TO GAS TRANSMISSION OPERATOR GAZ-SYSTEM S.A.

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1 TO GAS TRANSMISSION OPERATOR GAZ-SYSTEM S.A.

2

3 CONTENTS INTRODUCTION 2 Our commitments and values 2 Objectives 3 Scope 3 Application 4 Compliance 4 Cooperation with Suppliers 5 TO GAS TRANSMISSION OPERATOR GAZ-SYSTEM S.A. EXPECTED SUPPLIER CONDUCT STANDARDS 6 Occupational safety, health and fire protection 6 Human rights and labour law 8 Local communities 10 Environmental protection 12 Business ethics 14 1

4 INTRODUCTION OUR COMMITMENTS AND VALUES As a strategic company, Transmission System Operator GAZ-SYSTEM S.A. ( GAZ-SYSTEM ) strives to develop the gas transmission system while combining customer expectations with the development of the company and the gas market in Poland. Our mission is to ensure the safe transmission of natural gas in Poland, active creation of an integrated transmission system in Europe while taking care of the natural environment and observing the principles of sustainable development in our daily business practices. GAZ-SYSTEM is a signatory and member of the UN Global Compact. While declaring adherence to Global Compact s ten principles in the areas of human rights, labour standards, the environment and anti-corruption, we strive to operate in compliance with the principles of Corporate Social Responsibility. This is fully reflected in GAZ-SYSTEM s Strategy as our Strategic Direction V Company Management from the Perspective of Sustainable Development. The implementation of the responsible business concept at GAZ-SYSTEM helps build the credibility and transparency of the company s operations and forge strong and transparent relationships with the stakeholders. In our business practices, we act in accordance with the core values of the GAZ-SYSTEM s Code of Ethics, defining the expected attitudes and behaviours, i.e.: responsibility, commitment, professionalism, teamwork and respect. We are fully aware that GAZ-SYSTEM has a significant effect on the procurement market and the promotion of highest business standards in its environment. Guided by attention to the quality of business relationships, promoting good market practices and making a positive impact on the society and environment, we have made a decision to develop this Code of Conduct for Suppliers. The Code consists of two main parts: (1) Introduction and (2) Expected Supplier Conduct Standards. 2

5 OBJECTIVES The Code of Conduct for Suppliers to Gas Transmission Operator GAZ-SYSTEM S.A. (the Code ) describes GAZ-SYSTEM s minimum requirements to be met by its suppliers in terms of compliance with the values and principles of social responsibility and sustainable development. This Code aims to: harmonise Supplier standards of conduct, identify good working practices to be met by Suppliers, improve the quality of products and services provided by Suppliers, reduce the likelihood of ethical, social and environmental risks arising from the business activity carried on by Suppliers, implement GAZ-SYSTEM s CSR policies throughout the supply chain. SCOPE The following Code is based on the provisions of Polish and international law, international standards (including the guidelines of the UN Global Com- 3

6 pact and ISO ), the requirements of the GAZ-SYSTEM s Integrated Management System and best business practices. A Supplier to GAZ-SYSTEM is a natural person, legal person or an organisational unit without legal personality that is applying for a contract award, has submitted an offer or concluded an agreement or framework agreement. All Suppliers to GAZ-SYSTEM, including small and medium-sized enterprises are required to comply with the laws, rules and regulations generally applicable in the country in which they operate - irrespective of the provisions of this Code. As a condition of the Supplier s cooperation with GAZ-SYSTEM, the Supplier must conform to the provisions of the Code in their business. This principle applies to both the Supplier s employees and its subcontractors and suppliers involved in the execution of orders for GAZ-SYSTEM. APPLICATION GAZ-SYSTEM expects all Suppliers to read and implement the provisions of this Code of Conducts. In the process of selecting Suppliers, the Code will form an integral part of the agreement between GAZ-SYSTEM and the Supplier. Entering into such agreement is tantamount to the Supplier s commitment to perform the contract in accordance with the provisions of the Code. The detailed requirements and rules of cooperation with Suppliers are defined by the provisions of the relevant agreements. GAZ-SYSTEM expects its Suppliers to: implement the principles and provisions contained in the Code in their own business activity and the activity of its subcontractors, identify and manage business, ethical, social and environmental risks arising their business activity, continuously improve through the implementation of corrective measures, immediately notify GAZ-SYSTEM of any breach of the Code. COMPLIANCE GAZ-SYSTEM reserves the right to assess the application of the Code by the Suppliers and verify the compliance of the performance of the object of an agreement with the applicable contractual requirements (according to ISO 9001), as well as with respect to conformity to health and safety and environmental requirements, and specifically the applicable legal regulations and OHSAS and ISO standards. 1 ISO is an international standard providing guidelines for social responsibility. 4

7 GAZ-SYSTEM employees may perform Supplier audits. GAZ-SYSTEM may use third parties to perform any such audits. In the event of any breach of the Code, GAZ-SYSTEM will expect Suppliers to plan and implement corrective measures. If applicable, GAZ-SYSTEM reserves the right to suspend the operation of any Supplier until such non-compliance is resolved. GAZ-SYSTEM reserves the right to terminate the agreement in accordance principles and procedures specified thereunder, if the Supplier determines that compliance with the Code is impossible. COOPERATION WITH SUPPLIERS At GAZ-SYSTEM S.A. we believe that building long-term relationships with suppliers, based on corporate social responsibility principles is crucial for the development of the company. We strive to implement the Code on the basis of dialogue and partnership with suppliers while actively participating in raising awareness of our Suppliers in compliance with the principles of the Code. Ultimately, our goal is to inspire our Suppliers to formulate their own corporate social responsibility policies and implement them by training their staff to observe CSR principles. As a result, the company expects from suppliers openness and cooperation with GAZ-SYSTEM to respect the principles contained in this Code. 5

8 EXPECTED SUPPLIER CONDUCT STANDARDS SUPPLIERS TO GAZ-SYSTEM ARE EXPECTED TO COMPLY WITH APPLICABLE LAW, IN PARTICULAR WITH REGARD TO THE PRINCIPLES SET OUT BELOW OCCUPATIONAL SAFETY, HEALTH AND FIRE PROTECTION GAZ-SYSTEM is committed to conducting business in compliance with all rules regarding occupational safety, health and fire protection. Our main purpose in this respect is to protect life and health by seeking to completely eliminate the occurrence of accidents and occupational diseases under contracts awarded by GAZ-SYSTEM and the protection of property against fire and other local hazards. This objective is supported by the policies, OHS procedures, as well as instructions and guidelines included in the Integrated Management System operated at GAZ-SYSTEM. Consequently, Suppliers are expected to provide a safe and healthy working environment and act in a responsible manner in accordance with the highest occupational safety standards, so as to avoid the risk of accidents related to work performed for GAZ-SYSTEM. 6

9 Therefore, all Suppliers to GAZ-SYSTEM should: CONFORM TO OCCUPATIONAL SAFETY, HEALTH AND FIRE PROTECTION REQUIREMENTS provide all employees with safe working conditions which meet or exceed GAZ-SYSTEM s safety, health and fire protection standards. In accordance applicable laws and standards and including appropriate use of advances in science and technology, organize work in a way that ensures safe and healthy working conditions for employees and safety of third parties, respond to the needs of employees in terms of safety and adapting the measures taken to improve the existing level of health and life protection while taking into account the changing work conditions, provide safe tools, machinery and equipment necessary for work as well as materials and means of individual and collective protection, ensure that all products and services provided by the Supplier comply with all quality and safety standards arising from applicable laws. BE PREPARED FOR ANY ACCIDENT AND FAILURE RELATED EMERGENCIES have their own policies, labour and service quality standards corresponding to GAZ-SYSTEM s occupational safety, health and fire protection requirements, provide adequate certification of their employees skills and qualifications in respect of occupational safety, provide periodic training for their employees, acquaint subcontractors and suppliers with applicable safety rules, including means of preventing hazards in the workplace, 7

10 BE PREPARED FOR ANY ACCIDENT AND FAILURE RELATED EMERGENCIES verify and duly document knowledge by all employees and subcontractors of procedures related to the occurrence of emergencies and accidents during the provision of services to GAZ-SYSTEM and shall immediately notify GAZ-SYSTEM of: any work related accident, potential accident or identified occupational disease, fire, natural disaster or any other local hazard, perform occupational risk assessment, taking into account the risks occurring during the provision of services to GAZ-SYSTEM, work in conjunction with GAZ-SYSTEM to increase the level of employee skills and knowledge in occupational safety, health and fire protection, comply with occupational health and safety of their activities and during the execution of orders for GAZ-SYSTEM. HUMAN RIGHTS AND LABOUR LAW Being a socially responsible company, GAZ-SYSTEM transparently communicates its requirements in relation to human rights and labour law. GAZ-SYSTEM expects its suppliers to respect the relevant national and international legislation, in particular the Constitution of the Republic of Poland, the Labour Code, the Universal Declaration of Human Rights. Suppliers should take measures to ensure respect for the above rights in their activities, as well as the activities of their partners, including the execution of orders for third parties. 8 I. WPROWADZENIE

11 Therefore, all Suppliers to GAZ-SYSTEM should: RESPECT HUMAN RIGHTS fulfil the requirements of the Universal Declaration of Human Rights in relation to all its employees and subcontractors, eliminate all instances human rights abuse by the Supplier and/or its subcontractors. comply with regulations on working time and accuracy of working time RESPECT THE records, LABOUR LAW formally regulate labour relations with employees and subcontractors, ensure that the form of employment or cooperation with a natural person is in accordance with applicable law, provide timely payment of wages and other benefits due to employees and subcontractors, fulfil their obligations concerning care for equal and non-discriminatory treatment of employees, eliminate all forms of discrimination against employees based on gender, age, disability, race, religion, nationality, political opinion, trade union membership, ethnic origin, sexual orientation, as well as temporary or permanent, full-time or part-time form of employment, refrain from the use of sanctions against employees other than those provided for in the provisions on disciplinary liability of employees, comply with the prohibition of child labour, forced labour and other forms of exploitation of workers, conform to the requirements concerning workers freedom of association. 9

12 LOCAL COMMUNITIES One of the main values upheld at GAZ-SYSTEM is our respect for stakeholders, manifesting itself in a constructive dialogue and work for the social environment. In accordance with GAZ-SYSTEM s Strategy, we are committed to maintaining the position of a trustworthy partner at the local level. Forging good relations with local communities is crucial to the success of our investment projects and the positive image of GAZ-SYSTEM. Working in conjunction with its Suppliers, GAZ-SYSTEM engages in cooperation with representatives of local communities based on dialogue and mutual respect. 10

13 Therefore, GAZ-SYSTEM s Suppliers in conjunction with local communities should: take into consideration and understand RESPECT THE RIGHTS OF LOCAL the consequences of the impact of its business on the local community, COMMUNITIES AND THEIR MEMBERS operate in a safe and responsible manner, taking into account the welfare of local communities and their members, refrain from any actions to the detriment of local communities and their members, as much as possible, limit the nuisance of their business to local communities and their particular members, exercise care in minimising any adverse impact on the environment and, upon the occurrence of any such impacts, restore the environment to its original state, avoid any negative impacts on the local community which may adversely affect the reputation of the Supplier and GAZ-SYSTEM, maintain high standards of personal conduct in relations with communities. establish ongoing cooperation during the implementation of investments WORK TOGETHER with representatives of local authorities WITH STAKEHOLDERS and social organisations, engage in appropriate communication and dialogue with representatives of local authorities and communities while upholding GAZ-SYSTEM s values, improve internal competences regarding the principles and skills needed for dialogue with stakeholders. GAZ-SYSTEM encourages its Suppliers to make joint efforts to increase their competences regarding social communication and building relationships with local communities. 11

14 ENVIRONMENTAL PROTECTION One of our main objectives at GAZ-SYSTEM is to reduce any negative impact of our business on the environment. Consequently, GAZ-SYSTEM s Suppliers are also required to minimise the impact of their activities on the environment. Under agreements concluded with GAZ-SYSTEM, Suppliers are expected to comply with environmental regulations, implement best environmental practices and monitor their impact on the environment. Therefore, all Suppliers including the providers of products, services or construction works to GAZ-SYSTEM should: HOLD ALL NECESSARY ENVIRONMENTAL DOCUMENTS hold valid licenses, permits, applications, declarations, agreements and decisions applicable to environmental protection in connection with the Supplier s activities and follow all regulations contained therein. in the performance of any agreement, FOLLOW APPLICABLE ENVIRONMENTAL LAWS AND MINIMISE ADVERSE ENVIRONMENTAL comply with the provisions of applicable environmental laws and administrative decisions, both internal and imposed on GAZ-SYSTEM in connection with any such agreement, IMPACT undertake to minimise the negative environmental impact of work relating to the implementation of an agreement, employ systems and procedures to limit the adverse impact on the environment and to prevent the occurrence of damage to the environment. 12

15 PREPARED FOR ANY ENVIRONMENTAL EMERGENCIES AND TAKE RESPONSIBILITY FOR THEIR OWN ACTIONS bear the legal and financial consequences of non-compliance with applicable environmental regulations relating to the implementation of an agreement. GAZ-SYSTEM s Suppliers are encouraged to implement ISO 14001, EMAS or other equivalent standards confirming compliance with the requirements set by GAZ-SYSTEM. 13

16 BUSINESS ETHICS The five core values of GAZ-SYSTEM highlighted in our internal code of business ethics are: responsibility towards the environment in which the company operates, as well as towards employees and the natural environment RESPONSIBILITY COMMITMENT employee commitment creative activities and efforts to improve company efficiency professionalism reliable performance of obligations to stakeholders and high employee qualifications PROFESSIONALISM TEAMWORK teamwork joint efforts to provide high quality services respect for stakeholders manifesting itself in a constructive dialogue and work for the environment RESPECT GAZ-SYSTEM s Suppliers are expected to exercise high business ethics standards. 14

17 Therefore, all Suppliers to GAZ-SYSTEM should: refrain from participating in any form of corruption or bribery, in particular related to any payment or other form of benefit granted to any representative of any other entity, in order to influence their decision in violation of the law, refrain from offering or presenting to GAZ-SYSTEM employees any cash or other gifts of any kind or in any amount, any tangible or intangible benefits (except for products whose use is customary for image purposes), any gain or promise of gain, which could be interpreted as an attempt to influence a decision of GAZ-SYSTEM concerning the selection of Suppliers, inform appropriate GAZ-SYSTEM representatives of any observed irregularities, violations of existing rules and/or policies, or instances PREVENT of corruption and/or bribery, CORRUPTION AND BRIBERY (INCLUDING GIFT GIVING) create a system that allows employees to report violations of ethics and promptly respond to and eliminate any such violations. RESPECT THE PRINCIPLES OF FAIR COMPETITION avoid conflict of interest, and if any such conflicts occur, use adequate preventive measures, and also conduct their activities in accordance with the principles of fair competition and all applicable antitrust laws, apply fair trading and pricing conditions, ensure timely payment of receivables and other financial liabilities to any cooperating individuals/third parties, avoid any conflict of interest that could affect the level of transparency and integrity of cooperation as well as have an adverse impact on the image and reputation of the Supplier, thus negatively affecting the perception of GAZ-SYSTEM. 15

18 safeguard any confidential information ENSURE THE SECURITY and use it only in an appropriate manner, and AND PROPER USE to provide security for the data on all available OF GAZ-SYSTEM S media used by their subcontractors ASSETS in accordance with applicable law and the obligation of confidentiality, as specified in GAZ-SYSTEM s internal regulations of and under agreements with Suppliers, sign a confidentiality commitment/agreement prior to starting cooperation with GAZ-SYSTEM and comply with its provisions, undertake to provide security and adequate protection of tools and other resources, including technology and intellectual property made available to the Supplier in connection with the services/products supplied to GAZ-SYSTEM, refrain from abusing any tangible or intangible assets made available to the Supplier in connection with the services/products provided to GAZ-SYSTEM and use any such assets only for the purposes of carrying out orders by either the Supplier or its subcontractors. 16

19 Kamil Maczyński p. 6 PHOTOGRAPHS: Marcin Chimiczewski p. 9 Archives of GAZ-SYSTEM S.A.

20 FOR QUESTIONS REGARDING THE CODE, PLEASE CONTACT US AT: Gas Transmission Operator GAZ-SYSTEM S.A. ul. Mszczonowska 4, Warsaw, Poland Procurement Division T:

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