Compliance

Supplier Code of Conduct 

Our understanding of sustainability in the supplier management 

Schunk Group sees sustainability as an essential component of its business processes. In our procure-
ment activities, we pay attention not only to process-related, economic and technical criteria but also to 
social and ecological aspects such as human rights, fair working conditions, fair competition, prevention 
of corruption, and health and environmental protection. 

As a technology group with a high level of materials expertise, we procure raw materials, goods and ser-
vices from suppliers worldwide to ensure the sustainable success of our customers with innovative 
product and service solutions. The basis for this is a responsible corporate philosophy geared to long-
term value creation. For this reason, we involve suppliers directly in our sustainability strategy. 

In the area of conflict between product/performance, market, region and process, quality, reliability, 
costs, innovation, integrity and sustainability are essential factors in our selection of suppliers. Schunk 
Group will therefore only select suppliers who conduct their business with professionalism and integrity, 
share our social and environmental values, and recognize and support our quality standards and health 
and safety culture. 

Therefore, we expect the following from our suppliers: 

• Conducting their business in full compliance with all applicable laws, regulations, policies and in-
  dustry codes. 
• Strict adherence to ethical principles for employee and human rights, environmental protection, 
  health protection and occupational safety. 
• Integration, application and sharing of these principles with their own suppliers and subcontrac-
  tors. 
• Recognition of the importance of diversity and inclusion through strict compliance with all equal 
  opportunity and non-discrimination laws, regulations and policies. 
• Ensuring that there are no violations of the law or discrimination of any kind in the workplace. 
• Conscious, respectful interaction with cultural contrasts, beliefs and issues. 

This Supplier Code of Conduct sets out the minimum requirements on sustainability issues and defines 
the core principles that Schunk Group expects all business partners and suppliers to comply with. 
Schunk Group reserves the right to suspend or terminate the business relationship with a supplier who 
does not comply with these principles or applicable law at any time. 

1. Respect for human rights/discrimination 

Employees of Schunk Group as well as all business partners and suppliers have the right to fair, courte-
ous and respectful treatment. No one may be harassed or discriminated against on the basis of their 
ethnicity, skin color, nationality, ancestry, gender, sexual identity, faith or religious affiliation, ideology, 
political views, age, physical constitution, appearance or other personal characteristics. 

Schunk expects that its suppliers also promote equal opportunities and equal treatment and prevent 
discrimination in the hiring of employees as well as in the promotion or granting of training and further 
education measures. 

No employee of a supplier may be discriminated against on the grounds of gender, age, skin color, cul-
ture, ethnic origin, nationality, sexual identity, sex, disability, religious affiliation, political views or ideol-
ogy. 

2. Child labor 

Schunk Group rejects any form of child labor, including among its business partners, customers, suppli-
ers and their subcontractors. The definition of child labor is based on the principles of the United Na-
tions Global Compact. 

Schunk therefore expects its suppliers to prohibit and refrain from any kind of child labor in their com-
panies and along the supply chain. 

3. Forced labor/Modern slavery 

Any form of slavery is incompatible with our ethical foundations. We expect our suppliers and their sub-
contractors to fight against any form of modern slavery and human trafficking along the supply chain 
and not tolerate it under any circumstances. 

4. Employee rights/Working conditions 

Schunk is committed to the principles of social responsibility. It is therefore in the company's interest 
that fair working conditions apply worldwide in Schunk Group. Compliance with all local legislation on 
minimum wages, social benefits, overtime, working and break times and working conditions is a matter 
of course for Schunk. 

Schunk therefore also expects its suppliers to comply with all employee rights of the respective applica-
ble national legislation as well as fair working conditions worldwide. 

5. Freedom of association 

The right of all employees to form and join trade unions and employee representative bodies is recog-
nized by suppliers. Where this right is limited by local law, alternative means of employee representa-
tion that comply with the law shall be encouraged. 

6. Remuneration/Working hours 

Suppliers must pay employees on time and in accordance with applicable wage laws, including minimum 
wages, overtime, prohibition of excessive overtime and mandated benefits. 

7. Health protection/Occupational safety/Fire protection 

Safety in the workplace and the safety of our products are a fundamental principle for Schunk. Pro-
cesses, operating facilities and equipment, as well as all workplaces must comply with the applicable le-
gal obligations for occupational safety, health and fire protection. 

Schunk therefore expects its suppliers to know and comply with the applicable national legislation on 
health protection, occupational safety and fire protection. We require that suppliers have an appropri-
ate occupational safety organization. This includes, for example, the containment of actual and potential 
occupational safety risks by means of suitable protective measures and the deployment of employees 
who are sufficiently qualified and instructed to carry out their work more safely. 

Schunk welcomes its suppliers having a certified occupational safety management system and positively 
considers this in its supplier selection process. 

8. Environmental protection 

Protection of the environment is an integral part of Schunk's corporate policy and this is therefore also 
consistently required of all suppliers. 

Schunk expects its suppliers to know and comply with the applicable national legislation on environmen-
tal protection. This also includes compliance with all official requirements and product-related environ-
mental regulations in the destination country. 

We require that suppliers have an appropriate environmental protection organization and ensure the 
protection of the following protected goods: 

• Protecting people, animals and plants by preventing emissions that are hazardous to the envi- ronment and/or health and avoiding the manufacture of products with ingredients that are hazardous to the environment and/or health. 
• Protecting the atmosphere by preventing air pollution from harmful and/or greenhouse gases and by maintaining air quality. 
• Protecting soil by preventing the creation of harmful soil change and limiting land use. 
• Protecting water by preventing lasting harmful water changes, treating all wastewater, and using this resource sparingly. 
• Protecting all natural resources by
  • preventing excessive use of natural resources, 
  • promoting the use of renewable energies and energy efficiency,
  • reducing the generation of hazardous waste and waste for disposal, 
  • disposing of waste in a correct and harmless manner, 
  • promoting the use of renewable raw materials, 
  • and developing and manufacturing cycle-oriented products. 

For Schunk, it is also a matter of course that our suppliers also assume responsibility for damage already 
incurred and caused by their own business activities and make their contribution to repairing the dam-
age or minimizing the effects of the damage. 

Schunk welcomes its suppliers having a certified environmental management system and positively con-
siders this in the context of its supplier selection. 

9. Conduct in the business environment/fair competition 

Suppliers must conduct business in accordance with fair and vigorous competition and in compliance 
with applicable competition law. Suppliers must adhere to fair business practices, including accurate and 
truthful advertising. 

10. Corruption and bribery 

Any bribery, corruption, extortion, money laundering and embezzlement are prohibited. Suppliers may 
not grant benefits, offer, pay or accept bribes. This also applies to illegal inducements (e.g., bribes) and 
any illegal influence in business or government relations. Nor may intermediaries (e.g., subcontractors, 
wholesalers, agencies, consultants) be used to conduct or support such unlawful activities. 

Suppliers must therefore implement effective fraud prevention and reporting programs and report to 
Schunk all incidents of fraud (confirmed or under investigation) related to their business relationship 
with Schunk. 

11. Invitations/Gifts 

Suppliers in an existing business relationship with Schunk or those seeking such a relationship may not 
offer gifts, gratuities, entertainment, meals or entertainment activities that could influence the em-
ployee(s) decision regarding the business relationship with Schunk. 

12. Use of the Schunk name/brand/logo 

The use of Schunk's name, trademarks/brands or other similar information in any advertising, media 
publication or product recommendation of Supplier is prohibited without the prior written consent of 
Schunk. 

13. Avoidance of conflicts of interest 

Suppliers should avoid any interactions with Schunk employees that could create or appear to create a 
conflict with Schunk. For example, suppliers may not employ Schunk employees or otherwise make pay-
ments to them that have not been approved in advance by Schunk. 

14. Money laundering 

Schunk expects its suppliers to comply with all relevant legal obligations to prevent money laundering 
and not to engage in money laundering activities. 

15. Intellectual property/plagiarism 

All intellectual property rights must be respected by suppliers. The transfer of technologies and know-
how must be implemented in such a way that the protection of intellectual property rights of the re-
spective owner is ensured. 

For this reason, the use of plagiarized or counterfeit materials is prohibited. The Schunk Group does not 
approve of the use, further processing or marketing of counterfeit products. In addition, detected coun-
terfeit products are not put into circulation by the supplier, but are reported to the relevant law en-
forcement authorities. 

16. Supply chain integrity/Supply Chain Act (LkSG) 

The supplier undertakes to observe human rights and environmental due diligence obligations in an ap-
propriate manner in its respective supply chains. 

The requirements of the Supply Chain Act must be complied within its scope of local application. 

17. Export/Import control 

Suppliers must comply with all applicable import and export control laws, regulations and sanctions of 
the country in which the supplier is located and all countries in which transactions are conducted, in-
cluding import, export, re-export, transfer or disclosure. 

This includes all types of transactions of goods, software, technology or technical assistance that may be 
subject to trade restrictions, regardless of the type of transfer. Suppliers must cooperate with Schunk in 
determining applicable export control restrictions. In addition, suppliers must fully comply with other 
applicable trade and customs laws. 

18. Privacy and data protection 

Suppliers must comply with and respect all personal data protection and privacy laws. Suppliers use per-
sonal data (e.g., of employees or business partners of Schunk Group) only in accordance with the legal 
requirements for data protection. 

Suppliers must protect confidential information, including personal data, received from or processed on 
behalf of Schunk and actively prevent loss, misuse, theft, fraud, unauthorized access, disclosure or alter-
ation and promptly report any potential breaches or security vulnerabilities. Suppliers should apply an 
appropriate information security system 

19. Conflict materials 

Suppliers shall ensure that the products supplied to Schunk do not contain any metals extracted from 
minerals or their derivatives that originate from conflict areas in which armed groups commit serious 
human rights violations and are directly or indirectly financed or favored. Furthermore, the guidelines of 
EU Regulation 2017/821 and the Dodd-Frank Wall Street Reform and Consumer Protection Act must be 
strictly adhered to. 

20. Compliance with the Supplier Code of Conduct/Control 

In order to determine the compliance of suppliers with the principles and requirements of this Schunk 
Supplier Code of Conduct, we reserve the right to check these ourselves, through third parties or by 
means of supplier self-assessments. 

Furthermore, Schunk expects its suppliers to implement these standards in an appropriate form. 

In addition, on-site audits can be carried out by Schunk or a third party commissioned by Schunk or by 
the customer in coordination with the supplier. 

Schunk is provided with these audit results, which have a direct influence on supplier evaluation and ap-
proval as a supplier. Any violation of the principles and requirements stated in the Schunk Supplier Code 
of Conduct shall be considered a material impairment of the contractual relationship on the part of the 
suppliers. In case of suspicion of non-compliance with the described principles and requirements of the 
Schunk Supplier Code of Conduct, Schunk reserves the right to request further information on the rele-
vant facts from the supplier. 

Furthermore, Schunk has the right to terminate without notice individual or all contractual relationships 
with suppliers who demonstrably do not comply with this Supplier Code of Conduct or who do not strive 
for and implement improvement measures. 

This Supplier Code of Conduct is permanently available to all suppliers of Schunk Group on the Schunk 
Group homepage. 

Each supplier shall refer its employees to this Code of Conduct and explain its contents. Every supplier of 
Schunk is called upon to examine their own conduct on the basis of the above standards and instruc-
tions for action and, if necessary, to adapt them. 

Violations of this Supplier Code of Conduct will not be tolerated and may also result in civil or criminal 
penalties. 

21. Whistleblowing system 

If supplier employees believe that Schunk employees or anyone acting for or on behalf of Schunk has 
engaged in illegal or otherwise unauthorized activity, they must report it immediately to Schunk. 

Schunk Group has set up a whistleblower system by appointing an external lawyer as an ombudsman 
(lawyer of confidence), which can also be used by suppliers. 

This ombudsman is available at any time and free of charge as a contact person to all suppliers who wish 
to make a confidential reference to the suspicion of a criminal offense or similarly serious irregularities 
with reference to Schunk Group. 

Due to the lawyer's duty of confidentiality, it is ensured that the identity of whistleblowers is reliably 
protected and not disclosed to Schunk Group. 

Contact details of the Schunk ombudsman (lawyer of confidence): 

Address: Dr. Rainer Buchert, Buchert Jacob Partner Partnerschaftsgesellschaft mbB 
Kaiserstrasse 22, 60311 Frankfurt am Main/Germany 

Telephone: +49 69 710 333 30 
Email: kanzlei@dr-buchert.de 

Information can also be provided via a contact form on the Buchert Jacob Partner website: 
www.ombudsperson-frankfurt.de/de.