Letter from the President of the Management Board
We present you the business results of the AD Plastik Group in 2021, very challenging and demanding, and according to many, one of the most difficult years in the history of the automotive industry. Although the beginning of the year showed positive signs and pointed to market recovery, the global crisis of the lack of semiconductors significantly affected the sales of new cars. Due to the lack of components, car manufacturers failed to meet the market needs and deliver the required quantities, and disruptions in production processes were reflected in the entire supply chain. In rather difficult circumstances, we generated the Group’s operating revenue of HRK 1,126.2 million, which was by 7.6 percent lower than a year earlier. EBITDA amounted to HRK 125.3 million and was lower by 24.5 percent, while net profit decreased by 30.3 percent and amounted to HRK 32.7 million. The biggest challenges in the past period have been the adaptations to frequent and uncertain changes in our customers’ operational plans, but despite this we have maintained our position and reputation as a reliable and quality supplier. We have adapted to constant changes and at no point were deliveries to customers compromised. In addition to disruptions in the supply chain, last year was marked by a significant increase in the prices of materials, raw materials, transport and energy sources. By open price calculation and alignment with most of our customers, the impact on business has been reduced. Unlike production, sales and project activities have been proceeding unhindered, so in 2021 new deals worth more than EUR 150 million were selaed. Among them are also several very important development projects, which have further strengthened our position as a development supplier. We have been working intensively on sales and development activities and the realization of 37 active development projects. Development activities of all car manufacturers are in full swing and the entire industry is actively preparing for the end of the crisis. At the same time, we direct the research activities towards our strategic goals of improving processes, products and materials. We have been working intensively on this, aware of the permanent changes and transformations that will be necessary for the further development of the business. Circumstances in the market have accelerated organizational processes, and we have paid special attention also to sustainable business and the improvement of all our internal processes related to CSR. Some of our sites have been certified for the first time according to the information security system for the automotive industry which is a prerequisite for the exchange and work with confidential intellectual property of customers. The health and safety of our employees have always been the ultimate priorities of our company, and in pandemic extra attention has been paid to them. In addition to the ongoing measures and activities that were undertaken in order to protect health, last year we also became holders of the certificate “Health Friendly Company”. We have thus further confirmed the importance of the health of our employees and a healthy business environment in our business. Our unquestionable choice, but also a duty, is to conduct business and live in harmony with our environment. It is the only right path and way to preserve the planet for future generations, but also to give added value to the community in which we operate. Therefore, sustainable business is integrated into all segments of our work, and it is our daily mission to constantly improve and develop it. Our efforts and progress have been recognized by various stakeholders and the professional public in the past period. We are particularly pleased with the awards we received in a very demanding year, namely the HRIO award in the category of large companies and the Golden Key for the best exporter to Slovenia. In addition to the market challenges that have been continued in 2022, during the preparation of this report we have been facing another unexpected situation. The Russian-Ukrainian crisis is a new challenge for the global economy and our business. Given the uncertainties, we are aware of another very difficult and challenging period ahead. We are primarily focused on preserving financial stability and business sustainability, and reducing negative impacts on business. At the same time, new deals are being sealed in the European market, contracted projects are being realized and development activities are being continued. There is no room for relaxation, but the automotive industry should be considered in a long term perspective. AD Plastik Group is a stable company that has shown its resilience many times and I believe it will be the same now. I am sure that together we will successfully withstand this rather difficult crisis too. We are ready for new challenges, and confident of the survival and long-term development of our company.
Marinko Došen
President of the Management Board

In accordance with its mission and vision, AD Plastik Group strives to achieve strategic goals, growth and development in all business segments and successful financial results. Adherence to the principles of corporate social responsibility and ethical business has been chosen as the only right direction on its path to successful realization of goals. The core values of the company are prescribed by the Code of Business Conduct and Policies, as well as the ethical standards of the company and each individual within it. The aim of this document is to conscientiously and continuously establish a balance in the economic, social and environmental aspects of business when making all business decisions. All employees are acquainted with the Code of Business Conduct and Policies, and each new employee at all Group production sites receives a copy in their native language. It promotes the equal right to respect and dignity regardless of race, religion, sex, age, national origin, political beliefs, sexual orientation, marital status, disability or any other personal characteristic and stipulates that all employees are obliged to treat each other with respect and dignity while encouraging collaboration and teamwork. Adherence to ethical standards is also the responsibility of the Group’s business partners, and decisions on their selection are made accordingly. The company does not tolerate any form of harassment or discrimination in the workplace, nor any form of abuse. By pursuing an equal opportunities policy, there is no discrimination in any segment of the human resources processes. Particular attention is paid to the compliance of business with the development goals of the community, especially in terms of preserving the interests of children and the environment in which they grow and develop. As the creation of safe and healthy workplaces is one of the company’s fundamental commitments, risk and hazard assessments were regularly conducted in all parts of the organization, and the potential hazards were minimized by implementing preventive actions. Continuous improvement of working conditions, and ensuring working conditions without negative impacts increase employee satisfaction and motivation. In Mladenovac, the glassrun channels assembly process has been ergonomically improved, which eliminated excessive fatigue due to inappropriate position and body movement. Preserving and promoting health is part of the strategy of human resource development and awareness of the impact of the work environment and working conditions on the health of each individual. This is one of the reasons for joining the project “Healthy Living“, within which the certificate “Health Friendly Company” is awarded. During 2021, an educational workshop “Preservation of mental health” was held, as an introduction to the campaign on the importance of mental health.

In order to protect children and minors, the Group applies the principle of prohibition of child labor and, accordingly, no employment contracts are concluded with persons under the age of 15 years, ie 18 years. To ensure this in all countries where business is conducted, mechanisms are additionally used to check the age of job candidates. Respecting children’s rights in practice, the company participates in projects that strengthen the welfare of children and conducts internal training to raise awareness of its employees on this topic. Anti-corruption policy, among other things, prohibits donations that do not comply with the Group’s fairness standards and do not conform to local regulations. AD Plastik Group respects the principles of free competition and, in accordance with the Antimonopoly Policy, strictly prohibits agreements of entrepreneurs aimed at distorting competition.
New employees regularly participate in training on occupational health and safety, which consists of theoretical and practical part. Other employees also periodically participate in such trainings, and the acquired knowledge is regularly monitored and evaluated.
A comprehensive supplier assessment in terms of impact on society was conducted in all companies through a CSR questionnaire.

During the reporting period, there were no reported cases of discrimination or human rights violations, suspicions of corruption or conduct contrary to the principle of freedom of competition. One employment dispute was initiated and one employment dispute initiated before the reporting period was resolved. The company opposes any material support of political parties and promotes transparent public advocacy through business and interest organizations. The Code of Business Conduct and Policies are published on the company’s website and clearly prescribe the procedure for reporting irregularities and non-compliance with the company’s principles. Through a questionnaire of compliance with the guidelines of CSR, the suppliers have confirmed that they have a prescribed child labor prohibition policy. As part of the comprehensive annual supplier assessment on issues of CSR, an assessment of the suppliers impact in terms of respect for human rights was conducted. Given the set criteria for the selection of suppliers, no deviation was observed in terms of respect for human rights, as expected.
516 of them confirmed their commitment to respecting the human rights, the right to work, the prohibition of child labor and the fight against discrimination and corruption. A large number of assessed suppliers are suppliers of various consumables, intellectual, financial, legal and other services, and suppliers for one-time purchases. In 2021, the share of assessed suppliers in relation to the total number of suppliers is 18.63 percent. However, by relating the value of purchasing of assessed suppliers and the total value of purchasing, this share is significantly higher and amounts to over 70 percent.
Diversity and equal opportunities ensure respect for personal integrity and are included in management, employment and promotion processes. The company’s goal is to make every employee feel like an equal member of the work environment and activities are aimed at building open and inclusive relationships. Compared to the previous period, the share of women in senior management structures decreased slightly, while the share of women over 50 years of age in middle management increased. The share of women within the management- leading structure of AD Plastik Group is a total of 38.19 percent. The ratios of women and men in various management positions have been stable for many years, with 64.8 percent of total management aged 30 to 50, while the share of those over 50 is 29.2 percent.. The total share of women and men is almost unchanged compared to the previous year, and the trend of gender structure of employees maintains balance and equal representation of the sexes, by which the company supports and promotes policies of gender equality, diversity and equal opportunities. (men 48,5%, women 51,5%)
In order to promote, raise awareness and preserve the mental health of employees, a campaign≪It’s OK not to be OK≫ was conducted at the Group level. It was launched on the occasion of the International Mental Health Day, and its goal was to recognize one’s own and other people’s signs of mental health distress. In Croatia, the provision of psychological counseling and support services has also been contracted with external experts, which ensures anonymity for employees and provides them with free help.

In accordance with its mission and vision, AD Plastik Group strives to achieve strategic goals, growth and development in all business segments and successful financial results. Adherence to the principles of corporate social responsibility and ethical business has been chosen as the only right direction on its path to successful realization of goals. The core values of the company are prescribed by the Code of Business Conduct and Policies, as well as the ethical standards of the company and each individual within it. The aim of this document is to conscientiously and continuously establish a balance in the economic, social and environmental aspects of business when making all business decisions. All employees are acquainted with the Code of Business Conduct and Policies, and each new employee at all Group production sites receives a copy in their native language. It promotes the equal right to respect and dignity regardless of race, religion, sex, age, national origin, political beliefs, sexual orientation, marital status, disability or any other personal characteristic and stipulates that all employees are obliged to treat each other with respect and dignity while encouraging collaboration and teamwork. Adherence to ethical standards is also the responsibility of the Group’s business partners, and decisions on their selection are made accordingly. The company does not tolerate any form of harassment or discrimination in the workplace, nor any form of abuse. By pursuing an equal opportunities policy, there is no discrimination in any segment of the human resources processes. Particular attention is paid to the compliance of business with the development goals of the community, especially in terms of preserving the interests of children and the environment in which they grow and develop. In order to protect children and minors, the Group applies the principle of prohibition of child labor and, accordingly, no employment contracts are concluded with persons under the age of 15 years, ie 18 years. To ensure this in all countries where business is conducted, mechanisms are additionally used to check the age of job candidates. Respecting children’s rights in practice, the company participates in projects that strengthen the welfare of children and conducts internal training to raise awareness of its employees on this topic.
By continuous, transparent and two-way communication with all its stakeholders, the Group contributes to a better understanding of their needs and quality long-term development and ongoing improvement of CSR. In the reporting period, very intensive consultations and communication with employees and customers, shareholders and suppliers, took place as usual. Due to the specifics of market circumstances, communication with Group stakeholders was also more frequent. Communication occasionally took place directly with the highest management, but mostly it took place with the company’s middle management, which, according to the company’s internal procedures, must inform the highest management of all conclusions.

Apart from direct consultations, the company confirms its development and progress regarding CSR also through regular evaluations of external agencies, audits by its customers and their regular evaluation of satisfaction at specialized portals. Within the automotive industry,clear and high standards of CSR have been set, which are a prerequisite for cooperation. As the recognized stakeholder groups are heterogeneous, the communication tools and channels are adjusted. Apart from regular and direct communication with all stakeholders, the Integrated Annual Report is available on the company’s website. Through memberships in various organisations and associations, the company actively participates in the improvement of CSR by various workshops, public gatherings, conferences, visits and consultations. Special attention is paid to the exchange of opinions with employees, so regular surveys of organizational climate and satisfaction are conducted, bulletin boardsintranet and other digital communication tools as well as ADP Mailbox and internal newsletter are used, all with the aim of more efficient and intensive communication. Communication, consultation and negotiation with trade unions and Workers council are held regularly, and audits and evaluations at suppliers’ sites are carried out according to the previous plan and needs. Good practice has been continued in terms of examination of stakeholders’ opinion on the importance of individual material topics through a questionnaire. The questionnaire is available onthe company’s website throughout the year, and the CSR Committee is in charge of analyzing the collected results, encouraging stakeholders to get involved, proposing improvements and reporting to the highest management.
AD Plastik Group fosters a culture of communication and open social dialogue, and two-way communication is one of the key determinants in building employee trust. In crisis situations, timely and regular informing on all relevant topics is extremely important, and in the past period, this applied, in particular, to topics related to health and safety and changes in plans. The primary goal was to provide a sense of security to its employees in uncertain and challenging times through timely and transparent communication. Representative of the Workers’ Council is a member of the company’s Supervisory Board, thus employees are involved in business supervision and decisions concerning their position. Regular elections for the Workers’ Council were held in the reporting period.
The Code of Business Conduct and Policies are published on the company’s website and clearly prescribe the procedure for reporting irregularities and non-compliance with the company’s principles
All Employees are informed and required to report any form or suspicion of corruption to their direct superiors, Human Resources or Legal Affairs Department.
All challenges in2021 were further aggravated by the COVID 19 pandemic, which put the company’s focus on employee health and safety, which were already high on its priority list. With constant measures and activities undertaken to protect health, last year the company became the holder of the certificate “Health Friendly Company”, which further confi rmed the importance of health and a healthy business environment at all its production sites.

Collective agreements cover 81.21 percent of employees at the Group level, while the rights and obligations of other employees are regulated by various regulations in accordance with legal provisions. In 2021, an annex to the one-year collective agreement was signed in Croatia, by which employees maintained a high level of social and material rights, despite rather difficult circumstances. The agreement was signed with three trade unions operating within the company, and another trade union was established during the year. In AD Plastik Togliatti, the Collective Agreement is in force until December 31, 2022, and its amendments were signed in 2019, while in Kaluga the long tradition of good social dialogue continues. In Hungary, the rights signed by the collective agreement, which was valid until the end of 2021, were applied.
Diversity and equal opportunities ensure respect for personal integrity and are included in management, employment and promotion processes. The company’s goal is to make every employee feel like an equal member of the work environment and activities are aimed at building open and inclusive relationships. Compared to the previous period, the share of women in senior management structures decreased slightly, while the share of women over 50 years of age in middle management increased. The share of women within the management- leading structure of AD Plastik Group is a total of 38.19 percent. The ratios of women and men in various management positions have been stable for many years, with 64.8 percent of total management aged 30 to 50, while the share of those over 50 is 29.2 percent..
The total share of women and men is almost unchanged compared to the previous year, and the trend of gender structure of employees maintains balance and equal representation of the sexes, by which the company supports and promotes policies of gender equality, diversity and equal opportunities. (men 48,5%, women 51,5%)

At all production sites, that is countries of operation, the entry- level wages of AD Plastik Group employees are higher than the prescribed minimum wages in a particular country or region. The basic wage is set depending on the job position and is equal for all employees, regardless of gender or any other characteristic. It is based on legal regulations and internal documents of each individual company which define wages, additions to the wage, compensations and stimulations.
Through a questionnaire of compliance with the guidelines of CSR, the suppliers have confirmed that they have a prescribed child labor prohibition policy. As part of the comprehensive annual supplier assessment on issues of CSR, an assessment of the suppliers impact in terms of respect for human rights was conducted.
In order to protect children and minors, the Group applies the principle of prohibition of child labor and, accordingly, no employment contracts are concluded with persons under the age of 15 years, ie 18 years. To ensure this in all countries where business is conducted, mechanisms are additionally used to check the age of job candidates.
The company continued to implement preventive activities to prevent the spread of the virus within the company, primarily taking into account the health and safety of its employees. The company’s Crisis Management Committee regularly held meetings and took care of the implementation of prescribed measures and the epidemiological situation at all production sites. As the creation of safe and healthy workplaces is one of the company’s fundamental commitments, risk and hazard assessments were regularly conducted in all parts of the organization, and the potential hazards were minimized by implementing preventive actions. Continuous improvement of working conditions, and ensuring working conditions without negative impacts increase employee satisfaction and motivation.
New employees regularly participate in training on occupational health and safety, which consists of theoretical and practical part. Other employees also periodically participate in such trainings, and the acquired knowledge is regularly monitored and evaluated. The implementation of the prescribed measures for occupational health and safety is supervised by the occupational safety service at its regular internal audits, and the results are reported to the Occupational Safety and Health Committee and the employees. All issues related to occupational safety are regularly coordinated with the representatives of the trade unions and the Workers’ Council. The health condition of employees in workplaces with special working conditions and those who work night shifts is regularly monitored by referring them to specialist examinations by occupational physicians. In the reporting period, the number of injuries is the same as in the previous year and they do not have lasting consequences for the health of employees.

According to international standards a certification for AD Plastik Group is carried out by the certification company Bureau Veritas Certification (BVC) almost at all production sites except at the AD Plastik Tisza site where the certification is carried out by Det Norske Veritas (DNV). In the reporting period recertifi cation and supervision audits were successfully conducted at all production sites of the AD Plastik Group.
IATF 16949 - Automotive Quality Management System
ISO 14001 – Environmental Management System
ISO 45001 – Occupational Health and Safety Management System
ISO 50001 – Energy Management System
ISO 27001 – Information Security Management System
TISAX® - Information security system for the automotive industry

In its business operations, AD Plastik Group encounters external and internal factors that may influence the occurrence of various risks, including risks related to climate change. Each type of risk can positively or negatively affect business results, and timely assessment and quality management create the preconditions for identifying opportunities and sustainability of business. Internal factors are influenced by the company’s continuous improvement of its business policies and procedures, while direct Business risks include all those risks arising from the environment in which the company operates, the industry itself and its specifics. They directly affect the stability and maintaining company’s competitive advantage. impact on external factors, such as the impact of economic, political or regulatory changes, is very limited. Through its responsible business operations, the company also contributes to the fight against climate change and negative impacts on sustainability indicators.The permanent task of the company’s Management Board is continuous improvement in the field of business and sustainability risks management, as a fundamental lever of successful business management as a whole.
In cooperation with its customers and suppliers, the Group continuously works on finding environmentally friendly solutions, technologies and materials to reduce vehicle weight, their emissions and protect environment. Potential risks are prevented by continuous monitoring of environmental impact, process improvements and planning. The precautionary principle is applied to avoid possible risks of applying new technologies before having full knowledge and understanding of their impact on the environment and human health. Environmental care and conscientious management of natural resources are the core values and permanent responsibility. The circular economy, greener production processes, energy efficiency and quality waste management are part of the integrated strategy, which is the basis for making plans, strategies, and realization of the activities

Input materials management is integral part of business processes from offer making to serial production, and it is covered by the quality, environmental protection and sustainable supplier management policies. Input materials used in production processes, with significant cost impact, are important because of the environmental impact. This is managed by the close cooperation of Sales, Research, Purchasing, Product and Process Development, Production, Quality and Environmental Protection. The basic raw materials for the production of plastic components are thermoplastic organic polymers used in injection moulding, thermoforming and blow moulding. Component painting technology uses paints, varnishes and solvents based on VOC. The final products of the Group are in line with the technical specifications of customers, with whom it continuously works on the material development and improvement, and the application of environmentally sustainable standards.
Direct and indirect energy is used for the operation of production plants. Direct energy consumption includes the consumption of natural gas, LPG, heating oil and fuel for the propulsion of company’s motor vehicles. Indirect energy consumption means electricity consumption, and the total consumption of direct and indirect energy varies and is directly related to the amount of production.
The company conscientiously and continuously manages energy and takes initiatives to ensure efficient and rational consumption.
Water is a unique and irreplaceable natural resource used in business, so the care for its consumption and the quality of water discharged is approached with special attention within the company. Regular monitoring of water consumption and reporting on the state of the water supply and wastewater discharge systems enable managing this resource in a quality manner. Possible deviations from the planned values are quickly identified and, accordingly, measures and activities for improvement are introduced.
Emissions have a direct impact on the environment and the local community, as well as an indirect impact on the company’s financial performance. The management of this aspect is based on the application of environmental protection and energy management policies, by which the company continuously seeks to reduce its negative impact on the environment. Regular activities are defined by the company’s procedures and internal instructions, and their effectiveness is checked through internal and external audits.
Greenhouse gas emissions are the result of combustion of energy sources necessary for operation, and AD Plastik Group, in accordance with legislation and regulations, regularly conducts tests of emissions from stationary sources and reports on them. The weight of air emissions is determined directly from measurements or indirectly from calculations based on energy source consumption.
The primary goals, but also duties, are to prevent and avoid waste generation. Preserving the environment is the task of the company, but also of all employees. This is achieved by regular monitoring, supervision and optimization of existing business processes and defi ning planned measures when developing new products. Separate waste collection and prescribed disposal are an integral part of daily activities. Records on the generated waste handed over for disposal are kept according to the legally prescribed documentation.

The products are packed and transported in returnable metal or plastic packaging, and part is packed in appropriate cardboard packaging, covered in foil and placed on wooden pallets. During 2021, chemical leasing model continued, in line with the Law on Sustainable Waste Management. Thus, waste solvents from the painting technology are disposed of so they get regenerated and returned to the painting technology process purified. 237 tons of regenerated solvent were used with this model.
Energy efficiency provides financial and energy savings, and, accordingly, an energy efficiency management system has been implemented at the production sites in Solin, Zagreb and Mladenovac according to the requirements of ISO 50001 standard. That is the backbone and the basis for more efficient use of the Energy Consumption Reduction Program. In accordance with the internal procedures and instructions of the Technical Affairs department, regular and appropriate records of energy consumption are kept at the production sites of the AD Plastik Group, and based on that, measures for improvement are proposed. Electricity is the main energy source in the Group’s production plants and premises, the main driver of machines, heating, cooling and lighting devices of work areas. Total energy consumption in 2021 was lower than in previous periods due to reduced production. The purchased electricity was not obtained from renewable energy sources. During 2021, activities of replacing lighting fixtures with LED lighting were continued. A cooling plant was purchased in Zagreb, while a dryer for drying and preparing materials was purchased in Solin. Gas-powered forklifts have been replaced by more technologically advanced electric forklifts in Solin, Zagreb and Tiszaujvaros. The Hungarian factory has also introduced a system for measuring electricity effi ciency, which communicates wirelessly with a central server that has analytics software. Such consumption monitoring and analysis of incoming data allow to timely undertake measuresfor more efficient use of electricity.
AD Plastik Group’s production sites do not have a negative impact on water and the aquatic ecosystem, and the supply is mostly provided from the public water supply system. A small part is supplied from its own well in Zagreb, from which water is used for sanitary and technological needs and, if necessary, replenished in closed recirculation systems. Technological needs include cooling of machines and tools, water curtain in the process of applying paints and varnishes and humidification of the air. Water consumption is monitored by direct measurement on a water meter.
Effluents are divided into sanitary, technological water and rainwater. They are purified through sedimentation tanks, grease separators and separators before being poured into the internal drainage system, which drains them further to the city water purifier. The collected sediment and sludge generated in this process are regularly removed, and prior to actual disposal, stored and handled as hazardous waste, in accordance with waste management regulations. Effluents are not recycled in production plants and are controlled by sampling according to the requirements of water permits. All effluents meet the permitted concentrationsfor discharging in public drainage systems. AD Plastik Group’s production sites a are not owned, leased or managed by protected areas or in their immediate vicinity, nor in areas of high value in terms of biodiversity outside protected areas. Therefore, they do not have a negative impact on protected areas.
In the review of direct greenhouse gas emissions for 2021, 95.8 percent of emissions refer to those generated by the combustion of natural gas used for the operation of boiler rooms for the production of thermal energy, systems for regenerative combustion of volatile organic compounds and flaming processes. LPG used for forklift operation accounts for 3.8 percent, and the share of heating oil also used for boiler room operation is 0.38 percent. The share of direct CH4 and N2O gas emissions in 2021 was 0.10 percent. Indirect greenhouse gas emissions are caused by the use of electricity obtained from non-renewable sources.
Refrigeration systems and fire protection systems use refrigerants that damage the ozone layer due to their chemical composition. They are regularly serviced and maintained by authorized service technicians, which is recorded on the service cards. In 2021, additional equipment was installed, which increased the amount of refrigerants R410A in Solin and Zagreb, R407C in Kaluga, HCFC in Tiszaujvaros and R449A in Solin. In Solin, the air conditioning chamber was disposed of, which disposed 7.5 kg of R22, and in Zagreb, the equipment that disposed 160 kg of R407C. Due to equipment failure, 16.4 kg of R407C and 14.6 kg of HCFC-22 were released into the atmosphere in Tiszaujvaros and 120 kg of R4
Data on the weight of waste handed over for disposal are obtained by measuring the weight when handing it over to authorized collectors and are used for reporting and assessing the achievement of set waste reduction goals. Accordingly, activities for advancement and improvementare defined. During 2021, 58.2 percent of the total amount of waste was handed over to authorized disposal companies for recycling, of which 1,317.8 tons of non-hazardous and 266.5 tons of hazardous waste.
During 2021, external audits were successfully conducted at all production sites in accordance with the requirements of the ISO 14001 standard, and no non-compliances and irregularities were identified. At no production site of the AD Plastik Group was an environmental inspection carried out and no fines or non-monetary sanctions were imposed for non-compliance with laws and regulations.
Supplier environmental assessments are conducted regularly once a year and are mandatory in the phase of selecting a new supplier, and one of the selection criteria is the possession of environmental protection certificate ISO 14001.

According to international standards a certification for AD Plastik Group is carried out by the certification company Bureau Veritas Certification (BVC) almost at all production sites except at the AD Plastik Tisza site where the certification is carried out by Det Norske Veritas (DNV). In the reporting period recertification and supervision audits were successfully conducted at all production sites of the AD Plastik Group.
IATF 16949 - Automotive Quality Management System
ISO 14001 – Environmental Management System
ISO 45001 – Occupational Health and Safety Management System
ISO 50001 – Energy Management System
ISO 27001 – Information Security Management System
TISAX® - Information security system for the automotive industry

In accordance with its mission and vision, AD Plastik Group strives to achieve strategic goals, growth and development in all business segments and successful financial results. Adherence to the principles of corporate social responsibility and ethical business has been chosen as the only right direction on its path to successful realization of goals. The core values of the company are prescribed by the Code of Business Conduct and Policies, as well as the ethical standards of the company and each individual within it. The aim of this document is to conscientiously and continuously establish a balance in the economic, social and environmental aspects of business when making all business decisions. All employees are acquainted with the Code of Business Conduct and Policies, and each new employee at all Group production sites receives a copy in their native language. It promotes the equal right to respect and dignity regardless of race, religion, sex, age, national origin, political beliefs, sexual orientation, marital status, disability or any other personal characteristic and stipulates that all employees are obliged to treat each other with respect and dignity while encouraging collaboration and teamwork. Adherence to ethical standards is also the responsibility of the Group’s business partners, and decisions on their selection are made accordingly. The company does not tolerate any form of harassment or discrimination in the workplace, nor any form of abuse. By pursuing an equal opportunities policy, there is no discrimination in any segment of the human resources processes. Particular attention is paid to the compliance of business with the development goals of the community, especially in terms of preserving the interests of children and the environment in which they grow and develop.
Anti-corruption policy, among other things, prohibits donations that do not comply with the Group’s fairness standards and do not conform to local regulations. AD Plastik Group respects the principles of free competition and, in accordance with the Antimonopoly Policy, strictly prohibits agreements of entrepreneurs aimed at distorting competition.

The Code of Business Conduct and Policies are published on the company’s website and clearly prescribe the procedure for reporting irregularities and non-compliance with the company’s principles. All Employees are informed and required to report any form or suspicion of corruption to their direct superiors, Human Resources or Legal Affairs Department.
Rulebook on Donations and Sponsorships of AD Plastik Group is published on the company’s website, and the management of sponsorship and donations is based on recognizing the needs and social responsibility of the company as a desirable partner of the community in which it operates.
Through a questionnaire of compliance with the guidelines of CSR, the suppliers have confirmed that they have a prescribed child labor prohibition policy. As part of the comprehensive annual supplier assessment on issues of CSR, an assessment of the suppliers impact in terms of respect for human rights was conducted

During the reporting period, there were no reported cases of discrimination or human rights violations, suspicions of corruption or conduct contrary to the principle of freedom of competition. The company opposes any material support of political parties and promotes transparent public advocacy through business and interest organizations.
During 2021, employees participated in educations related to diversity and inclusion for HR professionals, IMDS, Supply Chain Sustainability, trainings on monitoring, measuring and reporting emissions, corruption, anti-corruption and complience .Raising employees’ awareness on socially responsible topics also takes place through internal newsletter ADP News, which is regularly distributed to all employees.
Given the set criteria for the selection of suppliers, no deviation was observed in terms of respect for human rights, as expected. A comprehensive supplier assessment in terms of impact on society was conducted in all companies through a CSR questionnaire. 516 of them confirmed their commitment to respecting the human rights, the right to work, the prohibition of child labor and the fight against discrimination and corruption. A large number of assessed suppliers are suppliers of various consumables, intellectual, financial, legal and other services, and suppliers for one-time purchases. In 2021, the share of assessed suppliers in relation to the total number of suppliers is 18.63 percent. However, by relating the value of purchasing of assessed suppliers and the total value of purchasing, this share is significantly higher and amounts to over 70 percent.