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Business Ethics & Compliance

Commitment to Business Ethics and Compliance

Hegelmann is dedicated to maintaining the highest standards of integrity, transparency, and ethical business conduct. The company adheres strictly to local, national, and international laws, ensuring that all business activities are conducted in compliance with ethical and legal guidelines.

A designated senior manager oversees business ethics compliance, ensuring that the company’s policies align with international best practices. Hegelmann has not received any official notices, fines, or prosecutions for non-compliance with business ethics legislation within the last three years, demonstrating its strong commitment to ethical conduct.

Business Ethics Risk Management Measures

To prevent unethical practices, the company has implemented the following measures:

Legal Compliance

Continuous monitoring of regulations related to bribery, corruption, and ethics to ensure full legal compliance.

Ethics Policies

Clear policies prohibiting unethical business practices, including bribery, corruption, and fraudulent activities.

Confidential Reporting System

A secure whistleblower system that allows employees and stakeholders to report concerns confidentially, ensuring protection against retaliation.

Investigations & Corrective Actions

A structured process for investigating reported violations and taking corrective actions where necessary.

Training & Awareness

Regular ethics training for employees in high-risk positions (management, finance, purchasing, and logistics).
Key Performance Indicators (KPIs) used to track ethical compliance include the number of reported ethics incidents, training completion rates, and resolution times for ethical concerns.

Anti-Bribery & Anti-Corruption

Hegelmann enforces a strict zero-tolerance policy on bribery and corruption. The company has implemented policies and mechanisms aligned with international anti-corruption laws, including the US Foreign Corrupt Practices Act and the UK Bribery Act.

Key Anti-Bribery Measures

Management Oversight

A designated compliance officer oversees anti-corruption initiatives.

Policies & Training

Employees receive regular training on bribery and corruption risks.

Whistleblower Protection

A confidential reporting mechanism ensures that concerns can be raised without fear of retaliation.

Business Partner Compliance

Suppliers and subcontractors must adhere to anti-corruption policies as part of their contracts.

Hegelmann has not been involved in any corruption or bribery lawsuits in the past five years. While the company does not currently operate a certified anti-bribery management system, it continues to strengthen internal controls and compliance mechanisms.

Human Rights & Environmental Due Diligence

Hegelmann has a structured Human Rights and Environmental Due Diligence (HREDD) framework to identify, prevent, mitigate, and address potential and actual adverse impacts in its operations and supply chain. The framework aligns with international guidelines, including the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises.

Risk Identification & Assessment

  • Regular risk assessments covering human rights (e.g., forced labor, discrimination) and environmental impact (ISO 14001:2015 methodology).
  • Prioritization of risks based on legal compliance, stakeholder concerns, and economic/environmental impact.

Preventive & Mitigation Measures

  • Decarbonization: Increased use of bio-LNG (From 1,890,000 kg in 2023 to 2,400,000 kg in 2024) and the adoption of electric trucks.
  • Subcontractor Audits & GPS Monitoring: Ensuring compliance with ethical and environmental standards.
  • Sustainable Procurement Standards: Implementing fuel efficiency and alternative fuel requirements for suppliers.
  • Workforce Protections: A Code of Conduct communicated to employees and subcontractors.

Grievance Mechanisms & Stakeholder Engagement

  • Multi-language grievance system accessible to all employees and subcontractors.
  • Regular engagement with trade unions and worker representatives.

Remediation & Monitoring

  • Contract Amendments: Adjustments to driver contracts following feedback on payment terms.
  • Financial & Non-Financial Support: Housing and legal assistance for employees affected by crises (e.g., Ukraine conflict).
  • Annual Due Diligence Reviews: Continuous evaluation and improvement of sustainability initiatives.

Continuous Improvement & Transparency

  • Strengthening documented due diligence policies.
  • Expanding sustainability data collection.
  • Enhancing supplier engagement for better implementation and compliance.

Supplier Sustainability & Compliance

Hegelmann is committed to ensuring sustainability and compliance throughout its supply chain. All suppliers and subcontractors must adhere to strict social, ethical, and environmental standards.

Supplier Compliance Framework

  • Supplier Obligations: A formal policy requiring adherence to sustainability standards.
  • Risk Assessments: Evaluations covering human rights, occupational health and safety, environmental impact, and corruption risks.
    • Country and industry risk analysis.
    • Supplier self-assessments supported by software or third-party services.
    • Risk prioritization based on severity.
    • Preventive & Corrective Measures:
      • Training programs, audits, and sustainability-based supplier selection criteria.
      • Sourcing Decisions: Compliance with human rights, health & safety, environmental protection, and anti-corruption measures directly influences procurement choices.

      Regulatory Alignment

      Although Hegelmann is not currently subject to laws such as the German Supply Chain Due Diligence Act, the company proactively implements responsible sourcing practices to mitigate risks.

      SMETA Ethics Compliance

      In April 2024, Hegelmann Express GmbH completed a SMETA 4-pillar audit, confirming our strong anti-corruption and compliance practices.

      Conclusion

      Hegelmann is committed to upholding the highest standards in business ethics, anti-bribery & corruption, due diligence, and supplier sustainability & compliance. Through rigorous policies, training, risk assessments, and transparent reporting, the company ensures ethical and responsible operations across its supply chain. Continuous improvement remains a priority, reinforcing Hegelmann’s position as a responsible and sustainable business leader.