Page 99 - Vaculug Sustainable Report 2022

Particular attention has been paid to technological obsolescence in relation to the renewal of infrastructural, it could lead to risk of breakdowns and accidents having significant impact on business and production activities. Dedicated remediation plan is developed to mitigate the risk.
Moreover, particular focus has been put in place for cyber security awareness, information sections (e.g. phishing campaigns), trainings and updates on the main cyber security risks were provided to users.
SOCIO-ENVIRONMENTAL RESPONSIBILITY RISKS
Risks relative to social and environmental responsibility and business ethics
Enterprise risk management is enterprise-wide aiming to identify, analyze and monitor risks
in different areas linked to everyday activities of the Company, therefore also environmental, social,economic/financial and business ethics risks that are directly or indirectly attributable to the Company.
Assessments and monitoring activities are conducted on possible and potential political, financial, environmental and social risks, including those related to the respect of human rights and labour laws.
Regarding this, the Company monitors continuously the application of internal regulations in relation
to financial, social (particular focus on human and workplace rights), environmental and business ethics on Company’s offices and sites, it occurs through the periodic control activities and audits performed by Internal Audit Department.
On top of that, in keeping with its sustainability principles, Vaculug has put into place a program of second-party audits along the supply chain via third companies.
The audit inspections on the raw material supplies (natural rubber, carbon black, chemicals etc.)
are carried out on an annual basis and ensure compliance with the established standards, mitigating risks linked to outsourced activities.
For instance, the Company checks the conformity of its products and services by monitoring and assessing the performance of its suppliers.
The goal is to assess their level of sustainability and compliance along the entire supply chain
by analysing the policies and procedures which allow these suppliers to conduct responsible and sustainable procurement. In order to extend its due diligence, Vaculug has also decided to carry out audits on its cobalt and mineral suppliers.
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