In KMD, we are a signatory to the UN Global Compact, we are subject to the UN Declaration of Human Rights and we commit to the OECD Guidelines for Multinational Enterprises, which set out requirements for us and our supply chain. We have highly capable suppliers in our industry, and many recognize that sustainable products and services will enable them to stay relevant and competitive in the future.
Before onboarding a new supplier, we perform risk based due diligence and we continue to monitor our suppliers throughout the course of the cooperation. Our Supplier Code of Conduct contains the requirements that we expect our suppliers to operate in accordance with. The code represents an important element of our procurement agreements.
The KMD Group believes that dialogue is paramount to achieving the standards set out in the Code. If the supplier acts in noncompliance with one or more of the principles of this Code, the KMD Group will cooperate with the supplier to draw up a remedial plan. Only when we assess that a supplier is not capable nor showing any intention of remedying the issue, or when repeated violations of the Code are made by the supplier, will we consider it a material breach, and the result may be a termination of the cooperation.