Supply Chain Due Diligence

In addition to the identified material topics, Alpiq recognises the importance of responsible supply chain management and adheres to the Swiss Ordinance on Due Diligence and Transparency (DDTrO) in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour, as well as the upcoming Corporate Sustainability Due Diligence Directive (CSDDD) under CSRD.

To ensure compliance with these Swiss requirements and the European directive, as well as to foster transparency, accountability and adherence to ethical standards, Alpiq executed a project in 2024 that encompassed the creation of a new supply chain due diligence process for fully consolidated Alpiq entities, including a new Code of Conduct for Suppliers. The newly implemented due diligence process includes compliance checks for new as well as existing suppliers, based on which further investigations are mandated if a supplier is found to have been involved in conspicuous actions, including but not limited to engagement in child labour and the use of conflict materials.

The following outlines Alpiq’s approach regarding child labour and conflict minerals.

Alpiq recognises that child labour poses a significant ethical and human rights concern in global supply chains. While there is no direct risk of child labour in Alpiq’s operations, which primarily entail the production of electricity at geographically specific power plants, residual risks may arise in its supply chain where goods or services originate from regions identified as higher risk under the Children’s Rights in the Workplace Index.

To mitigate such risks, Alpiq adheres to the principles of the International Labour Organization (ILO) and implements a Supplier Code of Conduct that prohibits child labour. Alpiq endeavours to enforce the principles stipulated in the Code of Conduct for Suppliers in its supply chain and reviewed its Code of Conduct for Suppliers and the associated risk assessment process throughout 2024. The Supplier Code of Conduct is incorporated into supplier contracts in order to set clear expectations and ensure compliance. Alpiq also regularly reviews its supply chain processes to improve traceability and risk management.

Alpiq intends to further strengthen its supply chain risk management. It reviewed its process (including traceability) during 2024 and will continue to adjust its approach to common market practice. The company also continues to further strengthen and develop its ESG framework, including child labour regulation.

In addition, Alpiq operates a whistle-blowing tool, accessible via the company website, which allows for concerns to be raised with the Compliance function, including any perceived and actual shortcomings pertaining to child labour. As stipulated, any perceived shortcoming can be raised by employees and/or any member of the public and will be investigated independently.

Alpiq complies with DDTrO regulations concerning conflict minerals. As Alpiq does not import or refine minerals or metals that fall within the scope of these regulations, it is exempt from related disclosure requirements. Nonetheless, Alpiq maintains responsible sourcing practices in line with the new supply chain due diligence process and the new Code of Conduct for suppliers and monitors its supply chain to align with applicable standards.