suppliers

The majority of the sales generated by Addtech companies comes from the resale of products and solutions of global and market‐leading suppliers. Addtech has a large number of suppliers worldwide and more than 70% of the Group's purchases are from suppliers outside the Nordics in Europe, the US and Asia. Relationships with our suppliers are often longstanding and feature close collaboration on how the supplier's products can be used in a variety of customer applications. Many suppliers have worked with Addtech subsidiaries for decades. However, there is always a certain amount of supplier turnover, and Addtech is constantly on the hunt for new partners and agency companies that can complement or boost our existing business. Our close relationship with suppliers is highly positive in terms of both the operations and CSR. We continually work with deepening these relationships and ensuring that our suppliers meet a good requirement level in relation to their employees and the environment.

As parts of a technology trading group with operations in a large number of countries, business ethics risks pose a potential threat to the Group's companies. Addtech's goal in terms of linking the issue of responsibility to our suppliers is clear. In 2010/2011, the Group's Code of Conduct was updated and now expressly describes the Group's expectations as to how suppliers should act in relation to both the environment and their employees. The Code is available at www.addtech.com/csr.

The good reputation of Addtech and our subsidiaries is one of our strongest competitive assets. Any infringements of Addtech policy on human rights and occupational conditions would therefore have a considerable detrimental impact on stakeholder confidence. No incidents of infringements of human rights were reported either in 2013/2014 or earlier years.

Supplier survey

Addtech works continuously on deepening supplier relationships and ensuring that they meet a good level of requirements in relation to their employees and the environment. As part of these efforts, at the end of 2011/2012 Addtech conducted its first supplier survey comprising 18 of the Group's largest suppliers, which together accounted for over 15 percent of the Group's purchasing volume. These suppliers worked with eight of our Group companies and represented a relevant cross-section of all of the Group's suppliers. In 2013/2014, Addtech further enhanced the tool used for supplier surveys with the aim of conducting a large-scale survey in 2014/2015.

The objective of supplier surveys is to ensure that Addtech works with responsible suppliers. Last year Addtech established a CSR Council consisting of representatives from Addtech's four business areas. The CSR Council undertakes sustainability-related work within the Group and prepares proposals for guidelines and policies to govern sustainability work throughout the Group. The council is also tasked with ensuring that more companies within the Group start conducting regular supplier surveys. Addtech's ambition is to raise expectations on suppliers and emphasise the importance of suppliers assuming social and environmental responsibility so that the entire value chain works towards the same objective.