months. There must be evacuation managers who are responsible for ensuring that all employees have been evacuated. The date and time when the drills were carried out must be documented, stating which departments/shifts took part, the time required for the evacuation and what corrective action needs to be taken, if any.
CLIMATE AND ENVIRONMENT
Environmental legislation
Suppliers must ensure compliance with the legislation in force in the place where operations are conducted and must maintain all necessary permits and licences. Suppliers must also comply with business and reporting requirements.
Circular economy and climate impact
Suppliers must work towards a circular economy. Rather than manufacturing, buying, using and then discarding products, everything that has been manufactured or bought in should be used for as long as it can. When products have served their purpose they must be reused and recycled to the greatest extent possible, time and time again – all in order to consume less of the earth’s resources and reduce our environmental footprint.
As far as is technically and economically feasible, when developing and manufacturing products that are sold to LKAB suppliers must select the design, construction, materials and production technique that are best from a sustainability perspective. A traceability system must be established for sensitive raw materials.
Emissions to air
All relevant laws and regulations relating to emissions to air must be complied with, and relevant permits and test reports must be documented.
Water
There must be established procedures for the measurement, monitoring and analysis of water consumption in production processes. Targets must be set for reducing consumption and an action plan developed based on analysis carried out.
Water treatment must be carried out correctly either on the supplier’s site or at an external water treatment plant that is approved by the local authorities. Where the supplier has its own water treatment plant, this is to be operated and maintained taking into consideration the process and the volume of water, so that treated water meets the local authorities’ requirements. The employees who operate the plant must have relevant training.
Emissions to land and water
There must be established procedures for preventing and dealing with the contamination of land and water. In the event of contamination, established procedures must be followed and measures must be implemented immediately to minimise the damage. The incident must be reported to the relevant authority and be dealt with in accordance with the directives laid down by the authority. Where land is exploited, an environmental impact assessment must be carried out in accordance with the legislation in force with the aim of ensuring that consideration is given to biodiversity and other environmental conditions.
Noise
All relevant laws and regulations relating to noise must be complied with, and relevant permits and test reports must be documented.
Energy
There must be established procedures for the measurement, monitoring and analysis of energy consumption in respect of fuel for vehicles, electricity, heating and cooling. Energy efficiency targets must be set and an action plan developed based on analysis carried out.
Waste
Waste management
Documented procedures are to be drawn up for the sorting, storage, transport, recycling and depositing in landfill of various types of waste and these procedures must be implemented. A continually updated record is to be kept of each type and quantity of waste. The procedures must also describe how the health and safety of affected employees are protected.
Employees who deal with waste must undergo relevant training to ensure that they are competent to do so. The content of the training must be described and there must be a register of trained employees.
All waste must be stored, handled and transported in such a way that land, water and air are not contaminated and so that the risk of ignition or explosion is minimised. Waste and hazardous waste must be kept separate, and areas for sorting and storage must be clearly delimited. Waste containers must be clearly marked. Sorted waste is to be sent for recycling provided there is an established infrastructure with authorised operators in the market.
Business partners
The partners used for waste management must have the permits required under the local laws and regulations in force.
Landfill
Waste may only be incinerated or deposited in landfill under controlled conditions at facilities indicated by local public authorities.
Chemicals
Chemicals management
Documented procedures for the purchase, storage, handling and use of chemicals, as well as for dealing with incidents and accidents involving chemicals, must be established and implemented.
Employees who handle chemicals must undergo relevant training to ensure that they are competent to do so. The content of the training must be described and there must be a register of trained employees.
All chemicals are to be stored, handled and transported in such a way that land, water and air are not contaminated and so that the risk of ignition or explosion is minimised. Chemicals must be stored in areas with a solid floor that does not absorb any spilled chemicals. If liquid chemicals are stored in the area, the floor must be bunded with a retaining wall that is high enough to contain the entire contents of the largest chemical container. If chemicals are stored in an underground tank, this must be monitored to ensure that possible leaks are prevented and discovered at an early stage.
All chemicals used must be documented in a register that is continually updated and that includes the name of the chemical, its area of use and a reference to its material safety data sheet. Material safety data sheets must be kept available in languages that the affected employees understand.
All chemical containers must be marked in such a way that the content and risks are clear to the employees.