Code of Conduct for Contractual Partners

Preamble¹

Montanhydraulik GmbH together with its associated companies within the meaning of company law (hereinafter referred to individually or collectively as “Montanhydraulik”) is a globally operating company that takes its ethical, social and ecological responsibility seriously, both within the company and in dealing with its business partners. 

The behaviours laid down in this Code of Conduct for Contractual Partners define the general requirements for suppliers, subcontractors and other contractual partners (hereinafter referred to as “business partners”) of Montanhydraulik. They refer, in particular, to the responsibility towards people and the environment and reflect the standards applicable at Montanhydraulik, making them an integral part of a successful cooperation with Montanhydraulik. 

Every business partner of Montanhydraulik undertakes to uphold and enforce the following principles also in his supply chains. If the business partner is subject to requirements arising from a contractual relationship with Montanhydraulik that contains more specific regulations than this Code of Conduct for the business partner, the contractual regulations take precedence.

1. Principles

All business partners of Montanhydraulik undertake to comply with national laws, regulations, directives and guidelines applicable to them as well as with relevant international standards, the OECD principles and the principles of the Universal Declaration of Human Rights. The legal, social and ecological basic principles in the following nonconclusive list must also be respected in this context.

2. Conduct in relation to competitors 

Every business partner of Montanhydraulik undertakes to make business decisions without regard to personal concerns solely on the basis of factual and objective criteria and to avoid any kind of conflict of interest. 

2.1. Prevention of corruption 

Every business partner of Montanhydraulik undertakes not to tolerate corruption and to comply with international and local anti-corruption laws and standards. This includes all gratuities paid or offered to government officials or other third parties in order to gain a business advantage. Nor shall a business partner of Montanhydraulik demand or offer such payments or gratuities. 

2.2 Antitrust and competition law 

Montanhydraulik expects its business partners to foster free competition. This encompasses compliance with all rules under competition law as well as with the corresponding national or international antitrust laws and laws against unfair competition. Every business partner of Montanhydraulik undertakes not to participate in anti-competitive collusive agreements and not to exploit or abuse the dominant market position that may exist in violation of the applicable competition rules. 

2.3 Money laundering 

The business partners shall comply with all laws that prohibit money laundering or the financing of illegal or unlawful purposes. They must ensure that they do business solely with reputable business partners, i.e. with business partners who conduct legal business with funds from legal sources. 

2.4 Confidentiality and data protection 

The business partners shall observe the applicable regulatory framework for data protection. Data processing is done transparently and only to the necessary extent. The rights to information and correction as well as the rights to objection, blocking and deletion must be respected.

2.5 Export and import 

The business partners undertake to comply with all relevant import and export control laws, especially sanctions, embargoes and other regulations and laws. 

3. Corporate responsibility 

Montanhydraulik undertakes to comply with the employment and working conditions recommended by the International Labour Organisation (ILO). Montanhydraulik expects its business partners to observe the labour law regulations applicable to them and to guarantee for their employees the employment and working conditions recommended by the International Labour Organisation. 

3.1 Dealing with child labour 

The business partners shall observe the United Nations regulations on human rights and children’s rights and not employ workers below the age of 16. If a national regulation on child labour provides for stricter standards, the business partners shall observe them as a matter of priority. 

3.2 Dealing with forced labour 

Forced and compulsory labour are not tolerated in any shape or form. This means that the business partners do not make use of work that was done involuntarily under threat of punishment, including coerced overtime, debt bondage, prison labour, slavery or serfdom. Furthermore, the business partners undertake to take action against forced and compulsory labour. 

Accordingly, Montanhydraulik expects that its business partners treat their employees with dignity and respect. Sanctions, fines or other penalties or disciplinary measures are only allowed to be imposed in accordance with applicable national and international standards as well as in accordance with all internationally recognised human rights.

3.3 Discrimination and harassment 

Every business partner must ensure equal opportunity and equal treatment, irrespective of race, skin colour, gender, religion, political opinion, nationality, social background, health status, disability, sexual orientation, age or other distinguishing features. The business partners ensure that no employee is exposed to verbal, psychological, sexual and/or physical violence, coercion or similar harassment. Intimidation on the part of the employer is strictly prohibited. 

3.4 Wages and social contributions 

Every business partner of Montanhydraulik shall pay its employees on a regular basis a reasonable wage that corresponds at least to the minimum wages laid down by law or in collective agreements in the region; and shall adhere to the applicable statutory provisions regarding working hours. Legally unsubstantiated wage deductions are not permitted. In addition, the professional skills of employees at all levels should be promoted by suitable training and further training measures. 

3.5 Occupational health and safety 

Every business partner shall comply with the provisions on occupational health and safety that apply to him. 

Montanhydraulik expects its business partners to take all necessary measures to ensure a safe, healthy and hygienic working environment. For Montanhydraulik, such measures include, among other things, protective measures when dealing with hazardous substances, health and safety devices on machines as well as relevant employee training as well as a suitable occupational health and safety organisation with regard to working hours and rest periods. 

Internationally recognised occupational safety standards and social standards (e.g. the provision of break rooms and drinking water). In addition, the business partners give support to the continuous improvement of the working environment.

3.6 Trade unions, employee representation and complaint mechanisms 

To the extent permitted by regional law, every business partner must acknowledge and guarantee the fundamental right of his employees to establish and join trade unions and employee representatives. Establishing, joining and being a member of a trade union must not lead to any disadvantages. 

The establishment of a reporting and complaints mechanism is desirable. 

3.7 Property rights of indigenous peoples 

The business partners of Montanhydraulik undertake to expressly reject unlawful forced evictions and the unlawful dispossession of land, forests and bodies of water in the acquisition, development or other use of land, forests and bodies of water, the use of which secures a person's livelihood. 

3.8 Use of private or public security forces 

If business partners of Montanhydraulik commission or use the services of private or public security forces to protect the entrepreneurial project, the company is required to provide instruction or control in order to ensure compliance with internationally recognised human rights. 

4. Behaviour with respect to the environment 

In all product categories and services, Montanhydraulik wants to deliver the very best, without neglecting its ecological responsibility. Aware that only sustainable environmental and climate protection in compliance with national and international laws and regulations can protect and preserve our natural resources in the long run, Montanhydraulik places great value on an environmentally friendly and sustainable production so as to make a contribute to securing the future. 

4.1 Environment and climate protection 

Montanhydraulik expects the safe and environmentally friendly development and manufacture of products from its business partners; the same applies to packaging and transport. This includes, for example: the assessment of the company’s environmental impact, management systems (e.g. according to ISO 14001 or equivalent); or boosting resource efficiency. 

It is expected that the business partner has established procedures and systems that optimise the use of all relevant resources such as energy, water and raw materials in a sustainable manner. In particular, the cause of harmful changes to the soil, water pollution, air pollution, harmful noise emission or excessive water consumption, which significantly impairs the natural basis for the preservation and production of food, denies a person access to proper drinking water, hinders or destroys a person's access to sanitary facilities or harms a person's health. 

4.2 Waste and emissions 

It is expected that the business partners provide at a minimum procedures and systems that ensure the safety of the handling, transport, storage, recycling, reuse and management of raw materials, materials and waste. 

The business partners undertake to prevent or minimise negative impacts on human health or the environment by taking appropriate measures. 

In particular, the business partners must: 

(1) comply with the requirements set out in the Minamata Convention for the manufacture of products containing mercury, for the use of mercury in manufacturing processes and for the treatment of mercury waste, 
(2) comply with the restrictions mandated by the Stockholm Convention on the Production and Use of Persistent Organic Pollutants (POPs) as well as their non-environmentally compatible handling and disposal, and 
(3) refrain from the cross-border movement (import and export) of hazardous waste prohibited under the Basel Convention. 

4.3 Process safety 

It is expected that the business partners use a management system for the control of work processes, taking into account recognised safety standards. If necessary, specific risk analyses must be carried out for systems. For all systems, the business partners shall take measures to prevent incidents, e.g. the escape of chemicals and/or explosions.

5. Product responsibility 

5.1 Product safety 

The business partners undertake to offer Montanhydraulik products that are unobjectionable with respect to intended use; furthermore, they undertake to make available in due time before delivery/service all relevant product information, especially about the composition, use (safety data sheets, processing instructions or assembly instructions as well as occupational safety measures) and, if applicable, about disposal. The business partners also undertake to provide specific documents on request. 

5.2 Clinical trials and animal welfare 

It is expected for the business partners to conduct clinical trials and/or animal experiments only in conformity with international guidelines and applicable national and local regulations and to limit them to the absolutely necessary minimum. 

5.3 Conflict minerals 

The business partners ensure that no products are delivered to Montanhydraulik that contain metals whose base minerals or derivatives come from conflict regions and high-risk regions where they directly or indirectly contribute to the funding or support of armed groups or do not meet social expectations. The current EU Regulation on the definition of obligations for the fulfilment of due diligence obligations in the supply chain applies. 

6. Compliance with the “Montanhydraulik Code of Conduct for Contractual Partners” 

Montanhydraulik expects compliance from its business partners with the “Montanhydraulik Code of Conduct for Contractual Partners”. At the beginning or with an extension of the contractual relationship with Montanhydraulik, each business partner shall declare that he complies with the rules of conduct set forth in this Code of Conduct for Contractual Partners. 

Any breach of the rules of conduct laid down in this Code of Conduct for Contractual Partners by a business partner may jeopardise the business relationship with Montanhydraulik and may result in the termination of the business relationship.

6.1 Information and communication 

This Code of Conduct is to be communicated by the business partners within their organisations. 

6.2 Monitoring 

Montanhydraulik reserves the right to check compliance with the aforementioned requirements by Montanhydraulik itself, by independent third parties or within the scope of audits or by inspecting official certifications. 

7. Office of the Ombudsman 

To strengthen the compliance system, Montanhydraulik has set up an Ombudsman system (whistleblowing). Business partners may also report breaches of the Code of Conduct for Contractual Partners, in particular the suspicion of corruption, white-collar crime or other serious irregularities, to the office of the Ombudsman of Montanhydraulik. Confidentiality is guaranteed. 

The office of the Ombudsman is an external and thus a neutral contact point for reports (including anonymous ones) from employees of Montanhydraulik and external third parties. 

You can reach the ombudsman of Montanhydraulik via the following contact details:

Mr. Jesko Trahms
BDO Legal Rechtsanwaltsgesellschaft mbH 
Zielstattstraße 40 
81379 Munich 
Tel.: +49 173 3091491 
E-mail: jesko.trahms@bdolegal.de

Editing status: 21 September 2023

¹ For the sake of linguistic simplification and better legibility, the designation of persons or groups of persons refers to persons of all genders.