1.1 The Supplier/Client agrees to perform the Agreement in accordance with all applicable laws and directives, including anti-bribery and anti-corruption legislation (such as the U.S. Foreign Corrupt Practices Act or the UK Bribery Act). Portuguese legal requirements must additionally be observed, in addition to the referred obligations.
1.2 The Supplier/Client agrees not to render, approve, offer, accept, or promise, either itself or through third parties acting on behalf of the Supplier/Client, any form of contribution (e.g., bribes, kickbacks, valuables, or other benefits) in favor of a public or elected official or another third party (including an employee of Lufthansa LGSP) for the purpose of initiating or continuing business transactions, obtaining other favorable business decisions, or obtaining unlawful advantages related to Lufthansa LGSP.
1.3 The Supplier/Client confirms that it has not rendered, approved, offered, accepted, or promised any contributions as described in paragraph 1.2 in connection with Lufthansa LGSP and this Agreement, either itself or through third parties acting on behalf of the Supplier/Client.
1.4 Lufthansa LGSP expects that the Supplier/Client will likewise demand that its subsidiaries, suppliers, business partners, contractors, or other third parties, which provide any upstream product or raw material to the product to be delivered to Lufthansa LGSP pursuant to this Agreement or which are commissioned or employed to perform any duties under this Agreement vis-à-vis Lufthansa LGSP, comply with the obligations contained in the above paragraphs 1.1 to 1.3.
1.5 The Supplier/Client assures compliance with the expectations of the Lufthansa Group as expressed in its Code of Conduct available at the following link.
Corporate Social Responsibility, Human Rights and Environmental Protection
2.1 UN Global Compacts The Supplier/Client agrees to comply with the ten principles of the UN Global Compact and the five basic principles of the International Labor Organization (ILO). Lufthansa LGSP expects the Supplier/Client to demand the same from its business partners.
2.2 Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains (“Lieferkettensorgfaltspflichtengesetz”)
a) Lufthansa LGSP must, subject to the obligations of the Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains (Lieferkettensorgfaltspflichtengesetz - “Supply Chain Act”), apply adequate human rights and environment-related due diligence in its supply chains, with the aim:
to protect any protected legal positions
to identify, detect, and prevent human rights and environment-related risks
to detect and terminate violations of human rights-related and environment-related obligations
to ensure that all its subsidiaries and Lufthansa LGSP equally comply with these due diligence obligations
b) Protected legal positions include, but are not limited to, the following:
Prohibition of child labor
Prohibition of forced labor and all forms of slavery, exploitation, humiliation, and abuse
Prohibition of disregard for occupational safety and health and protection from work-related health hazards
Disregard for freedom of association and the right to collective bargaining
Prohibition of unequal treatment in employment
Prohibition of withholding an adequate living wage
Prohibition of destruction of natural resources through environmental pollution
Prohibition of unlawful infringement of land rights
Prohibition of the use of private or public security forces that may cause harm to life and limb
Prohibition of any act or omission in breach of duty that seriously impairs a protected legal position
Prohibition of mercury production, use, and disposal as per the Minamata Convention
Prohibition of substances within the Stockholm Convention and non-environmentally sound handling of POPs
Prohibition of hazardous waste import or export as per the Basel Convention
Terms used in this clause shall have the same meaning as in the Supply Chain Act. The Supply Chain Act is available at the following link.
2.3 Supplier/Client Undertakings
a) The Supplier/Client undertakes to render any service and fulfill any obligations pursuant to this Agreement in compliance with the protected legal positions and not to cause any human rights and environment-related risks or violations. This undertaking applies to the extent that it does not violate any binding mandatory law applicable to the Supplier/Client. If any applicable law prohibits compliance with protected legal positions, the Supplier/Client will immediately notify Lufthansa LGSP in writing.
b) If Lufthansa LGSP requests information from the Supplier/Client for risk analysis in accordance with the Supply Chain Act, the Supplier/Client will provide the required information as permitted by applicable law. The Supplier/Client agrees that for the purposes of risk analysis, Lufthansa LGSP may transfer relevant information to a third party specializing in risk analysis.
c) Lufthansa LGSP may request the Supplier/Client to participate in human rights and environment-related training. If Lufthansa LGSP provides such training, the Supplier/Client shall participate or provide evidence of comparable training.
d) If the Supplier/Client identifies a potential violation of human rights-related or environment-related obligations in its operations, it undertakes to inform Lufthansa LGSP and the measures taken as a consequence.
e) If Lufthansa LGSP becomes aware of a risk or violation within the Supplier/Client’s supply chain, it may request the Supplier/Client to investigate or audit the issue as per paragraph 2.4 (Audits). The Supplier/Client shall coordinate the investigation with Lufthansa LGSP and provide regular updates or requested information.
f) If an investigation or audit reveals a violation, the Supplier/Client is obliged to cooperate with Lufthansa LGSP and support it in taking necessary measures to terminate, avoid, and minimize risks or violations. Lufthansa LGSP may temporarily suspend the business relationship while these measures are developed and implemented.
g) The Supplier/Client undertakes to inform its employees about Lufthansa LGSP’s complaints procedure as established under the Supply Chain Act, available at the following link.
h) The Supplier/Client undertakes:
to inform its suppliers about Lufthansa LGSP’s complaint procedure and use best efforts to ensure they inform their employees accordingly
to address and demand compliance with obligations arising from this clause in their own supply chains and pass them on to direct suppliers
Upon request, the Supplier/Client will inform Lufthansa LGSP of the results of its efforts.
2.4 Audits
Once a year or as needed, such as in the event of significant risk changes or suspicion, Lufthansa LGSP may conduct an audit on the Supplier/Client’s business premises and operations to assess compliance with human rights and environmental obligations as follows:
a) Lufthansa LGSP will notify the Supplier/Client of the audit with a two-week written notice.
b) Lufthansa LGSP may mandate a third party to conduct the audit, which will be bound to professional objectivity and secrecy.
c) The audit will be conducted during the Supplier/Client’s regular business hours.
d) Lufthansa LGSP will ensure that the audit causes minimal disruption and will protect confidential information and trade secrets.
e) The Supplier/Client must cooperate with Lufthansa LGSP or the third party by providing necessary access to documents, answering questions truthfully, and ensuring proper handling of personal data.
f) The Supplier/Client bears the costs of the audit.
2.5 The Supplier/Client shall ensure that its subsidiaries and subcontractors comply with the same obligations and that Lufthansa LGSP may audit their premises under the same provisions as outlined in paragraph 2.4.
2.6 The Supplier/Client assures compliance with the Lufthansa Group's expectations as expressed in its Supplier Code of Conduct, available at the following link.
2.7 Obligations under this clause may be adjusted based on Lufthansa LGSP’s ongoing risk analysis. The Supplier/Client will be informed of any adjustments one month prior to their effective date and may object within two weeks from the notification date.
Legal Consequences
3.1 If the Supplier/Client or any third parties employed or commissioned by the Supplier/Client are suspected of breaching obligations under clauses 1 or 2, or if declarations are incorrect, Lufthansa LGSP may request an immediate investigation or audit of the Supplier/Client as per paragraph 2.4.
3.2 If Lufthansa LGSP requests an investigation, the Supplier/Client must provide regular updates and results of the investigation. Lufthansa LGSP may participate in the investigation on-site and request relevant documents and evidence.
3.3 If the suspicion is confirmed, the Supplier/Client must provide Lufthansa LGSP with a written statement of corrective measures. Failure to comply within a reasonable period or inadequate measures may lead Lufthansa LGSP to terminate the relevant services or Agreement without further notice.
3.4 Serious violations or inadequate remedial measures may result in immediate termination of the Agreement without notice.
3.5 Termination of the Agreement does not affect the Supplier/Client's obligation to provide any agreed termination support.