Due Diligence Assessment

Explanation of Due Diligence Assessment (Åpenhetsloven)

1. Introduction to Baze Technology AS

Baze Technology AS, a software solution enterprise, primarily operates from its headquarters situated in Porsgrunn, Norway, where a majority of our dedicated workforce is based.

Specializing in the development of advanced software solutions, Baze Technology AS focuses on IPTV systems, information, and communication technologies. Our product, Bazeport, has garnered significant recognition and is extensively utilized across various sectors. The primary markets we serve encompass the global maritime industry, hospitality sector, healthcare domain, and the oil and gas industry.

The core operations of Baze Technology AS encompass the development of bespoke software solutions to our diverse market needs, the delivery and implementation of our software solutions, and providing customer support. In addition to these services, we manage our organizational framework and supply complementary hardware to the same markets, ensuring a comprehensive service offering to our clients.

2. Incorporation of the Transparency Act
The Norwegian Transparency Act came into effect on July 1, 2022, aiming to promote corporate respect for fundamental human rights and decent working conditions in connection with the production and provision of goods and services. The due diligence assessments should cover the company's operations as well as those of suppliers and business partners.

A focus on the rights of people and employees is essential for the company, and this applies to our operations, our partners, our suppliers, and our employees. Our customers and partners should be confident that our services come from a responsible supply chain.

Baze Technology has established guidelines on how we should work with human rights. The company's work to respect human rights and ensure decent working conditions is anchored with the management, the board of Directors and in our internal guidelines and procedures.

The company's Ethical guidelines for employees describe how we should act internally and in contact with business connections. Our Ethical guidelines for partners and suppliers – which we share with all our partners and suppliers with an expectation of compliance – require respect for human rights and ensuring decent working conditions in their operations and associated supply chain. The guidelines form the basis for our follow-up and our collaboration with partners and suppliers.

3. Due Diligence Assessment
Our due diligence assessment is conducted regularly and is risk-based and in accordance with the following international guidelines and recommendations:

UN Guiding Principles on Business and Human Rights:

• OECD's guidance on due diligence for responsible business conduct (see Figure 1 below):

3.1 Scope of the Due Diligence Assessment
The requirements to conduct a due diligence assessment essentially encompass our own operations in Baze Technology AS, our partners, our suppliers, and their subcontractors.

At Baze Technology AS, we have assessed the risk of human rights and workers' rights violations within our own operations, and given the nature of our business, all our identified risks (working hours, health, and safety) are considered low. Measures to halt, reduce, and prevent possible violations are overseen by our HR and QA System. After assessing the overall risk, we have identified the risk to be highest in categories related to our supply chain.

Since measures under the Transparency Act are to be risk-based and proportionate, it is our suppliers in high-risk categories within our core business who will primarily be subjected to our due diligence measures. Such measures might include background checks and various follow-up actions and dialogues (such as self-assessment and audits).

Assessing the risk of actual and potential violations of workers' rights and human rights is an ongoing process. All our new and existing partners and suppliers undergo a supplier assessment.

3.2 Categorization
We have established a methodology and a tool for conducting risk assessments concerning human rights and workers' rights, facilitating a risk-based approach in our follow-up of partners and suppliers. The following parameters are used to prioritize further due diligence assessments and the development of measures:

• Company's country of origin, or where the goods are produced, or services are delivered from
• Purchase category and the risk level of the category

Despite our relatively limited supplier list, purchase categories with the highest risk will be prioritized for further investigations and measures.

We then prioritize further follow-up based on where we see the highest risk, as well as our knowledge of this risk and its impact on our core business.

In the current reporting period, we have continued our existing work of mapping our suppliers and partners. We have conducted an evaluation and categorization of our current suppliers and partners to identify where our highest risk lies. This work is part of the company's QMS efforts.

3.3 Stakeholder Engagement
To uncover potential and actual negative impacts, Baze Technology has established a deviation reporting system for internal stakeholders and a reporting channel for our external stakeholders. This is communicated externally through our support system and internally in our QMS System.

3.4 Results
In the current reporting period, the total number of suppliers and partners was below 100. Many of these are located in Norway and provide goods and services. Based on our risk assessment method, we have classified most of them as low-risk suppliers.

However, we identify our most significant risk to be among our partners or suppliers who deliver electronic goods, as these traditionally have long, global supply chains. This is often hardware for electronics, mainly produced in Asian countries. Potential risks can revolve around child labor, discrimination, sexual harassment, violence against women, forced labor, health and safety at the workplace, violations of workers' rights to establish or join a trade union and to collectively bargain, non-compliance with minimum wage regulations, use of hazardous chemicals, violations of property rights, and minority rights.

Because of the global and complex supply chains in this category, we have limited opportunities to influence the mentioned risks. To reduce these risks, our focus is on prioritizing suppliers who actively work with due diligence assessments and simultaneously acknowledge and manage these risks.

Through our due diligence assessment in the current reporting period, no actual negative consequences have been uncovered.

4. Measures Implemented
In the current reporting period, Baze Technology has chosen to anchor the work with due diligence in our guidelines and processes. This means that it is part of the company's Quality Management System.

Regarding the potential risk of human rights violations related to our subcontractors, we ask our partners and high-risk suppliers to identify or investigate such risk further down in their own supply chain.

Our existing risk prevention activities may include:

• Prequalification and risk mapping of partners or suppliers.
• Increasing influence on our business relationships by including our ethical guidelines for partners and suppliers in all agreements, which allows us to set requirements and verify compliance.
• Monitoring compliance with our ethical guidelines.

In cases where we uncover actual violations of human or workers' rights, our approach should be supportive and constructive towards the partner or supplier, as we recognize that not everyone has yet established good enough routines to prevent, detect, or identify actual or potential violations. We shall take responsibility for ensuring, or collaborating on, recovery with stakeholders when necessary.

4.1 Results of Measures
Prequalification of our suppliers or obtaining documentation from suppliers with evident high risk are our methods for assessing compliance with guidelines, etc., aiming to stop or reduce possible violations.

The due diligence assessment, in its entirety, has given us a good understanding of the potential risks for our business and in our supply chain and is a valuable tool for us in the future to recognize and prioritize areas of improvement to minimize the risk of negative impact on workers' rights and human rights.

4.2 Future Plans
During the next reporting period, we will:

• Further develop and improve the implemented measures to cover more existing suppliers and review agreements.
• Focus on preventive work in the areas where we have identified high risk and prioritized for follow-up.
• Actively consider the number of suppliers and map opportunities to reduce our supplier base. Among other things, this will simplify further monitoring.
• Follow up relevant suppliers in the high-risk category and implement improvement measures where risk mapping identifies this as necessary.

Contact information

If you have any questions Due Diligence Assessment, we can be reached at:

Baze Technology AS

PO Box 1124

3905 Porsgrunn

Mail: post@bazetechnology.com

Phone: +47 94 800 600