China Everbright Environment Group Limited (the “Group"), as one of the leading players in the environment industry, is committed to ensuring smooth, sustainable and responsible operations of its Suppliers and their supply chains, and strives to work together with its suppliers to improve their sustainability performance.

This Supplier Code of Conduct (the “Code”) underpins the aforementioned objectives, and provides a set of business principles and frameworks for ethical and sustainable practices that Suppliers are expected to follow when conducting business with the Group. The Code is applicable to all Suppliers and any third parties that are sub-contracted by the Suppliers.

The Group’s executive management shall be responsible for overseeing the implementation of the Code, regular reviews of the Code and relevant revisions as necessary.

Legal Compliance and Commitment

The Group maintains that it only engages with Suppliers who share its vision of ethical and honest business conduct. Suppliers shall uphold high ethical principles to promote equitable and sustainable development, and are expected to:

• • Comply with local and international laws, regulations and policies;
• • Observe local labour regulations and guarantee reasonable and lawful treatment towards their own suppliers and subcontractors.

Environmental

Acknowledging the importance of a sustainable business model, the Group also holds its Suppliers to high expectations in the implementation of different environmental management principles and minimisation of negative environmental impacts in their operations.

Suppliers are expected to:

• Establish an appropriate environmental policy, which assesses and seeks to minimise any environmental impacts arising from their operations, and shall take into account greenhouse gas emissions, energy consumption, pollution prevention, waste management, resource efficiency, biodiversity, land conservation, and deforestation prevention;
• Comply with local laws and policies on environmental protection;
• Put in place an environmental management system;
• Disclose relevant data on environmental performance in accordance with relevant requirements.

Business Ethics

The Group maintains high standards of business integrity, and expects its Suppliers to act responsibly in their own businesses and communities.

Suppliers must:

Prevention of Bribery and Corruption

• Comply with anti-bribery and anti-corruption laws and regulations;
• Not offer, promise, provide or accept items of value in return for improper benefits from obtaining or retaining businesses.

Prevention of Conflict of Interest

• Avoid, report or resolve any potential conflicts of interest when dealing with the Group.

Prevention of Anti-competitive practices

• Not participate in bid-rigging, or collude with other suppliers during the bidding process;
• Not engage in price fixing, market allocation, or any activities that go against anti-trust regulations.

Anti-fraud

• Be vigilant and proactive in monitoring fraud and fraud risks in their businesses;
• Report to the Group immediately when fraudulent practices are suspected or uncovered, and disclose any interests that might impact its decision-making or advice to the Group.

Anti-money laundering

• Comply with the anti-money laundering laws and regulations;
• Not engage in any money laundering activities, or any other activities which may facilitate, result in or be perceived as money laundering.

Data Protection and Privacy

The Group is committed to protecting the personal information and privacy of its third parties, and maintains the same expectations from its Suppliers. To this end, Suppliers must:

• Comply with applicable data protection laws and regulations;
• Safeguard and make only appropriate use of confidential information ;
• Comply with all contractual requirements regarding data protection and information security ;
• Not disclose any information to third parties without prior written consent, unless mandated by laws and regulations.

Human Rights and Labour Practices

The Group is dedicated to improving the welfare of society through different channels. The Group believes that it is its responsibility to consider the well-being of the general public within their operations. The Group also expects its Suppliers to comply with relevant policies and legislations in operating countries. To this end, Suppliers must:

Labor

• Not engage in any abusive employment practices, including slavery, forced labour, bonded labour, and child labour;
• Not engage in corporal punishment, mental and/or physical coercion, and any other forms of human trafficking;
• Respect the rights of both local and migrant workers;
• Establish labour protection policies that align with relevant international standards;
• Provide reasonable wages that meets legally mandated minimums to employees, without unreasonable or unauthorised deductions;
• Ensure that the number of working hours of workers and employees is reasonable and complies with local regulations and industry practices;
• Prohibit discrimination or abuse in regards to religion, ethnicity, social gender against any groups, workers or employees protected under any local or international human rights laws and standards;
• Provide employees and workers with a peaceful and inclusive working environment that is free from intimidation, discrimination or harassment with respect to age, sex, disability, race, ethnicity, origin, religion, or economic status;
• Embrace and value diversity in their business practices by improving inclusion.

Health and Safety

• Provide a safe and healthy working environment to workers, which abides by local laws and regulations;
• Provide an appropriate health and safety policy, which assesses and seeks to minimise any health and safety impacts arising from their operations;
• Put in place an occupational health and safety management system.

Ethics

• Respect the rights of indigenous people, local communities and any parties within the area they operate;
• Strive to improve the well-being of different stakeholders.

Management System

Suppliers should have a suitable supplier management system in place to promote sustainability of their sub-contractors.

Disclosure and Enforcement

The Group prioritises Suppliers who can demonstrate their commitments to the Code during the selection process. Appointed Suppliers are expected to provide relevant documents as necessary during the contract period to demonstrate compliance with the Code upon request from the Group. The Group may take proportionate actions against Suppliers who fail to comply with the Code, including issuance of warning, temporary suspension, termination of contract and/or permanent disqualification from future biddings.

Last Updated:15 Sep 2023