Supplier Code of Conduct

Supplier Code of Conduct

A Message to Our Valued Suppliers & Partners

Profile Products is the global market leader in delivering greener solutions that preserve soil and water resources. Our purpose is to protect the environment and improve the places where we live, work and play. We supply superior and highly engineered solutions that promote environmental sustainability by managing soil and water, supporting vegetation and enhancing the productivity of our customers.

Profile is accountable for a number of Environmental, Health & Safety (EHS) reporting requirements to regulators, investors and customers. Transparency is one of the ways our company demonstrates how we take care of the environment, treat people fairly, and have the right internal practices to run responsibly and sustainably. These principles have always been in our DNA.

This policy is an important component of Profile’s environmental and social governance procedures for compliance and risk reduction.

Elements of this policy go beyond compliance and are essential to meeting our customers’ expectations across all the markets we serve. It is essential that our Suppliers and business partners adhere to the same high standards for environmental and social well-being that we strive for in our own operations.

To that end, we require Suppliers to agree to abide by this Code of Conduct Policy. Sign-off instructions in addition to enforcement and corrective action procedures are enclosed.

Thank you for partnering with us to ensure business continuity, compliance, and above all, responsible and sustainable growth in our work together. 

Sincerely,

Jeff Knape
Vice President
Corporate Strategy and Procurement
 

Table of Contents

A Code of Conduct provides guidance on appropriate business behavior and how to foster an ethical workplace. Profile Products expects its Suppliers to fulfill their obligations professionally, and in a manner that complies with all applicable laws in all jurisdictions where our Suppliers operate. Where possible, we expect Suppliers to go beyond compliance in order to promote shared environmental and social wellbeing, consistent with our values and mission.

The following sections of the Code of Conduct outline the ethical, responsible, and sustainable standards with which Suppliers are expected to conduct business. 

To provide relevant compliance materials, report any incidences of non-compliance, or ask questions about this Policy, Suppliers should contact procurement@PROFILEPRODUCTS.COM or their existing Profile Products procurement point of contact.

Supplier Requirements

• Anti-Bribery, Anti-Corruption and Sanctions
• Confidential Information
• Labor & Human Rights Compliance and Disclosure
• Child Labor
• Voluntary Employment
• Precarious Employment
• Hours of Work
• Compensation
• Commitment to Diversity and Equal Opportunity
• Health and Safety
• Environmental Compliance and Disclosure
• Suppliers of Wood-Based Products and Materials
• Greenhouse Gas (GHG) Disclosure
• Responsible Peat Sourcing

Management Systems & Due Diligence Requirements

• Whistleblowing & Corrective Action
• Notification Requirements
• Additional Due Diligence

Supplier Requirements

Anti-Bribery, Anti-Corruption and Sanctions

Suppliers must conduct business with integrity and honesty, adhering to high ethical standards and complying with all applicable laws and regulations including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act. Suppliers must have policies and practices in place to prohibit and prevent bribery, extortion, corruption, fraud, and other unethical practices. To that end, suppliers should never offer or promise gifts, favors, or entertainment opportunities that would or potentially influence business decisions. 

Suppliers must maintain accurate financial records, avoid conflicts of interest, and promote transparency and accountability.

Suppliers must adhere to all economic and trade sanctions, including those enforced by the Office of Foreign Assets Control (OFAC) and the U.S. Department of State, as well as anti-terrorism laws. Suppliers must not conduct business with sanctioned individuals, entities, or countries, nor should they engage in any activity that could violate applicable laws or harm the Company's reputation.

Confidential Information

Profile Products entrusts its Suppliers with confidential information that should never be made known to: the public, individuals outside the organization, or its competitors. This information should always be used to advance the goals of the Company and not for personal benefit.

Confidential information includes details not known by the general public, industries relating to the Company, or the Company’s customers, candidates, or referral sources. Information developed by the Company such as methods, programs, business information, financials, and plans that give the Company a competitive advantage must be kept private. In addition, any information that is not available to the public such as pricing strategies, products, structure, organization, current and potential customers, computer records and systems, data, procedures, research, proposals, and trade secrets should be kept secret.

If a court or subpoena asks Suppliers to reveal such information, the Supplier must inform Profile Products, and the Company will seek an appropriate protective order if necessary. Upon termination of business, Suppliers should not disclose confidential information to the public, outside individuals, or the Company’s competitors. All Suppliers are required to return any electronic information or physical materials and copies that contain confidential information on their final day of business. 

Labor & Human Rights Compliance Disclosure

Profile prohibits all forms of forced and bonded labor, human trafficking, and discrimination within its Suppliers' operations and sub-supply chains. To facilitate Profile's due diligence requirements under the following regulations, covered Suppliers must report relevant data to Profile and conduct due diligence within their own company and supply chain: 

• Canada’s “Modern Slavery Act” (Fighting Against Forced Labour and Child Labour in Supply Chains Act, S.C. 2023, c. 9)
• The California Transparency in Supply Chains Act (S.B. 657)
• The European Union (EU) Forced Labor Regulation (EU FLR, 2024/301)
• The EU Corporate Sustainability Due Diligence Directive (EU CSDDD, 2024/1760)
• U.S. CBP UFPLA (19 U.S.C. 1307)

Child Labor

Suppliers must adhere to legal minimum working age requirements and ensure that no one under the legal age is employed, in accordance with local law and international standards. Suppliers must implement age verification procedures and comply with regulations concerning the employment of young workers, ensuring their work does not interfere with their education, health, or overall well-being.

Voluntary Employment

Suppliers must ensure that all employment is voluntary and free from forced labor, including prison labor, bonded labor, slavery, or human trafficking. Suppliers are prohibited from conducting any form of recruitment that involves coercion, deception, or confiscation of identity documents. Suppliers should conduct due diligence to ensure employees are not subjected to any form of exploitation or abuse.

Precarious Employment

Suppliers must not engage in any form of precarious employment, such as using temporary, contract, or migrant labor to evade providing regular employment benefits. Workers should be provided with clear employment contracts outlining their rights, responsibilities, and terms of employment. Suppliers should also provide opportunities for skill development and career advancement to enhance job security and stability.

Hours of Work

Suppliers must comply with applicable laws and industry standards regarding working hours, breaks, and overtime. Suppliers must ensure that employees' working hours are reasonable and do not exceed legal limits. Overtime work should be voluntary and compensated fairly. Suppliers should implement scheduling practices that prioritize employee well-being and work-life balance.

Compensation

Suppliers must provide employees with wages and benefits that meet or exceed legal requirements, including minimum wage standards and overtime compensation. Compensation should be sufficient to meet basic needs and enable a decent standard of living. Suppliers must also comply with all national, state and provincial laws regarding equal pay, providing the same opportunities for wages and advancement regardless of age, gender, sexual orientation, and other “protected classes” under relevant laws in the jurisdiction(s) where Suppliers operate. Suppliers should conduct regular reviews to ensure fair and equitable compensation and must not deduct wages for disciplinary purposes.

Commitment to Diversity and Equal Opportunity

Profile Products is committed to fostering, cultivating, and preserving a culture of diversity, equity, and inclusion. Suppliers must provide equal employment opportunities to all individuals regardless of race, color, gender, religion, age, disability, sexual orientation, nationality, pregnancy, parental status, or any other characteristic protected by law. Suppliers must maintain a work environment free from harassment, abuse, discrimination, or intimidation, including sexual harassment, physical abuse, or verbal abuse. Policies and procedures should be in place or developed to address complaints and grievances promptly and effectively. Discrimination in hiring, promotion, or any other aspect of employment is prohibited.

Profile supports equity by recognizing that there are often systemic inequalities for historically marginalized groups like women; persons with disabilities; and Black, Indigenous, or people of color (“BIPOC”) and works to remove barriers for these groups in the workplace and in our procurement practices. Profile encourages Suppliers to work towards the inclusion of individuals who may be underrepresented because of personal characteristics or backgrounds.

Health and Safety

Suppliers must follow all applicable state and federal laws regarding safety, including but not limited to the Occupational Safety and Health Administration (OSHA), Food & Drug Administration (FDA), and Mine Safety and Health Administration (MSHA) regulations, and parallel regulations in force in the jurisdictions where Suppliers operate.

Suppliers must provide a safe and healthy work environment and implement measures to prevent accidents, injuries, and occupational illnesses. Such measures include conducting risk assessments, providing safety training, and ensuring access to necessary protective equipment and medical care. Suppliers should regularly monitor workplace conditions and address any hazards or safety concerns promptly to minimize risks to employee health and well-being.

Environmental Compliance and Disclosure

Suppliers must comply with applicable environmental laws and regulations in the jurisdictions in which they operate. Suppliers should strive to operate in an environmentally responsible manner, exceeding compliance requirements wherever possible by: 

• Aiming to minimize environmental impact through resource conservation, waste reduction, and pollution control measures.
• Applying the precautionary principle to environmental challenges and striving for continuous improvement across impact areas including climate risk, water resources, energy resources, pollution, land-use, extraction and consumption of non-renewable resources.

Suppliers of Wood-Based Products and Materials

To facilitate Profile's environmental due diligence requirements under the following regulations, covered Suppliers must report relevant data to Profile and conduct due diligence within their own company and supply chain, as necessary: 

• “EUDR,” the Regulation on Deforestation-free Products" (EU) 2023/1115
• “EUTR,” the Timber Regulation (EU) No 995/2010
• “The Lacey Act,” (16 U.S.C. SS 3371-3378)

Profile Suppliers must ensure that raw materials are sourced legally and do not contribute to deforestation using the following definitions: 

1. Traceable: Specific quantities, species, and shipments of wood-based materials sold to Profile are able to be tracked by Profile and its Suppliers to a specific location (forest plot, parcel) the boundaries of which are definable using digital mapping technology e.g. geographic information systems (GIS).
2. Legal: Wood-based materials were produced in line with all relevant environmental and land use laws in the country where they originated. Evidence can include permits, licenses, and certification documents from recognized organizations verifying sustainable forest management practices. The following legal categories should be considered as part of a Supplier’s legality framework: land use rights, environmental protection e.g. erosion mitigation; forest-related rules, including forest management and biodiversity conservation where directly related to wood harvesting; third parties’ rights; labor rights and human rights protected under international law; the principle of free, prior and informed consent (FPIC); tax, anti-corruption, trade and customs regulations.
3. Deforestation-free: Profile Suppliers must ensure relevant materials were produced on land that has not been converted from forest to agricultural use (whether human-induced or not) after 31 December 2020. Further, for products that contain or have been made using wood, it means they were harvested from forests without inducing forest degradation after 31 December 2020. 'Forest degradation' means the conversion of primary forests or naturally regenerating forests into plantation forests or into other wooded land.

Greenhouse Gas (GHG) Disclosure

A growing number of jurisdictions and customers require Profile to track, measure, and reduce GHGs in our operations, products, and supply chain. Suppliers must share data with Profile upon request as needed to fulfill Profile’s GHG compliance and reporting obligations. Relevant Supplier GHG data includes: GHG Protocol “Scope 1” and “Scope 2” emissions and/or corresponding energy, fuel consumption, and business activity data.

Responsible Peat Sourcing

Profile follows responsible peatlands management practices in company-owned peat operations, and we encourage all peat suppliers to follow similar practices to protect and restore ecosystems. 

Key principles of responsible peat sourcing: 

• No sourcing from areas of High Ecological Value (HEV) such as tropical forests and threatened or endangered species habitat
• Taking actions to measure, manage and reduce greenhouse gas (GHG) emissions associated with harvesting
• Sourcing only from countries with environmental and labor protections, including the U.S. and Canada
• Implementing rehabilitation plans which include restoration, rewetting, wildlife, and wetland management
• Obtaining third-party assurance, when possible, including the Responsibly Managed Peatlands certification.

Management Systems & Due Diligence Requirements

Suppliers must establish and maintain effective management systems to ensure compliance with this Code of Conduct, including mechanisms for monitoring, auditing, and continuous improvement.

Whistleblowing & Corrective Action

Profile Products will not retaliate against or allow for retaliation against individuals who report a violation of this Code of Conduct in good faith. The Company will faithfully investigate these reports and will not tolerate retaliation against Suppliers who report violations of these policies or participate in an investigation.

Suppliers are expected to develop appropriate internal whistleblowing mechanisms and complementary policies to encourage transparency and proactive resolution of issues related to this policy. Appropriate measures vary by business situation but should, at a minimum, give workers, sub-Suppliers, and other stakeholders a clear channel through which to report incidences of labor, human rights, and environmental violations which may have a material impact upon the products and services supplied to Profile. 

Suppliers that are found to be out of compliance with this policy may be subject to corrective action up to and including termination of the business relationship with Profile, in addition to any legal remedies to which Profile or other stakeholders may be entitled. 

Notification Requirements

Suppliers must immediately notify Profile Products of the following violations of this Policy: 

• Major labor and human rights violations resulting in fines, penalties, civil actions or other enforcement actions by any relevant jurisdiction whether at Supplier’s facilities or within Supplier’s sub-supply chain.   
• Major environmental, health and safety (EH&S) incidents occurring at Supplier’s facilities or known to occur within Supplier’s sub-supply chain, including but not limited to worker fatalities, violations of air and water quality regulations (permits, laws); hazardous chemical releases to land, air, or water; noncompliance with commodity-specific requirements as outlined below.
• Cyber security incidents which impact Profile or its data, including data breaches and phishing incidents.
• Any other conditions that may prevent Supplier from meeting the requirements of this Policy. 

At Profile’s discretion, Corrective Action Plans (CAPs) may be developed to address non-compliance. CAPs will specify the issue(s), type of nonconformance, remedial action required, and timeframe. 

Suppliers should review and recertify compliance with this Code of Conduct at least annually. 

Suppliers bear their own costs of compliance with this Policy including time, certifications, audits and any other services Supplier chooses to engage. 

Additional Due Diligence

Through an internal risk assessment process, Profile has determined that Suppliers of the following commodities and Suppliers located in the following at-risk countries for labor & human rights and/or environmental compliance, must conduct further due diligence as indicated below. 

At-Risk Sourcing Countries & Supplier Requirements