NAF

Trading responsibly

Supplier Code of Conduct

Guidelines for suppliers of green coffee, tea and other foods

To suppliers of green coffee, tea and other foods to NAF TRADING A/S.

NAF TRADING A/S (NAF) has been committed to issues related to the environment and social responsibility for years and works for long-term sustainable development by considering environmental, social and financial factors.

Our customers (and other interested stakeholders such as Non-Governmental Organisations, authorities, etc.) are to an increasing extent placing demands on our company and products in terms of our responsibility to the society in which we work, i.e. Corporate Social Responsibility (CSR).

We wish to underline the importance of responsible business, which is why we have drawn up a Supplier Code of Conduct (CoC) that describes the ethical guidelines we are working towards when purchasing green coffee, tea and other foods. Being a trade organization, however, we realize that any customer defined and formulated CoC presented to you, and expressing stricter ethical guidelines than ours, will override this CoC.

This CoC is based on the fundamental conventions of the International Labour Organisation (ILO – www.ilo.org), related declarations and recommendations as well as the United Nation’s 10 Global Compact labour principles.

NAF reserves the right to update the CoC over time.

Commitment

NAF expects all its suppliers of green coffee, tea and other foods to commit to working for compliance with the CoC and with all applicable laws and regulations.

By signing the CoC, you commit as our supplier to:

  • Working for adherence to the listed guidelines.
  • Working systematically towards constant improvement.
  • Ensuring that any supplier/suppliers included in your supply chain is working for adherence to the same terms.
  • Adherence to applicable laws and regulations that concern working conditions, child labour and protection of the environment and/or if there is no relevant legislation, adherence to the terms described in the CoC.

We ask you to communicate effectively the guidelines of our CoC internally to employees and externally to all of your suppliers included in the supply chain. We ask you to ensure and check, in a credible and reasonable manner, that you fulfil the outlined social and ethical guidelines in your own activities, that all your suppliers in the supply chain also fulfil the guidelines, and that steps are taken to achieve sustainable production.

For any and all contracts our suppliers and their suppliers or subcontractors shall take into account and comply with the CoC of the final buyer (i.e. NAF’s client), always provided that such a CoC has been made known and available to our supplier. If no such final buyer CoC has been made known and available by NAF, or by the final buyer in question then the NAF CoC shall apply. Yet, we stress that we will not as a first step take action to terminate business in case of non-compliances. If non-compliances occur, we expect corrective actions to be taken within a reasonable time frame agreed upon between the supplier and NAF or a NAF customer.

Only after repeated failure or unwillingness to carry out corrective actions, future business with the supplier will be terminated. In addition, when placing new orders, the level of compliance with our CoC and willingness to make improvements will be an important criterion for selection of suppliers.

Requirements – Labour standards

Child labour

Child labour as described by the UN & ILO shall be prohibited. Children under the age of eighteen (18) shall not perform hazardous work duties or other types of work that constitute a risk to their health, development or safety, nor work at night. Neither suppliers nor subcontractors may employ or in any other manner take advantage of children under the national minimum age, or if such a limit does not exist, children under the age of fifteen (15) or children who have not completed compulsory schooling, whichever is the higher. Lower ages could be permitted for transitional periods; in countries where economic and educational facilities are less well developed the minimum age for regular work generally is 14 years, and 12 years for “light work”. If children take part in family work at small-scale plantations, this may only be done to the extent that it does not limit the children’s opportunity to receive education, to play or to sleep.

Forced labour

All types of forced and compulsory labour and restrictions on free movement are prohibited. Work or services performed under coercion or under the menace of any penalty and for which the person has not offered him/herself voluntarily is prohibited. Workers may not be forced to surrender identity documents or financial deposits in order to be granted employment. Labour should be freely given and by right employees should be free to leave in accordance with established rules.

Freedom of association and right to collective bargaining

Workers must have full freedom to establish and join groups for the promotion and defence of their occupational interest such as independent labour organisations and other types of organised unions. Suppliers shall also freely allow workers to bargain collectively, as described in ILO conventions.

Working hours

Suppliers shall follow all applicable laws and regulations with respect to working hours and days of rest, and all overtime must be voluntary. Working hours may not limit the time required for basic needs such as sleeping, eating and recreation. If working hours are not regulated by law, normal working hours may not exceed 48 hours a week plus 12 hours voluntary overtime. One day per calendar week (7 days) must be free.

Working conditions

Suppliers shall provide and maintain a safe work environment and integrate sound health and safety management practices into their business. Workers whose jobs involve hazardous situations and environments and contact with e.g. chemicals, electricity, heights and dangerous equipment must be trained in safety measures and be provided with appropriately maintained personal protective equipment. Conditions and equipment must fulfil the requirements of national laws and regulations that pertain to working environment, safety and hygiene. The opportunity to take care of personal hygiene must be offered.

Minimum wage

Suppliers shall ensure that all workers receive at least the legally mandated minimum wages and benefits. Payment must be made in a timely manner and be sufficiently high to cover the fundamental requirements of water, food, shelter, clothing and basic education for children. Minimum wage and overtime compensation must be set in compliance with national laws or in accordance with industry agreements. The employer must provide information to employees about wages in a comprehensible manner.

Antidiscrimination

Suppliers shall not discriminate against any worker based on age, disability, ethnicity, gender, marital status, national origin, political affiliation, race, religion, sexual orientation, or union membership, in hiring and other employment practices. Suppliers shall hire personnel based on their working capabilities and skills.

Requirements -Human rights

Human rights

Suppliers should support and respect the protection of internationally proclaimed human rights. Respecting human rights means that a supplier should use due diligence to avoid infringing human rights and should address adverse human rights impacts with which they are involved.

Requirements – Anti corruption

Bribes and corruption

Suppliers shall not engage, directly or indirectly, in corruption, extortion, embezzlement, or bribery to obtain an unfair or improper advantage. Suppliers should work against corruption in all its forms, illegal commissions, pricing deals and the like, in both business contexts and contacts with the authorities.

Requirements – environment

Environment

NAF is committed to protecting the environment, and environmental responsibility is at the core of how we operate. Suppliers shall develop, implement, promote and maintain environmentally responsible business practices. Suppliers should commit to adhering to applicable national legislation related to the environment and to being considerate of their surroundings in order to secure sustainable farming, production and processing.

Suppliers must strive to minimize the adverse environmental and human impacts of their activities, products and services throughout responsible management of  environmental aspects (including but not limited to):

  • Use of scarce natural resources, energy and water.
  • Emissions to air and releases to water.
  • Potential soil contamination.
  • Protection of water supply sources.
  • Safe and optimized/minimized use of non-banned Chemicals.
  • That waste is managed, reduced, and responsibly disposed of or recycled.

The supplier shall maintain awareness of environmental legislative requirements and ensure legal compliance.

NAF TRADING A/S

Kim Sandbjerg Jensen, CEO

Brøndby, Denmark

1 November 2015