Sustainable Vendor Procurement Policy

Who We Are

LGM Financial Services is a social purpose company and a leading player in the Canadian automotive finance and insurance industry. Our company aims to positively impact the environment, communities, and customers that we serve. Our commitment encompasses conducting business ethically, sustainably and transparently. As a company that is partnered with more automotive brands than any other Canadian provider, our vision for “responsible mobility for all” is reflected in how we conduct our business. We strive to partner with vendors who share our values and are committed to respecting and upholding the Ten Principles created by the United Nations Global Compact outlined below:

1. Human Rights:
– Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
– Principle 2: Ensure they are not complicit in human rights abuses.

2. Labour Standards:
– Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining.
– Principle 4: Eliminate all forms of forced and compulsory labour.
– Principle 5: Abolish child labour.
– Principle 6: Eliminate discrimination in respect of employment and occupation.

3. Environment:
– Principle 7: Support a precautionary approach to environmental challenges.
– Principle 8: Undertake initiatives to promote greater environmental responsibility.
– Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

4. Anti-Corruption:
– Principle 10: Work against corruption in all its forms, including extortion and bribery.

Purpose

Our primary purpose is to avoid contributing to any negative impacts on the environment, human rights, and labour practices across our value chain. Our procurement practices prioritize factors such as environmental, social, and ethical standards when evaluating and selecting vendors. Additionally, we encourage all of our vendors to adopt more sustainable practices and align with frameworks such as the Global Reporting Initiative, Sustainability Accounting Standards Board, or the United Nations Global Compact we are members of. As a company we strictly adhere to all Canadian laws and regulations and expect our vendors to do the same. At LGM we are committed to continuously identifying, preventing and mitigating risks of detrimental impact on human rights, the environment, and labour within our business and throughout our value chain, we hope that our vendors practice the same diligence.

Objective

The intention of this vendor procurement policy is to ensure that LGM’s vendors are aware of and compliant with the values and standards set out in this document. This policy aims to ensure that all procurement activities align with our commitment to sustainability, ethical business practices, and social responsibility. Our commitment to these values is reflected in our procurement practices, ensuring that our vendors share and uphold these commitments.

Human Rights:

– Vendors must demonstrate a commitment to respecting and promoting human rights within their operations.
– Vendors are expected to not employ and prohibit the use of child labour across their value chain.
– LGM will assess vendors’ human rights records, looking for evidence of fair labor practices, commitment to a workplace free of harassment, abuse and violence, and adherence to internationally recognized human rights standards and laws.

Labor Standards:

– Vendors are expected to uphold fair labor standards, including safe working conditions, reasonable working hours, and fair wages.
– Vendors are expected to practice equal treatment and avoid discrimination of any kind in the workplace.
– LGM will evaluate vendors’ compliance with applicable labor laws and industry standards.

Environment:

– Vendors are encouraged to adopt environmentally friendly practices, minimizing their environmental impact, for example implementing a comprehensive recycling program, and using environmentally friendly products.
– Vendors must comply with all relevant local and national environmental laws.
– LGM will prioritize suppliers with environmentally sustainable practices, considering factors such as energy efficiency, waste reduction, and responsible resource management.

Anti-Corruption:

– Vendors must operate with transparency and integrity, refraining from bribery, corruption, or any unethical business practices.
– We expect vendors to have a reporting system or procedure for employees to voice any grievances anonymously.
– LGM will conduct due diligence to ensure vendors have robust anti-corruption policies and procedures in place.
Procurement Guidelines:

Supplier Evaluation:

– Prioritize vendors with established commitments to the UN Global Compact Principles or a similar framework.
– Conduct thorough assessments of vendors, considering their sustainability initiatives, environmental impact, and adherence to human rights and labor standards.

Long-Term Partnerships:

– Foster long-term relationships with vendors who actively contribute to sustainable development goals.
– Encourage vendors to align their business strategies with sustainability objectives.

Continuous Improvement:

-Regularly review and update procurement practices to incorporate the latest sustainability standards and best practices.
-Encourage vendors to improve their sustainability performance continuously.

Training and Awareness:

– Provide training and resources to procurement staff on sustainable procurement practices.
– Raise awareness among vendors about the importance of sustainability and the UN Global Compact Principles.

Reporting and Accountability:

– Implement a system for monitoring and reporting vendor sustainability performance.
– Hold vendors accountable for meeting agreed-upon sustainability targets and addressing any shortcomings.

Compliance with the Vendor Procurement Policy

The primary goal of this Vendor Procurement Policy is to foster responsible and sustainable procurement practices through regular discourse and ongoing working relationships between LGM and its vendors. LGM requires all vendors to adhere to this policy and reserves the right to monitor, assess, and audit all vendors to ensure compliance with our procurement policy. We may discontinue business with any vendor or representative that fails to adhere to the practices outlined in this policy.