Regulatory Compliance

Commitment

Conducting business in full alignment, compliance with and conformance to the laws in force and the principles of operation applicable in every geographical region or country where the Company operates, in accordance with the key pillars of the Code of Business Conduct and the Suppliers & Business Partners Code of Conduct

Impacts and major risks

Impacts

Actual positive impacts

Maintaining regulatory compliance at environmental, social and product level, to ensure that the overall corporate activity is lawful and corresponds to high standards of responsible business, strengthening the environment of trust between Metlen and its Stakeholders in their interactions with it (customers, employees, suppliers, administrative authorities etc.).

Potential negative impacts

Metlen applies a system for continuous monitoring of and compliance with regulatory and legislative changes and developments minimizing the likelihood of negative non-compliance impacts that could significantly affect the financial position and cash flows, the reputation and, consequently, the ability of Metlen to meet its obligations.

Major risks

  • Financial risks, which may arise from possible negative outcomes of legal disputes regarding non-compliance with the legislation in general.
  • Potential non-compliance of the Company with its obligations under the environmental legislation and, more specifically, with the terms of the environmental licenses of its industrial plants. In such cases, the competent authorities may impose fines or sanctions, and may also withdraw or refuse to renew permits and approvals in the event of a breach of the applicable regulations.
  • The Company operates in countries with emerging economies, where institutional functions may be affected by political conditions and changes thereto. This could adversely affect the Company's operations.

Management / Control practices

  • Metlen: a) complies with the legal and regulatory requirements in the geographical regions in which it operates, b) ensures that its relations and activities comply with the legislation in force and the applicable institutional framework, c) is kept informed on its applicable legal obligations, and d) has established procedures for monitoring developments in the legislation concerning its sectors of activity and regularly reviews and assesses its compliance with the applicable laws and regulations.
  • Monitoring compliance with the approved environmental licenses of the Company's operational units is a process conducted internally, on a regular basis, in each Business Unit, by qualified personnel, as well as annually, by a recognized independent organization which audits and certifies the Company's environmental management system.
  • As a member of the UN Global Compact, the Company strives to ensure that its business practices are fully aligned with the Compact's internationally recognized Ten (10) Principles.
  • During tendering for a project, policies, and procedures (management system or due diligence procedures) are applied to prevent bribery and corruption as well as anti-competitive behaviour.
  • The Regulatory Compliance Division has developed two training programs for the Company’s staff: training on personal data protection (GDPR) and training on the Metlen Code of Conduct (CoC).

Effectiveness of the actions

  • 0 (zero) incidents of non-compliance with the legislation and absence of any impacts at environmental, social, and economic level.
  • 0 (zero) cases of legal action against the Company or financial sanctions imposed for anticompetitive behavior, antitrust or monopolistic practices, corruption, bribery, cartel activities or price fixing.
  • 0 (zero) significant findings from internal audits conducted by the Internal Audit Division on Compliance.