August 6th 2015

To our stakeholders:

Mec Com Limited is fully committed to upholding 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 UN Global Compact and its principles into our business strategy, culture and daily operations.

We are committed to sharing this information with our stakeholders namely customers, suppliers and employees using our main channels of communication.

Yours sincerely

Richard Bunce
Managing Director

Mec Com actively supports the Universal Declaration of Human Rights. The Company will refuse to undertake business with any countries or regimes where flagrant human rights abuses are known.

Mec Com has a Dignity at Work Policy and is committed to ensuring that all our employees are treated fairly and with respect. This is also reinforced by our Company Value Statement contained within the Business Plan which recognises responsibilities to all stakeholders including employees.

Within the next 12 months we will continue with our commitment to working with our major supply chain partners to encourage support for the Global Compact.

This year the Finance/HR Director will review and further update a new staff handbook, which covers areas relating to employment rights. The handbook will be freely available to all staff and a copy is provided to each employee when employment commences.

The Company has a range of Human Resources policies which reinforce commitment to human rights including Dignity at Work Policy, Equal Opportunities Policy and Grievance Policy and procedure.

Mec Com has continued to hold regular meetings with it's Works Council made up of representatives from all areas of the business to discuss important business matters including employee welfare.

We are pleased to report that in the past year there have been no grievances raised in relation to human rights principles.

Mec Com does not and will not partner or undertake business with any organisation that uses forced or child labour.

All of our employees are over 18 years and are issued with a contract that clearly states their terms and conditions including pay rates and overtime pay arrangements. All staff have unrestricted access to the staff handbook which includes information on standard terms and conditions of employment, company benefits, company rules, grievance and disciplinary procedures.

In the coming year Mec Com will be further developing a new appraisal and performance evaluation (merit scheme) which will both recognise and reward good performance and help identify development needs and raise issues or grievances.

Mec Com has a range of HR policies which support best practice in terms of labour and employment.

These include a Social Compliance Policy which promotes No Discrimination and Equal Opportunity.

Our employment practices do not discriminate on the basis of age, nationality, race, religion, social or ethical orientation, gender or disability. All forms of discrimination and harassment are prohibited. Employees, without distinction, have the right to join a trade union and their representatives are not discriminated against and have access to carry out their functions in the workplace.

Mec Com has not been involved in any investigations, legal cases or other relevant events to the contravention of the Global Compact Labour principles.

The past year has seen the company successfully introduce a new workplace pension scheme which complies with governmental Auto enrolment legislation with over a 90% take up by its workforce, in addition new changes to the way Holiday Pay is calculated (inclusion of average overtime earnings) have also been implemented.

Over the next year we will continue with current initiatives (further development merit scheme) and explore new ways to further commitment and support of the Labour principles.

Mec Com has a separate Environmental Policy and Environmental System.

In the coming year Mec Com's main environmental targets are :

- Reduction of energy usage and costs by 10%
- Reduction in raw material waste produced.

We have provided training to all staff in waste separation and recycling.

LED lighting has been installed throughout our factory to reduce energy costs and increase Lux levels.

A building energy management system centrally controlling our shop floor gas heating has been installed.

Motion sensitive lighting has been installed in more offices.

This year Extraction fans will be introduced to recycle hot air in the winter and cooler air in the summer months to reduce energy costs.

Andy Simmonds our HSE Manager is responsible for environmental protection within Mec Com.

Last years targeted 10% reduction in energy costs has been achieved due to the successful implementation of some of the initiatives identified (gas heating energy management system). Gas consumption recorded a 17% reduction against the previous 12 months and Electricity consumption was reduced by 10% the targeted level.

Mec Com has not had any environmental incidents within the last year and has not been subject to any statutory notices or prosecutions.

The business has in place processes to prevent accidental release (bunded waste oil storage tank, spill kits etc.) and so far there have been no significant issues.

Mec Com uses licenced waste companies for disposal of waste and all companies are subject to an annual audit.

Scheduled audits by BSI covering EMS 69975 (BS EN ISO 14001:2004) took place (latest April 2015) and all areas assessed were found to be effective with no non conformities identified.

The senior management team at Mec Com have received a briefing and communication on the Bribery Act.

Mec Com has a clear anti-bribery policy which is readily available and is displayed on notice boards throughout the factory and offices, which all staff and contractors must adhere to.

Training and guidance has been given to the senior management team only at present.

The Finance Director is ultimately responsible for anti-corruption within Mec Com Limited.

Our finance team routinely checks all expenses submitted to ensure that there are no discrepancies and there have been no suspicious or confirmed cases of bribery in the past year.