2016-09-23

To our stakeholders:

I am pleased to confirm that Diab Group 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 which for 2015 is the Global Compact website and plans are to establish a sustinability report for 2016 that will be communicated through our website.

Our committment to continuous work has been developed by establishing a permanent full time role to manage sustainability for the Diab Group in the Group Management Team. A Group sustainability Network has been established for all sites.

In order to inform and engage our co-workers we have launched an internal Sustainability Newsletter and started up basic sustainability training for all employees. Sustainability has also been launched as a new topic on our Website.

Sincerely yours,


Per Hökfelt

EVP Group Sustainability

During the year we established a number of key documents and procedures.
1. Group Code of Conduct
2. Supplier Code of Conduct
3. Supplier Self assessment questionnaire

From the Code of Conduct:
We respect basic human rights
- Diab respects the UN conventions on human rights and accepts the responsibility we have towards our co-workers and the communities in which we operate.
- Diab complies with the laws and regulations that apply in the countries in which we operate.

In addition to communicating our Code of Conduct we have established a global Whistleblow - system, where all employees can provide information in an external tool with 100% anonymity.

The number of whistleblow errands are monitored in the Management Team.

During the year we established a number of key documents and procedures.
1. Group Code of Conduct
2. Supplier Code of Conduct
3. Supplier Self assessment questionnaire

From our code of conduct:
We offer our employees fair and reasonable working conditions
 Our co-workers are one of our most important resources and relationships must be based upon mutual respect and trust.
 Diab seeks to attract, develop and retain qualified and motivated co-workers in a professional environment.
 Our co-workers shall be offered a safe and healthy work environment that we continuously seek to improve.
 The conditions of employment offered to co-workers must meet the minimum requirements in national law and/or collective agreements as well as relevant ILO conventions (International Labour Organization – part of UN).
 Diab makes every effort to pay fair salaries and remuneration in accordance Diab relevant norms in the locations in which the Group has its operations.
 Nobody should get hurt while working in Diab. Diab shall be a safe and healthy place to work and Diab will strictly comply with all rules and regulations in all countries where operations are run. Diab’s safety program is implemented in all factories and operations to continuously improve the safety and working environment in our operations.
 Diab encourages co-workers to seek opportunities within other parts of the organisation.

Diab rejects child labour and forced labour
 We do not employ any person under the age of 15 or any applicable higher statutory minimum age.
 We do not accept forced labour, slave labour or other forms of involuntary labour at our workplaces.

We appreciate diversity
 We offer all individuals equal opportunities regardless of skin colour, gender, nationality, religion, ethnicity or other distinguishing characteristics.

During the year the work with providing a safe working environment has been identified as a key improvement area. Our incidents and and accidents are continuously monitored and followed up monthly for all sites.

All workers have necessary permits.
All workers have employment contracts in a language they understand.

Diab Group average Lost Time Injury Frequency: 14 Injuries/Million hours.
Long tem target is 0.

During the year we have established a Group Sustainability Strategy wich includes :

SWOT
Materiality Analysis
Prioritized activities for 2020
Overall Goals:
- Energy use
- Waste disposal cost on sales
- Lost Time Injury Frequency

Established a network of sustainability specialist at all sites.
Performed training on general sustainability awareness.
On a monyhly basis we follow KPI´s for all sites:
- Energy useage
- Water usage
- Waste amount
- waste disposal cost

Energy per product has been reduced by 8% compared to 2014
Waste cost per product has been reduced by 17% compared to 2014

Code of Conduct:
Good business ethics
All co-workers and representatives are expected to show honesty and integrity in dealing with other co-workers, customers, suppliers, business partners, organisations and authorities.
 Diab has zero tolerance for all forms of corruption and makes active efforts to ensure that this does not occur within Diab.
The term corruption refers to abuse of a position of trust for own or the company’s gain, for example through the use of bribes.
It is forbidden to offer, promise or give as well as request, accept a promise of, or receive a bribe.
A bribe is a gift or other benefit that might influence another person, as part of their employment or duties, to show improper favour to the giver.
 Diab’s co-workers may, for example, not offer, give, receive or request gifts, services, entertainment or other rewards that
violate accepted business practice
have an unreasonable value
consist of money, securities, cash loans, other types of personal payments in the form of discounts, commissions, bonuses or fees
consist of pure leisure or vacation trips
violate existing laws and/or go beyond local custom
are offered to people employed in the public sector in conjunction with imminent or ongoing procurement or decisions which constitute the exercise of authority

Diab works systematically to prevent corruption
 Diab’s management is responsible for maintaining an adequate anti-corruption programme and implementing any other measures regarded as necessary in order to prevent the corruption risks identified in the risk analysis.
We support and aim to achieve fair competition
 Co-workers in Diab must therefore comply with all relevant competition rules and refrain from concluding unlawful anti-competitive agreements as well as exchanging unlawful price and/or market information with competitors.

• Performed training on Export Control procedures as well as Business Ethics and Anti-corruption with the whole sales organization
• Updated templates for agreements with agents & distributors

Global Whistleblow Team established where corruption errands are dealt with. 4 members from the Group management team and external legal advisor.

- Diab Group has not been involved in any legal disputes related to corruption during the year.
- Global Whistleblow Team has met and dealt with the errands that have been submitted in the whistleblow tool.