Modern Slavery Act Transparency Statement

INDUSTRIAL AND FINANCIAL SYSTEMS GROUP

MODERN SLAVERY AND HUMAN TRAFFICKING STATEMENT FOR FINANCIAL YEAR ENDING 31 DECEMBER 2019

INTRODUCTION

Slavery has legally been abolished in all countries in the world, but practices akin to it are widespread to this day. Such practices often termed “modern slavery” or “human trafficking” include forced labour, indented labour, domestic servitude and child labour, amongst other abhorrent practices. There are an estimated 40.3 million people in modern slavery or victims of human trafficking across the globe.

At IFS, we are committed to playing our role in eradicating modern slavery and human trafficking in all forms. We have therefore taken steps to ensure that our business and supply chain are free from modern slavery and human trafficking. These efforts include actions to ensure that everyone who works for IFS does so in an environment in which human rights are respected and anyone that we do business with also upholds these principles.

This statement details those efforts and is issued pursuant to Section 54 of the Modern Slavery Act 2015. It relates to actions taken by or on behalf of IFS Limited, IFS AB and members of the IFS Group (all defined below). The statement is made for the financial year ending 31 December 2019.

ORGANISATION STRUCTURE

The IFS group incorporates Industrial and Financial Systems, IFS AB (“IFS AB”), Industrial and Financial Systems, IFS UK Limited (“IFS Limited”) as well as a number of other group of companies.
IFS AB is the parent company of the IFS group of companies. The entities covered by this statement are IFS Limited, IFS AB and all majority owned subsidiaries of IFS AB or its subsidiaries (“IFS Group”), including in countries such as Australia, Canada, France, Germany and the USA where similar modern slavery legislation is in force.

OUR BUSINESS

The IFS Group is a globally recognised leader in developing and delivering enterprise software for Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM) and Enterprise Service
Management (ESM). We offer applications that enable companies to respond quickly to market changes and use resources in a more agile way to achieve better business performance and competitive advantage.

IFS AB is a private company founded in Sweden in 1983. IFS solutions are used by thousands of customers worldwide through a network of local offices and a growing ecosystem of partners. IFS' products are known for being user-friendly, modular in their design and flexible enough to support the customers in their way of working according to their established processes. Our business philosophy and architecture provide solutions that are easier to implement, run and upgrade.
The IFS Group has more than 10,000 customers in more than 50 countries and has approximately 1 million end users in 2017.

CORE VALUES

IFS is proud of its history and culture and its commitment to strive to do things better and more efficiently. We are forward looking, open for change and daring enough to aim for a better world.
Our culture is built by our people and history. Together they have formed our characteristics and values.

At IFS our long-held values are to be agile, collaborative, and trustworthy. These values form the basis for how we work and guide the way we interact with our employees and customers, partners, the market and between colleagues.

At IFS we really care about our customers and their needs which is why we work hard to earn consistently high satisfaction ratings. We also care about the communities and environments in
which we operate and aim to adopt the highest ethical and sustainability standards.
There are currently over 3900 people employed by the IFS Group worldwide, all of whom are subject to pre-employment checks to ensure their right to work and to confirm their identity. All employees are provided with information about their statutory rights and paid above the applicable minimum wage and we require our recruitment agencies to comply with all applicable legal requirements.

OUR POLICIES IN RELATION TO MODERN SLAVERY

Our Code of Conduct and supporting policies in procurement and human resources (HR) support us in mitigating against modern slavery taking place in our business.
IFS prides itself on being a responsible and compassionate employer.

We are committed to the principles that labour must be freely chosen and that workers should be able to leave employment without impediment (beyond reasonable notice requirements).
To ensure that we recruit and treat employees fairly, aiming to eliminate modern slavery at all costs, our HR policies or guidelines set out our procedures on how we:

  • Recruit and select employees in a fair, lawful and professional manner, both for internal
    and external candidates;
  • Treat all employees fairly during their employment and, if there is an occasion when an
    employee does not feel that they have been treated fairly, there are procedures in place
    to raise a grievance;
  •  Maintain avenues for our employees to use to report any concerns they may have about
    slavery and human trafficking as well as other HR matters or code of conduct violations;
    and
  •  Manage the exit of an employee from the business in a fair and consistent manner.
    We ensure that all employees have access to these policies.

RISK ASSESSMENT

IFS has given consideration to those parts of its business and supply chains are exposed to the highest risk of slavery and human trafficking. The overall risk profile of IFS’ supply chain is
considered to be low. One notable feature of the supply chain is that IFS does not buy goods directly. The most elevated risk profile within IFS’ supply chain derives from the purchase of services where suppliers may use low-skilled or low-paid labour (for example with regard to cleaning).

DUE DILIGENCE AND AUDIT OF SUPPLIERS AND SUPPLY CHAIN

IFS maintains a comprehensive Supplier Pre-Qualification Questionnaire that requires all of our suppliers to commit to certain minimum standards, including our Supplier Code of Conduct,
together with our Terms of Business which allow for site inspection and/or audit of their own policies on modern slavery and human trafficking among other ethical sourcing standards.
The management of the IFS supply chain became the responsibility of the Procurement Service Centre (“PSC”) during the financial year. The PSC now requires all new suppliers to fill out the questionnaire as part of the on-boarding process. Over 400 questionnaires were issued to new suppliers during the financial year. No slavery or trafficking related concerns were identified.

ASSESSMENT OF OUR EFFECTIVENESS IN COMBATING

MODERN SLAVERY WITHIN OUR SUPPLY CHAIN

Being an enterprise software company, most of IFS’ supply chain is constituted by suppliers from low-risk industries and we maintain a comprehensive procurement policy which sets out steps for
ethical and sustainable sourcing in all areas of our business.
IFS is fully committed to preventing modern slavery and human trafficking from occurring within our supply chain or any part of our global business. To achieve this, for our procurement activities we
have:

  • Published our IFS Supplier Code of Conduct on our website (www.ifs.com) which we ask
    suppliers to commit to when entering into new contracts with IFS;
  • Included robust clauses in our standard supplier contracts specific to modern slavery;
  • Continued to include the Supplier Code of Conduct in our procurement training for staff who may engage contractors or any other third party engaged by IFS; and maintained avenues for our suppliers to use to report any concerns they may have about slavery and human trafficking.

TRAINING AND COMMUNICATION

To make employees aware of the Act and the drivers of modern slavery, we share this statement with all employees through our internal communication channels and a copy of this statement is
available on the IFS website.
As referenced above, our procurement staff are trained to use the IFS Supplier Code of Conduct in connection with the engagement of suppliers, In the first quarter of 2021, all staff will be invited to attend a structured, interactive online training course about Modern Slavery and Human Trafficking to raise awareness for the role they play in
mitigating the risk of modern slavery in our operations and ensuring we work with suppliers who uphold the same ethical principles as us. This training will be mandatory for our HR and
procurement teams).

APPROVAL AND CONTINOUS REVIEW

The IFS Corporate Social Responsibility Steering Committee will monitor and continue to improve the steps we take to combat slavery and human trafficking.

This statement was approved by IFS AB.

Constance Minc

On behalf of IFS AB

On 22 December 2020

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes Industrial and Financial Systems, IFS UK Limited slavery and human trafficking statement for the
financial year ending 31 December 2019. Due to the impact of COVID-19 on the business, the release of this statement was delayed.
This statement was approved by Alan Laing for Industrial and Financial Systems, IFS UK Limited.
Aberdeen
22 December 2020