NWG // SUSTAINABILITY REPORT
Governance information
Business conduct Material impacts, risks and opportunities Ethical business impacts and risks are primarily associated with procurement activities in countries classified as high-risk( as per the amfori BSCI definition). These risks include incidents of corruption, bribery, and unethical business practices. Poor business ethics can negatively affect the company ' s reputation, customer trust, and long-term sustainability.
A significant risk lies in the possibility that suppliers or subcontractors in global supply chains may engage in corruption or violate Codes of Conducts. This can occur in areas such as labor conditions, production standards, environmental impact, or business agreements. Additionally, unethical practices like bribery or concealed payments may undermine trust among both internal and external stakeholders, potentially leading to financial losses and legal consequences.
On the other hand, prioritizing business ethics provides an opportunity to strengthen trust with customers, investors, and other stakeholders, offering a competitive advantage in the market.
More information on the amfori BSCI initiative can be found in the section " Workers in the value chain " on pages 78-79.
Prevention and detection of corruption and bribery More details about the company’ s system for risk assessment, control environment, and monitoring can be found in the Corporate Governance Report on pages 44-46.
To ensure all employees within New Wave Group are aware of the principles outlined in the Anti-Corruption Policy, the management of each company within the Group is responsible for communicating the policy to all employees in a way that ensures understanding of its contents.
In the supply chain, preventive measures and detection of corruption and bribery are implemented through the adoption, review, and monitoring of the amfori BSCI Code of Conduct, along with the implementation of systems for traceability and transparency.
Business conduct policies, guidelines and corporate culture The Group’ s corporate governance framework, which shapes the corporate culture, is summarized in the Corporate Governance Policy. This policy also serves as a guiding document for other policies, including a separate Anti-Corruption Policy, which outlines principles for combating corruption.
In the supply chain, the amfori BSCI Code of Conduct is applied, as New Wave Group is a member. Further details can be found on page 78.
Management of relationships with suppliers The company’ s strategy for managing supplier relationships, which considers both supply chain risks and sustainability impacts, is based on local presence and systematic efforts within the frameworks of amfori BSCI and BEPI.
The company’ s purchasing offices in Asia facilitate close collaboration with suppliers and continuous monitoring of production and payment flows. This reduces the risk of unethical business practices and enhances communication and mutual understanding between suppliers and the company.
Incidents of corruption or bribery During the year, no cases of corruption or bribery were reported.
Payment practicies
The standard payment terms for manufacturing suppliers are 90 days. Payments are generally not delayed unless there is a significant non-compliance issue, such as a breach of the Code of Conduct or product safety standards. In such cases, payments may be withheld until the issue is resolved, in accordance with business agreements. Currently, there are no ongoing legal proceedings related to late payments.
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