Code of Conduct for Suppliers

1. Introduction

Our suppliers and third-party intermediaries (“business partners”) contribute to the added value, quality, and innovative strength of Hilti. Consequentially, our business partners have significant influence on the achievement of our sustainability goals. Strong business partners contribute to a positive impact on the ecological and social aspects of our business activities. At Hilti, we aim to source ethically and responsibly. To ensure our standards, we require all direct business partners to comply with this codex in addition to their necessary commitment towards their own supply chain. In return, business partners can expect Hilti to abide by and actively conduct business according to our own Code of Conduct.

2. General Commitment

As our business partner you must be committed to take precautionary measures to avoid harm to people and the environment. Human rights, due diligence, and environmental protections must be fully observed in your own business operations and those of your direct business partners. We require that you establish an adequate and effective risk management system, in order to identify risks to people and the environment and to prevent, end, or minimize harms. This can include either systematic or adhoc risk analyses of your business and your direct business partners. You are responsible for risks or injuries you cause or contribute to within your supply chain.

You undertake to participate in Hilti’s IT-supported monitoring process to verify compliance with these due diligence obligations.

a) Anti-corruption obligation

All forms of engagement in bribery and corruption are strictly prohibited. As business partner you must not tolerate any form of direct or indirect engagement in corruption or bribery and must not grant, offer, or promise anything of value to a government official or to a counterparty in the private sector to influence official action or obtain an improper advantage.

b) Health, Safety and Environment

Hilti expects you to take responsibility for the health and safety of your employees in accordance with the applicable statutory and international standards to provide safe working conditions.

As our business partner, you must strive to minimize waste as well as air, soil and water emissions, and also contribute to the recycling and reuse of materials and products in addition to meeting the requirements stated in the Chemical Checklist. You must apply  international and national standards to the handling, storage, and disposal of hazardous waste as well as handle chemicals harm-free to the environment and continuously improve energy efficiency.

Objectives shall include the prevention of long-lived pollutants (POPs Convention), mercury emissions (Minamata Convention), and the control of transboundary movements of hazardous wastes (Basel Convention).

c) Human Rights and Labour Practices

Hilti is a member of the UN Global Compact and requires you to respect all internationally proclaimed human rights by avoiding causation of and complicity in any human rights violations. Compliance requires that one does not:

• use or contribute to slavery, servitude, forced or compulsory labor and human trafficking, or make use of child or forced labour1;

• discriminate based on race, colour, sex, language, national or social origin, birth or other status, ethnicity, cultural background, age, disability, religious beliefs, political or other opinion, sexual orientation or any other characteristic;

• exceed the maximum legal working hours permitted2;

• obstruct workers’ rights to assembly, association, and collective bargaining;

• make use of any type of mental and/or physical forms of disciplinary action and engage in systematic harassment.

Business partners must pay at least the legal minimum wage and provide any overtime compensation specified under applicable laws and regulations.

d) Other aspects that require our partners’ attention

Business partners must avoid and/or disclose conflicts of interest that may influence our business relationship. You must not directly or indirectly facilitate money laundering or terrorism financing. Compliance with applicable export, re-export controls, and customs regulations regarding products, data, software, and information technology is mandatory.

3. Monitoring

Hilti reserves the right to monitor existing and new business partners for compliance with this codex, on a regular or ad hoc basis if necessary. Alternatively, monitoring may be carried out by a specialized, independent organization.

Hilti will address cases of non-compliance with appropriate actions, which may include working together with the partner to resolve non-compliance within an appropriate time frame if the conduct of the business partner indicates a true desire to remediate the violations of this codex. Hilti, however, reserves the right to end the business relationship in the event of serious or repeated infringement.

Cases of non-compliance can be reported through Hilti`s anonymous SpeakUp whistleblowing mechanism or directly through our supply managers as grievance mechanisms.

1 according to the ILO Conventions 138 and 182 as well as 29 and 105

2 according to ILO Conventions 1 and 30