Modern Slavery Act

CONVATEC GROUP PLC

 

STATEMENT 2016 – MODERN SLAVERY ACT 2015

 

INTRODUCTION FROM STEVE HOLLIDAY

DEPUTY CHAIRMAN AND SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR

 

ConvaTec is committed to fair employment practices and to following applicable employment law wherever it has operations. ConvaTec takes its responsibilities seriously and will comply with laws that prohibit child or forced labour, slavery and human trafficking. In 2016, ConvaTec initiated a program to review its existing policies, procedures and approach to supply chain transparency and modern slavery, both within its internal operations and third party suppliers. This cross-functional project has made steps in assessing the labour risk within ConvaTec’s own operations and its supply chain and adopting policies and processes to manage that risk. ConvaTec is committed to updating and enhancing this program on an ongoing basis.

 

 

ORGANISATION’S STRUCTURE  ‌‌

ConvaTec is a global medical products and technologies company focused on therapies for the management of chronic conditions, with leading market positions in advanced wound care, ostomy care, continence and critical care, and infusion devices.

Our products provide a range of clinical and economic benefits including infection prevention, protection of at-risk skin, improved patient outcomes and reduced total cost of care.

We are a global Group, with more than 8,500 employees, doing business in over 100 countries. As at 31 December 2016, we had nine manufacturing plants located in seven countries (UK, USA, Dominican Republic, Mexico, Denmark, Slovakia and Belarus).

Our reported revenue for 2016 was $1,688.3m.

On a geographic basis, our revenue is split: Europe, Middle East & Africa - $726.4m – 43%, Americas - $829.4m – 49%, and Asia Pacific - $132.5m – 8%.

 

 

OUR BUSINESS   

As a Group we have over 50 active companies.

Our business is organised into four franchises: Advanced Wound Care ($559.5m – 33%), Ostomy Care ($512.1m – 30%), Continence & Critical Care (“CCC”) ($356.5m – 21%), and Infusion Devices ($260.2m – 16%).

The Group’s Advanced Wound Care franchise provides advanced wound dressings and skin care products used for the management of acute and chronic wounds resulting from conditions such as diabetes, immobility and venous disease, as well as from traumatic injury, burns, invasive surgery and other causes.

Our Ostomy Care franchise specialises in devices, accessories and services for individuals with a stoma (a surgically-created opening where bodily waste is discharged) commonly resulting from colorectal cancer, inflammatory bowel disease, bladder cancer, obesity and other causes.

The CCC franchise comprises the Group’s Continence Care, Critical Care and Hospital Care businesses and our subsidiary 180 Medical, through which we distribute disposable, intermittent (single-use) urological catheters directly to patients in the U.S.A. The franchise includes products for people with urinary continence issues related to spinal cord injuries, multiple sclerosis, spina bifida and other urological disorders. The franchise also includes disposable devices and products used for a range of procedures in intensive care units and hospital settings.

Our Group’s Unomedical Infusion Devices franchise specialises in providing disposable infusion sets to manufacturers of insulin pumps for diabetes and similar pumps used in continuous infusion treatments for other conditions.

Across our operations as a developer, manufacturer and marketer of innovative medical products, ConvaTec has leading market positions in large markets, driven by an ageing population, increase in the prevalence of chronic conditions and increased life expectancy of patients suffering from these conditions.

 

 

OUR SUPPLY CHAINS  

Our supply chains include companies from all parts of the world, including but not limited to China, Taiwan, UK, USA, Canada, Denmark, Slovakia, Belarus, Italy, Switzerland, Sweden, France, Ireland, Spain, Poland, Turkey, Russia, Germany, The Netherlands, Mexico and Dominican Republic.

The suppliers cover raw materials (eg. chemicals, adhesives, films, PVC compounds etc), part finished products (eg. moulded items), finished products (eg. primary & secondary packaging), services (eg. sterilisation) and R&D.

 

 

OUR POLICIES ON SLAVERY AND HUMAN TRAFFICKING  

 ‌Our corporate mission is to earn trust by delivering quality products and services to our customers. The following principles are at the core of the way we conduct our business:

ConvaTec has introduced a Supplier Code of Conduct (“Supplier Code”)  to address issues of human rights and the prohibition of child labour, compulsory labour and human trafficking. This is being rolled out to our suppliers, and can be accessed on our external facing commercial website.

In many countries ConvaTec conducts its business via third party distributors. We evaluate third party distributors prior to use as we expect and require that our distributors comply with all applicable laws and regulations and our Global Third Party Compliance Manual .

The ConvaTec Code of Ethics and Business Conduct explains the Group's basic expectations for professional and personal behaviours from each employee around the world. The Code has sections on workplace issues including human rights, discrimination and harassment.

The ConvaTec Human Rights and Labour Standards Policy (“Policy”) specifically addresses the United Nations Universal Declaration on Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the Ten Principles of the United Nations Global Compact. The Policy is clear in that it states “ConvaTec does not accept nor condone any form of modern slavery whether forced, compulsory or trafficked labour. Without limitation, ConvaTec does not engage sweatshop labour, convict labour or indentured labour under penal sanction.” Each ConvaTec employee is required to report any actual or potential violation of either the Code of Ethics or the Policy and communication channels are in place within the Group to facilitate and encourage such reporting.

 

 

DUE DILIGENCE PROCESSES FOR SLAVERY AND HUMAN TRAFFICKING  

ConvaTec evaluates prospective suppliers to ConvaTec through a business review focused on the quality of the product manufactured, the standard of documentation in place and other performance indicators. We also carry out various types of audits and performance evaluations, including assessments of compliance with relevant regulations. Initial steps have been taken to generate a global heat map for labour risks, including the risks of human trafficking and slavery. Work on extending the scope of the quality assessment to include verification of human rights and labour standards is underway by use of a supplier self-assessment questionnaire. We do not currently use third-party verifiers in relation to prospective suppliers to ConvaTec, but will keep the possibility of engaging with such parties under consideration as the ConvaTec program evolves (particularly for suppliers considered to be high-risk).

 

 

SUPPLIER ADHERENCE TO OUR VALUES AND ETHICS  ‌

Within ConvaTec we evaluate and monitor our supplier relationships through a strategic partnership made up of our Supply Chain, Supplier Quality, Legal and HR functions. This collective team is also tasked with developing and continuously improving the existing collaborative partnership spanning all of ConvaTec’s activities in this important area.

1.  Audits

ConvaTec uses a risk-based approach in evaluating supplier compliance with company standards of non-tolerance for trafficking and slavery. Under the Supplier Code, ConvaTec may perform various types of audit assessments to verify the current state of supplier compliance as well as routine monitoring of the supplier’s on-going compliance. Where the supplier has failed to comply with the Supplier Code, ConvaTec shall put in place a remediation plan or in cases of severe non-compliance, ConvaTec may refuse to pursue or terminate an existing relationship.

2.  Certification

ConvaTec requires its direct suppliers to comply with the laws of the country in which they operate. To help ensure our suppliers respect and enforce our standards with regard to anti-slavery and human trafficking we have re-drafted the relevant clause in our supplier agreements to read as follows:

 

”Supplier represents, warrants and covenants that (i) it complies with all applicable laws on working hours and employment rights in the countries in which it operates; (ii) the evaluation and treatment of its employees and applicants for employment are free from discrimination and harassment, whether such discrimination or harassment is based on sex, age, race, colour, ancestry, religion, belief, disability, sexual orientation or marital status; (iii) the Products supplied under this Agreement shall be manufactured under conditions in compliance with the principles set out in the International Labour Organization Eight Fundamental Conventions nos. 29, 87, 98, 100, 105, 111, 138 and 182 and in the United Nations Convention of the Rights of the Child Article 32; and (iv) no Products have been made in whole or in part by sweatshop labour, convict labour or indentured labour under penal sanction.“

This clause is not yet standard in all our supplier contracts, but is being phased in as ConvaTec enters into contracts with new suppliers and/or renews contracts with existing suppliers.

3.  Open Communication

ConvaTec is committed to an environment where open, honest communications are the expectation, not the exception. ConvaTec wants its employees to feel comfortable in approaching their supervisor or management in instances where the employee believes violations of policies or standards have occurred, including in relation to trafficking or slavery issues.

In situations where the employee prefers to place a report in confidence, the employee is encouraged to use a helpline, hosted by a third party hotline provider, EthicsPoint. This helpline is available in the majority of those countries where ConvaTec has a direct presence. The employee is encouraged to submit reports relating to violations stated in our ConvaTec Code of Ethics and Business Conduct, as well as asking for guidance related to policies and procedure and providing positive suggestions and stories. This would include issues relating to trafficking and slavery.

On ConvaTec’s external facing commercial website there is also access for our employees and third parties to the ConvaTec Compliance Helpline, where issues relating to trafficking and slavery could be brought to ConvaTec’s attention.

 

 

TRAINING  ‌

ConvaTec provides training on the Code of Ethics for all new and existing employees on an annual basis.

In 2016, in excess of 1,300 employees completed online training on the Human Rights and Labour Standards Policy.

 

SUMMARY OF SPECIFIC STEPS TAKEN IN 2016 AND EARLY 2017  

Completed

 

Underway

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group’s slavery and human trafficking statement for the financial year ending 2016. This statement has been approved by the board of directors of ConvaTec Group Plc, and is signed by the director responsible for ensuring compliance with the Modern Slavery Act 2015.

 

Steve Holliday

………………………..……………………………………………..

Steve Holliday, Deputy Chairman and Senior Independent Non-Executive Director, ConvaTec Group Plc

 

Date: ............07/06/2017………………………………………………….