Supplier Code of Conduct

1. Scope of Application:

The provisions of this Code of Conduct set forth Shah Hemp expectations for all suppliers with whom the company conducts business. Shah Hemp expects that these principles apply to suppliers and their employees, parent, subsidiary or affiliate entities, and subcontractors.

2. Continuous Improvement

2.1. The provisions as set forth in this Code of Conduct provide the minimum standards expected of suppliers to Shah Hemp. Shah Hemp expects suppliers to strive to exceed both international and industry best practices.

2.2. Shah Hemp recognizes that reaching some of the standards established in this Code of Conduct is a dynamic rather than static process and encourages suppliers to continually improve their workplace conditions accordingly.

3. Management, Monitoring and Evaluation:

3.1. Shah Hemp expects that its suppliers will establish and maintain appropriate local oversight and initiatives related to the content of this Code of Conduct, and that they actively review, monitor and modify their processes and local or small business operations to ensure they align with the principles set forth in this Code of Conduct.

3.2. Suppliers are encouraged to operationalize their economic, social and environmental benefit principles and to communicate their progress annually to stakeholders, including, but not limited to, shareholders, management, employees, suppliers, community members, nonprofit organizations, government representatives, Stakeholder Board members, and non-executive members of their Board of Directors.

4. Technology Company Screening

Shah Hemp provides preference to technology companies and technology service providers that are/have:

  • Independently verified by a third-party for their commitment to positive social and environmental impact
  • Committed to positive social impact related to their Governance practices and their impact on their Workers
  • Published an impact report related to their economic, social and environmental performance
  • Established a clear Social Impact, Impact Investing, and/or Philanthropic program

In the absence of documentation and verifiable information related to the prioritization considerations outlined in this Article, Shah Hemp reserves the right to terminate the company’s business relationship with a technology company and/or technology service provider in favour of a supplier in this category that meets the standards outlined in this Article.


5. Shah Hemp hereby formally commits to prioritize suppliers who meet some or all of the following guidelines:

That the Company’s suppliers are:

  • Underrepresented members of the local communities where the company operates;
  • Mobilizing the local economy to ensure educational opportunities and access to food, shelter and basic needs. As such, suppliers are working towards: Sustainable Development Goal 2: No Hunger, Sustainable Development Goal Sustainable Development Goal 5: Gender Equality, Sustainable Development Goal 6: Clean Water and Sanitation, Sustainable Development Goal 8: Decent Work and Economic Growth and Sustainable Development Goal 12: Responsible Consumption and Production;
  • Reducing the local carbon footprint by producing hemp materials and products;
  • Woman-owned businesses;
  • B Corporation certified;
  • Measure and manage their impact according to recognized third-party standards.


6. Freedom of Association and Collective Bargaining: Shah Hemp expects its suppliers to recognize the freely-exercised right of workers, without distinction, to organize, further and defend their interests and to bargain collectively, as well as to protect those workers from any action or other form of discrimination related to the exercise of their right to organize, to carry out trade union activities and to bargain collectively.

7. Forced or Compulsory Labour: Shah Hemp expects its suppliers to prohibit forced or compulsory labour in all its forms.

8. Child Labour: Shah Hemp expects its suppliers not to employ: (a) children below 14 years of age or, if higher than that age, the minimum age of employment permitted by the law of the country or countries where the performance, in whole or in part, of a contract takes place, or the age of the end of compulsory schooling in that country or countries, whichever is higher; and (b) persons under the age of 18 for work that, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of such persons.

9. Discrimination: Shah Hemp expects its suppliers to ensure equality of opportunity and treatment in respect of employment and occupation without discrimination on grounds of race, colour, ethnic origin, religion, gender, gender expression, religion, political opinion, national extraction or social origin and such other ground as may be recognized under the national law of the country or countries where the performance, in whole or in part, of a contract takes place. Shah Hemp expects its suppliers to take all appropriate measures to ensure that neither themselves nor their parent, subsidiary, affiliate entities or their subcontractors are engaged in any gender-based or other discriminatory employment practices as defined within this Article, including those relating to recruitment, promotion, training, remuneration and benefits.

10. Wages, Working Hours and Other Conditions of Work: Shah Hemp expects its suppliers to ensure the payment of wages in legal tender, at regular intervals no longer than one month, in full and directly to the workers concerned. Suppliers should keep an appropriate record of such payments. Deductions from wages are permitted only under conditions and to the extent prescribed by the applicable law, regulations or collective agreement, and suppliers should inform the workers concerned of such deductions at the time of each payment. The wages, hours of work and other conditions of work provided by suppliers should be not less favourable than the best conditions prevailing locally for work of the same character performed in the trade or industry concerned in the area where work is carried out

11. Health and Safety: Shah Hemp expects its suppliers to ensure, so far as is reasonably practicable, that: (a) the workplaces, machinery, equipment and processes under their control are safe and without risk to health; (b) the chemical, physical and biological substances and agents under their control are without risk to health when the appropriate measures of protection are taken; and (c) where necessary, adequate protective clothing and protective equipment are provided to prevent, so far as is reasonably practicable, risk of accidents or of adverse effects on health.

Human Rights:

12. Human Rights: Shah Hemp expects its suppliers to support and respect the protection of internationally proclaimed human rights and to ensure that they are not complicit in human rights abuses

13. Harassment, Harsh or Inhumane Treatment: Shah Hemp expects its suppliers to create and maintain an environment that treats all employees with dignity and respect. Shah Hemp further expects that its suppliers, their parent, subsidiary and affiliated entities as well as any subcontractors, will neither use or engage in, nor allow their employees or other persons engaged by them to use or engage in, any: threats of violence, verbal or psychological harassment or abuse, and/or sexual exploitation and abuse. Sexual exploitation and abuse violate universally recognized international legal norms and standards. Shah Hemp also expects its suppliers to create and maintain an environment that prevents sexual exploitation and abuse. The failure by a supplier to take preventive measures against sexual exploitation or abuse, to investigate allegations thereof, or to take corrective action when sexual exploitation or abuse has occurred, constitute grounds for termination of any agreement with Shah Hemp . Moreover, no harsh or inhumane treatment coercion or corporal punishment of any kind is tolerated, nor is there to be the threat of any such treatment.

14. Mines: Shah Hemp expects its suppliers not to engage in the sale or manufacture of anti-personnel mines or components utilized in the manufacture of anti-personnel mines.

15. Corruption: Shah Hemp expects its suppliers to adhere to the highest standards of moral and ethical conduct, to respect local laws and not engage in any form of corrupt practices, including but not limited to extortion, fraud, or bribery.


16. Environmental Impact: Shah Hemp expects its suppliers to comply with existing legislation and regulations regarding the protection of the environment. Shah Hemp further expects its suppliers to maintain a commitment to achieving carbon neutrality and/or minimizing their carbon emissions, dependence on fossil fuels, while prioritizing a transition to renewable energy sources. Suppliers should wherever possible support a precautionary approach to environmental matters, undertake initiatives to promote greater environmental responsibility and encourage the diffusion of environmentally-friendly technologies implementing sound life-cycle practices, including technologies and solutions that further the development of a circular economy.

17. Chemical and Hazardous Materials: Chemical and other materials posing a hazard if released to the environment are to be identified and managed to ensure their safe handling, movement, storage, recycling or reuse and disposal.

18. Wastewater and Solid Waste: Wastewater and solid waste generated from operations, industrial processes and sanitation facilities are to be monitored, controlled and treated as required prior to discharge or disposal

19. Deforestation: Shah Hemp hereby commits to refrain from engaging in business contracts or supply agreements with suppliers that are involved in deforestation activities, clear-cutting, or other unsustainable forestry management practices as related to the suppliers’s sourcing of commodities for the production of consumer or industrial products. Shah Hemp expects its suppliers to be dedicated to selling and developing products that are sourced from sustainable forestry products, conserve the natural environment, help maintain biodiversity and help improve the lives of workers in the supply chain. Shah Hemp sources hemp fibre and supports the sustainable production process through local programs. Shah Hemp further prioritizes suppliers that choose suppliers that are able to show demonstrable improvements in their forest, climate and water footprint.

20. Air Emissions: Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be characterized, monitored, controlled and treated by suppliers as required prior to discharge or disposal.

21. Minimize Waste, Maximize Recycling: Waste of all types, including water and energy, are to be reduced or eliminated at the source or by practices such as modifying production, maintenance and facility processes, materials substitution, conservation, recycling and reusing materials

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