Transparancy Act

Transparency Act

Mustad Autoline AS is committed to conducting its business with integrity, in line with human rights, and with the aim of contributing to sustainable development.

The Transparency Act came into effect on July 1, 2022. The purpose of the law is to promote companies' respect for fundamental human rights and decent working conditions, and to ensure public access to information on how companies address these issues. Mustad Autoline is subject to the law, cf. the Transparency Act §§ 2 and 3. In accordance with Transparency Act § 5, Mustad Autoline therefore publishes this statement of its due diligence assessments.

The statement is based on the latest financial year, which is the period from January 1 to December 31, 2023. However, since the law only came into force on July 1, 2022, this first statement will relate to work after this date. Although the statement is based on the latest financial year, it shall also be updated in case of significant changes in the company's risk assessments. Mustad therefore considers it sensible to also provide some information on further work with due diligence assessments in 2024, given the short time since the law's implementation.

Section 2 describes Mustad's organization in more detail, as well as policies and procedures for handling human rights and decent working conditions. Section 3 outlines the implementation of the due diligence assessment and findings. Section 4 informs about completed and planned measures related to the due diligence assessment.

1. DESCRIPTION OF THE BUSINESS AND FOLLOW-UP OF THE TRANSPARENCY ACT

2.1 General description of the business

Mustad Autoline is a seventh-generation family business with a history dating back to 1832. Mustad Autoline develops and manufactures automated deck equipment for longline fishing, known worldwide for its solid quality. The key factors in achieving this are quality control and highly skilled employees. The main components of an Autoline System include a baiting machine for baiting hooks and setting lines, a hauling unit for bringing the line on board the vessel, a hook splitter, and storage magazines for storing the fishing gear. Mustad Autoline products are mainly developed and manufactured in-house in Gjøvik. Mustad Autoline is a Norwegian-registered company with independent sales offices in the USA, Canada, and Iceland.

2.2 Anchoring work with human rights and decent working conditions

Our work with the Transparency Act and due diligence assessments is internally anchored, including in the board's decision to work in accordance with the Transparency Act.

Mustad Autoline already works on responsible procurement as part of our strategy. All our business partners must sign our ethical guidelines, Mustad Autoline's Code of Conduct, and regular risk assessments and audits of our customers and suppliers are carried out. Mustad Autoline mainly works with European suppliers in addition to Korea, the USA, and two suppliers in China.

Regarding the supply chain, Mustad Autoline has implemented guidelines for conducting due diligence assessments. These describe how Mustad should map its supply chain to identify and assess actual and potential adverse impacts related to human rights and decent working conditions. The guidelines describe how any findings should be followed up to prevent and mitigate such impacts. Ethical guidelines for suppliers have also been developed, which the company is working to implement in the supply chain. Through these guidelines, the supplier is obligated to adhere to fundamental human rights and decent working conditions and to impose similar obligations on any subcontractors. The supplier is required to report on potential and actual adverse impacts, and if any potential or actual adverse impacts are identified, Mustad Autoline has the option to demand that the supplier take action to rectify the situation. Mustad Autoline seeks a partnership approach with suppliers by proactively seeking continuous improvement from the supplier's side, but Mustad Autoline has the right to terminate the contract without further explanation beyond a breach of the ethical guidelines.

Internally at Mustad Autoline, there are procedures related to HSE (Health, Safety, and Environment) and other employment conditions for employees.

The responsibility for following up on the Transparency Act is assigned to our Supply Chain Manager. For more information on our work with the Transparency Act, please contact us at mail@mustadautoline.com.

1. CONDUCTED DUE DILIGENCE ASSESSMENT

Mustad has conducted due diligence assessments in accordance with the Transparency Act § 4. Below is an account of the method for conducted due diligence assessments and the findings in the due diligence assessment.

3.1. Method for conducting due diligence assessments

During 2022, Mustad developed internal procedures and methods for conducting due diligence assessments in line with OECD guidelines.

In conducting its due diligence assessments, Mustad Autoline has relied on existing internal quality assurance systems for suppliers. Further measures, including obtaining additional information from suppliers through our own self-assessment forms with questions about HSE, working conditions, and compliance with the Transparency Act, are continuously followed up.

After the dispatch, we conduct an overall survey of suppliers in line with internal due diligence assessment guidelines. The analysis assesses suppliers based on the size of purchases, the country and industry the supplier belongs to, and whether the supplier is subject to the Transparency Act.

3.2. Findings in the due diligence assessment

Mustad's review has not uncovered actual adverse impacts or risks related to its own operations. The company complies with applicable labor laws in Norway.

Mustad Autoline has not identified actual adverse impacts on human rights and decent working conditions in the supply chain in the due diligence assessments conducted so far. Mustad has identified some suppliers with higher risks than others.

Mustad Autoline will further assess the suppliers with higher risk based on the initial analysis. The need for more information and any necessary actions will be assessed specifically for each supplier.

1. COMPLETED AND PLANNED MEASURES FOR FOLLOW-UP OF DUE DILIGENCE ASSESSMENT

Mustad Autoline has developed its own procedures for assessing further actions if actual or potential adverse impacts on human rights and decent working conditions are identified in the supply chain. Given the findings in the due diligence assessment, no specific measures against specific suppliers have been implemented as of today.

We will monitor that the companies covered by the Transparency Act publish their statements and may request further information. In countries and industries deemed more risky, we will gather further information about the company and their operations. A questionnaire has been developed to be used in the further mapping of the supply chain, contributing to increased knowledge of our own supply chain and identifying more concrete risks.

Mustad Autoline has also developed its own Supplier Code of Conduct to be implemented in the supply chain. These clarify the company's expectations of suppliers and facilitate the gathering of information in connection with due diligence assessments.

Mustad will continuously evaluate further measures in 2024 and 2025.

Board approved date: 29/06/23