Version: 1.0

Valid from: 2010/04

PALFINGER aims to achieve global sustainable profitable growth while practising corporate social responsibility. The proactive implementation of and adherence to the environmental and social areas outlined below is important to us. For this reason, we require that our stakeholders - our business partners, suppliers, dealers, and employees, all of whom are referred to in the following as “partners” - also follow this code of conduct.

1. Human rights

1.1 Ban on child labour

Child labour must not be used in any phase of production. Partners are asked to adhere to the recommendations outlined in ILO conventions on the minimum age for employment or engagement of children. This minimum age should not be lower than the age at which compulsory school attendance ends, and in any case not less than 15 years.

1.2 Free choice of employment

Forced or compulsory labour is not permitted. Employees must have the freedom to terminate their working relationship with reasonable notice. Employees must not be required to submit their identification documents, passport, or work permit as a precondition of employment.

1.3 Ban on discrimination

Discrimination of any kind against employees is not permitted. This applies to discrimination, for example, on the basis of sex, race, caste, skin colour, disability, union membership, political beliefs, ethnic origin, religion, age, pregnancy or sexual orientation.

1.4 Freedom of association

Employees must be able to communicate openly with corporate management about working conditions without fear of reprisals in any form. They must have the right to associate, to join unions, to appoint representatives, and to be voted in as such.

1.5 Health and safety

The partner shall ensure health and safety in the workplace, with national regulations as a minimum, and support continuous development of improvements in the working environment.

2. Environmental standards

2.1 Environmental responsibility

The partners shall apply the precautionary principle when dealing with environmental issues; they shall introduce initiatives to increase environmental responsibility, and promote the development and spread of environmentally friendly technologies.

2.2 Environmentally friendly production

The partner shall ensure appropriate environmental protection during all phases of production. This includes a proactive approach, in order to prevent or minimise the effects of accidents that could have negative effects on the environment.

2.2 Environmentally friendly products

All products manufactured throughout the supply chain meet the environmental standards of their respective market segments. This includes all materials and substances used in production. Chemicals and other materials that could be a hazard to the environment if released must be identified. A hazardous material management system must be established so that these materials can be safely handled, transported, stored, processed or reused, and disposed of using suitable methods.

3. Business ethics

3.1 Anti-corruption

A high level of integrity is expected in all business activities and relationships. Any form of corruption, bribery, extortion and fraud is strictly forbidden, and can be reported anonymously using the Integrity Line on www.palfinger.com.

3.2 Gifts, hospitality, invitations

Our business and our firm’s appearance among competitive firms are based on quality and competence. Employees may not be influenced by receiving favours, nor are they allowed to influence others with favours. Employees may accept hospitality only in typical measure, and symbolic gifts that are appropriate to the circumstances. In case of doubt, the employee must consult with and receive approval from management. No employee shall offer to or accept from any third party gifts taking the form of any of the following, regardless of the value of the gift: cash, loans, kickbacks or similar monetary advantages.

4. Information/communication

The partners will communicate this Code of Conduct in an appropriate manner within their facilities and in their international institutions. The content of the Code of Conduct is also available from www.palfinger.com and the PALFINGER supplier portal.