Supplier Code of Conduct – Aktiebolaget Mercatus Engineering
Version 2025.01
1. What is the purpose of the Code?
Mercatus is committed to high standards of business ethics and sustainability. Mercatus Supplier Code of Conduct is based on the UN Global Compact’s ten principles and expresses the expectations that we hold for our suppliers.
We encourage our suppliers to establish their own codes of conduct based on similar standards and to flow down these standards to all persons and entities supplying goods and/or services to Mercatus.
Breaches of this Code and/or relevant laws and regulations are not acceptable and will result in Mercatus taking action. Any non-compliance shall be followed up and consequences shall be consistent and proportionate.
2. Legal compliance
It is fundamental to all areas of this Supplier Code of Conduct and the baseline of all business with Mercatus that suppliers operate in full compliance with all local, national and international laws and regulations applicable to its business.
2.1 Permits etc.
All legally required permits, approvals, licenses, registrations, inspections and related reports shall be in place, up to date and available for inspection upon request.
2.2 Application of Code, laws and regulations
In case local laws and regulations are less restrictive, the principles of this Supplier Code of Conduct shall apply. In case a requirement is covered by this Supplier Code of Conduct as well as by applicable laws and/or the agreement with Mercatus, the stricter regulation offering the greatest protection shall apply. In cases where there is a direct contradiction between mandatory local law and the principles contained in this Supplier Code of Conduct, the local law shall prevail, however the Supplier shall strive to honour the intentions of the Supplier Code of Conduct.
3. Human rights and working conditions
Suppliers of Mercatus shall respect all internationally recognized human rights and treat all people with dignity. Suppliers shall especially be aware of and respect the rights of indigenous people, vulnerable groups, including, but not limited to migrant workers, women, children, and disabled people.
We expect our suppliers to exercise human rights due diligence to identify, prevent, mitigate and account for negative human rights impacts of their own operations and supply chain with a focus on where they have the highest risks of doing harm to people.
3.1 Minimum age requirements
Suppliers must not engage in, or benefit from, the use of child labour, in accordance with the ILO (International Labour Organization) Convention 138.
3.2 Non-discrimination
Mercatus expects suppliers to make decisions on hiring, promotion, development and compensation based on the employees’ abilities and skills related to the job. These decisions must never be based on irrelevant factors such as gender, age, ethnic or national origin, religion, disability, sexual orientation, union membership or political affiliation.
3.3 Freedom of association and collective bargaining
Mercatus expects suppliers to respect the right of employees to freely associate and
bargain collectively in accordance with national laws and regulations.
3.4 Modern slavery
Suppliers must not engage in modern slavery-related activities, such as using force,
threats or deception to get a person to work, destroying or otherwise denying access to
an employee’s identity or immigration documents, charging employees recruitment fees
and failing to provide an employment contract.
3.5 Wages and working hours
Mercatus expects suppliers to compensate employees fairly and, at a minimum, to comply with legal minimum standards. Working hours shall comply with national laws.
3.6 Health and safety
Mercatus expects suppliers to ensure that its employees are offered a safe and healthy working environment that minimizes the incidence of work-related injuries. Adequate health and safety policies and procedures shall be established and followed.
Standards as ISO 45001 can assist a company in addressing occupational health and safety management system issues in a systematic manner and will be considered when evaluating health and safety performance.
Suppliers shall conduct regular health and safety risk assessments.
Suppliers are expected to assess the need for PPE (Personal Protective Equipment) and if needed, such should be provided free of charge and available for all workers.
Suppliers are expected to ensure that all machines and other equipment are equipped with necessary safety devices in order to prevent employee injuries.
Suppliers shall have adequate emergency preparedness and fire safety procedures in place.
4. The climate and environment
Protecting the environment and contributing to sustainable development is of great importance to Mercatus. Sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Suppliers shall actively strive to increase the positive and limit the negative impact of their operations and supply chain on the environment and society by establishing environmental plans that are focused on critical impacts on the environment throughout the entire life cycle.
The life cycle stages include acquisition of raw materials, design, production, transportation/delivery, use, end-of-life treatment and final disposal.
4.1 Responsible sourcing of raw materials
Suppliers shall exercise adequate due diligence with respect to sourcing, extraction and handling conflict minerals (tantalum, tin, tungsten and gold) to make a reliable determination of the origin and source of such minerals. Suppliers shall have a policy and process in place to ensure that any of these minerals contained in the products manufactured by suppliers do not directly or indirectly finance or benefit armed groups that are perpetrators of human rights abuses or in any other way directly or indirectly contribute to human rights violations.
4.2 Chemical and hazardous substances management
Suppliers shall identify potentially hazardous substances in chemical products and articles used in their production and ensure that they are handled, transported, stored, recycled and disposed of safely. Safety information shall be available to educate, train, and protect employees from hazardous materials and employees shall have access to adequate personal protective equipment.
Substances included in products delivered to Mercatus shall fulfil the European environmental requirements RoHS and REACH including any updates thereof.
We require 100% declaration of all substances used in the products delivered to Mercatus.
4.3 Resource efficiency, energy consumption and waste management
Suppliers shall monitor, track and document their consumption of natural resources such as water and raw materials, as well as sources of energy to be able to identify aspects that suppliers can control and can influence by fostering opportunities for improvement and minimized consumption.
Consumption shall be monitored, tracked and documented and provided to Mercatus upon request.
For waste management, suppliers shall, as a minimum, follow the waste hierarchy (prevention, reuse, recycling, recovery, disposal) with an emphasis on reusing and recycling waste or recovery for energy and maintain all records of waste identification, collection, storage, transfers and disposals to satisfy all duty of care requirements.
5. Reliable business
5.1 Anti-corruption
Mercatus is opposed to all forms of corruption and have zero tolerance towards corruption in any form. Any type of corruption is contradictory to the objective of doing good business. Suppliers shall not engage in, endorse nor tolerate any form of bribery or corruption, directly or indirectly.
Suppliers shall at all times uphold the highest level of integrity, always complying with anti-bribery and corruption laws in all business interactions and disclose details of its corporate structure when requested by Mercatus.
5.2 Gifts and hospitality
Suppliers shall only offer or receive gifts and hospitality in accordance with laws and regulations.
Gifts and hospitality shall be reasonable, justifiable and not lavish nor excessive. Suppliers shall not offer nor accept any form of improper benefit to or from a third party, private or public, with the purpose of obtaining or retaining business or any form of preferential treatment. Such benefits may comprise not only of cash but also job opportunities, favours, travel, facilitation payments, promises to pay debts or unlawful gifts and entertainment.
5.3 Anti-money laundering
Mercatus is firmly opposed to all forms of money laundering. Supplier’s business shall comply with all applicable anti-money laundering laws, and the supplier shall take appropriate measures to prevent any financial transaction from being used by others to launder money.
5.4 Trade regulations and sanctions
Mercatus is committed to strictly complying with all applicable sanctions, export, import, trade and transit compliance laws in all countries in which Mercatus operates. Suppliers shall be aware of and follow all applicable laws and regulations when transferring goods and/or services within their own countries or across borders. Suppliers undertake not to import, export, re-export, or otherwise provide either directly or indirectly, in part or in full, any services, supplies and/or information without complying in all respects with such applicable export control and sanctions laws and regulations as well as any related governmental instructions, licenses or requirements.
5.5 Conflicts of interest
Mercatus expects its suppliers to identify and avoid situations where there is an actual or potential conflict of interest in relation to the supplier’s relationship with Mercatus. Suppliers shall disclose to Mercatus any actual or potential conflict of interest as soon as they become aware of such conflict of interest.
5.6 Confidentiality and intellectual property rights
Suppliers shall respect Mercatus confidential information and intellectual property rights by safeguarding against misuse, mishandling, counterfeit, theft, fraud or improper disclosure in accordance with applicable law and the contractual terms and conditions with Mercatus.
5.7 Data privacy
Suppliers shall respect the personal privacy of employees and business partners. Collecting personal data shall always be in accordance with applicable laws and regulations.
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