FÓÐURVERKSMIÐJAN LAXÁ HF
Supplier Code of Conduct
Laxá Feed Mill — Iceland
Krossanes, 603 Akureyri, Iceland
Introduction and Purpose
Aquaculture in Iceland has gained a momentum in last years and is now in a phase of rapidly expanding to become a new meaningful pillar in Icelands economy. Icelandic aquaculture acknowledges that it needs social licenses to maintain its growth and thrive in society.
Laxa feed mill is committed to responsible feed production that supports environmental protection, social responsibility and ethical business practices. This Supplier Code of Conduct outlines minimum expectations we require from suppliers of raw materials and ingredient manufacturers in our supply chain.
The Code forms an integral part of our responsible sourcing program and aligns with the core principles of the ASC Feed Standard, promoting transparency, ethical conduct, legal compliance, and sustainable sourcing across our supply chain.
By signing this Code, suppliers fully commit to these expectations and to implementing systems and practices that meet or exceed the standards described below.
Compliance with Law, Permits, and Management Systems
Legal Compliance
Suppliers must comply with all applicable national and local laws, regulations, and permits relevant to their operations, including:
These legal requirements form the baseline expectation; where local law is more lenient than the ASC Feed Standard, the higher standard shall prevail.
Management Systems and Record-Keeping
Suppliers shall maintain documented management systems that ensure compliance with this Code and allow traceability of raw materials and ingredients throughout the supply chain.
Records related to legal compliance, environmental performance, worker conditions, certifications and ingredient source information must be accessible for review upon request.
Social Responsibility and Labour Standards
Labour Law Compliance
Suppliers must comply with all applicable labour laws and regulations where they operate, including but not limited to:
Workers must be informed of terms of employment in a language they understand and be able to raise grievances without retaliation.
No Discrimination or Harassment
Suppliers shall provide a work environment free from discrimination, harassment or any form of abusive behaviour. Promotion, recruitment and day-to-day treatment of workers must be based on merit, competence, and qualifications.
Fair Compensation and Legal Wages
Suppliers shall ensure that all workers are compensated in accordance with applicable wage laws and regulations, including minimum wage, overtime compensation, legally mandated benefits and social insurance contributions. Wages shall be paid regularly, transparently and in a timely manner. Suppliers shall not make unlawful or punitive deductions from wages. Workers shall receive clear and understandable information regarding wage calculations and payment terms.
Working Hours
Suppliers shall comply with all applicable laws and industry standards relating to working hours, overtime and rest periods. Working hours, including overtime, shall not exceed legal limits and shall not pose risks to workers’ health or safety. Overtime work shall be voluntary where required by law, and workers shall be provided with adequate breaks and at least one day off in every seven-day period, unless otherwise permitted under applicable legislation.
Disciplinary Practices
Suppliers shall treat all workers with dignity and respect. Corporal punishment, mental or physical coercion, verbal abuse, intimidation, harassment or any form of inhumane or degrading treatment are strictly prohibited. Any disciplinary procedures implemented by suppliers shall be fair, documented, proportionate and communicated clearly to workers.
Worker Grievance Mechanisms
Suppliers shall establish and maintain accessible grievance mechanisms that allow workers to raise concerns, complaints or suggestions confidentially and without fear of retaliation. Workers shall be informed about how to access these mechanisms in a language they understand. Suppliers are expected to investigate grievances promptly and take appropriate corrective actions where necessary.
Decent Accommodation
Where suppliers provide housing or accommodation to workers, such facilities shall be safe, clean and fit for human habitation. Accommodation must comply with applicable legal requirements and, at minimum, provide access to clean water, sanitation, ventilation, heating or cooling where appropriate, adequate personal space and emergency preparedness measures. Workers shall retain freedom of movement and shall not be subject to unreasonable restrictions.
Community Engagement
Suppliers are encouraged to engage constructively with local communities affected by their operations. Suppliers should seek to identify and manage social impacts, contribute positively to local development where feasible and maintain open communication with relevant stakeholders. Activities that negatively affect community health, livelihoods, access to resources or local environmental conditions should be avoided or mitigated.
Indigenous Peoples and Traditional Communities
Suppliers shall respect the rights, culture, land use and livelihoods of Indigenous peoples and traditional communities potentially affected by their operations or sourcing activities. Suppliers are expected to operate in accordance with applicable national laws and internationally recognized human rights principles, including the principle of Free, Prior and Informed Consent (FPIC) where relevant. Suppliers shall avoid sourcing practices or activities that contribute to the displacement, marginalization or loss of cultural heritage of Indigenous peoples or traditional communities.
Environmental Responsibility
Environmental Laws and Permits
Suppliers must comply with all applicable environmental laws and regulations, including those relating to water, air emissions, waste management and natural resource use.
Sustainable Practices and Biodiversity Protection
Suppliers are expected to proactively identify and manage environmental risks, striving to:
Where applicable, suppliers should define and implement improvement plans to reduce negative environmental impacts over time.
Transparency and Communication
Ingredient Origin and Traceability
Suppliers must provide reliable information on the origin of ingredients and primary raw materials, including:
This transparency supports traceability and risk assessment in the supply chain.
Reporting and Change Notification
Suppliers shall inform Laxá immediately of any material changes in operations, ownership, compliance status, or significant environmental and social conditions that may affect compliance with this Code.
Communication of the Code
Suppliers must ensure that this Code, and equivalent requirements, are communicated to their own upstream suppliers and manufacturing partners.
Implementation, Monitoring and Compliance
Declaration of Conformance
Suppliers shall provide a signed declaration confirming compliance with this Code, including information on practices and any improvement actions planned or underway.
Verification
Laxá reserves the right to request documentation, conduct audits or request third-party assessments to verify compliance with this Code.
Non-Compliance and Remediation
If a supplier is found in material violation of this Code, Laxá may:
Review and Updates
This Code will be reviewed periodically to reflect evolving legal standards, customer expectations and the ASC Feed Standard requirements. Suppliers will be informed of any updates or amendments.
