The Company’s Code of Conduct and ESG Policy, together the “Principles”
The Company’s Principles are customary and similar are commonly used in contracts. Most companies similar to the Company include their own code of conduct and ESG policy, forming an essential part of corporate governance and decision-making guidance, as part of their corporate responsibility strategy. The Code of Conduct and ESG Policy set out the ethical principles and practices expected to be followed by, for example, employees and business partners. The provisions of the Principles are largely derived from the law and relate to matters such as human rights compliance, prohibition of child labor, prevention of misconduct, and avoidance of unnecessary environmental harm.
The Principles reflect to the Producer the Company’s commitment to responsibility. The Principles primarily obligate the Company itself. Their inclusion in agreements, such as the Agreement between the Producer and the Company, signifies that the Company is broadly committed to responsibility, legal compliance, and the principles of sustainable development in its operations and expects the same from its business partners. Consequently, the Principles indirectly enhance also the Producer’s risk management and protect the Producer from, for example, reputational damage and various legal consequences.
The Company considers the realization of consequences related to violation of the Principles to be unlikely. If either Party infringes the Code of Conduct or ESG Policy and this results in damages or claims against the other Party, the breaching Party shall indemnify, defend and hold harmless the other Party for such damages or claims. Additionally, the Company may terminate the Agreement if the Producer breaches the Code of Conduct or the ESG Policy. This is necessary to ensure that the Company can adhere to the Principles in a broad sense. The Company considers it very unlikely that the Producer would face consequences for breaching the Principles, as the Company assumes the Producer is a diligent operator that complies with the law and best practices of the industry and does not cause unnecessary environmental harm.
