California Supply Chains Act
The California Transparency in Supply Chains Act requires Hussmann to disclose its efforts to ensure the goods Hussmann sells are not produced by workers who are enslaved, coerced or otherwise forced into service or who have been the victims of human trafficking. Hussmann is committed to complying with all applicable laws and to conducting its business ethically, with the expectation that Hussmann’s suppliers have the same level of commitment.
These Efforts Include
Verifications. Hussmann through its supply chain agreement specifically requires suppliers to comply with all applicable laws and requires suppliers to represent that “neither it nor any of its subcontractors will utilize child, slave, prisoner or any other form of forced or involuntary labor, or engage in abusive employment or corrupt business practices, in the supply of goods or provision of services.” Moreover, Hussmann’s Global Supplier Quality Manual has a similar prohibition.
Audits. Hussmann through its supply agreement reserves the right to audit its suppliers to ensure compliance with all laws and the Supply Agreement, including those regarding slavery and trafficking. Periodically, on-site assessments and audits are scheduled and performed by Hussmann employees (instead of third parties) using a standard on-site assessment template addressing compliance matters.
Certifications. By executing Hussmann’s Supply Agreement, the supplier certifies that it complies with all laws and does not utilize child, slave, prisoner or any other form of forced or involuntary labor, or engage in abusive employment. Annual surveys are being developed for suppliers to certify they do not use forced, bonded, indentured, or slave labor and will be selectively sent out. In addition, Hussmann reserves the right to mandate that a supplier certify compliance with all laws before continuing a relationship with such supplier.
Internal Accountability. Hussmann Supply Managers are responsible to conduct periodic audits of their supply base to ensure compliance with laws, Hussmann’s Global Supplier Quality Manual, and the Supply Agreement. Employees failing to follow any law, policy, or Hussmann’s Code of Conduct are subject to disciplinary action up to and including discharge. Furthermore, Hussmann commits it will cease and refuse to do business with any supplier who uses forced, bonded, indentured or slave labor.
Training. All supply chain employees are trained in the provisions of the Code of Conduct, the Supply Agreement and the Global Supplier Quality Manual. The Company commits to developing a training program for supply chain management on human trafficking and slavery with respect to mitigating risks within the supply chain of products. In addition, violations or concerns can be anonymously reported by calling Hussmann’s Ethics Hotlines, in the US, Mexico, Australia, China or New Zealand .