Statement of continued support for the Global Compact

2011-02-09

To our stakeholders:
I am pleased to confirm that Bureau Veritas Lit, UAB reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.
In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to declare membership of the Global Compact in our internet page and share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Gitana Bogužienė
Country Manager

Core values of Bureau Veritas group support human rights by proclaiming Respect for all individuals. The third statement of core values - respect for all individuals - states the following principles:
• We show others the consideration they deserve.
• We always consider how our actions will affect others.
• Our individual contribution is recognized and valued, and we receive accurate and constant feedback on our performance.
• We respect differences, care about others and do not discriminate against others on the basis of nationality, ethnic origin, age, sex or religious or political belief.
Possibly the biggest impact on protecting human rights our company makes when providing trainings and certification of Health and Safety management systems according to requirements of OHSAS 18001. OHSAS 18001 is an international standard which gives requirements related to Health and Safety Management Systems. It enables an organization to have control over, and knowledge of, all relevant hazards resulting from normal operations and abnormal situations, and improve its performance.

The Core values and Code of Ethics are applied to every employee with no exception for managers. All and every employee in Bureau Veritas should commit to Core values when is employed and is being evaluated by direct manager every year during annual performance review. Director is being evaluated by Nordic Baltic region manager. In year 2009, the e-learning training module was launched online and all employees had to repeat thesis and pass a test of The Code of Ethics. All employees of the company passed it successfully signing their commitment again. The next examination will be held after 2 years. From then every new employee has to pass e-training and the test within one month after joining the company.
Every employee can contact directly the Senior Ethics Officer in case of breach of these principles or any questionable issue appears.
In year 2009 Bureau Veritas granted 61 certificates of OHSAS 18001 thus helping companies to declare their commitment to health and safety issues according to internationally accepted health and safety management standard.
Management of Bureau Veritas understands the importance of healthy and safe working conditions, good internal psychological climate within the company. This is achieved in several ways every year: organizing collective trainings (International Baltic Summer School), events (New Year celebration, sailing), providing health insurance.
Bureau Veritas insures all employees with Health insurance, providing with an opportunity to get private health care services and cover other related expenses.
New Year celebration Eve is yearly tradition of the company. Management of the company aims that as many as possible employees participate in it, get known with each other better and strengthen team relations, what creates better internal climate and satisfaction. In order to better fit expectations of employees, the research was performed about upcoming New Year celebration Eve in autumn. The wishes related to the date, time and content were found out and event organized accordingly.
Yearly sailing was organized in June. All employees could participate in 2 days event. All expenses (travel, food, equipment) were covered by the company.
Management creates possibilities of favorable working conditions for employees with small children: flexible working schedule, remote work from home.

Bureau Veritas did not register any offences to the principles of Human Rights in year 2009.
In year 2009 every employee had Performance review with his/her direct manager (including Director, who is being reviewed by North Baltic District manager) during which the behavior was evaluated in respect of 4 Group values, including Respect to all individuals, which corresponds to principles of Human rights. All employees got positive evaluation.
20 employees out of 29 (3 women in maternity leave are not counted), participated in 25 training courses in overall. 62% of the training budget was spent. Thus for the year 2010 it was decided to stimulate trainings by calculating expenditures for trainings in the 3rd calendar quarter and reminding employees about the budget balance.
20 employees out of 29 participated in New Year celebration Eve.
In year 2009 due to economical crisis in Baltic States, Baltic Summer School was not organized.
In year 2009 Health insurance sum insured amounted to 8250 Lt for every employee, what is 33% of average yearly gross salary in Lithuania. In the end of year all employees were questioned about their satisfaction with Health insurance terms and conditions. All feedback and proposals were evaluated and conclusions made before signing the insurance contract for the next – 2010 year.

Core values of Bureau Veritas group support Labor principles, especially the Principle 6, by proclaiming respect for all individuals. The third statement of core value - respect for all individuals – states: we respect differences, care about others and do not discriminate against others on the basis of nationality, ethnic origin, age, sex or religious or political belief. All and every employee of the company should commit to Core values when being employed and are being evaluated by direct manager (Director is being evaluated by Nordic Baltic region manager) every year during annual performance review.
The third Key principle of Code of Ethics, all and every employee commits to when being employed, states: We are committed to comply fully with the laws and regulations of the countries in which we operate. Activities which could involve the Group in unlawful practices must be avoided. Compliance with our Code of Ethics requires ethical values beyond that of simply being within the law or the regulation. However, if abiding with the Code of Ethics or its principles and rules of application leads to infringing local laws and regulations, the latter should always prevail and must be complied with.

According to the laws, Bureau Veritas has created internal procedures, where 40 hours, 5 days working week is stated. Employee, in case of production necessity can ask employees to work more than stated in the procedure. In such cases and for working during night, at least 1,5 times bigger remuneration is calculated and paid to employees. Employee in case of production necessity can ask employees to work during state holidays and weekends. In such cases, at least 2 times bigger remuneration is calculated and paid to employees or employee can choose to take vacations for the days, he spent at work. The precise records are being made constantly and remuneration is calculated strictly according to the laws.
One of Business values of Bureau Veritas is - Share collective knowledge and constant learning. All and every employee of Bureau Veritas commits to Business values when is employed and is evaluated by direct manager yearly during annual performance review according it. Director is being evaluated by Nordic Baltic region manager. This principle of constant learning is encouraged and supported in practice by every manager during Performance review when employee has to propose development & training plan for upcoming year.
All employees have a right and possibilities of geographic mobility. Bureau Veritas group is present in 140 countries worldwide, thus opens many possibilities to progress internationally. In practice employee is asked to indicate his/her willingness for geographic mobility during yearly Performance review.

In order to stimulate development of skills and getting knowledge, budget for trainings is being assigned every year. The number of training days is not limited. Every employee has possibility and encouragement from the direct manager to improve his/her skills in line with the functions of the job. Employees make trainings plan in the beginning of the year, agrees on it with their managers during yearly Performance review. During the year plan can be changed within the budget frames.
According to the laws of Lithuania, stating that labor of children is not allowed, children do not work in our company. Moreover it could be hardly possible as origin of audit services require personnel of high education and years of experience.
Discrimination on the basis of nationality, age, sex or religious or political beliefs if forbidden by laws of Lithuania. Company obeys the laws.

There were no records about breaking principles of Labor, Code of Ethics as well, which supports Labor principles in Bureau Veritas. In year 2009 every employee had Performance review with his/her direct manager (including Director, who is being reviewed by North Baltic District manager) during which the behavior was evaluated in respect of 4 Group values, including Respect to all individuals, which corresponds to principles of Labour. All employees got positive evaluation.
20 employees out of 29 (3 women in maternity leave excluded), participated in 25 training courses in overall. The company monitors training results in the end of the year. The target was 100% fulfillment of the training budget. In year 2009 only 62% of the budget was spent. Thus for the year 2010 it was decided to stimulate trainings by calculating expenditures for trainings in the 3rd calendar quarter and reminding employees about the budget balance.
There were 32 employees in the end of year 2009. Men - 9, women – 23. Statistics about employees’ nationalities has not being collected in the company. The not discrimination can be illustrated by the fact that 3 citizens of Russia are employed in the company. One of them is working in the company since the registration of the company – 1995.
2 employees made progress in the company: one was promoted to the higher position, the second – changed division.
The youngest employee in year 2009 was 22 years old, the eldest – 62.

As Certification body, Bureau Veritas delivers certification services to the companies helping them to better meet the increasing requirements in the areas of quality, health and safety and environment (QHSE). The company realizes more than 80 % of its activities on client sites, therefore the main impact of the QHSE activity lies outside of the company, through continuous QHSE improvement of its own clients. However, the internal management system includes several instruments, supporting implementation of environmental principles within the company itself.
First of all, there is The Code of Ethics, every new employee commits to follow, when signing the employment contract with the company. In year 2009, the e-learning training module was launched online and all employees had to repeat thesis and pass a test of The Code of Ethics. All employees of the company passed it successfully signing their commitment again. The next examination will be held after 2 years. From then every new employee has to pass e-training and the test within one month after joining the company.
The Code of Ethics, Applicable Rules state:
“Social and environmental responsibility
… Bureau Veritas and all of its employees consider the impact of their actions upon the community, people and the environment…”
Secondly, the company follows Health, Safety & Environment Statement of the Group, which one of the PRINCIPLES state:
“We believe that:
…We should all contribute to protecting the natural environment…”
And COMMITMENTS:
“…Reduce our adverse environmental impact through sustainable development initiatives that minimize our resource…”

The third important element of the management system related to environmental policy is the position of Quality manager in the company. The accreditation rules for certification business obliges our company to have the position of Quality manager responsible for environmental issues besides the quality ones. Such a strategic attitude and the following corporate support give a good opportunity to include environmental issues into daily business.
Moreover, as all employees share the same values and implement the same mission, strong commitment to the environment issues is penetrated into the office work and personal life of employees as well.

In the spring of the year 2009, traditional “Rubbish collecting day” was organized on one of Saturdays. 15 employees of the company, together with their children spent a day collecting rubbish in the Regional park Verkiai located near the road Vilnius – Naujoji Vilnia. Few dozens of rubbish bags were picked and sorted during several hours.
The tradition of “Rubbish collecting day” began in year 2008, when discussing the idea for the next quarterly informal activity of employees. Environment auditor rose an idea to spend the time not only funny, but both meaningfully for the benefit of nature, i.e. collecting rubbish left after the winter. Management supported the idea and allocated the budget. We contacted the Local National Park to know where voluntary help is needed the most, and got their support for cleaning one of the nicest places near Vilnius - “Puckoriu scarp”, thus starting yearly voluntary environmental initiative.
In year 2009 company decided to stop buying onetime plastic cups and small plastic bottles of water, thus decreasing the amount of plastic waist. Since then drinking water is delivered only in big reusable cans, employees use ceramic cups and glasses.
With the aim to save office paper, one of the printers were calibrated to use one side printed waist paper for printing non-official documents. Moreover, office buys recycled paper and “eco” labeled cartridges for printers.

In year 2008 it was decided to start monitoring environmental performance indicators: water and electricity consumption per employee. The monthly recording of figures was started in year 2009 in order to have comprehensive understanding about the expenditures. The aim is to be aware of expenditures and constantly decrease consumptions. Thus in the beginning of year 2010 the initial figures were planed to be calculated and goals for the next year set.
One more indicator – paper consumption was discussed as well, as it is included in the KPIs’ of corporate HSE politics and used quite widely in many countries. We calculated that in our country the major consumption is in training business for producing training material. Therefore the rational decision was made – not to spend time for calculating the expenditures of the rest office due to it’s insignificant amount.

Bureau Veritas Group has built a successful global business based upon its long-standing reputation. This reputation is one of the most valuable assets for the Group worldwide and is reflected in our core and business values. Bureau Veritas Lit is the part of the Group, thus follows and operates with the same principles.
The anti-corruption principle is one of our core values, stated in The Code of Ethics, we require and expect from every our employee every day.
Every new employee when signing employment contract with the company, agrees on Group values and commits to follow the principles of The Code of Ethics. In year 2009, the e-learning training module was launched online and all employees had to repeat thesis and pass a test of The Code of Ethics. All employees of the company passed it successfully signing their commitment again. The next examination will be held after 2 years. From then every new employee has to pass e-training and the test within one month after joining the company.
The Code of Ethics, Our core values state:
“5. Antibribery rules
We categorically reject all forms of bribery and prohibit the offer of gifts or the giving or acceptance of a bribe in any form, direct or indirect, including kickbacks, the use of funds or assets for any unethical purposes and the use of other routes or channels for provision of improper benefits from or to customers, agents, contractors, suppliers and government officials. We apply relevant local and international anti-bribery laws in all jurisdictions within which we are established or perform services. By our internal procedures:
• We monitor certain specific operations such as political contributions, charitable contributions and sponsorship.
• We regulate the offer or receipt of gifts, hospitality or expenses.
• We ensure to maintain accurate books and records which properly and fairly document all financial transactions.”
In order to avoid conflicts of interests, auditor, performing certification audits, signs the Declaration of confidentiality and impartiality. One of the statements declare, that auditor will inform about any possibility to appear the conflict of interest with the client to be certified, being it the entity he owns shares, has relatives or other personal relations. Auditors are expected to report to the management any attempt of bribery as well.
Auditors – subcontractors are hired following additional more strict regulations. The Client Relation System (CRM) requires to enter the name/company of consultant of every potential company to be certified into database. Thus before assigning the job the system assures that consulting and certification would not be performed by the same person, what could cause conflict of interest. Moreover, if subcontractor is supposed to audit state organizations, special precaution mean is taken - the personality should be approved by the Compliance Officer first.

Although there are no additional regulations concerning financial transparency for consultation and certification companies, we aim to be as much as trasparent for the clients, soсiety and any other stakeholders. Every year, including 2009, we publish annual results of the company on the company web page and send that information to the main news portals, including business newspaper. Moreover, we provide quarterly results of the company and the main business lines to business media and other interested parties on their demand.
Complaints from the outside are collected, analyzed and corrective actions initiated if needed by Quality manager. The Quality manager should report to the group the number and content of complaints. In the end of year 2009 it was decided to ease the complaining possibilities – to create dedicated page on the web page in year 2010.
In order to support complying with the Code of Ethics, the position of Ethic Officer is established in the Group. Every employee can contact the officer directly if any unclear or double edged related question arise.

In year 2009 there were no cases of conflict of interest in the company. There were no reported cases about attempt of bribery as well. We did not receive any related complaints during the year. The goal of zero is expected for the next years as well.