Code of Conduct

1. Our basic understanding of responsible corporate governance

We, Himalaya Textilhandels GmbH, believe in social commitment, environmental protection, and fair cooperation. Our goal is to sustainably reconcile economic, ecological, and social responsibility. Together, we want to work towards continuously improving our company, creating a responsible awareness of the social, ecological, and economic design of our supply chain, and advocating for our obligations of responsible corporate governance.

This obligation begins with our commitment to our corporate due diligence with regard to human rights, the environment, and integrity. We impose these requirements on ourselves, on all individuals involved in Himalaya Textilhandels GmbH, on our business partners, and on all companies involved in our supply chain. With this Code of Conduct, we provide guidance to all our employees and want to communicate our awareness of corporate due diligence externally.

As a family business, ethical business practices are particularly important to us. Therefore, we pay particular attention to ensuring that all our business partners commit to their corporate due diligence, thus helping us sustainably improve the textile industry. We want to contribute to the well-being, advancement, and sustainable development of our society by considering the impacts of our business activities on society and the environment.

This Code of Conduct is based on the conventions of the International Labour Organization (ILO), the United Nations (UN) Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child and on the Elimination of All Forms of Discrimination, the UN Guiding Principles on Business and Human Rights, and the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Industry. It applies to all persons involved in Himalaya Textilhandels GmbH and our business partners along the supply chain.

2. To comply with laws and standards

With the International Human Rights Bill, the UN has established a foundation to safeguard the fundamental rights of every human being. The ILO also establishes the so-called core labor standards. These requirements apply as minimum requirements not only to us, but also to our suppliers, as they are also committed to implementing these standards. National laws and standards must also be observed. The stricter regulation applies in each case. Our suppliers undertake to inform their employees about these rules. The requirements apply equally to permanent employees, temporary and agency workers, as well as to pieceworkers, young workers (legally employed minors), part-time, night, and migrant workers.

3. Our social standards

Our social standards comply with internationally recognized standards, in particular the ILO's core labor standards and the UN Universal Declaration of Human Rights. These labor standards are explained below.

3.1. Free choice of workplace

There is no forced, slave, or other involuntary labor. No worker may be forced into employment, directly or indirectly, through violence and/or intimidation. No security in the form of money, personal documents, or anything else may be retained from workers. Every worker has the right to resign from their employment, subject to contractual provisions. Workers shall only be employed if they have volunteered for employment (ILO Conventions 29 and 105).

3.2. No discrimination

Discrimination (based on sexuality, origin, ethnicity, gender, gender identity, religion, age, disability, social background, or family responsibilities, among others) must not occur at any time (e.g., in hiring, treatment, pay, training, promotion, etc.). Membership in a workers' organization or political opinion must not result in discrimination or other disadvantages (ILO Conventions 100 and 111).

3.3. No child labor

Child labor and any form of exploitation of children and young people are not tolerated. The minimum age for entry into employment must not be lower than the age at which compulsory education ends, and in no case lower than 15 years (ILO Convention 138). In particular, young people must not be exposed to dangerous, unsafe, or harmful situations. There must be no form of slavery, such as the sale and trafficking of children, debt bondage, servitude, or forced labor (ILO Convention 182).

3.4. Right to establish workers’ organizations

The right of all workers to form and join trade unions and to bargain collectively is recognized (ILO Conventions 87 and 98). In cases where freedom of association and the right to collective bargaining are restricted by law, parallel channels for independent and free association and bargaining are encouraged. Workers must not be discriminated against and must have access to all workplaces when exercising their representative functions (ILO Convention 135 and Recommendation 143).

3.5 Payment of living wages

Wages and salaries must be maintained at a level that ensures survival. At a minimum, this means the applicable legal minimum wage or industry standard (whichever is higher), plus bonuses or premiums that ensure the worker can afford to support themselves and their family in dignity. Wage or salary deductions as a disciplinary measure are strictly prohibited. Every worker must be clearly informed of their remuneration in writing upon starting work (ILO Conventions 26 and 131).

3.6. Compliance with working hours

Working hours must comply with applicable law, industry standards, or relevant ILO conventions, whichever is more stringent. The maximum permissible weekly working hours according to national law apply, but may not exceed 48 hours, and including overtime, they may not exceed 60 hours per week. Employees are entitled to at least one day off after six consecutive working days. Overtime performed must be paid separately in accordance with national standards. Overtime must be performed on a voluntary basis (ILO Conventions 1 and 14).

3.7. Safe and hygienic working conditions

All employees must be treated with dignity and respect. Sanctions and other punishments may only be imposed in accordance with applicable national and international standards of internationally recognized human rights. Physical abuse, threats of physical abuse, unusual punishments or disciplinary measures, sexual and other forms of harassment, and intimidation by the employer are strictly prohibited.

Business partners must ensure a safe and healthy working environment and promote optimal occupational health and safety, based on the current, industry-specific knowledge of any specific hazards. Rules for the greatest possible accident prevention and minimization of health risks must be implemented (ILO Convention 155). Business partners must take the necessary measures to avoid accidents and health damage that may arise in connection with their work. They also ensure that employees are regularly informed and trained about applicable health and safety standards and safety measures. Workplace accidents must be documented, and the employer must provide employees with the necessary medical treatment following a work-related accident. Escape routes must be accessible and usable at all times, without exception, free of obstructions.

Clean toilets and sufficient access to drinking water must be provided. If sleeping quarters are provided, they must be clean and safe and meet basic needs.

3.8. Regular employment relationships secured by regular contracts

All employment relationships must be legally binding, and all labor and social security obligations toward employees must be complied with. Business partners guarantee written documentation of their employees' working conditions. This documentation must include, at a minimum, all relevant personal data (name, date and place of birth, and, if possible, the employee's home address). Circumvention of applicable labor and social security standards is prohibited.

4. Integrity and fair competition

4.1. Anti-corruption and bribery

Himalaya Textilhandels GmbH does not tolerate any form of bribery or corruption. All Himalaya employees, our business partners, and their employees must conduct themselves in a manner that avoids personal dependency, obligation, or influence. These can include, but are not limited to, gifts, hospitality, entertainment, expenses, financing customer travel, political contributions, charitable donations and sponsorships, kickbacks, bribe requests and extortion, acceptance of goods, personal investments, employment, and related activities.

4.2. Gifts and donations

Gifts and gratuities are only accepted subject to strict guidelines. This includes gratuities in the form of hospitality, entertainment, expenses, financing of client travel, and political sponsorships. While gifts are customary and courteous within a nation, it is important to ensure that they do not create binding dependencies and that applicable national legal standards are observed. In any case, the acceptance or giving of gifts is only permitted under the strict condition of appropriateness and must be disclosed immediately. The acceptance or giving of gifts and gratuities in connection with public officials is generally prohibited.

4.3 Donations and sponsorship

Donations are voluntary, without any consideration, and are always transparent, ensuring this through documentation of the donation purpose, recipient, and donation confirmation. Donations may only be made to organizations whose goals are consistent with our corporate principles. All donations must be approved by management.

Unlike donations, sponsorship involves providing something in return, for example, through communication or marketing activities. All sponsorship activities must be documented in written contracts. A reasonable relationship must be maintained between sponsorship services and activity. Sponsorship may under no circumstances be used to circumvent regulations governing the allocation of donations.

4.4. Consumer interests

Himalaya Textilhandels GmbH and its employees act in the interest of our customers (B2B) and consumers (B2C). We have taken appropriate measures to guarantee the safety and quality of the products and services we offer. We ensure that our products comply with the relevant legal and consumer protection regulations. We consider consumer interests in our information and sales activities by applying fair business, marketing, and advertising practices and promoting consumer education.

4.5. Company interests

Himalaya Textilhandels GmbH expects its employees to always conduct their business activities, including their dealings with business partners, in line with the company's interests and values.

4.6. Conflicts of interest

A conflict of interest always exists when private interests influence work-related decisions. A professional business relationship forms the basis for making decisions impartially and in the best interests of the company. If a conflict of interest is suspected, the supervisor must be informed to ensure a well-founded decision. Such agreements must be documented.

4.7. Personal data, protection of confidential information and intellectual property

We respect the personal rights of our employees, business partners, and customers and adhere to applicable legal and regulatory requirements regarding the processing of personal data and information security when handling personal information.

We take due care to ensure that trade secrets and other confidential information entrusted to us by our business partners and customers are adequately protected against unauthorized acquisition, use and disclosure, at least in accordance with the relevant statutory provisions on the protection of trade secrets.

We respect the intellectual property of our business partners, customers and other third parties and ensure that adequate precautions are taken to protect intellectual property rights when transferring know-how and technologies.

5. Responsible procurement and purchasing practices

To ensure our supply chains are sustainable and continue to improve, we adhere to responsible procurement practices to prevent and/or mitigate risks of human rights violations and environmental damage, or to remediate them in the event of actual impacts. This is important for us to be able to improve our own processes and production conditions in our production countries in collaboration with our direct business partners. We place particular emphasis on ensuring that all employees in our supply chain are paid fairly for their work. Unfortunately, national minimum wage standards often do not meet the wages necessary for a decent living. We want all employees to receive a living wage for their work.

We expect our business partners to commit to their corporate due diligence and to install processes to implement these with their business partners and to meet the minimum requirements set out in this Code of Conduct.

We also want to protect all those involved in our supply chain, especially vulnerable groups such as women, children, young people, people with disabilities, migrants and members of minorities.

6. Respect and trust

Trust in our employees is an integral part of our corporate culture. We support families through flexible working hours and home office options. Together, we strive to work together, communicate openly, honestly, and objectively, provide feedback, learn from mistakes, and develop ourselves further. We have firmly anchored these values ​​in our actions.

At Himalaya, we promote a culture of appreciation and respect, as well as equal opportunities for everyone, regardless of origin, age, gender, individual abilities, sexual identity, or orientation. We view the diversity of our employees as an opportunity for creativity, motivation, success, and satisfaction. We all want to work together to promote discrimination-free cooperation, because only then can respect and a natural approach to diversity develop. Through such a working environment, we are able to truly utilize the full potential of our diversity.

When working with our business partners, we also ensure that we respect and accept the diverse legal, societal, cultural, and social backgrounds of the countries into which our value chain extends, and recognize their structures, customs, and traditions. In the event of conflicts with the principles set out here, we engage in dialogue with our business partners to find an optimal solution for all parties involved.

7. Responsible use of nature

Our earth is our home, and therefore environmental protection is very important to us. Our focus is on protecting and preserving natural resources and developing environmentally and socially responsible production. Compliance with applicable environmental norms, procedures, and standards for waste management and wastewater treatment, as well as continuous improvement in the prevention and reduction of environmental pollution, are therefore a matter of course for us. When selecting raw materials, we prioritize sustainable options and the use of natural textiles from certified organic farming.

To promote environmentally friendly production, our suppliers commit to complying with the Restricted Substances List (RSL), which protects our customers from residues of harmful chemicals in the final product.

We believe that efficient operations also require appropriate handling of returns or leftover goods. Returns are properly inspected and reintegrated into our processes, and leftover goods are appropriately recycled or reused.

8. Animal welfare

With regard to the keeping of animals in captivity, we are committed to the internationally recognized Five Freedoms of the Farm Animal Welfare Committee (FAWC) and the World Organization for Animal Health (OIE), which form the basis for animal welfare. Our business partners strictly ensure that they implement compliance with the Five Freedoms throughout their supply chain. Controversial practices such as mulesing are incompatible with these principles and are therefore strictly prohibited. To ensure implementation, we rely on common certifications for organic animal husbandry or standards such as the Responsible Wool Standard (RWS).

The five freedoms include:

Freedom from hunger and thirst through unrestricted access to fresh water and a diet to maintain full health.

Freedom from posture-related discomfort by providing a suitable environment including a rest area.

Freedom from pain, injury and disease through prevention, prompt diagnosis and appropriate treatment.

Freedom from fear and stress through housing conditions that prevent psychological suffering.

Freedom to express normal behavior patterns through the provision of sufficient space, appropriate facilities and the company of conspecifics.

9. Continuous improvement

We know we're not perfect yet, but we're committed to continually setting new goals and thus pursuing a continuous improvement process. To monitor compliance with our standards throughout our supply chain, we use recognized standards such as the Global Organic Textile Standards (GOTS). Our suppliers can also use audit reports from such certifications to demonstrate their performance.

10. Communication

Communication is an important component of corporate due diligence. Firstly, with this Code of Conduct, we communicate our principles to our employees and also enable our customers to familiarize themselves with our requirements. Furthermore, it is essential that our requirements are communicated to our business partners. We do this through our Supplier Code of Conduct, which suppliers sign upon contract conclusion. They also undertake to make our requirements freely accessible and clearly visible to all their employees, at least in the respective national language. Adequate explanations must be guaranteed even in cases of illiteracy.

Secondly, it is important that employees in our supply chain are given the opportunity to file complaints in the event of violations of our requirements. To ensure this, we work with our suppliers to establish robust grievance mechanisms on-site at their production facilities. We view active internal complaint management as an essential component of good social compliance, giving all stakeholders in our supply chain the opportunity to make their voices heard.

We also explicitly refer to external complaint bodies that can also be used by local communities. For example, the OECD's National Contact Points offer an opportunity to uncover grievances, even anonymously.

These mechanisms are necessary to provide redress in the event of a complaint and, where appropriate, initiate remedial measures. Furthermore, we encourage any business partner who feels pressured to violate the law or the requirements set forth herein to immediately contact the designated Himalaya contact person. This way, we can identify the root cause within our processes and prevent future violations. We are committed to hearing and fully addressing all complaints raised.

11. Responsibility

Our management is responsible for implementing our corporate due diligence and requirements. We are committed to regularly reviewing compliance with our principles and revising them as needed. If we discover a violation of one or more of our guidelines, we will work with the producer to take immediate action to correct the violation, and these measures will be verifiably implemented within a strict timeframe. If a producer or supplier repeatedly violates one or more of our principles, our collaboration may be terminated without further notice.

Braak, 15.04.2024 Himalaya Management

Sonja Frieborg

Recognition of the Code of Conduct

The supplier confirms that it accepts the content of the Code of Conduct and that it will comply with its contents.

The supplier confirms that it is not aware of any violations of the Code of Conduct.

The supplier confirms that it will report any violation, explain the cause, and present prevention strategies.

The company hereby confirms that it accepts the above points