SUNMIiRK UN GLOBAL COMPACT COMMUNICATION ON PROGRESS. Arcon-Sunmark A/S Skørping Nord 3 DK-9520 Skørping CVR:

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1 SUNMIiRK Arcn-Sunmark A/S Skørping Nrd 3 DK-9520 Skørping CVR: Tel mailarcn-sunmark.cm UN GLOBAL COMPACT COMMUNICATION ON PROGRESS FEBRUARY 2017

2 CONTENTS Statement f Cntinued Supprt Human Rights Principles Labur Rights Principles Envirnmental Prtectin Principles Anti-Crruptin Principles ARCON, SUNMIiRK Side 2 at 8

3 STATEMENT OF CONTINUED SUPPORT 16 February 2017 Arcn-Sunmark develps, manufactures, distributes and instails large scale slar heating slutins fr district heating and industrial prcesses. Arcn-Sunmark has a prven track recrd in the slar heating industry with mre than 40 years f experience. I am pleased t cnfirm that Arcn-Sunmark AIS and its subsidiaries supprt the Ten Principles f the United Natins Glbal Cmpact in the areas f Human Rights, Labur Rights, Envirnment and Anti-Crruptin. Our CSR-plicy as described in the Cde f Cnduct, Anti-Crruptin plicy and Emplyee Handbk, is based n the Ten Principles and has been apprved by the Bard f Directrs. We have identified priritized areas f imprvement, and have initiated the prcess f ptimizing these. We will fllw up n prgress n an annual basis. In this annual Cmmunicatin n Prgress, we describe ur actins t cntinually imprve the integratin f the UN Glbal Cmpact and its principles int ur business strategy, culture and daily peratins. We als cmmit t share this infrmatin with ur custmers, emplyees, suppliers and ther stakehlders. Yurs sincerely CEO, Arcn-Sunmark ARCONiSUNMIiRK Side 3 af 8

4 HUMAN RIGHTS PRINCIPLES Cm m itm e nt Arcn-Sunmark respects cultural differences and des nt d business with any supplier wh practices discriminatin based n race, religin, gender, age, natinality r sexual rientatin. N emplyee shuld ever be expsed t any physical punishment, threats r vilence r physical, sexual, psychlgical r verbal harassment r maltreatment in the wrk place r in wrk related situatins. Arcn-Sunmark supprts the Universal Declaratin f Human Rights. We respect Human Rights within ur sphere f influence and perate ur business in a transparent and trustwrthy way. Arcn-Sunmark has a dedicated Health and Safety Cmmittee in place t regularly assess and evaluate the wrking envirnment. Arcn-Sunmark sees n significant risks that the Cmpany r its suppliers vilates the UN Glbal Principles i and 2. Implementatin Arcn-Sunmark is n an n-ging basis, and in cnnectin with renewals f cntracts, in dialgue with large vlume suppliers in which ur plicy is cmmunicated, in particular the Cde f Cnduct. We mnitr the verall sickness absence in Arcri-Sunmark Ofi a mnthly basis in rder t detect emplyee health issues, and assess whether fllw-up actins are required. Ifl accrdance with the Danish Wrking Envirnment Act, Arcn-Sunmark cnducts APV (Wrkplace assessment Surveys) at least every third year. And cntinually carries ut fllw-up actins. V SUNMIiRK Side 4 af 8

5 We cntinuusly ciiect infrmatin frm ur glbal divisins in rder t ensure cmplete cmpliance t internatinal and internal standards in regards t hurs wrked, wages and leave. Perfrmance Evaluatin Arcn-Sunmark s Cde f Cnduct, which is in line with the VKR Hlding Grup s Cde f Cnduct, has been iritrduced prir t r during 2016 and accepted by ali main suppliers f cmpnents fr the prductin f slar paneis.. The Cde f Cnduct has during 2016 been presented t ali managers and emplyees with exterriai cntact. Ali f these have cnfirmed t have read and understd the Gde f Cnduct. In the past years, Arcn-Sunmark has nt been subject t any investigatins, legal cases r incidents inviving Human Rights vilatins. N incidents r vilatins f the Human Rights principies have been reprted t the Management Team. LABOUR RIGHTS PRINCIPLES Cmmitment Arcn-Sunmark cmmits t prvide a salary package in line with icai standards, a safe and cmfrtabie wrking envirnmerit, penly cmmunicated career paths and weli established perfrmance and develpment evaluatin tls. Arcn-Sunmark respects the right f wrkers and perates ur business with safe and attractive wrking cnditins. We respect the freedm f assciatin and cliective bargaining and have n tlerance f frced labur, child labur and discriminatin. Arcn-Sunmark sees n significant risks that the cmpany r its suppliers vilates the UN Glbal Cmpact principles 3, 4, 5 and 6. IiRCON 7SUNMIiRK Side 5 af 8

6 Implementatin Arcn-Sunmark is n an n-ging basis, and in cnnectin with renewals f cntracts, in dialgue with large vlume suppliers in which ur plicy is cmmunicated, in particular the Cde f Cnduct. it is the plicy that ali Arcn-Sunmark empiyees underg annual perfrmance reviews t set individual plans and targets. We have initiated defiried activities t reduce risks f injuries in the wrk place, and will define activities t maintain a lw level f sick absence. Perfrmance Evaluatin Arcn-Sunmark s Cde f Cnduct, which is in line with the VKR Hiding Grup s Cde f Cnduct, has prir t r during 2016 been intrduced and accepted by ali main suppliers f cmpnents fr the prductin f slar paneis.. The Cde f Cnduct has during 2016 been presented t ali managers with staff respnsibiiity. Ali f these have cnfirmed t have read and understd the Cde f Cnduct. ln the past years, Arcn-Surimark has flt been subject t any irivestigatins, legal cases r incidents invlving Labur Rights vilatins. N incidents r vilatins f the Human Rights principles have been reprted t the Management Team. IiRCONJ SUN MIiRK Side 6 af 8

7 ENVIRONMENTAL PROTECTION PRINCIPLES Cmmitment Arcn-Sunmark supprts a precautinary apprach t envirnmental challenges and undertakes initiatives t prmte greater envirnmental respnsibility. Als, we encurage the develpment and diffusin f envirnmentally friendly technlgies. We actively supprt a sustainable envirnmental prgress thrugh the develpment and distributin f slar heating slutins, which significantly reduces emissins f carbn dixide. Overall, we cnsider ur prductin prcess t have a relatively lw impact n the envirnment. Hwever, we d recgnize that parts f ur prductin and related transprtatin have a negative impact n the envirn ment, and we cnstantly wrk t minimize these effects. Arcn-Sunmark sees n significant risks that the cmpany r its suppliers vilate the UN Glbal Cmpact principles 7, 8 and 9. Implementatin We are cnstantly wrking n prduct develpment t imprve the relatinship between cnsumptin f resurces and perfrmance f ur prducts. The different parts f the prductin prcess are evaluated t identify savings n use f energy, water and ther resurces. The gegraphical lcatin f prductin is ptimized in rder t reduce transprtatin f finished gds. Perfrmance Evaluatin Prduct develpment and prcess ptimizatin have cntinued in rder t imprve effectiveness f the end-prduct (slar energy cllectrs), and t reduce the relative cnsumptin f resurces (cmpared t units prduced). Varius measures, including digital slutins, have been taken t reduce travelling and cnsumptin f eg. paper. In 2016, a prcess t set specific targets fr each type f relevant resurce has been initialized. In the past year, Arcn-Sunmark has flt been subject t any investigatins, legal cases r incidents invlving vilatins f the Envirnmental Prtectin principles. N incidents r vilatins f the Envirnmental Principles have been reprted t the Management Team. I4RCONr Side 7 af 8

8 ANTI-CORRUPTION PRINCIPLES Cmmitment Crruptin and bribery are recgnized as barriers t sustainable develpment and free trade. Arcn-Sunmark supprts the wrk against crruptin in ali its frms, inciuding extrtin and bribery. Arcn-Sunmark acknwiedges that minr business gifts and mderate entertainment, inciuding meals, are accepted ways t build relatinships and generate gdwill between business partners. This practice must hwever aiways be cnducted in a transparent way, and nly t an extent apprpriate t ur integrity guidelines and business ethics, inciuding the Anti-Crruptin plicy. Arcn-Sunmark sees n significant risks that the cmpany r its suppliers vilate the UN Glbal Cmpact principie 10. Implementatin Arcn-Sunmark is n an n-ging basis, and in cnnectin with renewals f cntracts, in dialgue with large viume suppliers in which ur plicy is cmmunicated, in particular the Cde f Cnduct and Anti-Crruptin piicy. Guidelines f handling issues f crruptin, hspitality and dnatins (Anti-Crruptin plicy) are prvided t ali empiyees with external cntact. Perfrmance Evaluatin Arcn-Sunmark s Cde f Cnduct and Anti-Crruptin plicy, which is in line with the VKR Hlding Grup s plicies, has during 2016 been presented t ali emplyees with external cntact. Ali f these have cnfirmed t have read and understd the Cde f Cnduct and Anti-Crruptin. The Cde f Cnduct and Anti-Crruptin plicies have prir t r during 2016 been presented t ali new larger suppliers. in the past year, Arcn-Sunmark has nt been subject t any investigatins, legal cases r incidents invlving vilatins f the Anti--Crruptin principles. N incidents r viiatins f the Envirnmental Principles have been reprted t the Management Team. IiRCON SUNMIiRK Side 8 af 8

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