This Code of Conduct has been created to ensure that our company’s activities are based on the highest standards of ethics, transparency, and integrity. It helps foster a respectful and inclusive work environment, protect confidential information, prevent conflicts of interest, and comply with all applicable laws. The Code represents our commitment to acting responsibly and maintaining trust with all stakeholders.

The requirements and provisions defined herein are mandatory for all “BAGETA” employees and business partners. Their purpose is to ensure compliance with ethical, social, and environmental responsibility across all areas of activity.
The Code of Conduct is reviewed regularly, continuously updated, and supplemented as necessary.

Our values and principles 

The core value and foundation of success for “BAGETA” is its people – our employees, customers, and suppliers. Responsibility, teamwork, and a continuous drive for improvement are equally important to us.

EMPLOYEES

We believe that our employees are our greatest asset and the driving force behind our success. We foster a supportive, respectful, and inclusive work environment where everyone feels valued, safe, and empowered to grow. We invest in employee development, encourage initiative, and acknowledge their contributions.

CUSTOMERS

Customers are at the heart of our business. We strive to understand their needs and deliver the highest-quality products and services, built on trust and long-term cooperation. Customer satisfaction and success are our top priority.

SUPPLIERS

We view our suppliers as strategic partners. We strive to build fair, transparent, and mutually beneficial relationships grounded in trust and collaboration. We work with suppliers who share our values and our commitment to quality and ethical conduct.

RESPONSIBILITY

Responsibility means a commitment to act ethically, fairly, and transparently across all areas of our operations. We take responsibility for our actions and decisions, considering their impact on the environment, society, and our partners.

TEAMWORK

Teamwork is the foundation of our success. We encourage open communication, knowledge and experience sharing, mutual support, and collaboration to achieve common goals. We believe that together we are stronger and capable of achieving more.

CONTINUOUS IMPROVEMENT

Our commitment to continuous improvement drives us to seek innovative solutions, learn continuously, and adapt to a changing environment. We embrace new ideas, encourage creativity, and consistently enhance our processes, products, and services.

1. KEY SUSTAINABILITY REQUIREMENTS

We take a responsible approach to the use, preservation, and restoration of natural resources. In our production, we use certified, sustainably grown FSC® wood to the greatest extent possible. At every stage of the manufacturing process, we reduce waste and strive to maximise its recycling. By using energy and water efficiently, we contribute to long-term sustainable development.

Continuous Improvement

We continuously seek ways to reduce our environmental impact and invest in new, sustainable technologies. We believe that the company’s progress is impossible without employee initiative, which is why we actively encourage their involvement and contributions to the implementation of sustainability ideas.

Transparency and Accountability

We maintain an open dialogue with all stakeholders.
Transparency in the field of sustainability includes:
– regular and comprehensive disclosure of information to stakeholders;
– clear and understandable communication;
– the use of reliable data.

1.1. Development and implementation of management systems
The company has implemented and certified an ISO 14001 environmental management system. This system helps us systematically identify, assess, and manage the environmental impacts of our activities – from raw material use to waste management and pollution prevention.
We set clear sustainability goals and indicators, which we regularly monitor and evaluate.
We conduct regular internal and external audits to ensure compliance with standards and continuous improvement.
We integrate sustainability considerations into all business processes – from product design to waste management and the further use of our products.
We regularly update internal procedures to ensure they meet evolving sustainability requirements and best practices.

1.2. Maintaining corporate sustainability
In the company UAB “Bageta,” we have appointed a responsible person who coordinates sustainability initiatives and ensures compliance with this Code of Conduct. This person is responsible for:
– developing and implementing the sustainability strategy;
– cooperating with stakeholders;
– organizing training and educational programs.

1.3. Training and Education
We organize regular training sessions for employees on sustainability principles, policies, and practices. We encourage employee initiatives that contribute to achieving sustainability goals. We promote employee awareness in the areas of environmental and social responsibility. We provide opportunities for employees to participate in seminars and conferences dedicated to sustainability topics.
We share information with our business partners and strive to ensure that suppliers and business partners are informed about our sustainability requirements.

2. ENVIRONMENTAL SUSTAINABILITY REQUIREMENTS

Our company is committed to protecting the environment and promoting sustainable development. We comply with all environmental laws and regulations. We strive to reduce the negative environmental impact of our activities by conserving energy and water, reducing waste, and encouraging waste sorting and recycling. We invite all employees to actively contribute to these efforts by using resources responsibly and reporting any potential environmental violations.

2.1. Greenhouse Gas (GHG) Emissions:
We set targets to reduce GHG emissions by implementing energy efficiency measures, transitioning to renewable energy sources, modernising production processes, and optimising logistics. We invest in technologies that reduce GHG emissions, such as solar panels, modern ventilation, heating, and lighting systems. We are gradually transitioning from internal combustion engines to electric vehicles.

2.2. Efficient Use of Resources
We optimize production processes to reduce raw material and energy consumption. We promote employee awareness regarding resource conservation.
We offer customers the option to package their products using sustainable packaging made from recycled materials.

2.3. Registration, Assessment, and Restriction of Materials and Raw Materials
We limit the use of hazardous substances, strictly following REACH and other applicable regulations.
– We have implemented a material and raw material registration system that allows us to trace their origin and composition.
– We conduct supplier audits to ensure compliance with established environmental requirements.
– We give priority to recycled, renewable, and sustainably sourced raw materials.

2.4. Circular Economy and Waste Management
We consistently implement circular economy principles to reduce waste generation and promote reuse and recycling. We cooperate with suppliers and partners to ensure that these principles are applied throughout the supply chain.
Across all company operations, we increase resource efficiency by applying zero-waste production methods — all roundwood and its by-products are used either in product manufacturing or as fuel for our own heating systems.
To promote sustainable practices, we encourage customers to return packaging (e.g., pallets) purchased with our products for reuse. A deposit is refunded for all returned packaging.
In wood pellet production, we reduce packaging weight to minimize material consumption. We cooperate with waste management companies to ensure proper waste collection and treatment. All waste generated in the company is sorted and delivered to recyclers.
All our products are long-lasting and meet the main waste management priorities: they can be reused, recycled, or used for energy production.

2.5. Water Consumption
Water is not used in the company’s production processes, except for equipment cooling in closed systems and for domestic needs.
We continuously encourage employees to use water responsibly and efficiently.

2.6. Biodiversity
We conduct our activities in a way that does not harm biodiversity. We choose suppliers who apply sustainable forest management practices and ensure responsible use of raw material resources.

3. SUSTAINABILITY REQUIREMENTS IN THE FIELD OF HUMAN RIGHTS AND LABOUR LAW

UAB “Bageta” is committed to ensuring a safe working environment for every person employed in the company. Safety is our core value in all areas of activity, at all times and in all situations. In line with our company policy, we pursue the only acceptable goal – zero accidents. We manage safety risks systematically: we identify, monitor, and mitigate physical, chemical, ergonomic, biological, and psychological hazards in the workplace. This consistent risk management practice helps ensure that every employee can work safely and healthily.

3.1. Protection of Underage Employees
Any form of underage labour is strictly prohibited in the company. Persons under 18 years of age do not work at, and are not employed by, the company. We comply with all national and international legal acts regulating the prohibition of underage labour.
We also do not tolerate underage labour in the supply chain. We carry out supplier assessments and audits to ensure that our partners do not use underage labour in any part of their processes.

3.2. Adherence to Ethical Principles in the Workplace
Our company does not tolerate forced labour or any form of employee exploitation. We strictly prohibit “modern slavery,” human trafficking, and any expressions of forced labour. We ensure that all employees are employed voluntarily and have the right to freely terminate their employment relationship.
We do not tolerate unethical recruitment practices – recruitment processes are transparent, fair, and based on mutual agreement. We also ensure that no employee’s personal documents are held by the employer.

3.3. Zero Tolerance for Violence
We respect the dignity of every employee and ensure their protection from any form of physical, psychological, or emotional violence. The company’s “Violence and Harassment Prevention Policy” sets clear rules and responsibilities to create a safe, respectful, and violence-free working environment.
We strictly prohibit physical punishment, coercion, degrading treatment, or any other form of cruel behaviour. We are committed to ensuring that every employee feels safe, respected, and protected at work.

3.4. Remuneration and Benefits
The organisation pays employees a fair wage that reflects local market conditions and complies with applicable legal requirements. Wages and all related payments meet the legal standards established in our country. We ensure that employees receive all social benefits they are entitled to, such as paid leave, sick leave benefits, and pension contributions.
Wages are paid on time, transparently, and clearly. In difficult life circumstances, we provide both financial and non-financial support. We also organise free transportation for employees to and from work to facilitate daily commuting and improve working conditions.

3.5. Occupational Safety and Health
Our company continuously improves its processes to ensure the safest and healthiest possible working environment for all employees. Every employee must follow the occupational health and safety rules, procedures, and requirements set by the company and applicable legislation. Each incident or potential hazard is responsibly investigated by the occupational health and safety working group, which includes members of senior management. We all share responsibility for our own safety and that of our colleagues.
We ensure safe and healthy working conditions that meet high standards. All personal protective equipment is provided free of charge. We regularly organise occupational safety and health training and implement measures to reduce the risks of accidents and occupational diseases.
We also guarantee appropriate working and rest conditions – clean, safe, and ergonomic facilities where employees can work comfortably and confidently.

3.6. Working Hours
We comply with the working time limits established by law. We ensure that employees have sufficient rest time both during the workday and between working days. Overtime is compensated in accordance with applicable regulations.

3.7. Ensuring Human Rights
We respect the human rights of all employees, regardless of race, gender, religion, nationality, or other characteristics. We implement measures to prevent discrimination and harassment. We ensure that employees have the opportunity to report human rights violations.
A WORKS COUNCIL operates in the company – a representative body that protects employees’ professional, labour, economic, and social rights and represents their interests within the company.
We respect the privacy of all employees and related individuals, and we process personal data strictly in accordance with applicable data protection laws, including the General Data Protection Regulation (GDPR).

3.8. Freedom of Association and Collective Bargaining
We respect employees’ right to join trade unions. We encourage social dialogue and cooperation with employee representatives. The company has an independent Works Council that represents employees’ interests in decisions related to employment relationships. It promotes constructive communication and consultation between employees and the employer, ensuring transparent and mutually beneficial dialogue.

3.9. No Discrimination or Harassment
We do not tolerate any form of discrimination, harassment, bullying, or intimidation. We encourage all employees to communicate with one another politely, professionally, and respectfully, regardless of their position, gender, age, race, religion, sexual orientation, or other personal characteristics. Any incidents of disrespect, discrimination, or inappropriate behaviour must be reported immediately to management or the HR department to ensure a prompt and appropriate response.

3.10. Minorities and Vulnerable Groups
We ensure that employees belonging to minority or vulnerable groups are protected from discrimination and harassment. We create conditions that guarantee equal opportunities for all employees.

4. SUSTAINABILITY REQUIREMENTS FOR BUSINESS ETHICS

The company complies with all legal requirements and does not tolerate any illegal activity. To prevent crimes such as corruption, fraud, cybercrime, environmental offenses, workplace safety violations, corporate and tax crimes, money laundering, and organized crime, the company has appointed a person responsible for business ethics.

4.1. Avoidance of Conflicts of Interest
Employees must avoid situations in which their personal interests may conflict with the interests of the company. Any potential conflict of interest must be disclosed to management. Employees are prohibited from using company assets or information for personal gain.
Employees may not engage in financial or commercial activities outside the company if such activities create or may create a conflict of public or private interests.
Employees are prohibited from accepting gifts from clients, suppliers, or partners if such gifts could be considered an attempt to directly or indirectly influence their actions or decisions. Only symbolic, customary business gifts (e.g., souvenirs, promotional items) with a value not exceeding EUR 50 are permitted, and only if they are not intended to influence business decisions. Any gift of higher value must be immediately reported to management or the person responsible for ethics compliance.
Before offering gifts or hospitality to third parties, employees must assess whether such actions comply with company policy and applicable laws.
When using company property, contact details, information, or official position, employees must not seek personal benefit.
Employees may not engage in political activities in the workplace or during working hours.
Upon discovering a possible conflict between public and private interests, employees must immediately inform management.

4.2. Prohibition of Corruption
Our company applies a zero-tolerance policy toward corruption and bribery. It is strictly prohibited to offer, give, request, or accept bribes or any unlawful advantages intended to secure business benefits or influence decisions. This prohibition applies to both direct and indirect involvement in corrupt activities.
All employees must immediately report any attempts at corruption or bribery. Any such violations will be treated with the utmost seriousness and may result in severe legal consequences.
We prohibit all forms of corruption, including bribery, improper influence, and the unlawful receipt of funds. We conduct our activities in compliance with all applicable anti-corruption laws and regulations. Transparency, accountability, and responsible behaviour are promoted throughout all business processes.

4.3. Fair Competition
The company adheres to all applicable competition and antitrust laws. We strive for fair competition in the market and prohibit any secret agreements with competitors regarding price fixing, market sharing, production restrictions, or any other unlawful activities that could harm fair competition.
Information about competitors is collected only by lawful and ethical means.

4.4. Import and Export Control
We comply with all applicable import and export control laws and regulations. We ensure that the import and export of goods and services are conducted transparently, legally, and responsibly.
Trade with sanctioned countries or sanctioned individuals and legal entities is strictly prohibited.

4.5. Prohibition of Money Laundering
We prohibit all forms of money laundering and terrorist financing. Any suspicious transactions or activities are immediately reported to the competent authorities.

4.6. Intellectual Property Rights
We respect intellectual property rights and ensure the responsible protection of our own and others’ intellectual property. Any unlawful use, copying, or distribution of intellectual property is strictly prohibited.

4.7. Confidential Information Protection
All employees must protect and refrain from disclosing confidential information belonging to the company, its clients, or partners. Confidential information includes any non-public information whose disclosure could harm the company’s interests, such as financial data, client lists, strategic plans, unpublished products or technologies, and employee data.
This information may be used only for legitimate business purposes and must be handled with the highest level of responsibility. Upon termination of employment, all confidential information must be returned to the company. Any unauthorized disclosure of confidential information or destruction of business-related information is strictly prohibited and may result in legal consequences.
We also protect confidential information related to the company, employees, clients, and suppliers, and prohibit its disclosure without appropriate authorization. All employees are informed of the rules governing confidential information and must follow them. Employees sign confidentiality agreements to ensure adequate information protection.

4.8. No Support for Armed Groups
We strictly prohibit any support for armed groups or conflicts. All company activities are carried out in accordance with international human rights and humanitarian law principles. We conduct supplier assessments to ensure they are not associated with armed groups or other high-risk entities.

4.9. Disclosure and Information
We provide accurate and transparent information about our business activities and financial status, in compliance with all applicable disclosure requirements. We promote open and honest communication with all stakeholders.

4.10. Use of Artificial Intelligence
Artificial intelligence (AI) systems used in the company must be ethical, safe, and transparent. We prohibit the use of AI for discrimination, manipulation, or any unlawful activities.
We ensure that all AI solutions are properly supervised, controlled, and operate according to established requirements. In all cases, we comply with applicable privacy and data protection standards.

5. SUSTAINABILITY REQUIREMENTS FOR RESPONSIBLE SUPPLY CHAINS

5.1 Transparency:
– We ensure full supply chain transparency to trace the origin of products and assess their environmental and social impact.
– We require suppliers to provide clear and comprehensive information about their operations.

5.2. Raw Material Supply Chains:
We prioritize raw materials sourced from sustainable origins and certified forests. We ensure that raw materials are not procured from sanctioned countries or other high-risk sources. We require suppliers to comply with our Code of Conduct and all applicable standards.

6. REPORTS OF MISCONDUCT

6.1. Reports of Misconduct
We have established a confidential and secure reporting system that allows employees and other stakeholders to anonymously report misconduct, including:
– Corruption and bribery
– Discrimination and harassment
– Human rights violations
– Environmental violations
– Financial misconduct
– Other breaches of the Code of Ethics
We ensure that whistleblowers are protected from any form of retaliation, regardless of whether their report is substantiated. All reports of misconduct are investigated in accordance with the principles of confidentiality, impartiality, and objectivity.
We take appropriate actions to eliminate identified violations and prevent their recurrence. Information about reporting channels is available to all employees and other stakeholders. Reports are received by independent persons responsible for conducting investigations.
All submitted reports are recorded and thoroughly investigated.

6.2. Business Partner Grievance Mechanism
We have established a grievance mechanism that enables business partners to report any misconduct related to our company. We ensure that all submitted complaints are handled objectively, confidentially, and impartially. Business partners are guaranteed protection against any form of retaliation.
Information on the complaint submission procedure is publicly available to all partners. Our website will include a “Report Misconduct” feature and a list of designated contact persons responsible for receiving and processing such reports, ensuring that partners can easily raise and submit their concerns.

7. RESPONSIBILITY

All company employees are responsible for complying with this Code, while management ensures its implementation and continuous oversight. The Code is reviewed and updated periodically, taking into account changes in legislation, best practices, and organizational needs.
This Code of Conduct reflects our commitment to carrying out sustainable, responsible, and ethical business activities.