2014-02-19
To our stakeholders:
I am pleased to confirm that the Bufab Group continues its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption. In this annual Communication of Progress we describe our actions to continuously 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.

We have during the last year been successful in establishing the global processes and policies that we planned for 2013, which further improves our adherence to the Global Compact’s principles and also encourage our suppliers to commit to the principles.

Sincerely yours,

Jörgen Rosengren
CEO

Bufab adheres to the Universal Declaration of Human Rights. We have established our Code of Conduct which supports the two Human Rights Principles and form the foundation of how the Bufab Group and its global subsidiaries operate.

During 2013, the Bufab Code of Conduct was approved by the Board of Directors and published on the global intranet site, thus accessible to all managers and employees.

Also the Whistle-Blower Policy was approved by the Board of Directors, encouraging all coworkers to report any matter of potentially illegal and/or unethical practices.

No complaints on any wrongdoing have been filed during 2013.

There is a strong focus within Bufab to ensure the best possible work environment and conditions for our employees. Furthermore, as part of our Supplier Manual and our newly updated Supplier Management processes, we also put requirements on our large number of suppliers to live up to the four Labor Principles, e.g. we have a zero tolerance for child labor at our suppliers.

Bufab has approved the Human Resources Policy in 2013, which together with the Code of Conduct supports the four Labor Principles. The work of mapping and evaluating our suppliers continue with increased effort.

Bufab now has a large numbers of our suppliers evaluated and registered in the Supplier Management System. A lot of them have been audited by us, and this work will continue for the years to come.

Bufab has a high focus on taking all necessary and possible actions to protect the environment. Bufab impacts the environment in three basic ways: in the manufacturing and surface treatment operations of our suppliers, in our own manufacturing operations and through our transportations.

Several actions to reduce the impact of transportation have been made during the year. A new hub for transportation has opened in Taiwan and the hub in Shanghai is further expanded, both with the aim of consolidate several smaller shipments into fewer, larger shipments. Actions have also been taken to reduce national land transports, as well as more active control of air shipments to minimize weight.

We have not yet established performance indicators for the transportations impact on the environment.

Bufab has a strict zero tolerance policy against all forms of corruption as part of our Code of Conduct. Bufab has also during 2013 implemented our Whistle-Blower Policy, encouraging employees to make any wrongdoing known to management.

The implementation of our Code of Conduct and Whistle-Blower Policy at all our global subsidiaries was completed during 2013.

Through the harmonization, including the Code of Conduct, we have strongly emphasized our zero tolerance for corruption at all our global subsidiaries.