China Everbright Water Limited (“Everbright Water”, together with its subsidiaries, the “Group”), as one of the leading players in the industry, is committed to operating its business with high standards of ethics, integrity, and fairness. Everbright Water has the responsibility of ensuring its suppliers and their supply chain operate smoothly and responsibly, promoting sustainability throughout the entire supply chain and working together with its suppliers to improve their sustainability performance.

This Code of Conduct for Suppliers (the “Code”) regulates the behaviours of suppliers in the economic, environmental and social aspects in a systematic way, in order to encourage suppliers to fulfil and jointly improve the sustainability performance of the supply chain. The Code also encourages the Group’s suppliers to treat their own suppliers with the same standards, so as to enhance the sustainability of the entire supply chain.

Everbright Water will regularly review the Code and make revisions when necessary. Everbright Water will prioritize suppliers who can demonstrate their commitments to the Code when being invited to do business with the Group.

The Code is applicable to all suppliers and any third parties that are subcontracted by suppliers. All suppliers are expected to follow the Code when doing business or any activities related to Everbright Water.

Legal Compliance and Commitment

Business shall be done from an ethical standpoint while relationships between stakeholders should also be based on and dealt with honest manner. Suppliers shall uphold high ethical principles which promote fair and sustainable development, including:

• Compliance with local and international laws, regulations and policies;
• Observance towards local labour regulation with the reasonable and lawful treatment of their own suppliers and subcontractors.

Environmental

Acknowledging the importance of a sustainable business model, Everbright Water also has high expectations towards its suppliers in the implementation of different environmental management principles, reducing the negative impacts to the environment in which they operate. Suppliers are expected to:

• Issue appropriate environmental policy, which assesses and seeks to minimize any environmental or health impacts brought along from the supplier's operation;
• Comply with applicable laws and policies on environmental protection;
• Taking different environmental principles into consideration throughout their supply chains;
• Report relevant data on environmental performance upon request.

Business Ethics

Everbright Water maintains high standards of integrity and expects its suppliers to act responsibly in their own business and communities in the following aspects:

Prevention of Bribery and Corruption

• Comply with the anti-bribery and anti-corruption laws and regulations;
• Must not offer, promise, provide or accept items of value, which could secure an improper advantage in order to obtain or retain business.

Prevention of Conflict of Interest

• Avoid, explicitly notify or resolve any conflict of interest in dealing with the Group.

Anti-fraud

• Be vigilant and proactively in monitoring fraud and the risk of fraud in their business;
• Notify the Group immediately where the fraudulent practice is suspected or uncovered and disclose any interests that might impact its decision-making or advice to Everbright Water.

Anti-money laundering

• Comply with the anti-money laundering laws and regulations;
• Do not engage in any money laundering activities or any other activities which may facilitate, result in or be perceived to be money laundering.

Data Protection and Privacy

Everbright Water is committed to protecting the personal information and privacy of third parties. The Group has the same expectations from its suppliers, including:

• Compliance with applicable data protection laws and regulations;
• Safeguarding and making only appropriate use of confidential information;
• Compliance with all contractual requirements regarding data protection and information security and, unless mandatorily required by laws and regulations, shall not disclose any information that is not known to the concerned third parties without prior written consent.

Human Rights and Labour Practices

Everbright Water is dedicated to improving the welfare of society through different channels. The Group believes that it is its responsibility to consider the well-being of the general public during its operation. Everbright Water also expects its suppliers to comply with relevant policies and legislations in operating countries in the following aspects:

Labour

• Avoid any abusive employment practices, including slavery, forced and bonded labour, and child labour. Punishment, mental and/or physical coercion as well as any other form of human trafficking are strictly prohibited. The rights of workers, both local and migrant, should also have their rights be respected;
• Adopt and refer to related labour policies, which adhere to different international labour standards;
• Provision of a reasonable wage that meets legally mandated minimums without unreasonable or unauthorised deductions;
• Ensuring the number of working hours of workers and employees are reasonable and in accordance with local regulation and industry practices;
• Prohibition of discrimination or abuse against any groups, workers or employees in terms of their religion, ethnicity, social gender or any protected classes that are covered in the local or international human rights law and standards;
• Providing the employees and workers with a peaceful and inclusive working environment free from intimidation, discrimination or harassment with respect to age, sex, disability, race, ethnicity, origin, religion or economic or other status;
• Embrace and value diversity in their business practices by improving inclusion.

Health and Safety

• Provision of a safe and healthy working environment for workers and health and safety management system, which abides by local laws and regulations.

Ethics

• Respect the rights of the indigenous people, local communities and any parties within the area they operate, striving to improve the well-being of different stakeholders.

Management System

Suppliers should have a suitable supplier management system in place to promote the sustainability of their sub-contractors.

Disclosure

Everbright Water requires its suppliers to provide relevant documents as necessary to demonstrate how the requirements in the Code are to be met.