27.6.2022

To our stakeholders:

I am pleased to confirm that Oy Lunawood Ltd 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 sharing this information with our stakeholders using our primary channels of communication.

Sincerely yours,
Arto Halonen
CEO

Lunawood's Third-Party Code of Conduct is based on the 10 principles of the United Nations Global Compact Initiative, which are based on the following universal pillars:
• The United Nations Guiding Principles on Business and Human Rights
• The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work
• The United Nations Conference on the Environment and Development, Rio Declaration 1992
• The United Nations Convention against Corruption

At Lunawood, we are fully committed to these principles. We also follow the EU Timber Regulation, which works against the illegal harvesting of timber or timber products.

Lunawood’s internal Code of Conduct and 3rd Party Code of Conduct define how we should behave towards one another and our interest groups and what kind of behaviour is considered appropriate.

• Our employees have safe and well maintained workspaces, in factories and offices, and notices related to safety are asked regurarly.
• All employees have safe and good welfare facilities, such as changing rooms, showers, lockers, dining room for breaks
• Lunawood has implemented an internal code of conduct that states that workplace harassment, including physical, verbal, sexual or psychological harassment, abuse or threats is prohibited.
• Each employee has participated in code of conduct training
• Lunawood has a whistle blowing channel where you can report inappropriate situations
anonymously or with the name
• We work closely together and respecting others.
• We invest in long-term employment relationships, for example by providing career development opportunities.
• Every employee has access to occupational health care
• Employees also have other benefits, such as an employment bike, sports and cultural vouchers
• We believe in proactive safety work developing safety routines and monitor them regularly. Accidents at work and near misses are reported and investigated, leading to corrective action

• Equality in the workplace
• zero discrimination or harassment

At Lunawood, all employees receive fair and equal treatment according to the principles of the Universal Declaration of Human Rights and local legislation. We do not tolerate any kind of harassment, threats, discrimination or abuse at or outside the workplace, for instance, on social media. We also expect our suppliers, customers and partners to comply with these human rights principles. We respect the freedom of association and the freedom of workers to organise.

Safety at work and good working conditions are important to us. We believe that safety arises from the right kind of attitude and a safety-oriented approach, and that all work can be done safely. We develop safety together, intervene in hazardous situations, and strive to minimise work-related risks. We encourage our employees to actively observe any risks related to the work environment. We select the indicators used for developing safety routines each year and monitor them regularly.
We train our staff in safety matters and monitor the development of safety. The management and supervisors are responsible for ensuring that the safety measures function as intended and for setting an example of how to work safely.

• Lunawood does not participate in any form of forced or bonded labor
• Wages comply with general collective agreements.
• Employment-related decisions are based on relevant and objective criteria
* Everybody at Lunawood is required to observe the safety instructions, wear the required protective clothing and equipment, and notify appropriate supervisors of any issues that are detected. All hazards must be taken into consideration before starting work and instructions must be observed.
• HR Director is responsible for staff welfare, enforcement of collective agreements and compliance with labor laws at Lunawood

• create an including work place
• no accidents, monitoring safety of working areas
• good working ability in the long run, from work to home healthy and safe

We ensure high quality and a long lifetime for our products.
We understand the environmental impacts of our operations and monitor them regularly. We actively seek out ways to reduce the environmental impacts entailed in production and in all we do.
We train our employees to recognise environmental impacts and ways to reduce them in various work tasks. We also train our co-operating partners and customers in the correct use and maintenance of our products to ensure their long service life.
We are committed to continuous improvement and the principles of our environmental system.

• We act responsibly and sustainably.
• We are aware of our environmental impacts of operations because we monitor them regularly.
• We have emergency procedures to prevent and address accidents affecting the environment and human health
• We are constantly looking for ways how we can reduce our impacts on our environment
• We are following our waste management protocol including hazardous waste management
• Our production process is audited by third party
• We have focus on work safety in the production facilities and also in the headquarter
• All employees need to pass occupational safety course
• We are sourcing raw material only from responsibly managed areas and forests
• We have certificates Environmental certificates, like Nordic Svan, PEFC, BRE

• increasing the share of renewable energy
• searching for circular economy solutions, considering new uses for by-products
• improvement of waste management protocol

We are committed to complying with the applicable Competition Act in all we do. Our operation in the market is based on open competition. We adhere to competition legislation.

Bribes are not part of our business culture.

We at Lunawood do not approve of money-laundering and do our best to prevent it. Money-laundering refers to hiding the origin or destination of money obtained illegally so that the money appears to have come from a legitimate source. We only do business with customers and partners with a good reputation, engaged in legal business activities. We strive to build long-lasting partnerships and to carefully investigate the background of our customers and partners.

Neither Lunawood nor its employees are allowed to give or accept any direct or indirect gifts or other benefits that may be considered bribes or forms of corruption. We do not pay or promise to pay bribes or illegal payments to authorities or other parties, nor encourage, incite, or urge anyone to do so. Those working at Lunawood are expected to avoid situations that may conflict or that can be considered to conflict with their personal and business-related interests.

• We have analyzed risk of corruption countries.
• We follow Lunawood’s hospitality and gift policies: We can give or accept a personal gift if it is of little value. The same goes for business hospitality.
• Neither Lunawood nor its employees are allowed to give or accept any direct or indirect bribes or other benefits that can be considered bribes or forms of corruption.
• We do not pay or promise to pay bribes or illegal payments to authorities or other parties, nor encourage, incite or urge anyone to do so

• Code of Conduct and Third party Code in Conduct in use
• External audits successfully passed and corrective actions done in time