Working With Suppliers

Suppliers play a critical role in Axalta Plascons ability to deliver superior products and services to our customers in and outside South Africa. The materials we use in our products and the services and support we provide to our customers. The materials we use in our products and the services and support we provide to our customers depend on our access to the highest quality raw materials, products, and services.

We expect the same behavior from our suppliers that we demand of ourselves: to act ethically and responsibly. Consequently, we have established several protocols to ensure that our suppliers meet our standards.

Supplier Code of Conduct

Axalta Plascon’s Supplier Code of Conduct sets forth expectations regarding our suppliers about their compliance with laws and regulations, social performance, the environment, and other widely recognized standards for ethical and responsible business conduct.

Our Supplier Code requires suppliers to demonstrate respect for people and fundamental human rights, including but not limited to, providing suitable work environments and ensuring that child, forced or slave labour is excluded from their supply chain. As outlined in the Supplier Code, we also expect suppliers to comply with laws and regulations pertaining to anti-corruption and anti-bribery practices. Compliance with the expectations in our Supplier Code of Conduct is a requirement Supplier Agreement/Contract with all suppliers and is just one element of our supply chain risk management program.

Supplier Risk Management

Supplier selection and review is governed by Axalta Plascon Supplier Sustainability Risk Management Program. Based on the expectations outlined in our Supplier Code of Conduct, Axalta Plascon evaluates potential suppliers to ensure they will meet the standards of our Supplier Code. On an ongoing basis, Axalta Plascon conducts screening of its existing suppliers on a risk-ranked basis to identify potential sustainability, compliance and human rights risks in our supply chain. We review the responses from our suppliers and follow up with them if we identify any responses that are unsatisfactory.

If at any point concerns are raised or risks are identified—via our ongoing screening and due diligence activities, through reports made to our Axalta Ethics Hotline, by our customers or other external stakeholders, or via other channels—Axalta will fully investigate and conduct further due diligence on our suppliers. This may include third-party audits using social and environmental criteria, the development of corrective action plans, or suspending or even terminating purchases from suppliers.

Supplier Diversity at Axalta Plascon

At Axalta Plascon, sustainability extends across our value chain, starting with our suppliers. We purchase the finest quality materials to produce our coatings, which means finding suppliers that reflect the faces of the communities we serve and that are aligned with our values and commitment to quality.

Axalta Plascon supplier diversity program is designed to enable small businesses and those Black owned and black women owned suppliers in our aim to comply with BBBEE requirements as set out in BBBEE Act 53 of 2003. Engaging a diverse pool of suppliers helps strengthen our communities and provides commercial opportunities for a wide array of businesses. Our customers benefit from purchasing Axalta products and services that reflect the best that the community can offer.