Code of Conduct of the Supplier PRESTAR, s.r.o.

General requirements

Sustainability is at the heart of Prestar's business operations. The company is committed to and supports sustainability throughout its value chain and requires its suppliers to operate in the same way to build a more sustainable future.
Prestar values the shared commitment of its suppliers and requires suppliers to adhere to and commit to the same international sustainability principles as Prestar, as set out in this Supplier Code of Conduct. Suppliers are expected to communicate and apply the Supplier Code of Conduct and all relevant policies throughout the supply chain, including contractual obligations.
We use the term Supplier to refer to third parties with whom Prestar works to purchase goods or services, including Prestar's own employees, subcontractors and suppliers of the Supplier. The Supplier shall ensure that all its employees, regardless of status, as well as subcontractors, are familiar with Prestar's Supplier Code of Conduct and comply with the requirements set out in the document.

The principles in this Supplier Code of Conduct are consistent with the documents:

• UN Charter of Human Rights
• UN Guiding Principles on Business and Human Rights
• International Labour Organization Declaration on Fundamental Principles and Rights at Work

Compliance with all applicable national and international laws and regulations is the starting point for compliance with this Supplier Code of Conduct and for doing business with Prestar. In cases where there is a conflict between different national laws or international standards, the most stringent applicable standard shall apply. Suppliers are expected to comply with all applicable trade sanctions and export control laws and regulations.

Focus on human rights and the environment

The supplier shall have a management system in place covering the principles set out in this document.
The supplier is expected to conduct risk-based human rights and environmental due diligence to identify, assess, prevent, mitigate and eliminate risks arising from the supplier's own operations and those of its business partners in its supply chain.

Sustainable sourcing of raw materials

Prestar uses common materials for production in accordance with OECD due diligence guidelines for responsible supply chains. We do not consider it necessary to work with the rules for minerals from conflict-affected and high-risk areas.
The supplier must be prepared to identify sources of materials, demonstrate supply chain tracking, and provide documentation required by regulations and laws.

Human Rights

Prestar expects all its suppliers to respect internationally recognized human rights, including but not limited to those set forth in the UN Declaration of Human Rights, the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. The Contractor shall identify and respect the rights of vulnerable groups such as indigenous peoples, migrant workers, children, as well as local communities, women and persons with disabilities.
The Supplier must have due diligence processes in place to measure, prevent and mitigate negative human rights impacts and to avoid causing, contributing to or being associated with negative human rights impacts.

In addition, the Supplier shall comply with the following principles in relation to human rights:

Discrimination

The Contractor shall not discriminate against or harass any employee on the basis of characteristics such as age, gender, ethnicity, national origin, religion, disability, union membership, political affiliation, sexual orientation, pregnancy, disability, or other characteristics protected by local law.

Freedom of association and collective bargaining

The Supplier recognises and respects the right of employees to organise and participate in trade unions and collective bargaining. The Contractor shall facilitate social dialogue and open communication between workers and their representatives without fear of retaliation or harassment.

Child labour

The supplier will actively discourage child labour in its own operations and supply chains. The Supplier shall not employ any person under the age of 15, under the minimum age for employment or under the age of completion of compulsory schooling as defined by national law, whichever is higher. Where persons under 18 years of age are employed, they shall not perform hazardous tasks that endanger their health or safety or work that interferes with their education.

Forced labour, modern slavery and human trafficking

The Supplier will not engage in any form of modern slavery, forced or bonded labour, human trafficking or debt bondage. All employment decisions shall be based on free choice and all workers shall be free to leave employment upon reasonable notice.

The Contractor shall not require workers to surrender personal identification, passports or permits. The Supplier must ensure that workers do not have to pay any recruitment or related fees to the Supplier or its business partners.

Employment contract, fair pay and living wage

The Supplier shall provide all employees with a written contract specifying their rights and conditions of employment in a language they understand.
The Contractor shall pay workers fairly and at least the minimum wage required by local law or applicable collective bargaining agreement or industry standards and any mandated benefits. Local wage and overtime regulations shall be followed. Where there is no minimum wage required by law or where the minimum wage is insufficient to meet basic needs, the contractor shall pay workers enough for a normal work week, excluding overtime, to ensure a decent standard of living for workers and their families in accordance with the International Labour Organisation's definition of a living wage.

A detailed payroll must be submitted for each pay period and wages must be paid on time as specified in the employment contract. Unlawful deductions from wages are not disciplinary action.

Working hours and rest periods

The Supplier shall comply with all applicable laws, regulations and collective bargaining agreements regarding working hours, rest periods, breaks, annual leave, sick leave, parental leave, vacation and overtime.

Employees must be allowed at least one uninterrupted 24-hour rest period every seven days. The Contractor shall ensure that overtime is always voluntary and paid at a premium rate. In addition, the Contractor shall endeavour to develop procedures that allow workers to have an appropriate work-life balance.

Local communities and indigenous peoples

The contractor will behave as a responsible member of the community by minimising any adverse impacts on the local and surrounding areas. It is essential to respect the rights of local communities and indigenous peoples, including their cultural and heritage rights.

Health and safety

The Contractor shall ensure the health and safety of its workers by providing safe and healthy working conditions, appropriate safety training, required personal protective equipment (PPE) and occupational health care. The Supplier shall manage the delivery of products and services in accordance with the relevant health and safety laws and regulations in the country where it operates.

The Contractor shall identify, evaluate and control hazardous conditions in the workplace to minimize potential impacts to workers. Potential negative impacts shall be minimized by implementing safe systems of work, fire protection, emergency plans and evacuation procedures, training, regular drills, response procedures and provision of adequate emergency exits. For project sites, the Contractor shall provide access to clean water, sanitation and adequate housing.

The Contractor shall track and monitor all health and safety performance data including, but not limited to, occupational injuries and illnesses, incidents, near misses, safety observations, and safety training attendance.

More specific health and safety and site-specific requirements are communicated to suppliers along with Prestar's technical and commercial terms and conditions.
In which health, safety, environmental protection measures, quality requirements and references to contractual documentation are recommended.

Climate and environment

Environmental management

Prestar is constantly striving to reduce the environmental impact of its own operations, supply chain and the use of its technology. As a minimum, suppliers are expected to comply with all relevant environmental laws and regulations and obtain the required environmental permits and licenses in the countries where they operate. The supplier shall establish an appropriate organisational structure or resources to effectively manage climate and environmental risks and impacts, including but not limited to air pollution, climate change, pollution and degradation of soil, aquatic ecosystems, deforestation and loss of biodiversity.

The Supplier shall put in place effective control measures and targets to mitigate risks and reduce these impacts, supported by actions such as switching to renewable energy sources, improving energy efficiency, responsible management of natural resources, responsible waste disposal and promoting circularity.

In addition, the Supplier must comply with the following principles in relation to environmental issues:

The contractor must properly handle, store and dispose of all chemicals and hazardous substances to protect workers and the environment. The Contractor shall have procedures for preventing and responding to environmental emergencies that have the potential to negatively impact the environment.

The supplier shall provide on request full information on the materials, substances and mixtures used in the product, including the region or country of origin and the declaration of origin (in accordance with regulatory requirements).

Environmental monitoring and cooperation

The Contractor shall track and document relevant data and statistics on continuous improvement, including but not limited to energy transition, greenhouse gas emissions, water consumption, use of chemicals with potential impacts on human health and the environment, waste generation and treatment, recycling of materials and appropriate reuse of materials.

Climate

Prestar is committed in its Environmental Policy to continuously developing environmental performance, reducing emissions of scale and reducing any negative environmental impacts.

Biodiversity

Prestar protects biodiversity in its operations and supply chains. Suppliers are encouraged to adopt practices that protect habitats and ecosystems and ensure that their activities do not lead to habitat destruction or significant biodiversity loss. This includes avoiding deforestation, land degradation and pollution of water bodies.

Resource use and waste

The Supplier will use natural resources responsibly to reduce or recycle non-renewable materials and explore circular opportunities in its business. The Supplier will strive to reduce waste from its operations and implement waste management systems and practices including proper handling, storage and disposal of hazardous waste in accordance with applicable laws and regulations.
The Supplier shall use water efficiently to prevent depletion and degradation of water resources. The Contractor shall prevent water and soil pollution by controlling discharges and hazardous substances.

Hazardous substances and chemicals

The Supplier shall ensure that the products and materials supplied to Prestar meet mandatory product safety requirements and identify, evaluate and mitigate the risks associated with the use of the products. Supplier shall endeavour to limit the use of hazardous substances and shall comply with material restrictions and regulations applied by local and international regulatory authorities.

Business Ethics

In order to do business, we expect suppliers to maintain high standards of business integrity and ethics.

The Supplier shall not engage in any form of direct or indirect corruption, bribery, fraud, theft, money laundering or illegal tax evasion. They will conduct business honestly and comply with applicable antitrust and competition laws.

The Supplier shall ensure that its personnel or third parties acting on its behalf shall not offer, give or accept ostentatious or excessive gifts or anything else of value that could be considered as a bribe. Any gifts, hospitality or entertainment must comply with applicable laws. They must be given in a legitimate business context and must be reasonable and appropriate. Giving or receiving cash or cash equivalents as a gift is prohibited. The Supplier is expected to refrain from the following during the tendering process and ongoing contract negotiations
gifts or hospitality.

The Supplier shall inform the Prestar Representative of any potential or actual conflicts
of interests as soon as they become aware of them. The Supplier shall avoid situations that cause or appear to cause a conflict of interest. The Supplier is expected to comply with all applicable export and import control laws, sanction regulations and trade restrictions issued by competent authorities such as those issued by the EU.

Compliance monitoring

Supplier is responsible for cascading and communicating the requirements of the Prestar Supplier Code of Conduct to its suppliers and subcontractors. Responsibilities include compliance with monitoring requirements and maintaining reliable documentation. Supplier shall provide Prestar with relevant documentation on the topics covered in this Supplier Code of Conduct upon request.

Prestar reserves the right to assess and monitor Supplier's compliance with this Code of Conduct and its implementation. Supplier shall allow Prestar or third parties authorized by Prestar to verify compliance through dialogue, self-assessment, audit and/or social impact assessment, including interviews with employees at Supplier's premises or at Prestar's workplace. Any practical measures, including timing and scope, will be mutually agreed and the Supplier will cooperate in the preparation for and during the audit. Audit information shall be treated confidentially.

If the results of the audit identify non-compliance with the Supplier Code of Conduct, Prestar will require the Supplier to take corrective action in a timely manner. In cases where corrective action is not taken or progress cannot be made, Prestar will reassess the business relationship, which may include suspension or termination as a last resort.

Intellectual property, information security and cyber security

The Supplier shall respect commercial confidentiality and maintain the confidentiality of information to which the Supplier and its employees have access during the course of the business relationship. The Supplier shall respect and protect the intellectual property rights of Prestar and third parties.

The Supplier will process personal data in accordance with applicable laws and agreements, e.g. the EU General Data Protection Regulation.

The Supplier shall comply with all applicable regulations and standards and agreements on information security and cyber security, e.g. the EU NIS2 Directive and its national implementations.
Given the rapidly evolving changes in information security and artificial intelligence (AI), vendor organizations must ensure continuous monitoring of data privacy and other data-related regulations and laws to ensure compliance.

Reporting concerns and access to remedy

Prestar wants to ensure a culture where employees, value chain personnel and other third parties feel comfortable raising potential violations related to the Prestar Code of Conduct, Supplier Code of Conduct or applicable laws without fear of retaliation or harassment. Suppliers are expected to have an effective grievance mechanism for concerns raised by workers within their operations or by third parties, and to ensure that those who report suspected or actual violations are protected from retaliation.

If any Supplier, its employees or any other third party has concerns, notices any misconduct, breach of law or violation of the Prestar Supplier Code of Conduct or the Prestar Code of Conduct in connection with doing business with Prestar, they are encouraged to report these issues in confidence to vedení@prestar.cz. A confirmation of receipt, registration of the case and the start of the investigation will be issued the following day after 8.00 a.m.

References to international standards

This Supplier Code of Conduct is based on established international standards and covers sustainability-related materials for Prestar: 

• OECD Guidelines for Multinational Enterprises
• UN Guiding Principles on Business and Human Rights
• United Nations Universal Declaration of Human Rights (1948)
• Social and cultural rights
• Fundamental Conventions of International Labour
• UN Convention on the Rights of the Child
• UN Convention on the Elimination of All Forms of Discrimination against Women
• UN Convention on the Elimination of All Forms of Racial Discrimination
• UN Declaration against Corruption
• EU Corporate Sustainability Due Diligence Directive (CSDDD)
• Paris Agreement on climate change action
• Regulation banning products made with forced labour from the Union market