Off-boarding Policy for Suppliers

1. Objective

The purpose of this policy is to terminate collaborations with suppliers in a transparent, structured and safe manner, with specific attention to social, economic and cultural vulnerabilities in the countries where suppliers operate. The process ensures continuity of business operations, compliance with contractual and legal obligations, respectful treatment of suppliers and support for a careful transition.

2. Scope

This policy applies to all suppliers (products, services and consultants) with whom the organization has or has had a contractual relationship, with particular attention to suppliers in regions with increased social and economic risks.

3. Principles

• Transparency: clear and timely communication about the termination of the collaboration.
• Compliance: compliance with laws and regulations, contractual obligations and international guidelines (ILO, UNGPs, OECD Guidelines).
• Social responsibility: avoiding off-boarding having a disproportionate negative impact on vulnerable groups (workers, women, young people, migrants).
• Risk management: minimising operational, legal, social and reputational risks.
• Respectful conclusion: ending the collaboration in a professional and respectful manner, with an eye for the human dimension.

4. Process steps

4.1 Termination initiative

• Off-boarding may result from a contractual end date, performance issues, strategic choices or mutual agreement.
• For suppliers in vulnerable regions, a social impact assessment is carried out in advance to assess the impact on employees and communities.

• Review of contract: notice period, exit clauses, financial obligations.

• Document the risks to both business continuity and social impact.

• Formal written notification to the supplier.
• For suppliers in vulnerable positions: clear explanation, sufficient notice period and, where possible, dialogue to limit negative effects.

• Return or transfer of materials, resources and any company property.
• For production partners: phased reduction of orders where possible to limit job losses.

• Correct and timely settlement of outstanding invoices and payments.
• Preferably no deductions that unnecessarily harm the supplier or employees.

• Evaluation of termination, including the social impact.
• Use these insights in future supplier selection and contract negotiations.
• Feedback meeting with the supplier if possible, to contribute to their development.