Business Partner Code of Conduct

1. Introduction

Candela Technology AB (“Candela”) pioneers sustainable marine transportation by manufacturing electric hydrofoil vessels that set new standards for efficiency, innovation, and environmental responsibility. Our mission is to revolutionize water transport with technology that combines performance and sustainability. This commitment is at the heart of our business strategy and shapes our relationship with our partners.

We expect all business partners, including suppliers, distributors, agents, contractors, and consultants, to support our mission by adhering to the same principles of responsibility, transparency, and integrity. Together, we aim to create a future where electric vessels replace traditional marine transport. Our business partners play a vital role in this journey, and their commitment is essential for our success.

2. Ethical Business Practices

We expect our business partners to:

• Conduct all business activities transparently, honestly, and with integrity.
• Comply with all applicable local, national, and international laws and regulations.
• Prohibit all forms of bribery and corruption, including direct or indirect offers of gifts, favours, or financial benefits to influence decisions.
• Avoid conflicts of interest and promptly disclose any situation that may appear to compromise integrity.
• Maintain accurate and transparent records in all business dealings with Candela.

 

3. Human Rights and Labor Conditions

We expect our business partners to:

• Prohibit child labour, forced labour, and any form of modern slavery.
• Provide equal opportunities and a workplace free from discrimination based on gender, age, race, religion, disability, sexual orientation, or other protected characteristics.
• Respect employees’ rights to freedom of association and collective bargaining.
• Ensure fair wages, reasonable working hours, and safe working conditions for all employees.
• Maintain written terms of employment, communicated in a language understood by employees.

4. Health, Safety, and Wellbeing

We expect our business partners to:

• Provide a safe working environment in line with all relevant health and safety regulations.
• Conduct regular risk assessments to identify and mitigate workplace hazards.
• Promote the physical and mental wellbeing of employees through programs and resources aimed at improving health and safety.
• Provide training to employees to recognize and prevent unsafe practices.

5. Environmental Responsibility

We expect our business partners to:

• Comply with all relevant environmental laws and standards.
• Minimize environmental impact through sustainable practices, including energy efficiency, waste reduction, and emissions management.
• Support the conservation of natural resources and the use of environmentally friendly materials.
• Implement measures to responsibly manage water use, chemicals, and hazardous substances.
• Encourage transparency in environmental reporting and cooperation in sustainability initiatives.

6. Data Protection and Confidentiality

We expect our business partners to:

• Adhere to all applicable data protection laws, including the GDPR, when handling personal data.
• Protect Candela’s confidential information and intellectual property, sharing it only when authorized and necessary.
• Implement appropriate security measures to prevent unauthorized access, disclosure, or misuse of data.

7. Responsible Sourcing and Supply Chain

We expect our business partners to:

• Source materials responsibly, ensuring no links to human rights abuses, conflicts, or environmental harm.
• Conduct due diligence and monitor your supply chain to maintain responsible practices.
• Support efforts toward transparency and ethical sourcing, especially for critical raw materials.
• Avoid sourcing materials from areas affected by conflict unless full transparency and compliance are demonstrated.

7. Responsibilities of Distributors and Agents

We expect our business partners to:

• Distributors and agents are expected to represent Candela’s brand and products honestly and professionally in all dealings.
• Ensure that all marketing, sales, and service activities comply with local laws and Candela’s ethical standards.
• Distributors and agents must maintain accurate records of all sales and transactions related to Candela products.

8. Monitoring, Audits, and Compliance

To verify compliance with this Code, Candela reserves the right to conduct audits, either directly or through independent third parties. Suppliers must provide access to necessary information, documentation, and facilities as part of the audit process. It is expected that suppliers will proactively address and resolve any issues identified during these audits.

9. Reporting and Grievance Mechanisms

Suppliers are required to establish effective reporting channels that allow employees to confidentially report violations, unethical practices, or unsafe conditions without fear of retaliation. Suppliers are encouraged to foster a culture of transparency and integrity in all their business activities. Candela also provides designated reporting channels for suppliers to report any non-compliance or unethical behaviour promptly.

10. Consequences of Non-Compliance

Violations of this Code may result in corrective actions, up to and including the termination of the business relationship. Suppliers are responsible for taking corrective actions to address any identified issues and preventing their recurrence.

11. Acknowledgment

By entering into a business relationship with Candela, all business partners, including suppliers, distributors, agents, and others, acknowledge and agree to comply with this Code. Candela reserves the right to revise this Code periodically, and all business partners are expected to stay informed of and comply with any changes.

The Business Partner Code of Conduct was last updated on 2 October 2025.