07/19/2021

I am pleased to confirm that Uniservice Solution 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.

Sincerely,
Altantsetseg Tserendash
Chief Executive Officer

Uniservice Solution LLC (USS) confidently reaffirms its commitment to respect and promote internationally proclaimed human rights.
2020 has been a challenging year worldwide, especially in the service industry, biggest losses have been collected. However, our company has not laid off a single employee. For service companies, the most crucial resource in operation is undoubtedly human capital. At USS it is no different, better yet it is the central tenet of our company's philosophy, the first and foremost priority of USS is the well-being and emotional satisfaction of our employees.
Serving for over 15 years, Uniservice Solution has solidified its reputation as a company with a culture of honesty, integrity, and respect. As a subsidiary of the MCS Group, all MCS Group companies and employees adhere to the group’s Code of Ethics at all times when implementing the Group’s mission statement to introduce world standards in Mongolia.
In the Code of Ethics, the principles are elaborated in detail in a 7-page format, below are the main points:
1. All stakeholders and potential stakeholders of Uniservice Solution will be treated fairly regardless of race, nationality, age, disability, gender, sexual orientation, marital status, religion, and political beliefs.
2. Workplace harassment including physical, verbal, sexual, or psychological harassment, abuse, or threats is intolerable.
3. All employees must be set up for success which includes proper training and providing all necessary personal protective equipment.
4. Workplace must be safe, sanitary, and suitable.
5. The company will constantly provide fair hours, wages, and leave that enhance the employees' standard of living.
6. The company will keep open communication with the community and ensure that the community is not negatively impacted by the company's actions.
7. All technology and products of the company are to be regularly maintained and ensure safety.
8. The company is a corporate law-abiding citizen of Mongolia and a respecter and promoter of the general human rights of Mongolia.
9. The company condemns any action to contribute, endorse nor benefit from systematic human rights abuse.

Not only do we hold ourselves responsible to the highest human rights standards, we require our business partners and suppliers to do the right thing, the right way, and adhere to universal human rights and the general human rights of Mongolia.

This year, Uniservice Solution will be focusing on spreading Open Corporate Communication, where the shared pool of meaning and concern is allowed to flow freely. Fear-free communication is the foundation of a healthy company culture without abuse, harassment, nor accidents. Therefore, we will set permanent initiatives and campaigns encouraging our employees to speak out, through the activation of campaigns and initiatives such as 'Your Concern is Our Concern' and 'See Something, Say Something'.

Open Corporate Communication Implementation Plan Overview:
1. A standalone department of Speak Out Hotline is formed at the management level of Uniservice Solution and at the MCS Group level, comprising of professionals who are able to handle all incidents objectively and with integrity. Speak Out Hotline department's specific Code of Ethics and Standard Operating Procedures is formulated.
2. Organizational Culture Survey (OCS) is received yearly from all employees to identify employee satisfaction in the organization and possibly identify violations and breakdowns in the company. In addition to the OCS, all managerial position holders are examined through a 360 survey where multiple sources surrounding the individual will be questioned to accurately assess the true characters of all key leaders, in order to prevent abuse of power.
3. Informative and encouraging sessions and training regarding 'Your Concern is Our Concern' and 'See Something, Say Something' will be available for all employees to attend, online videos will be available.
4. The USS Speak Out Hotline and the MCS Speak Out Hotline will have their own phone number and e-mail address to receive all concerns, complaints, and incidents.
5. All incidents and claims will be investigated following the Code of Ethics. Individuals with bias and conflict of interest will not be allowed to review the cases.
6. Monthly 'Speak Out' emails will be sent to all employees as a reminder to keep communication open and active.
7. The National Human Rights Commission of Mongolia and any other relevant organizations will be welcomed to audit or aid in course-correcting the department's operating procedures.

We proudly point out that there has been a continuous improvement in our organizational culture survey that is conducted by the MCS Group.
2018 - 93.7%
2019 - 95%
2020 - 95.5%

Speak Out Hotline Monitoring Process:
If the ethics committee of USS is unable to solve the reported incident or in a case where an employee requests an external assessment then, MCS Group's Speak Out department will gather and investigate the claims and incidents.
After investigation, the department will present the findings to the management team of Uniservice Solution to discuss and confirm the analysis. A task force will be formed from the management team to right the wrong, conduct a root cause analysis and correct all the breakdown points in a timely manner, following the group's Code of Ethics and Principles. The MCS Speak Out Hotline department will meet with the task force after the deadline and review the action taken, ensure the highest respect for human rights is followed, and document the entire process in the group database for future reference.

Uniservice Solution has consistently encouraged open communication over the years, however, in the last two years, we have received zero human rights violation complaints. As much as we have faith in our organization that this is an accurate portrayal of our operation, we wanted to ensure that reluctance to speak out nor lack of information and guidance are not the cause factors. Hence, the company is aggressively encouraging open, two-way communication.

Uniservice Solution LLC (USS) confidently reaffirms its commitment to respect and promote the International Labour Organization's Declaration on Fundamental Principles and Rights at work, which includes freedom of association and the effective recognition of the right to collective bargaining, the abolition of forced or compulsory labor, the abolition of child labor, and the abolition of employment and occupation discrimination.
Employees that want to join a union are supported by Uniservice Solution. Our in-house Health, Safety & Environment (HSE) department updates and introduces policies and practices to ensure a strong safety record and to maintain a safe working environment. Uniservice Solution's main principles on labor are the following:
1. No one should be forced to work in a way that is manifestly harmful to his or her health and well-being.
2. No employee should act in a way that puts the safety of his or her coworkers in jeopardy.
3. Any hazard or risk in the workplace must be reported by all employees.

This year, our goal is to digitalize our safety logs and incident reporting methods.

Our team of experienced HSE department professionals handles all hazards, accidents, and risks. The HSE manager reports directly to the CEO and is a member of the management team of Uniservice Solution. The HSE department is also supported by the Quality Assurance Manager. At a new potential client's site, we conduct a site visit and perform the company's standard form of risk assessment to ensure the site is of appropriate condition and circumstance for our employees to service. HSE officers regularly visit the clients' sites to maintain the safety of our employees and equipment. Regular training and information sessions are organized monthly, and whenever deemed necessary.

Currently, we have utilized the company's Citizen Developers to create an 'Incompatibility/Defects' reporting mobile application, where all employees are able to instantly report defects at the workplace. Corrective actions are led by the HSE department and the Quality Assurance Manager.
The HSE manager is in the process of building an all-in-one chatbot for HSE matters in collaboration with Unitel's Toki application.

The Incompatibility application is downloaded and utilized by almost 600 employees out of our 800 employees. As the application is only introduced this year, the daily report of defects is being recorded to set realistic key performance indicators and better forecast in the upcoming year. In the coming year, we want app usage to reach 100%.

In times of the pandemic, we have added a new function for all employees to enter their temperature and physical condition. The data has been sent in overall consistently.
In the past year, our lost-time injury was 0. In the coming year, our goal is to keep this performance. Once an injury occurs, our goal is to not repeat it. The total frequency of an injury last year was 0.45.

Uniservice Solution is fully aware that our work has direct and indirect impacts on the environment. It is our duty to minimize the negative impacts and maximize the positive. As a subsidiary of the MCS Group, we are obligated to report on our corporate social responsibility each year. In our CSR, we divide our goals into two: the employees and the environment. The main environmental activities that have been completed in the past years were tree planting, sourcing sustainable and eco-friendly cleaning products, utilizing energy-efficient equipment, and minimizing paper waste.

We are aware that in specific to our operation water, waste, and chemical products have the biggest impact on the environment. We are committed to working towards lowering the impacts in these areas.

It is crucial that our actions and implementation result in a real positive impact and not merely Greenwash or provide a faux green label. In order to demand operational green footprints, we must educate and research on all possible ways this can be incorporated into our daily work and yearly goals. This is achieved through outsourcing eco training from third-party consulting firms with expertise in preserving and thriving the environment. Our procurement department ensures that the cleaning products in use are proven eco-friendly with a global name and that their promise and actions are staying in line with our environmental principles. Waste management is merely developing now to become a topic of concern in Mongolia. It is crucial that systematic change must be implemented to solve this issue as a whole matter. However, we are taking the best steps available at hand to promote and practice reducing, reusing, and recycling. We have placed waste sorting bins at our office and require all of our clients to invest in recycling bins to allow our cleaning staff to send the sorted waste to the intended areas to be recycled.

We plant trees every year. The number of trees planted is increased each year. In 2019, we have planted 50 trees, we were unable to carry out this tradition in 2020 due to the pandemic. However, in May 2021 we have planted 120 trees in an area just on the outskirts of Ulaanbaatar to reforest. This corporate annual event was carried out in collaboration with the Deaf and Mute Community of Ulaanbaatar. Detailed information and pictures can be found on our Facebook page.

In the past year, we have recycled almost 2,000 plastic bottles. In the coming year, we will not purchase water in a plastic bottle and demand reusable water bottle usage and have already placed filtered water dispensers in the office, our goal is to have 0 plastic bottle waste.

At Uniservice Solution, we are fully aware of the importance of ethics in our relationships with stakeholders and we place the utmost importance on practicing high ethical standards. However, threats of bribery and corruption are factors that are still largely present in the business world which is one of the reasons for the existence of the United Nations Global Compact. Therefore, our goal is to ensure the integrity of the company's actions, which commits us to implement anti-corruption policies and procedures. We will ensure openness and transparency so that we will never commit unethical bribes, incentives, or payments of any kind, including facilitation payments and "refunds".

Employees are required to report any actual, potential, or suspected corruption in Uniservice Solution or any alleged corruption by any person or organization associated with Uniservice Solution. Inappropriate payment requests, or any indication that a person is likely to be making improper payments, or any indications that a person has an intention or plan to violate this policy must be reported. Employees must report immediately to the group's ethics committee. Once a bribery or corruption case is identified, an investigation will be conducted under the guidance of Uniservice Solution's Chief Executive Officer.

Uniservice Solution reviews annually all bids completed with a value of at least 10,000,000 tugrik and high amount purchases in relation to bribery and corruption. In our latest review, we have not found any incidents of unethical behavior. The procurement department does not handle the research of products as it may lead to a conflict of interest, therefore our marketing department handles product research and presents the information to the procurement department.