Premier Farnell

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					                                  Premier Farnell plc
  - a high performance company working together to build a sustainable future

                            Corporate Social Responsibility

                                Supply Chain CSR Policy

Our vision
At Premier Farnell we believe that Corporate Social Responsibility is about the sustainable
development of our business - balancing our responsibilities to our shareholders, the environment and

We believe that by empowering and releasing the power of individuals within Premier Farnell, we can
have a positive impact on society and reduce our impact on the environment.

We focus on our environmental impacts, the communities we operate in, our people, trading ethically
with our customers and suppliers and the health and safety of our employees.

We believe we can work together with our suppliers and customers to reduce our environmental
impacts and build a sustainable business.

Our core impacts
We have identified the core impacts which are important to Premier Farnell and which we believe we
can mitigate through our supply chain.

They are:
Ethical trading – labour practices in our own brand supply chain
Waste – generation and disposal of waste
Carbon emissions – created by the delivery of goods to our distribution centres and our shipments to
Paper – used in the production of our product catalogues and marketing activity

Ethical Trading

Implementation of our ethical trading policy is focussed on:

        the labour practices in the supply chain of the products we source principally in Asia
         and India which carry our own brand

Our ethical trading policy is based on the Ethical Trading Initiative Base Code. We are commited
to sourcing our own brand products responsibly. We believe that high workplace standards, good
health and safety, fair pay and good employment conditions are all elements of a professionally
run business which contribute to its efficiency and productivity. Through the application of our
ethical trading policy we seek to ensure that the working conditions of workers producing
products which carry our brand meet or exceed international labour standards. .

It is our policy to:
             Define workplace standards for the factories of those suppliers with whom we
                 contract to produce own brand products
             Assess each supplier against our workplace standards
             Provide training for our commercial teams on the environmental and social issues
                 affecting our supply chains

Premier Farnell workplace standards

    1.   Factories or production sites do not use forced, bonded or involuntary labour.

    2.  Workers are not forced to lodge unreasonable deposits or their identity papers with their
        employers. In countries where deposits are prohibited by law, no deposits are allowed.
    3. Freedom of association and the right to collective bargaining are respected except where
        prohibited by law.
    4. The factory or production site is a safe and hygenic place to work.
    5. Responsibility for health and safety is assigned to a senior management representative.
    6. There must be an adequate number of safe, unblocked fire exits, escape routes and fire
        fighting equipment accessible to workers from each floor or area of the factory or
        production site and accomodation (if provided).
    7. Accomodation, if provided, is safe and hygenic and segregated from the factory or
        production site and from material storage areas.
    8. The factory or production site only employs workers who are over the local legal
        minimum age. Where this is less than 15, or where there is no legal minimum age,
        workers should not be less than 15 years old.
    9. Wages and benefits paid for a standard working week meet, at a minimum, national
        legal standards.
    10. Working hours comply with national laws.
    11. The factory or production site does not knowingly contravene local or national
        environmental legislation without being able to demonstrate a plan of action to improve.

Our approach

Premier Farnell believes it has an obligation to society to strive to improve the labour practices and
working conditions in the manufacturing facilities of its suppliers in low-cost, emerging economies,
principally in Asia and India. To this end, we will strive to use our purchasing power and influence to
undertake such a programme of improvement.

We will firstly assess labour practices and working conditions in the manufacturing facilities of our
suppliers (direct or via a buying agency) through the use of a questionnaire. We will use the results of
the questionnaire to prioritise those suppliers with whom we will identify a roadmap for improvement.
We recognise that standards will vary and we believe it is our responsibility to work with our suppliers
to raise standards.

We will identify each supplier’s position within 12 months of commencing trading, ideally at the start
of the relationship. We will then work with the supplier to encourage continual improvement.

We will focus on those suppliers that provide private label products to the Group and will have a team
who will monitor, communicate, give advice and measure improvements. We will use our influence
and purchasing power to create leverage for change. We will encourage suppliers to work with us in
this programme and we will over time replace suppliers who refuse to engage with us or show little or
no desire or intention to improve.

Waste – generation and disposal of waste
Premier Farnell has identified the generation of waste as one of its three significant environmental

Premier Farnell is a group of distribution companies. We place orders on our suppliers in quantities
which are appropriate to our requirements within the constraints of optimising purchasing price,
minimum order quantities and stock turn. We then break down these orders into the quantities required
by our customers. This process creates waste.

The principal waste streams are:
     Packaging – cardboard, paper, plastic and polystyrene, inbound from suppliers and outbound
        to customers
     Wooden pallets
     Scrap products

It is our policy to engage with our suppliers with the objective of minimising waste, in particular
packaging and electronic components waste, within the constraints detailed above of cost effective

procurement. We engage with our suppliers to specify packaging which is recyclable wherever

It is our policy to minimise the volume of waste which goes to landfill. Where possible we re-use waste
packaging and, where this is not achievable, we ensure that it is sorted and recycled.

The disposal of waste electronic components is costly. We are investigating opportunities to work with
third parties who recycle and reuse waste electronic components.

We have producer obligations under the WEEE legislation as a supplier of electrical and electronic
equipment and provide our customers with a service to enable them to dispose of their waste equipment
correctly in compliance with the legislation.

The packaging we use for our customers’ orders is manufactured from recycled materials and is
recyclable wherever possible. A large proportion of our customer orders are for small quantities of
components, the most practical packaging of which is a padded envelope. We are investigating the
opportunities of a more environmentally benign solution to this requirement.

Carbon emissions – created by the delivery of goods to our distribution centres and
our shipments to customers
We have defined our carbon footprint in terms of the primary activities over which we have direct
control and have a carbon reduction programme underway in all our major facilities. We have included
all our activities from the receipt of products into our warehouses to their despatch to customers,
including the production of catalogues and marketing material, our use and disposal of packaging,
business travel and the energy required to operate our facilities.

It is our policy to engage with our suppliers to understand how we can reduce to the most practical and
economic level the frequency of their deliveries to our premises within the constraints of buying cost
effectively in order to minimise the carbon emissions generated.

A significant proportion of our deliveries to customers are undertaken by a single carrier. We are
working with this supplier to establish appropriate environmental measurement and reporting.

Paper – used in the production of our product catalogues and marketing activity

One of our principal environmental impacts is the use of paper in the publication of our product
catalogues and marketing material. We take a proactive approach to reducing the environmental impact
of our publications whilst taking into account economic and market factors.

Premier Farnell goes to market via a combination of printed matter (catalogues, direct mail) and
eCommerce solutions (online catalogues, eProcurement, e-shots etc).

The following policy and guidelines aim to mitigate the impact of our paper printed publications on the
environment throughout their lifecycle by setting appropriate minimum standards for:
     Production
            o Paper
            o Print
     Distribution
            o Fulfilment
            o Mailing
     Recycling

It is our policy to
       engage with suppliers of paper and print who can demonstrate their commitment to mitigating
          the environmental impacts of their production processes through their certification to a
          recognised and properly managed and audited scheme;

        specify either virgin paper from certified, sustainable sources or recycled paper with the
         highest available post-consumer recycled content according to cost considerations and the
         production constraints of individual publications;
        only place contracts with printers who have a published environmental policy and recognised
         environmental certifications;
        specify that the packaging used for protecting catalogues and direct mailers in the delivery
         system is manufactured with recycled and recyclable materials and to maintain up to date
         customer data which ensures that the publication is relevant to the end customer thereby
         minimising wastage.
        encourage our customers to recycle all publications and packaging at the end of their lifespan.

In order to implement the supplier CSR policy we are working with our commercial teams in
sales, marketing, product, supplier management and supply chain to raise their awareness and
understanding of the opportunity of embedding sustainability into our supply chain and where
appropriate setting objectives.

December 2007