1. Policy Statement

TMS strives to be a responsible employer by providing modern, climate-friendly, and environmentally sustainable processes. We are committed to helping our customers build a sustainable future and ensuring mutual profitability in business relationships. TMS neither sells to nor buys from countries involved in war. We respect human rights, health, safety, and environmental protection across all areas of our operations, including procurement, distribution, and final handling of products. This Code of Conduct ("the Code") reflects our commitment to ethical and responsible business practices, considering our stakeholders' expectations. The Code also includes respect for and compliance with workers’ rights, as described in the ILO Declaration on Fundamental Principles and Rights at Work.

2. Purpose and Scope

This Code applies to all TMS facilities and units, as well as all suppliers, contractors, service providers, and their subcontractors ("Suppliers") who provide goods or services to TMS. Compliance with this Code is a condition for doing business with TMS, and suppliers must ensure that their own suppliers and subcontractors adhere to these requirements.

Compliance with Laws and Business Ethics

• Suppliers must comply with all applicable local, national, and international laws and regulations, including labor laws, environmental laws, anti-corruption laws, and trade regulations.
• TMS has a zero-tolerance policy for bribery and corruption. Suppliers must not engage in bribery, extortion, fraud, or other unethical business practices.
• Suppliers must adhere to fair competition laws and must not participate in price-fixing, bid rigging, or other anti-competitive activities.
• Suppliers must protect confidential information and intellectual property belonging to TMS and its customers.
• Suppliers must not directly or indirectly contribute to human rights violations in conflict-affected or high-risk areas, including sourcing of materials for products, parts, or components delivered to TMS.
• Suppliers must comply with international trade regulations, including export controls, sanctions, and customs requirements.

4. Human Rights and Labor Standards

TMS is committed to upholding human rights and requires the same from suppliers. Suppliers must

• Prohibit forced labor, human trafficking, and child labor in all operations. Child labor is strictly forbidden for children under the age of 15 or below the local legal minimum working age. If a child is found working at a facility producing TMS products or components, immediate corrective action must be taken to protect the child’s welfare.
• Ensure fair wages and working hours, comply with legal wage requirements, and maintain a healthy work-life balance. Employees must not be required to work more than 48 hours per week (excluding overtime) or more than 60 hours in total, except under extraordinary circumstances. Employees must have at least one day off per week.
• Provide a workplace free from discrimination, harassment, and abuse. Employees must have equal opportunities regardless of race, gender, religion, nationality, or other protected characteristics.
• Implement disciplinary measures in a fair and humane manner, ensuring that progressive disciplinary procedures are followed.
• Respect employees’ rights to freedom of association and collective bargaining, in accordance with the law. No employee may be subject to threats or harassment for exercising these rights.
• Ensure a safe and healthy working environment in compliance with occupational health and safety laws and best practices, such as ISO 45001. Appropriate safety measures must be taken to prevent accidents, injuries, and work-related illnesses.

5. Environmental Responsibility

TMS is committed to environmental sustainability and expects suppliers to:

• Comply with all environmental laws and regulations, including those related to emissions, waste management, hazardous substances, and resource use.
• Implement or work toward an environmental management system (EMS) aligned with ISO 14001 to manage environmental risks and improve performance.
• Reduce waste, energy consumption, and greenhouse gas emissions through sustainable practices.
• Maintain an up-to-date list of environmental aspects and take action to minimize negative impact.
• Avoid using materials that contribute to deforestation, loss of biodiversity, or environmental harm.

6. Quality and Product Compliance

To ensure the highest possible quality and safety standards, suppliers must:

• Implement a quality management system (QMS) in accordance with ISO 9001, AS9100, or AS9120 where applicable.
• Ensure all products and services meet TMS specifications, regulatory requirements, and industry standards.
• Maintain full traceability of materials, components, and processes.
• Proactively prevent counterfeit parts and substandard materials from entering the supply chain.
• Immediately notify TMS of non-conforming products or quality issues.

7. Management Systems and Compliance Verification

• Expected to act with honesty, integrity, and accountability in all business interactions.
• Avoid conflicts of interest, including personal relationships or financial interests that may influence business decisions.
• Respect TMS property and resources and use them only for intended business purposes.
• Protect confidential information and do not use such information for personal gain or to harm TMS or its customers.

8. Reporting Non-Compliance

Questions regarding non-compliance with this code can be raised by any employees, suppliers, or business partners. Reports can be made orally or in writing and should include relevant information and, if possible, supporting evidence. Reports will be handled confidentially, and retaliation against individuals who report in good faith will not be tolerated. Suppliers are expected to cooperate in investigations of any alleged misconduct.

9. Acknowledgement and Acceptance

Acceptance of this Code of Conduct is a condition for doing business with TMS Electronics AB. Acceptance is considered confirmed upon approval of a purchase order or agreement from TMS, unless otherwise agreed. By accepting this Code of Conduct, the Supplier confirms that they have read, understood, and agree to comply with its requirements.