POLICY Code: POL.31.006
Revisão: 02
Título: MRV Supply Team and Suppliers relationship policy Elaborador: Raphael da Silva Nascimento
Data da revisão: 16/03/2016 Folha: Data para revalidação: 1/5 16/03/2018 Issuing area: Supply team
Aprovador: Darnon Álvares de Medeiros
1. OBJECTIVE Establish guidelines onto the existing relation between MRV Supply team and Suppliers, as well as present sustainability criteria integrated to the acquisition process. 2. FIELD OF APPLICATION It is applied to every collaborator belonging to the Supply Team Board (Supply team or Department), to any person or organization interested in the contracting process of material, services or equipment, the processes conducted by this Department, and current Suppliers of which the Supply team directly participated of the contracting process. 3. ACRONYMS AND ABBREVIATIONS
SSMA: Health Safety and Environment Department NR’s: Employment Ministry Regulatory Rules ISO: International Organization for Standardization OHSAS: Occupational Health and Safety Assessment Services OIT: International Labor Organization GHG: Greenhouse Gases FSC: Forest Stewardship Council CERFLOR: Brazilian Program for Forest Certification
4. ABOUT MRV MRV Engineering and Participation S.A. (“MRV” or “The Company”) is the biggestconstruction company and real estate developer of the country on the segment of economichousing. Founded in 1979, acquired great experience in managing residential construction,being capable of anticipating trends and to present the best cost x benefit in the market.The Company has stocks negotiated in BM&FBOVESPA, on the segment New Market,under the code MRVE3. The Company strongly believes in its values:
Ethics and Transparency; Thinking as the Customer; Generating Value for the Shareholders; Committed Team; Sharing the Success; Sustainability.
More information about MRV: Institutional: http://www.mrv.com.br/institucional/institucional Investors: http://ri.mrv.com.br/?l=2 Certification e Acknowledgement: http://www.mrv.com.br/institucional/certificacao
POLICY Code: POL.31.006
Revisão: 02
Título: MRV Supply Team and Suppliers relationship policy Elaborador: Raphael da Silva Nascimento
Data da revisão: 16/03/2016 Folha: Data para revalidação: 2/5 16/03/2018 Issuing area: Supply team
Aprovador: Darnon Álvares de Medeiros
MRV Institute: http://www.institutomrv.com.br/ Sustainabilty: http://www.mrv.com.br/sustentabilidade/
5. OUR EXPECTATIONS We expect our Suppliers to commit with the ethic and sustainable practices of business, to watch out for the human rights, Labor Norms and the fight against corruption. Besides, we expect the fulfillment of this policy and conjunct effort to face future challenges. 6. RELATIONSHIP MRV SUPPLY TEAM AND SUPPLIER MRV Supply Team craves for a transparent and healthy partnership with our Suppliers. It establishes ethic and professional relations without any kind of additional benefit. It is expected from our Suppliers to share the same ethic principles and to constantly seek continuous improvement during our partnership. More than material, services and equipment providers, we glimpse a partnership for sustainable development. Our suppliers’ choice is based on several criteria: technical, commercial, strategical, qualityrelated, OHSAS, environmental and sustainability, always observing the needs and interests of MRV. Those who are our current suppliers, or desires to be, should be aware of the criteria to be followed, as well as the fact that might be evaluated during its supply cycle, and that should be able to provide the necessary information when requested. 6.1 GENERAL CRITERIA FOR SUPPLIERS MRV Suppliers should be willing to comply with the following pre-requisites:
Manufacture products or provide services according to the law, ABNT norms, sectorial norms and PSQs (Sectorial Quality Programs) assuring its conformity and quality; Provide good assistance (Safety, Objectivity, Transparency, Promptitude and Punctuality); Charge competitive prices; Commitment to Sustainability; Provide necessary documents to its registry as an official supplier, when requested; Present valid documents of sustainability and certification, when requested; Provide services, goods and materials according to the current laws, City, State or Federal Agencies ordinances, regulatory standards of the Ministry of Labor and Employment (NRs) and Technical Norms Provide adequate condition in its facilities such as: hygiene, cleanness and safety; Proven compliance to requirements issued by the city, Environmental Agencies, among other requirements when requested Act with ethics and transparency before and during the supply cycle with MRV.
POLICY Code: POL.31.006
Revisão: 02
Título: MRV Supply Team and Suppliers relationship policy Elaborador: Raphael da Silva Nascimento
Data da revisão: 16/03/2016 Folha: Data para revalidação: 3/5 16/03/2018 Issuing area: Supply team
Aprovador: Darnon Álvares de Medeiros
6.2 SUSTAINABILITY CRITERIA MRV believes that suppliers can be more competitive and efficient if they develop sustainable practices in their productive and business processes. Besides that, we see as a positive differential the compliance to international certification (ISO and OHSAS) related to management practices. The implementation and practice of sustainable actions by suppliers will be part of the qualification and evaluation criteria, weighting on the decision of new contracts and maintenance of previous ones. Based on the pillars of sustainability, MRV expects its suppliers to comply with the established criteria for each aspect.
6.2.1 Economic Aspect (Prosperity) 6.2.1.1
Ethics and Anti-corruption practices MRV Supply Team intends to assure that its contracting processes are clear of any practice, thus, imposing to every collaborator and suppliers independently of hierarchy, a Ethic Conduct Policy, through the Conduct Code, including anti-corruption guidelines and an anonymous channel for complaints and queries. It will not be tolerated any kind of discrimination or privilege to a determined supplier. Every supplier will be treated with impartiality and the level of access to information will be the same for everyone during the phases of the contracting process.
POLICY Code: POL.31.006
Revisão: 02
Título: MRV Supply Team and Suppliers relationship policy Elaborador: Raphael da Silva Nascimento
Data da revisão: 16/03/2016 Folha: Data para revalidação: 4/5 16/03/2018 Issuing area: Supply team
Aprovador: Darnon Álvares de Medeiros
MRV does not admit any of its collaborators to obtain personal advantages due to its influence or position in the Company and does not tolerate counterparts offered by suppliers in exchange for benefits. As it is for MRV collaborators, suppliers must inform MRV about any situation that may resemble interest conflicts, such as professional, personal or financial advantages, Confidential report channels: • Canalconfidencialmrv@ictsglobal.com • www.Canalconfidencial.com.br/mrv • 0800 888 2833 –Mon-Fri / 9 a.m. - 5 p.m. (Analyst)or 24/7 (Electronic) 6.2.1.2
Cost reduction, Productivity and Competitiveness MRV Supply Team understands that sustainable practices contribute to minimize production costs, since the adoption of new techniques and technologies, reducing and reusing materials and inputs, favor to optimize processes. Thus, products derived from these processes acquire a competitive differential in the market and adds more value for the customer. Each item in this document aims to assist and encourage our suppliers to implemente sustainable practices, in order to optimize their processes, ensuring competitive products and services, while contributing to society and the planet.
6.2.2 Social Aspect (People) It is expected from all suppliers to adopt ethic and responsible labor practices, according to the current laws in the Country and ILO (International Labor Organization). Suppliers must assure that: Child workforce will not be used; Labor conditions will be safe and hygienic; Decent Salaries will be paid; There will be no discrimination of any aspect; Work will be provided through formal jobs; Overtime will not be excessive; Inhuman and degrading work will not be allowed; It will not be tolerated sexual or moral harassment; Jobs will be taken voluntarily; Freedom of association and collective negotiations will be respected; Labor rights of all employees will be assured; Direct and outsourced employees will have access to education and development activities; There will be no difference of treatment to direct and outsourced employees;
POLICY Code: POL.31.006
Revisão: 02
Título: MRV Supply Team and Suppliers relationship policy Elaborador: Raphael da Silva Nascimento
Data da revisão: 16/03/2016 Folha: Data para revalidação: 5/5 16/03/2018 Issuing area: Supply team
Aprovador: Darnon Álvares de Medeiros
There will be open dialogue between the organization and its collaborators (direct or outsourced), for queries, complaints and suggestions.
Suppliers must assure ready access and provide information about its facilities/working conditions, in a wide and transparent manner, whenever it is requested by MRV. 6.2.3 Environmental Aspect (Planet) It is expected from our suppliers to be committed to monitoring its processes, so that the impacts are as small as possible to the environment. MRV sees as important practices, monitoring GHG (Greenhouse Gases) emission, Hydric Resources, Energy and wood consumption, as well as any other environmental impact question related to the manufacturing or production. MRV may require information about these items for verification purposes; it is up to the supplier to readily provide them in a wide and transparent manner. a. Greenhouse Gases (GHG) Suppliers must control its emissions and act to minimize the impact caused by carbon dioxide and other GHG, besides that, monitor its emissions through inventory. b. Hydric Resources Suppliers must adopt practices that promote rational use of hydric resources, maximizing the efficiency of water use within its production processes and administrative sectors. c. Energy Consumption Suppliers must maximize efficiency of its power sources, minimizing environmental impact and optimizing energy-related costs. d. Wood Every material made of wood must come from legal and responsible sources. 7. REVIEWS Review 00 01 02
Date 23/06/2015 16/03/2016 22/03/2016
Description Document creation Document update Document update