OrbiChem360 Methodology

OrbiChem360 Code for Price Assessments

ResourceWise (formerly Tecnon OrbiChem Ltd) price assessments provide a transparent and reliable fair value benchmark for commodities in the chemical industry. This Code for Price Assessments applies to the ResourceWise product OrbiChem360 only.

For OrbiChem360, ResourceWise publishes, on a commercial basis, independent information via a platform, which includes price assessments of the market (not market prices) in relation to commodities and/or commodity derivatives for use by, among other organizations, market participants in their day to day commercial activities. ‘Independent’ for this purpose means the absence of a vested interest in the markets covered by OrbiChem360, including that it does not itself provide trading or clearing services with respect to those markets.

Price assessments that are published by ResourceWise do not represent internal transfers or prices paid between affiliates or joint venture companies; they are for ‘arm's length’ business and may be used, among other things, in relation to commodity contracts transacted in physical and derivative markets. ResourceWise provides informed assessments of commodity and derivative price levels using a variety of methodologies, including those based on observed trading data and other available market information.

ResourceWise may also provide commentary and write news stories relevant to the commodity markets for which they publish price assessments. It is recognized that a broad spectrum of parties, including producers, processors, distributors, traders, manufacturers, and other private and public organizations with interests in international commodity markets, refer to and rely upon the integrity of the price assessment reporting process undertaken by ResourceWise and the ability of ResourceWise to publish price assessments that are representative of market value.

A key purpose of this Code is to demonstrate to those parties that ResourceWise is committed to meeting the highest standards and principles of good governance.

Where relevant, the Standards prescribed in this Code are intended to apply equally to all persons employed or otherwise engaged by and operating under the control of ResourceWise to the extent they are involved in price assessment activities.

ResourceWise’s Code comprises several Standards, each of which is set out below in bold text. Following some of the Standards are additional guidelines, the purpose of which is to provide commentary on how the Standards should be interpreted.

References in the ResourceWise Code to ‘price assessment activities’ and ‘price assessment processes’ refer to the processes by which ResourceWise establishes and maintains its price assessments, receives transaction data and other information from market participants, applies its methodologies to the data and information it receives, and determines its price assessments.

It is expected that all staff of ResourceWise will have regard to the guidelines in interpreting all of the Standards set out below.

All persons employed or otherwise engaged by and operating under the control of ResourceWise must email an acknowledgment confirming receipt and compliance with this Code, the appendices, and attachments.

ResourceWise shall maintain robust governance arrangements, including a clearly defined management structure with transparent lines of reporting and consistent allocation of authority and responsibility.

ResourceWise’s Business Managers are responsible for overseeing all staff directly under their control, as outlined in the company organisational plan, current version attached, to ensure compliance regarding price assessment activities.

Business Managers should ensure that all staff under their direct control are sufficiently trained on the methodologies and relevant policies and procedures regarding the handling of confidential information, conflicts of interest, personal account dealing, editorial independence, and data integrity.

Business Managers must report to the Board any member of staff who fails to comply with the Code so the Board can take appropriate corrective action.

ResourceWise shall seek to avoid actual or potential conflicts of interest arising in relation to its price assessment activities; to that end, It shall establish a policy and control system designed to mitigate the risk of conflicts and manage those that may arise.

ResourceWise has a written Code of Business Conduct, Anti Competition Policy and Ethics, and Anti Bribery Policy, copies of which are attached, setting out the measures that it has taken and will take to monitor for, mitigate, and manage actual or potential conflicts of interest that may arise from time to time.

ResourceWise takes all reasonable steps to maintain a clear separation, structurally and operationally, between its price assessment activities and its other activities, which could give rise to the risk, existence, or perception of a conflict of interest.

Remuneration arrangements for staff engaged in price assessment activities shall be determined with regard to the elimination or mitigation of any actual or potential conflicts of interest between the interests of those individuals and the interests of ResourceWise and between the interests of those individuals and the interests of market participants.

If it becomes apparent that an employee who is engaged in price assessment activities has accepted an offer of employment from a market participant, that employee shall promptly be excluded from engaging in price assessment activities for that area of his/her future employment with a new employer.

ResourceWise shall publish or otherwise make freely available product specifications and definitions that are used to produce price assessments that are representative of market value.

The methodologies for determining a price assessment are set out for each service in the Appendix and are available free of charge on application.

ResourceWise welcomes feedback received from subscribers, data contributors and other market participants in the context of any review of its price assessment processes.

ResourceWise devotes sufficient resources and support so that its price reporting staff have the appropriate skills, capacity, knowledge, and experience to perform the duties assigned to them.

ResourceWise has established and maintains appropriate procedures and safeguards to maintain and preserve the independence from conflict of staff that are engaged in the price assessment process.

ResourceWise takes all reasonable steps so that its commercial interests in commercializing its price assessment publications or services do not impair the independence from conflict or the integrity of its price assessments.

At minimum, price reporting processes are overseen by Business Managers who have sufficient authority to effectively oversee the composition, policies, procedures, and day-to-day operations of the price reporting function.

ResourceWise seeks to comply at all times with applicable laws and regulatory requirements.

ResourceWise allocates appropriate resources and has adequate control systems in place so that its staff can comply with all applicable laws governing price reporting activities in each jurisdiction in which it operates.

ResourceWise’s staff have high professional standards of integrity and propriety.

ResourceWise encourages ‘whistleblowing’ directly to the Board level so that members of staff can raise concerns regarding unlawful or inappropriate practices.

ResourceWise deals fairly and consistently with all market participants in relation to its price assessment activities.

Decisions as to whether to consider or exclude transaction data provided by a market participant are not influenced by the amount of revenues received from that applicant or market participant, and, in general, all such decisions are made in a fair and non-discriminatory manner.

ResourceWise seeks to disseminate its price assessments in a timely manner and shall promptly publish material corrections or updates to those assessments.

ResourceWise publishes its price assessments and any material corrections to those assessments in a timely, consistent, and transparent manner.

ResourceWise shall consult with market participants, where reasonable and practicable, regarding any material proposed changes to its price assessment methodologies.

ResourceWise maintains reasonable business continuity and disaster recovery plans, the purpose of which is to enable ResourceWise to continue to publish price assessments in an orderly and timely manner, notwithstanding the occurrence of disruptive events.

As part of its price assessment processes, ResourceWise maintains controls to monitor and detect data that is provided to ResourceWise by market participants that do not conform to this Code.

ResourceWise shall use data in conformity with its relevant methodology in determining its price assessments.

ResourceWise shall cooperate reasonably with regulatory or governmental authorities in relation to proper and legitimate enquiries or investigations regarding third parties.

Subject to any applicable legal or regulatory restrictions or rights or obligations, including in particular restrictions or rights relating to ResourceWise's receipt, use, or disclosure of confidential or otherwise sensitive information, ResourceWise shall provide reasonable cooperation with proper and legitimate inquiries or investigations regarding third parties by regulatory or government authorities seeking information that ResourceWise has published as part of its price reporting activities.

ResourceWise shall handle complaints promptly and fairly.

Subscribers may direct complaints on whether a specific price assessment is representative of market value and other editorial decisions regarding price assessment processes to ResourceWise’s Board.

Confidential information and record-keeping.

ResourceWise adopts appropriate control systems and procedures to protect the confidential nature of information received from market participants in connection with its price assessment activities if and to the extent such information is disclosed to ResourceWise as confidential.

ResourceWise maintains proper and up-to-date records in connection with its price assessments, policies, procedures and internal decision-making in relation to its price assessment processes.

ResourceWise maintains adequate internal records in connection with its price assessment processes. Such records should be maintained for a reasonable period of time (and otherwise in accordance with applicable laws) and should include:

• transactional and other data inputs that were used in determining price assessments;
• a record of fees received in relation to subscriptions to price assessment services;
• copies of internal written policies;
• a complaints log;
• where applicable, records of decisions to admit, suspend or exclude a market participant from ResourceWise’s price assessment activities and the information on the basis of which that decision was made.

Code of Business Conduct and Ethics

The Board of Directors (the ‘Board’) of ResourceWise has adopted this Code of Business Conduct and Ethics (‘CBCE’) for all persons employed or otherwise engaged by and operating under the control of ResourceWise. The purpose of the CBCE is to underscore and further strengthen ResourceWise's longstanding commitment to a business culture of honesty and accountability.

Conflicts of Interest; Corporate Opportunities

A ‘conflict of interest’ may exist when private interests interfere, or appear likely to interfere, with the interests of ResourceWise as a whole. A conflict of interest can make it difficult for work to be performed objectively and effectively and can also lead to improper personal benefits being received.

All business decisions must be made in the best interests of ResourceWise and not motivated by personal interest or gain.

ResourceWise expects all employees, officers and directors to promptly disclose potential conflicts of interest and to avoid conflicts of interest unless expressly approved by ResourceWise.

Confidentiality

Confidential information is any non-public or trade secret information that might be used by competitors or harm ResourceWise or its customers or suppliers if disclosed. Information entrusted to each individual must be maintained confidentially, except when disclosure is authorized or required by law.

Fair Dealing

All ResourceWise clients, suppliers, competitors, and employees must be dealt with fairly. Any conduct that could adversely affect ResourceWise’s reputation, including but not limited to taking unfair advantage of anyone through abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice, is strictly prohibited.

Compliance with Laws

ResourceWise complies with all applicable laws, rules, and regulations. All persons employed or otherwise engaged by and operating under the control of ResourceWise must also comply with all laws, rules, and regulations of ResourceWise, including but not limited to trade sanctions, export controls, reporting obligations, data protection, anti-competition, and insider trading laws.

Employees must:

1. Adhere to a zero-tolerance approach to all forms of bribery, corruption, extortion, or embezzlement.
2. Declare any conflict of interest in business dealings. Any ownership or beneficial interest in a business owned by a government official or representative of a political party must also be declared.
3. Ensure any business entertaining, hospitality, or gifts are reasonable in nature, entirely for the purpose of maintaining good business relations, and not intended to influence decisions about future business.
4. Utilise competitive information obtained only through legitimate means and for legitimate purposes in compliance with all applicable laws and regulations. No attempt may be made at any time to divulge information about competitors that is commercially sensitive or confidential and not in the public domain.
5. Ensure all business and commercial dealings are transparently performed and accurately recorded in the books and records. There must be no actual or attempted participation in money laundering or engagement in insider trading.
6. Always safeguard confidential information, know-how, and intellectual property. All information provided through our relationships that is not in the public domain is deemed confidential and is only to be used for its intended and designated purpose. All and any personal information about individuals must be handled with full respect for the protection of their privacy and for all relevant privacy laws and regulations.
7. Store and deliver products and services to meet the specifications and quality and safety criteria specified in the relevant contract or product documents to ensure they are safe for their intended use.
8. Adopt and adhere to the legal and contractual rights of employees, both permanent and casual.
9. Be provided with a total compensation package that includes wages, overtime pay, benefits, and paid leave, which meets or exceeds the legal minimum standards or appropriate prevailing industry standards, whichever is higher, and compensation terms established by legally binding collective bargaining agreements are implemented and adhered to.
10. Not work more than the regular and overtime hours allowed by the law of the country where the employees are employed. All overtime work by employees is on a voluntary basis.
11. Treat all employees with respect and dignity. No employee may be subject to any physical, sexual, or psychological verbal harassment, abuse, or other form of intimidation. There is no discrimination in employment, including hiring, compensation, advancement, discipline, termination, or retirement. Discrimination based on race, age, role, gender, gender identity, color, ethnicity, religion, country of origin, sexual orientation, marital status, pregnancy, dependents, disability, social class, union membership, or political views is prevented.
12. Be over the age of 15 or the local legal minimum age for work or mandatory schooling age, whichever is the higher. When young employees are employed they must not do work that is mentally, physically, socially or morally dangerous or harmful or interferes with their schooling by depriving them of the opportunity to attend school.
13. Know and have copies of their terms and conditions of employment. Forced labor, whether in the form of indentured labor, bonded labor, or other forms, is not acceptable. Mental and physical coercion, slavery, and human trafficking are prohibited.
14. Promote a healthy and safe workplace that aims to prevent accidents and injuries arising out of or occurring during work or as a result of the employer's operations.
15. Operate in an environment whereby the legal rights of employees to freedom of association and collective bargaining are recognized and respected. Employees must not be intimidated or harassed in the exercise of their legal right to join or refrain from joining any organization.
16. Respect the rights and title to property and land of the individual, indigenous people, and local communities. All negotiations regarding their property or land, including the use of and transfers of it, must adhere to the principles of free, prior, and informed consent, contract transparency, and disclosure.

Reporting; Compliance Procedures

If any person becomes aware of a possible violation of the CBCE, please contact a member of the Board.

ResourceWise will promptly investigate any reported matter and will take appropriate corrective and/or disciplinary action, up to and including termination, and, if warranted, initiate legal proceedings.

For any person making a report under the CBCE, confidentially will be maintained as far as practicable.

ResourceWise Anti-Competition Policy

Competition law promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies; it seeks to make businesses compete fairly based on the belief that free trade benefits the economy, businesses, and consumers.

Competition law prohibits agreements or practices that restrict free trading and competition between business entities. It also bans abusive behavior by a firm dominating the market and anti-competitive practices that tend to lead to such a dominant position.

Anti-Competition law applies to ResourceWise employees and sub-contractors worldwide.

ResourceWise prohibits engaging, whether verbally or in writing, with any company or individual in respect of:

• Price fixing
• Bid rigging, including agreeing not to compete with another business
• Sharing markets or customers
• Sharing commercially sensitive information

An agreement doesn't have to be in writing for it to be illegal. You can break the law if you have an informal conversation with another business, even if the agreement isn't carried out.

All ResourceWise employees and sub-contractors must not share any information, even informally, about pricing, production, customers, or markets without a lawful reason.

Employees and sub-contractors must not participate in any discussions which attempt to:

1. Fix prices on products or conditions of sale
2. Limit production, fix production quotas, or otherwise limit the supply of any product reaching the market
3. Divide up the market or sources of supply, either geographically or by class of customer
4. Blacklist or boycott customers, competitors, or suppliers
5. Limit or control investments or technical development

Employees and sub-contractors must not discuss or exchange information with contacts on any subject relating to the restraints mentioned above. For example, do not have formal or informal discussions on the following:

1. Individual company prices, price changes, terms of sales etc.
2. Industry pricing policies, price levels, price changes, etc.
3. Price differentials, price mark-ups, discounts, allowances, credit terms
4. Costs of production or distribution, cost accounting formulas, methods of computing costs
5. Individual company figures on sources of supply, costs, production, inventories, sales, etc.
6. Information as to future plans of individual companies concerning technology, investments, or the design, production, distribution, or marketing of particular products, including proposed territories or customers
7. Matters relating to individual suppliers or customers, particularly in respect of any action that might have the effect of excluding them from the market.

If any sensitive issues arise, either during telephone calls, email exchanges, or face-to-face meetings, you must terminate the conversation immediately and record that you have done so.

Such activities must be reported immediately to the ResourceWise Board of Directors, who will then report them to the Competition and Markets Authority (CMA) either by phone or email.

CMA cartels hotline cartelshotline@cma.gsi.gov.uk

Telephone: 0800 085 1664 or 020 3738 6888

ResourceWise Anti-Bribery Policy

Bribery means giving or receiving a reward to specifically influence the behavior of someone in government, an entity, or a person to get business, keep business, or gain a business advantage.

Most countries have laws that prohibit such corruption. In addition, an increasing number of countries are adopting laws to prohibit bribery even when it is committed outside these countries' own borders. A breach of any of these laws is a serious offense that can result in fines for companies and imprisonment for individuals. Even the appearance of a breach of anti-bribery or anti-corruption laws could do incalculable damage to ResourceWise's reputation.

Anti-bribery and anti-corruption laws

• Apply to ResourceWise employees worldwide.
• Forbid making, offering, or promising to make a payment or transfer anything of value, including the provision of any service, gift, or entertainment, to any government, entity, or person for the purpose of improperly obtaining or retaining business or for any other improper purpose or business advantage
• Forbid making improper payments through third parties
• Require that companies keep accurate books and records so that payments are honestly described and company funds are not used for unlawful purposes

Basic rules you must follow:

Never

• Offer or make an unauthorized payment or authorize an improper payment (cash or otherwise) to a local or foreign official or any related person or entity.
• Attempt to induce a local or foreign official to do something illegal.
• ‘Shrug off’ or fail to report any indication of improper payments.
• Offer or receive money (or anything of value), gifts, kickbacks, or commissions in relation to obtaining business, awarding contracts, or any other business transaction.
• Establish an unrecorded ‘slush’ fund for any purpose.
• Do anything to induce or facilitate someone else to break these rules.
• Permit an agent or representative of ResourceWise to take questionable actions to obtain information or secure contracts.

ResourceWise rules on facilitation payments

ResourceWise policy does not permit so-called ‘facilitation’ or ‘grease’ payments to be made to government officials, entities, or any person, even if such payments are nominal in amount.

ResourceWise personnel may have worked previously for, or have colleagues at, another company that allows facilitation payments to be made; ResourceWise does not.

Employee Responsibility

All employees or representatives of ResourceWise worldwide are responsible for preventing, detecting, and reporting bribery. Any suspicion of bribery must be reported immediately to the Board of Directors.