09.06.2015

To our stakeholders:

I am pleased to confirm that T&G Elektro AS reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Every time T&G Elektro AS is making a general company presentation for customers, suppliers or other parties, the 10 UN Global Compact Principles are presented. We are proud to support these principles. All employees shall feel that they are a part of our value system and a part of our daily business.

Sincerely yours,

Martin Grimsgaard

General Manager

T&G Elektro AS supports the Universal Declaration of Human Rights. In Norway, and by Norwegian law are the Human Rights well covered. We are lucky to live in a wealthy, free and democratic country and it is easy to take Human Rights for granted. We are working in a global world with some suppliers from developing countries were humans might not be as good protected as in our own country. For us, as a small private owned company, we want to be sure that we do business with companies which also support and act the Universal Declaration of Human Rights. T&G Elektro AS issues to relevant companies a Conduct Principle Declaration which they have to agree and sign before we enter in to any businesses.

All new employees are trained according to a training plan were our Conduct Principles and values are presented and discussed. The principles are implemented in our Quality Manual and Company Quality System. We have regular Corporate Social Responsibility (CSR) meetings in all departments. The people working with order processing (purchasing) and our sales and marketing people are in these meetings reminded the importance of the Conduct Principles and the necessity to do business with companies which follow Human Rights.

All employees shall be aware that any breach or violation against Human Rights shall be reported to the management without any delay.

T&G Elektro's employees shall be challenged to take advantage of their abilities and to contribute to the companys progress as well as their own. They are to be taken seriously, treated with resepect and given orderly working conditions. Health and safety shall be given priority and all of our employees shall have equal opportunities.

T&G Elektro takes a systematic approach to Health, Safety and the Environment (HSE). The main principle is that HSE is to be preventative, promoting job satisfaction and a good working environment, while maintaining low rates of sick leave and avoiding injuries and accident. All employees is aware of this through the company's Personal Handbook for employees.

Injuries and near-accident are registreres in a individuel unit (QA) and then reported to the companys management group.

The employees starting salary follow the average in the local markets in which T&G Elektro do business.

In Norway the employes are protected by the Goverments principles for employees. And it is not allow to use child workers. All employees are treated equaly - no matter religion, age or race.

T&G Elektro AS do not have production or processes that have critically influence on the environment. An analysis of the company, according to ISO 14001 has been conducted, and the report from this have been used internally to describe our policy.
Our Environmental Policy is stated in our Quality system, and conduct principles are established. These principles are also sent to our suppliers together with the questionnaire for approval of new suppliers.
For the coming year we are in the process, together with our customers, to look for change in constructions and components to find more environmental materials used in our production.

Our Environmental policy are in our QA system, and also described in our Personal Handbook and our HSE Handbook.
The policy state that we as a company follow all governmental laws and regulations, and expect our employees to do the same.
An agreement are established to take care of waste from our production, and all pacing materials are reused when possible. If not usable packing materials, as well as waste papers from our offices, are collected for recycling.
Environmental behaviour is taken into consideration in approvals of new suppliers.

Environmental issues are discussed and handled in our management meetings and The Management review of our QA system

As part of our Quality system there is a system to report all HSE incidents (deviations). These incidents are then handled according to our QA system (ISO9001 / AS 9100) - and follows the same procedures.
In our processes for improvements we always look for possibilities to reduce waste, use less energy and be more effective both in production and administration. Other areas where we have worked to be more environmental effective are transportations and travel. Last year we have used more teleconferences to reduced travel.

Environmental issues are discussed and handled in our management meetings and The Management review of our QA system.
No Environmental incidents have been reported during the last year.

The Norwegian law statutes have clear regulations regarding corruption and improper influence.
The most important clauses in the statutes relating to relation building state the following
It is unlawful to both give and receive improper benefits.
These regulations apply to both private and public employees and also elected representatives.
These regulations also include benefits that are given (or received) from a person (or persons) abroad.
The regulations include not only benefits to the decision maker but also to other person(s) involved that can influence the decision maker.

T&G Elektro has established a procedure in the QA-system, and also established Ethical guidelines where we as a minimum are commited to standards defined in Common Industry Standard (CIS) by the Aerospace and Defence Industries of Europe regarding Ethics and Anticorruption.

Anti corruption and Ethical standard are described in T&G Elektro's QA system, Personal Handbook and Ethical guidelines
All employees shall be aware of the content in the standard by distribution in the company’s personal handbook .The company standard shall as a minimum meet the CIS.
For new intake of employees the Ethics and Anticorruption Standard is a part of the QA – training, within 3. months from start up date.
All employees that needs advices, or suspect possible deviations from rules in this procedure, reports this to the QA manager who handle this further in the organization.
Our Conduct Principles are discussed with our suppliers when we do supplier evaluations.

All employees that needs advices, or suspect possible deviations from rules in this procedure, reports this to the QA manager who handle this further in the organization.
No incidences has been reported during last year. Nevertheless, our employees are motivated to keep their eyes open and report all suspiciously cases with their superior or the QA manager.