To our stakeholders:

I am pleased to confirm that BIAB International reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption:

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;
Principle 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labor;
Principle 5: the effective abolition of child labor;
Principle 6: the elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility;
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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 yours,

Aslam Khan
General Manager

BIAB International has committed itself to implementing the ten UN Global Compact's principles on human rights, labour rights, environment and anti-corruption. In our Code of Conduct, Sustainable Procurement policy, Child Save Guarding policy and Conflict of Interest policy, we regulate the company behavior in accordance with these ten principles.

BIAB Internationals ethical and environmental policies serve as the basis for our supplier policies such as the Supplier Ethical Declaration, Social Compliance audit process and Business Ethics Directive.

By incorporating the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, we want to not only uphold our basic responsibilities to people and the planet, but also influence and involve our suppliers in the support of UN 17 Sustainable Development Goals.

All vendors and factories collaborating with BIAB International are now being introduced to our Social Compliance Program. The aim is to improve our own and our suppliers level of social compliance through continuous improvements. We want to make sure that the UN Global Compact principles are followed and practised.

The Social Compliance program will help us ensure that the human rights are respected and protected and that all workers have good working conditions and none are denied their fundamental human rights or suffer any physical or mental harm.

Social Compliance program:
After signing the BIAB International Supplier Ethical Declaration, our suppliers accept to start their social compliance process and involve in the program. An announced audit process will be planned, where BIAB International´s social compliance team visit and inspect the factory to evaluate the entry level of social compliance. All following audits will be a combination of both announced and unannounced. Continues improvements in social compliance will result in an upgrade in level.

Our suppliers will be placed in the following three levels:

• A level: Fulfil basic requirements - Entry level
a. Suppliers with Audited Quality system such as ISO9000 or equivalent.
b. Fulfill the basic social compliance requirements according to the Supplier Ethical Declaration.
c. Need to improve.

• AA level: Advanced level
a. Suppliers with their own audited quality system, routines and standards of quality assurance and reporting procedures.
b. They pass the social compliance by unannounced audit process.

• AAA level: Excellence level
a. Suppliers with their own in-house testing standard, quality control parameters and specification, SOP and recalibration mechanism.
b. Certified according to BSCI or equivalent CSR vision, with environmental system certification such as ISO14000 or equivalent.

Measurement of outcomes
During Q4 2017 and Q2 2018 our existing network of suppliers shall be invited to sign the Supplier Ethical Declaration and join our Social Compliance program.

In case we come across that any of the human right principles are violated, we will take the following actions:

1. Urge the supplier to rectify the violations within a certain time
2. If point 1 is not fulfilled, we will discontinue our cooperation

By June 2018 all BIAB International´s suppliers will be involved in the Social Compliance Program.

Every supplier’s social compliance level, and the process to improve to higher social compliance levels, will be documented in a Company Profile. Based on the result from the yearly audits, done by the factories themselves or by the BIAB International´s social compliance team, the suppliers are given an average Company Score. Based on this information, BIAB International will give the supplier specific recommendations on how to improve.

By the end of 2018, the supplier´s average company score will be used for an evaluation on progress and presented in coming COP.

During Q4 2017 and Q2 2018 our existing network of suppliers shall be invited to sign the Supplier Ethical Declaration and join our Social Compliance program.

In case we come across that any of the human right principles are violated, we will take the following actions:

1. Urge the supplier to rectify the violations within a certain time
2. If point 1 is not fulfilled, we will discontinue our cooperation

By June 2018 all BIAB International´s suppliers will be involved in the Social Compliance Program.

Every supplier’s social compliance level, and the process to improve to higher social compliance levels, will be documented in a Company Profile. Based on the result from the yearly audits, done by the factories themselves or by the BIAB International´s social compliance team, the suppliers are given an average Company Score. Based on this information, BIAB International will give the supplier specific recommendations on how to improve.

By the end of 2018, the supplier´s average company score will provide a good base for evaluation on progress within different areas.

In BIAB International´s Code of Conduct, Child Safeguarding policy and Supplier Ethical Declaration, we commit ourselves to support and respect the protection of children, internationally proclaimed human rights and to not complicit in human rights abuses. The labour standards in our Code of Conduct and our Supplier Ethical Declaration, are based on the conventions of the International Labour Organisation (ILO).

Many of our suppliers are based in Asia, especially in China. This entails a number of different applicable directives and governing laws as well as different cultures and traditions. Our business with its wide range of new products and our share of fixed assortment, involve a great number of suppliers. We wish to ensure good working conditions for both our own and all our suppliers’ employees and to make sure that none of the employees are denied their fundamental human rights or suffer any physical or mental harm. BIAB International want to secure that both our company and our suppliers live by and work in accordance with the following Code of Conduct:

1.1 Employment is freely chosen
There is no forced, bonded or involuntary prison labour. Workers are not required to lodge `deposits’ or their identity papers with the employer and are free to leave their employer after reasonable notice.

1.2 Freedom of association and the right to collective bargaining are respected.
Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively. The employer adopts an open attitude towards the legitimate activities of trade unions. Workers representatives are not discriminated against and have access to carry out their representative functions in the workplace. Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and does not hinder, the development of parallel means for independent and free association and bargaining.

1.3 Working conditions are safe and hygienic
A safe and hygienic working environment shall be provided, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent accidents and injury to health arising out of, associated with, or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment. Workers shall receive regular and recorded health and safety training, and such training shall be repeated for new or reassigned workers. Access to clean toilet facilities and potable water and, if appropriate, sanitary facilities for food storage shall be provided. Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers. The company observing the standards shall assign responsibility for health and safety to a senior management representative.

1.4 Child Labour shall not be used
There shall be no recruitment of child labour. Companies shall develop or participate in and contribute to policies and programmes, which provide for the transition of any child found to be performing child labour to enable her/him to attend and remain in quality education until no longer a child and have reached the age of 18. These policies and procedures shall conform to the provisions of the relevant International Labour Organisation (ILO) standards.

1.5 Living wages are paid
Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmarks. In any event wages should always be high enough to meet basic needs and to provide some discretionary income. All workers shall be provided with written and understandable information about their employment conditions in respect to wages before they enter employment, and about the particulars of their wages for the pay period concerned each time that they are paid. Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the express and informed permission of the worker concerned. All disciplinary measures should be recorded.

1.6 Working hours are not excessive
Working hours comply with national laws and benchmark industry standards, whichever offers greater protection. In any event, workers shall not on a regular basis be required to work in excess of the local legal working hours. Overtime shall be voluntary, shall not exceed local legal limits, shall not be demanded on a regular basis and shall always be compensated at a premium rate.

1.7 No discrimination is practised
There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.

1.8 Regular employment is provided
To every extent possible work performed must be on the basis of a recognized employment relationship established through national law and practice. Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting, sub-contracting or home-working arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any such obligations be avoided through the excessive use of fixed-term contracts of employment.

1.9 No harsh or inhumane treatment is allowed
Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of intimidation shall be prohibited.

BIAB Internationals will only seek and corporate with suppliers who practice the labour standards. Yearly BIAB Internationals Social Compliance team do inspections of our suppliers to evaluate their activities and their labour working conditions. This to identify conditions which are not in compliance with BIAB internationals policies.

During Q4 2017 and Q2 2018 our existing network of suppliers shall be invited to sign the Supplier Ethical Declaration and join our Social Compliance program.

In case we come across that BIAB International labour principles are violated, we will take the following actions:

1. Urge the supplier to rectify the violations within a certain time
2. If point 1 is not fulfilled, we will discontinue our cooperation

BIAB International is committed to follow the guidelines of sustainable procurement and supply policies in our dealings and transactions. In all aspects of decision-making and consideration of alternatives, we take into account the Life Cycle costs and always consider the balance between the end-user and environmental impact, in order to determine the most cost-effective option among different competing alternatives at hand.

Within procurement and supplies, BIAB International´s definition of 'best value' is the optimum combination of whole life costs and benefits to meet the customer's requirements. This approach enables sustainability and quality to be taken into account. For example, the consideration of whole life costs allows factors such as consideration to environment when choosing the products, packing material and logistics solutions. When and where applicable, we demand internationally recognized certificates and warranties from the manufacturers.

We strive to achieve sustainable procurement process whereby our customers can meet their needs for goods and services in a way that achieves value for money on a whole life basis in terms of generating benefits not only to our clients, but also to the regions and to the societies they are connected to, whilst minimizing damage to the environment.

Our sustainable procurement policies are to keep a close watch on our suppliers on environmental, social and economic of consequences, such as: design, raw material use; manufacture and production methods; logistics solutions and so forth.

BIAB International believes environmental, social and economic cost benefits of alternative procurement/supply decisions, should be considered when placing a purchase and supply orders from us. We always try to contribute through applying different alternative solutions, beneficial to the local economy by local suppliers, logistics providers in the private sector, those abiding by the laws and regulations of the country they are incorporated in.

How do we practice to comply with our ambitions of sustainable supply policies? Some of the main features are:

Price and Quality (Value for money):
a. Greater outputs for less or same value.
b. Extending our network of suppliers and comparing prices and qualities from different manufacturers.
c. Exploring a wide and diverse supply market and resources.
d. Use of pre-qualified manufacturers and suppliers. We engage Internationally renowned inspection and testing companies to inspect and check the production, working and environment conditions and finally the finished products. All prior to dispatch from the factories.
e. Thorough quality check and production methods to ensure Life Cycle cost.
f. Close collaboration is maintained with the suppliers to reduce costs and maintain quality before placing the orders with them
g. Sub-dividing large contracts into separate lots where this can be justified in terms of cost and to shorten the time of delivery.
h. Weightings for quality and price, including sustainability, as part of best value criteria for overall evaluation.
i. When and where necessary apply Universal design on the products. This means that such a product can be used everywhere and by everyone, even those with physical disabilities.

Environmental considerations
a. Preference of sub-supplier, especially those who are prepared to follow a sustainable production strategy, in compliance to our ambitions and policies.
b. Our suppliers should constantly work for reduction of energy in the production process.
c. Raw material waste reduction in the process of production.
d. Production sites and plants who seek to implement the sustainability production policies, for example, use as much as possible recyclables/re-usable raw material, yet fully complying with the specifications of the products and without any what-so-ever undermining quality.
e. Our clear ambition to apply sustainable considerations in the overall evaluation of the products and their manufacturers.

Social and Community improvements:
We strive to prefer such sub-suppliers in procurement process who are able to submit prices for the products that may also benefit the community they belong to, whilst providing added value to our customers and to the communities where the products will be consumed. When and where applicable, we request our suppliers to fill a supplier questionnaire form, containing some of the following points.

a. Their quality assessment routines and check-ups.
b. Workforce related criteria, for example job satisfaction, working conditions, facilities to the staff etc.
c. No child labour or forced labour policies and agreements.
d. Their attitude and policies to safeguard environment.

Ethical/Reputational:
a. Our sub-suppliers should refrain from using raw material harmful to the environment.
b. The sub-supplier do not test the products on animals, especially where alternatives are available that are of equal quality and are comparable in price.
c. Consider animal welfare when purchasing products i.e. we strive to purchase the products that ensures the welfare of animals
d. We prefer the purchase of products from the factories where the staffs are fairly paid and they work in good conditions, particularly where the products originate from developing countries.

Business practice
In our Procurement policies we identify the following factors as contribution to the business practice for sustainable procurement:

• Achieving strategic objectives
• Environmental friendly attitude and policies
• Controlling costs
• Managing risk and reputation
• Creating markets
• Drivers behind sustainable procurement policies

Achieving strategic objectives
Sustainable procurement can play a key role in achieving the sustainable objectives. These policies are to be our objectives and/or in our supply strategies, giving preference to social and environmental considerations. This strategy is seen by our customers as a mode through which they can contribute to promote sustainable development in the countries and regions they operate in.

Environmental friendly attitude and policies
There is a growing need to adopt environmental friendly attitude and thinking that must be given highest preference when making supply decisions.

Controlling costs
In the past “green products” lacked the quality that was required and this contributed to the view that Best Value was not being achieved through greener procurement. The quality of most greener products is now being improved and this coupled with a whole life costing approach can demonstrate that cost savings can be achieved.

Continuing improvements in environmental friendly raw material and production process can itself bring about cost savings through reducing waste. Awareness in functionally efficient design and production, application of greater percentage of material re-use and use of recycled material, without undermining the quality or specifications, can lead to cost savings. Whole life costs can be significantly reduced with energy efficient production process, especially taking into account recent increases in energy costs.

Managing risk and reputation
Poor performance on the part of sub-suppliers can result in unwelcome press on us as a supplier and this is to be avoided and watched closely, thorough inspection during the production and by financial inspection, prior to dispatch from the factories.

Creating markets
We at BIAB International believe that sustainable procurement and supplies can create additional demand for the products supplied by us. This will give us extra advantage in competing with suppliers who do not apply the same policies in their business transactions.

a. We encourage our sub-suppliers to invest in new technologies and in containing internationally recognized certificates.
b. We encourage our suppliers to develop new products with higher environmental friendly specifications
c. Our suppliers should stimulate markets for recycled products or those with high recycled material content.
d. Our suppliers should find solutions for delivering the products at lower costs, yet environment friendly.
e. We constantly work in the direction to ensure security an reliability of supply in time.

Drivers behind sustainable procurement policies.
• The main drivers for achieving sustainable procurement include:
• Our customers' strategies and struggle for sustainable development, especially in the developing countries.
• Encouragement from our clients to realize the importance of ordering products through sustainable procurement policies.
• Our ambitions as a supplier are that our products and services lead to improvement of living conditions and necessities of the end-users.

During Q4 2017 and Q2 2018 our existing network of suppliers shall be invited to join our Social Compliance program and to sign the Supplier Ethical Declaration.

By June 2018 all BIAB International´s suppliers will be involved in the Social Compliance Program.

Every supplier’s social compliance level, and the process to improve to higher social compliance levels, will be documented in a Company Profile. Based on the result from the yearly audits, done by the factories themselves or by the BIAB International´s social compliance team, the suppliers are given an average Company Score. These profiles and scores provide useful information of the ongoing work and the continuous progress done by the suppliers. Based on this information, BIAB International will give the supplier specific recommendations how to make improvements. By the end of 2018, the supplier´s company scores will provide a good base for evaluation on progress, and in what ways BIAB International fulfil its commitments to the UN Global Compact principles.

BIAB International focus on innovative and sustainable solutions. In order to strengthen the proactive role within the company, BIAB Innovation has been formed 2016. Our goal is to play an active role in supporting and supplying the humanitarian organizations with more efficiently, cost effectively and environment friendly solutions in their efforts to assist the people in need.

During 2017-2018 we intend to introduce and implement innovative and sustainable solutions to our customers. Humanitarian relief and development perspectives are fully in focus due to the operations and mandate of our customers such as the UN organizations and international NGOs. Our efforts are to serve the customers in the most professional manner, and enabling them to help those who are dependent on their assistance.

BIAB International Conflict of Interest Policy refers to any case where an employee’s personal interest might contradict the interest of the company they work for. We fully believe in fair trade policies without corruption, bribery or unethical business practices. Our general and unconditional policy is to act according to UN Convention Against Corruption. The policy outline the rules regarding conflict of interest and the responsibilities of employees and the company in resolving any such discrepancies.

The company conflict of interest policy applies to all prospective or current employees of the company, as well as independent contractors and persons acting on behalf of the company.

When exporting goods from a country it is fully done by abiding to the local rules and regulations. The same practice is applied when the goods are imported. Due to the nature and status of our customers it is evident that no irregularities are tolerated and must not be applied.

Being a Swedish company, we are also accountable to the authorities for our activities in the foreign countries. For the export of products in the buying countries, we fully follow the export rules and regulations. In the countries of destinations, our customers are UN organizations and they provide us with all prevailing terms and conditions which we strictly follow until the goods have been handed over to our customers.

In our internal, as well as external audit, conducted by the independent audited firm, it is scrutinized to make sure our policy has been fully followed.

All staff of our company are well informed with our policies, they are regularly updated and if any irregularities are encountered it must be reported to the management for appropriate actions.

BIAB international has a none-tolerance policy against corruption and bribery.

Different individual and independent parties are engaged to conduct their own responsibilities. This is to avoid that the manufacturers in any what so ever manner have any relations with the inspection company or forwarding agents.

We apply a job rotation policy, this in order to avoid longer relations with the manufacturers, inspection companies, forwarding agents and so forth.

BIAB International uses an external auditing office which on monthly basis monitor all business transactions taken place within the company. On yearly basis, the company’s external auditors perform audits of the financial statements.