7.
3 issue, January
2018 Page 1 of 5
Language: en
Danfoss is strongly committed to playing an active role in a sustainable global development where
social responsibility, environmental and climate considerations go hand in hand with sound
business development. Danfoss has a strong commitment to economic, environmental and
socially sustainable development. As a result of this commitment, Danfoss has subscribed to
the principles of the United Nations Global Compact (www.unglobalcompact.org) and the UN
Guiding Principles. Danfoss expects all its businesses partners, including suppliers,
to comply with the UN Global Compact principles in addition to the laws of the countries where
its businesses are located.
As a global leader within its core businesses, Danfoss strongly believes that it is in the mutual
interest of both Danfoss and its suppliers to meet the present and future requirements of markets
and society. This includes demonstrating responsibility towards the people taking part in the
manufacture and delivery of products and services.
In order to make its position clear to all suppliers, Danfoss has established the Danfoss Code of
Conduct for Suppliers (the “Code”). The Code describes Danfoss’ corporate social responsibility
requirements for suppliers. As a condition of doing business with Danfoss, we expect suppliers
to comply with these requirements. It is Danfoss’ intention to maintain this Code in a spirit of
constructive dialogue and in partnership with suppliers, for the mutual benefit of both parties.
In the Code, the term “Danfoss” refers to all Danfoss Group companies.
The Code applies to the supplier and all supplier Group companies (the “Supplier”). The Supplier
shall inform all supplier Group companies of their obligations in relation to the Code and the
Supplier is responsible to Danfoss for all supplier Group companies’ compliance with the Code.
The Supplier shall take all necessary actions to ensure the Supplier’s compliance with this Code,
without undue delay. In addition to complying with the Code, the Supplier shall comply with
applicable local laws.
The Supplier is solely responsible for the costs of complying with the Code.
If Danfoss finds or suspects incidents of non-compliance with the Code related to the Supplier and
Danfoss informs the Supplier hereof, Danfoss expects the Supplier to investigate and correct issues
of non-compliance as soon as possible and within an agreed timeframe. If the Supplier does not
show willingness to correct these issues, Danfoss will consider terminating the business relationship
with the Supplier. Any such termination of any business relationship between Danfoss Group
companies and the Supplier is considered a termination for cause and does not entitle the Supplier
to any kind of compensation.
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If the Supplier uses sub-suppliers for its supplies to Danfoss and/or acts as a distributor or
wholesaler to Danfoss, the Supplier shall use its best endeavours to ensure that its sub-suppliers
comply with the Code.
Danfoss may conduct announced audits at the Supplier’s sites, including the Supplier’s
manufacturing facilities, in order to verify that the Supplier is in compliance with the Code
(“CoC audit”). CoC audits may be performed either by Danfoss employees or by a third-party
auditor chosen by Danfoss.
In order to verify the Supplier’s compliance with the Code, the Supplier shall be prepared to
provide Danfoss access to relevant and reasonably requested information and documentation
during an audit. All auditors carrying out CoC audits are bound to confidentiality by written
agreements. All information and results obtained in connection with the CoC audits will be handled
confidentially by Danfoss and will only be shared with the Supplier. Danfoss will only use such
information for internal purposes.
For general questions or comments on the Code, the Supplier may contact their procurement
contact at Danfoss.
Danfoss respects children’s right to development and education. Therefore, Danfoss does not
accept the use of child labour as part of the Supplier’s work force. This includes employing
children under the age of 15, children younger than the legal minimum age, or children younger
than the age of completing compulsory school.
Juveniles (children between the age of 15 and 18) are only allowed to be employed by the Supplier,
provided that the work complies with local laws and the ILO Minimum Age Convention.
In general, all children under the age of 18:
• must not be employed in hazardous work*
• must not work night shifts
• are entitled to more breaks than adults
* Hazardous work is work which, by its nature or the circumstances, is likely to harm the
health, safety or morals of children.
Danfoss respects cultural differences and does not do business with a Supplier if the Supplier
practices discrimination at work based on race, religion, gender, age, nationality or sexual
orientation. The Supplier’s employees must not be exposed to any physical punishment, threats of
violence or physical, sexual, psychological or verbal harassment or maltreatment in the workplace
or in work-related situations.
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Danfoss does not permit forced or involuntary labour, which includes slavery, human trafficking
or any other forms of involuntary work. Danfoss’ suppliers must not use or benefit from forced
labour at the Supplier. This includes forced prison work, work on a forced contract, slavery and
other forms of work which are done against one’s will or choice. The Supplier or any entity
supplying labour to the Supplier must not charge fees for recruiting personnel or withhold any part
of any personnel’s salary, benefits, property or documents in order to force personnel to continue
working for the company. All personnel shall have the right to leave the workplace premises after
completing the standard workday and be free to terminate their employment with reasonable
notice.
Danfoss does not tolerate employment which confines the employee in debt bondage, for
example, through fee-charging employment agencies.
Danfoss supports the fundamental human right to have sound working conditions. The Supplier
must ensure a good and safe working environment which complies with all applicable rules and
laws. As a minimum:
• Workers must not be exposed to dangerous work without being properly protected.
Workers must be provided with and must use suitable personal protection equipment
and be instructed in its proper use.
• Facilities must comply with applicable laws and rules about construction safety as well
as fire protection – and fire alarms.
• Facilities must provide appropriate lighting and ventilation
• All dangerous materials must be stored in safe places and used in safe and controlled
ways.
• All machinery must be properly maintained and shielded.
• Facilities for meals, resting and sleeping, must, if provided, be kept clean and safe.
Danfoss recognises the need for a sound balance between working time and leisure time for all
employees.
Unless the law provides otherwise, the maximum working time at the Supplier’s sites is 48 hours
per week plus a maximum 12 hours of overtime work. All workers shall be allowed to have at least
one full day off within a period of seven days, unless the national law/rules provide otherwise.
Salaries for work and overtime shall be in accordance with the applicable national law or
applicable national rules. Deductions in salary due to company fines or penalties must never
compromise minimum salary.
The Supplier must not interfere with the worker’s right to form and join unions or to bargain
collectively. This means that the Supplier must recognise his employees’ right to choose whether
or not to associate with or establish any organisation, including labour organisations.
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If trade unions are not allowed in the area of operation, or only state-authorised organisations are
allowed, the Supplier shall facilitate alternative measures to allow employees to access
management to discuss work-related matters.
The Supplier shall respect his employees’ right to privacy. Processing of personal data should
always be in compliance with applicable laws. The Supplier shall at all times observe the basic
personal data processing principles:
• The processing must be reasonable and proportional.
• The processing must be time-limited.
• The processed information must be correct and up to date.
• The processing must have a clear business purpose.
• The processing must be relevant to the business purpose.
Environmental considerations are an integral part of Danfoss business practices. The Supplier shall
commit to reducing the environmental impact of its manufacturing process.
• Pollution Prevention and Resource Reduction
The Supplier shall avoid pollution and actively strive to reduce material consumption.
• Chemicals and Hazardous Materials
The Supplier shall ensure that all chemicals and hazardous materials are handled, stored and
disposed of in an environmentally safe way and as required by law.
• Air Emissions
The Supplier shall ensure that air emissions (e.g. of volatile organic chemicals, aerosols,
corrosives, particulates, ozone-depleting chemicals and combustion by-products generated
from operations) are to be characterized, monitored, controlled, and treated and discharged as
required by law prior to discharge.
• Wastewater and Solid Waste
The Supplier shall ensure that wastewater and solid waste generated from operations,
industrial processes and sanitation facilities are monitored, controlled, and treated, discharged
or disposed of as required by law prior to discharge or disposal.
• Recycling and Reuse of Materials and Products
The Supplier shall contribute to the recycling and reuse of materials and products to the extent
possible.
Danfoss does not accept bribery and corruption. Corruption and bribery are recognised as barriers
to sustainable development and free trade. Danfoss does not accept these practices and therefore
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does not offer or accept any kind of undue payment or trade in influence in any of our business
transactions. The Supplier shall act accordingly.
1. The Supplier must:
1.1 Not pay bribes - this also applies to third parties
1.2 Not make facilitation payments (payment to speed up processes), unless being threatened
or coerced
1.3 Not offer or accept excessive gifts, hospitality or entertainment.
I acknowledge that I have read and understand the Danfoss Code of Conduct for Suppliers and
agree to comply with the requirements of the Code (fill in using block letters or company stamp):
Supplier’s name:
Address:
Factory name:
Supplier
Signature:
Date:
Name:
Block letters
