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Danish Defence Acquisition and Logistics

Organization

Appendix B

Corporate Social Responsibility (CSR) requirements

[Vejledningstekst til FMI – Slettes inden udsendelse til tilbudsgiverne:

NB: Husk at udfylde boden på s. 11]

Agreement no. 460000XXXX

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FOU, Alm.del - 2015-16 - Endeligt svar på spørgsmål 93: Spm. om i forlængelse af svar på spm. 86 bedes ministeren oplyse, hvilke internationale forpligtelser, der konkret sigtes til, samt henvise til hvilke CSR forpligtelser, der præcist gør sig gældende, til forsvarsministeren

Danish Defence Acquisition and Logistics

Organization

TABLE OF CONTENTS

ILO CONVENTION NO. 94

....................................................................................... 3

AGREEMENT CSR REQUIREMENTS

.......................................................................... 4

2.1

General requirements

............................................................................................................... 4

Human rights

...................................................................................................................................... 4

Labour standards

................................................................................................................................ 4

The environment

................................................................................................................................ 5

Anti-corruption

.................................................................................................................................... 5

2.2

2.3

2.4

2.5

2.6

Human rights

............................................................................................................................ 5

Labour standards

...................................................................................................................... 5

The environment

...................................................................................................................... 6

Anti-corruption

......................................................................................................................... 7

The Supplier's obligations.........................................................................................................

DOCUMENTATION

................................................................................................... 8

3.1

3.2

General documentation

............................................................................................................ 8

Procedure in case of suspicion based on concrete observations of non-compliance of

requirements regarding human rights, labour standards, or environmental protection

.................... 9

DEFECTS

............................................................................................................... 10

BREACH

................................................................................................................. 11

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ILO CONVENTION NO. 94

The Supplier shall ensure that workers employed by the Supplier and any subcontractors who contribute

to the performance of the Agreement are secured pay, including special allowances, hours of work and

other working conditions which are not less favourable than those established for work of the same

character under a collective agreement entered into by the most representative organizations of workers

and employers in Denmark in the trade or industry concerned being in force throughout the territory of

Denmark. The Supplier and any subcontractors shall ensure that the workers are informed of the

provisions of the labour clause.

“Contribute to the performance of the Agreement”, see the labour clause above, shall mean work

performed in Denmark for the performance of the Agreement.

The Supplier shall ensure that workers employed by the Supplier and any subcontractors who contribute

to the performance of the Agreement outside of Denmark are secured pay, including special allowances,

hours of work and other working conditions in accordance with

applicable

national regulations and

legislation (including international obligations) for work performed in that country.

DALO is entitled at any time to request relevant documentation of compliance with the conditions of pay

and work for the workers as stipulated in the labour clause. DALO may thus require that the Supplier,

after written notice to that effect, within 10 Working Days provides relevant documentation, such as pay-

slips, time sheets, payroll accounts and employment contracts in respect of both its own workers and

those of its subcontractors, if any, and the basis for calculating the payments made for both the

Supplier’s workers and for workers that are employed by a subcontractor.

The Supplier shall in all cases redact any strictly personal information such as information concerning

racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, or

data concerning health or sex life from the supplied information in order to comply with the Act on

Processing of Personal Data (“Persondataloven”). If the Supplier does not provide the requested

documentation within 10 Working Days DALO is entitled to withhold amounts from its payments to the

Supplier until the Supplier has provided the required documentation.

For its assessment of whether the Supplier or subcontractors have complied with the labour clause, DALO

may seek advice from relevant employer organizations and/or labour organizations.

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If the Supplier fails to comply with its obligations pursuant to the labour clause, and if such non-

compliance results in a justified claim for further pay from the workers, DALO is entitled to withhold

amounts covering such additional payments from its payments to the Supplier in order to ensure that the

mentioned labour conditions are met.

A penalty may furthermore be imposed on the Supplier corresponding to 2 (twice) the amount payable

in additional wages to the workers.

Reference is made to the provisions of the Agreement regarding termination.

Clause 1 of this Appendix does not apply to Agreements concerning the purchase of Deliverables that are

part of the Supplier’s ordinary production or stocks (off-the-shelf goods), unless the product is

manufactured in a custommade production for the Buyer.

2.1

AGREEMENT CSR REQUIREMENTS

General requirements

DALO wishes that the Agreement be performed while observing the principles of the UN Global Compact

initiative.

The principles of the UN Global Compact are as follows:

Human rights

Businesses should

support and respect the protection of internationally proclaimed human rights; and ensure that they are

not complicit in human rights abuses.

Labour standards

Businesses should

uphold the freedom of association and the effective recognition of the right to collective bargaining;

support the elimination of all forms of forced and compulsory labour;

support the effective abolition of child labour; and the elimination of discrimination in respect of

employment and occupation.

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The environment

Businesses should

support a precautionary approach to environmental challenges;

undertake initiatives to promote greater environmental responsibility; and

encourage the development and diffusion of environmentally friendly technologies.

Anti-corruption

Businesses should

work against corruption in all its forms, including extortion and bribery.

In the performance of the Agreement, the Supplier shall assume social responsibility as set out in the

conventions on which the above principles are based. The Supplier assumes social responsibility by

committing to observe the requirements set out below in the performance of the Agreement.

2.2

Human rights

In the performance of the Agreement, the Supplier undertakes to comply at all times with applicable law

aiming to prohibit discrimination on the basis of race, color, religion or faith, political beliefs, sexual

orientation, age, handicap, or national, social or ethnic origin, or aiming to ensure ethnic equal treatment.

In the performance of the Agreement, the Supplier thus commits to comply with the basic human rights

as set out in principles 1 and 2 of the UN Global Compact.

2.3

Labour standards

In the performance of the Agreement, the Supplier shall ensure that basic labour standards are complied

with, including:

1. that the products/services supplied, in whole or in part, are not produced in contravention of the

general ban on forced and compulsory labour as set out, inter alia, in ILO Convention nos. 29 and

105,

2. that the products/services supplied, in whole or in part, are not produced in contravention of the

general ban on the use of child labour as set out, inter alia, in ILO Convention nos. 138 and 182,

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3. that the products/services are produced, in whole or in part, in conditions where the general principle

regarding the freedom of association and the effective recognition of the right to collective bargaining

as set out, inter alia, in ILO Convention nos. 87, 98, and 135 are upheld.

4. that the products/services supplied are produced, in whole or in part, in conditions where the general

principle on the right to fair pay as set out, inter alia, in ILO Convention nos. 26 and 131 and Article

23 (3) of the UN Universal Declaration of Human Rights is upheld.

5. that the products/services supplied are produced, in whole or in part, in conditions where the general

principle on the right to fair hours of work as set out, inter alia, in ILO Convention nos. 1 and 30 and

Article 24 of the UN Universal Declaration of Human Rights is observed.

6. that the products/services supplied are produced, in whole or in part, in conditions where the general

principle on the right to occupational safety and health as set out, inter alia, in ILO Convention no.

155 is observed.

In the performance of the Agreement, the Supplier shall thus comply with basic labour rights, including

the ban on child labour and forced or compulsory labour as set out in principles 3, 4, 5 and 6 of the UN

Global Compact.

2.4

The environment

In the performance of the Agreement, the Supplier shall promote the protection of natural resources and

the environment in order to promote a sustainable development of the conditions of human beings and

the preservation of animal and plant life.

In the production and supply of the Deliverables under the Agreement, the Supplier shall particularly to

the best of its ability strive to



prevent and fight pollution of air, water, soil and subsoil and any vibration and noise nuisance,



use hygienic processes for the protection of the environment and human beings,



reduce use and waste of raw materials and other resources,



promote the use of cleaner technology and



promote recycling and reduce problems of disposal of waste.

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In this respect, emphasis is placed on what is obtainable when using the best technology available,

including less polluting raw materials, processes and facilities and the best possible anti-pollution

measures.

In the performance of the Agreement, the Supplier shall thus contribute to the preservation of natural

resources and the environment as set out in principles 7, 8 and 9 of the UN Global Compact.

In this Agreement, the principles are implemented by the Supplier's compliance with specific

requirements with respect to the quality of the products/services and minimum requirements of

environmental protection and energy efficiency.

2.5

Anti-corruption

A final judgment for corruption during the term of Agreement, including active bribery as defined in

Article 3 of the Council Act of 26 May 1997 and Article 3(1) of Council Joint Action 98/742/RIA,

respectively, shall be considered material breach, cf. the provisions of the Agreement regarding

termination and section 5 in this Appendix.

In addition, any other incident of abuse of entrusted power for private gain shall be deemed to constitute

corruption, such as:



Passive corruption



Embezzlement



Fraud



Criminal breach of trust



Misconduct

DALO may choose not to terminate the Agreement if, in DALO's opinion, a termination is disproportionate

to the actions of the Supplier. In this respect, DALO will consider the measures taken by the Supplier to

avoid repetition and the extent to which the Supplier's procedures have been adequate at the time of the

breach.

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2.6

The Supplier's obligations

As set out above, the Supplier's obligations under the Agreement only extend to compliance with the

mentioned requirements "in the performance of the Agreement". The Supplier's obligations thus only

concern what is delivered under the Agreement.

When assessing whether the Supplier in its performance of the Agreement is liable for any non-

compliance of the requirements mentioned, the Supplier's own production processes and methods shall

be taken into account as well as whether the Supplier's conduct otherwise in the performance of the

Agreement may have had an impact, including the Supplier's choice of Subcontractors or choice of

components for the products/services.

3.1

DOCUMENTATION

General documentation

Except as set out specifically in the Agreement, DALO will not in general request documentation that the

Supplier in the performance of the Agreement complies with the above requirements regarding

production processes and methods.

It is a condition, however, that the Supplier no later than 30 Days from DALO's written request complies

with the following documentation requirements:

1. Statement from the Supplier's management and other documentation

In this statement, the Supplier shall make representation ensuring, on a continuous basis, the compliance

of the above requirements regarding human rights, cf. section 2.2, labour standards, cf. section 2.3, the

environment in the performance of the Agreement, cf. section 2.4 and anti-corruption, cf. Section 2.5.

2. Reporting of practical measures

In this document, the Supplier shall describe the practical measures taken to ensure the compliance of

the requirements mentioned. The document may include a description of obligations undertaken, systems

implemented and other measures initiated.

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3. Reporting of results

In this document, the Supplier shall describe the method according to which the initiatives taken are

measured. In this respect, standards such as Global Reporting Initiative's (GRI) Sustainability Reporting

Guidelines may be used.

The documentation requirements shall be deemed to be complied with when the Supplier has drafted a

so-called "Communication on progress" (COP) published on UN Global Compact's webpage. DALO also

accepts other types of documentation as long as they fulfil the documentation requirements stipulated.

As a general rule, DALO will not request the documentation mentioned above unless prompted by special

circumstances, such as a suspicion based on concrete observations.

If DALO has doubts as to whether the Supplier complies with the requirements set out above regarding

human rights, cf. section 2.2, labour standards, cf. section 2.3 and the environment, cf. section 2.4.

DALO will as a rule initiate a close dialogue with the Supplier in order to clarify matters of dispute.

The procedure set forth in this clause shall not affect the labour clause or the documentation that can be

required according to the labour clause, cf. section 1.

3.2

Procedure in case of suspicion based on concrete observations of non-compliance of

requirements regarding human rights, labour standards, or environmental protection

In case of suspicion based on concrete observations regarding non-compliance of the requirements

concerning human rights, cf. section 2.2, labour standards, cf. section 2.3, environmental protection, cf.

section 2.4 and/or anti-corruption, cf. Section 2.5

in the manufacture of any Deliverables, or part

thereof, the Supplier shall promptly, at DALO's request, submit a written statement and documentation of

the production processes and/or methods according to which the Deliverables included in the

performance of the Agreement have been manufactured and/or otherwise delivered and submit any

necessary documentation of the materials used in the Deliverables.

The Supplier shall inform whether its own actions in connection with the performance of the Agreement

have an impact on the compliance of the above requirements regarding human rights, labour standards

and environmental protection and/or anticorruption including its choice of Subcontractors or components.

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The statement and the supporting documentation shall include any certificates and/or other relevant

required documentation to substantiate the production processes and/or methods used as well as the

materials used in the Deliverables.

On the basis of the written statement and documentation, etc., and taking all relevant circumstances into

consideration, DALO will make a concrete assessment of the individual incident.

DEFECTS

A Defect shall be deemed to exist if any Deliverables supplied, in whole or in part, including components

of the Deliverables, have been manufactured according to manufacturing processes or is otherwise

delivered under methods where the requirements set out in this Appendix regarding human rights, labour

standards, environmental protection, and/or anti-corruption have not been observed.

In case of suspicion, based on concrete and strong indications of failure to observe any requirements

regarding human rights, cf. section 2.2, labour standards, cf. section 2.3, environmental protection, cf.

section 2.4 and/or anti-corruption, cf. Section 2.5 during the performance of the Agreement, in whole or

in part, the procedure set out in this Appendix shall be followed. This procedure includes, at DALO's

request, a prompt written statement and documentation, etc., from the Supplier, whereupon DALO will

make a concrete assessment of the individual incident.

Suspicion based on concrete and strong indications may be deemed to exist, inter alia, if proceedings are

brought against the Supplier for violation of human rights, cf. section 2.2., labour standards, cf. section

2.3, environmental requirements, cf. section 2.4, and/or anti-corruption, cf. Section 2.5 connected to the

performance of the Agreement in whichever country the proceedings may be brought. If the Supplier

becomes aware of having violated the aforementioned requirements, or if proceedings are brought

against the Supplier for such violations, the Supplier must immediately, on its own initiative, inform

DALO.

Failure to deliver the documentation required in clause 3.1 of this Appendix within 30 Days, failure to

deliver the statement and the documentation required promptly in clause 3.2 (in case of suspicion)

and/or failure to inform DALO on its own initiative in case of a violation or proceedings brought against

the Supplier, shall furthermore be construed as a failure to comply.

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When assessing whether the Supplier is liable for any performance of the Agreement in contravention of

this Appendix, the Supplier's own production processes and methods shall be taken into account as well

as whether the Supplier's conduct otherwise in the performance of the Agreement may have had an

impact, including the Supplier's choice of Subcontractors or choice of components for the Deliverables

supplied.

In the event of a Defect due to violation of human rights, cf. section 2.2., labour standards, cf. section

2.3, the environmental requirements, cf. section 2.4 and/or anti-corruption, cf. Section 2.5 set out in this

Appendix, DALO shall be entitled to demand:



That the Supplier promptly remedies the Defect upon DALO's request to this effect,



That the Supplier, henceforth, in the performance of the Agreement, comply with the requirements

set out in this Appendix regarding human rights, cf. section 2.2 labour standards, cf. section 2.3 ,

environmental protection, cf. section 2.4, and anti-corruption, cf. Section 2.5 and



That the Supplier compensates in full any damage caused, including payment of adequate

compensation. The assessment of whether any damage caused in the performance of the

Agreement has been compensated in full shall not be affected by the provisions of any national

rules on tort, governing the incident in question, only providing for partial indemnification.



⦋That

the Supplier pays DALO a liquidated damage of [beløb svarende til 2 % af rammeaftalens

skønnede volumen]

BREACH

Reference is made to the provisions of the Agreement regarding termination.

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