Pax CSR_2018_ENG_small | Page 13

IMPROVING WORKING CONDITIONS We must ensure that our business operations respect human rights and labour conditions. Here we will tell you more about our work to improve working conditions in the global supply chain. WHERE WE OPERATE New Wave Group is never far away from the production. We have our own buying offices in charge of sourcing and production. Our offices are located in China, India, Vietnam and Bangladesh where we have approximately 200 employees. China is our biggest office and country of production. In addition to our main office in Shanghai, where we have been operating since 1992, we have three minor offices in Qingdao, Xiamen and Nanchang. Our procurement strategy is to purchase directly from our suppliers and to cut intermediaries that could jeopardize our control of the supply chain. Being represented on site enables us to have a close partnership with our suppliers and to actively monitor flow of goods and quality. Our buying offices are an important part of our social and environmental responsibility program. The biggest strength of New Wave Group is that we have our own CSR personnel dedicated to visit, support and train our suppliers in sustainability questions. We offer more than audits. We offer an extended hand, which enables us to have a sincere communication and face challenges together. HUMAN RIGHTS AND WORKING CONDITIONS We are aware of the responsibility that comes with sourcing goods in countries with different legal standards and labour conditions. Many challenges in developing countries can be related to poverty and lack of welfare systems. We always aim to have an open dialogue with our suppliers and discover potential issues in time. Having good suppliers is key for our business and we depend on their business operations as much as they depend on ours. Hence, we care about the situation on the factory floor and that the suppliers are treating their workers with respect and according to law. CODE OF CONDUCT New Wave Group has adopted the Amfori BSCI Code of Conduct. A Code of Conduct is a policy which contains requirements such as minimum wage, working hours, the prohibition of child labour and several other requirements from the ILO Conventions and the UN Declaration of Human Rights. The Code of Conduct summarizes what we expect from our suppliers when it comes to social and environmental responsibility. We are members of Amfori BSCI (Business Social Compliance Initiative) which is a global initiative for companies committed to improve working conditions in the supply chain. Companies all over the world are working together, using the same Code of Conduct, meaning that more than 2’000 companies have adopted the code. Together we reach out to approximately 30’000 unique suppliers worldwide. NEW WAVE GROUP / CSR | 13 Most of our products are produced by specialized and external suppliers. We have a wide range of products within New Wave Group, which requires different skills and manufacturing techniques. However, we also have some in-house production units. This you can read more about under the section In-house Production on page 17.