Supplier Code of Conduct

Watts Supplier Code of Conduct

Introduction

Watts Group Limited (Watts) is committed to the highest standards of integrity and social responsibility, and Watts expects all its Suppliers engaged in providing products and services to Watts to have, or to make, a similar commitment. The Watts Supplier Code of Conduct (Code) describes Watts expectations of how its Suppliers conduct business. Watts expects Suppliers to act in accordance with the Code, and at a minimum requires that all Suppliers comply with applicable laws and regulations within the geographies where they operate and be open and cooperative with the regulators enforcing such laws. Watts expects all suppliers to maintain appropriate Policies and Certifications relevant to its Organisation or will adhere to the Principles of Watts’ Policies where no Policy exists. In instances where expectations outlined in the Code differ from local laws, Suppliers must follow these expectations within the bounds of applicable local laws.

Overview

The Code reflects Watts values and sets forth what is expected of its Suppliers with respect to the following topics:

  1. Ethics and integrity;
  2. Inclusion and diversity;
  3. Employment and working conditions;
  4. Wellbeing and health & safety;
  5. Environment; and
  6. Quality assurance.

Supplier Code of Conduct

1. Ethics and Integrity

Watts is committed to the highest ethical standards and compliance with all applicable laws, rules and regulations. In particular, Watts requires Suppliers to adhere to the following standards:

  • 1.1 Bribery and Corruption: Suppliers must fully comply with requirements of all applicable bribery and anti-corruption laws (e.g. Bribery Act 2010; The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017)
  • 1.2 Non-retaliation for reports of concern: We expect Suppliers to have a policy and process for reporting of workplace concerns. The policy and process should be transparent and understandable and should protect reporting and participating individuals from retaliation.
  • 1.3 Data privacy and security: We require our Suppliers to protect the privacy of individuals and the security of confidential information and assets in compliance with all applicable laws.

2. Inclusion and Diversity

Watts fosters an inclusive culture and believes diversity should be celebrated and discrimination of any form should not be tolerated.

  • 2.1 Non-discrimination and workplace diversity: Suppliers must comply with all applicable laws relating to discrimination in recruitment, employment practices, harassment and retaliation. Watts expects Suppliers to operate workplaces free of discrimination, harassment, victimisation and any other abuse on any grounds including protected characteristics.
  • 2.2 Supplier diversity: We expect Suppliers to appoint their own supply chain with similar values that support Watts goals in relation to inclusion and diversity.

3. Employment and Working Conditions

Watts are committed to ensuring fair, safe and respectful working conditions that comply with all applicable laws. We expect our Suppliers to uphold these standards, promoting dignity, respect and the wellbeing of their workforce.

  • 3.1 Modern Slavery: We do not tolerate slavery, forced labour or human trafficking in any form. Watts requires Suppliers to fully comply with applicable legal requirements and expects Suppliers to enact practices to ensure compliance with such laws.
  • 3.2 Child Labour: We do not tolerate child labour in any form. Suppliers must act in compliance with all laws regulating minimum working age for each position.
  • 3.3 Human Rights: We do not tolerate human rights violations in any form. Watts expects Suppliers to enact practices to maintain a respectful and safe workplace.
  • 3.4 Employment Law: We expect all Suppliers to comply with all employment laws, ensuring fair pay, including adherence to the UK National Minimum Wage and National Living Wage, timely payment of wages, and equitable treatment of all workers without discrimination.

4. Wellbeing, Health and Safety

Watts are committed to providing a supportive environment that promotes physical and mental wellbeing and sound health & safety practices that protect our employees, and others from harm.

  • 4.1 Wellbeing: We expect our Suppliers to promote the physical, mental and emotional wellbeing of their workforce by fostering a supportive environment, offering appropriate resources and addressing workplace issues that may affect employee health and happiness.
  • 4.2 Health & Safety: We require all Suppliers to comply with all appropriate laws ensuring risks are identified, managed and mitigated to protect their workforce and others. You will report any accidents or incidents which occur during your engagement with Watts and you will provide us with a copy of relevant reports as well as details of any changes proposed to working methods, procedures etc. arising as a result of the incident(s) as appropriate.

5. Environment

Watts are committed to protecting the environment and expect our suppliers to conduct their operations in an environmentally responsible manner, minimising harm and promoting sustainable practices in line with applicable laws and industry standards.

  • 5.1 Carbon Footprint: We expect our Suppliers to reduce their carbon footprint by implementing energy-efficient practices, reducing emissions and exploring the use of renewable energy and sustainable materials wherever possible.

6. Quality Assurance

Watts are committed to maintaining high standards of quality in all aspects of our operations and expect our Suppliers to deliver, consistent products and services that meet or exceed agreed specifications, regulatory requirements and customer expectations.

Compliance with the Code

1. Supplier selection

Watts will evaluate Suppliers compliance with the Code during the Suppliers evaluation process and at routine intervals thereafter.

2. Supplier Evaluation

Suppliers are required to complete an evaluation form including compliance with this Code. You may be asked to re-affirm compliance with the Code periodically. Upon request, Suppliers will provide written information on its policies and practices related to compliance with the Code. Watts is committed to working with the Supplier to improve performance on topics addressed by this Code.

3. Violations and termination

Suppliers shall ensure that its subcontractors, if any, comply with the Code, and acknowledge that it is responsible for its subcontractors’ violations. In the event of non- compliance with, or violation of, the Code, Watts may give the Supplier a reasonable opportunity to respond with proposed corrective actions, unless the violation is severe or incurable, or there is a violation of law. Watts may suspend or terminate its relationship with the Supplier and/or disclose the matter to the appropriate authorities if there is a violation of law.

4. Order of Precedence; Changes to the Code

The Code is not meant to, and does not, supersede any applicable law, or any term in an agreement between Watts and the Supplier. To the extent there is any conflict between this Code and any applicable law or provision of any agreement, the applicable law or agreement controls. Watts reserves the right to update or change the Code requirements.