Environment, Social, and Governance Policy

Canlak Coatings strives to properly assess, address, and monitor our impact on the environment; our relationships with employees, customers, and the communities in which we operate; and our corporate governance initiatives.

This ESG Policy is intended to provide a broad framework for integrating ESG considerations into all aspects of our business.

Environmental Management and Sustainability

We strive to develop and manufacture innovative coatings solutions for the onsite flooring and industrial wood industry.

  • Internal Operations: With continually explore opportunities to reduce our environmental impact, by implementing processes and practices to increase energy efficiency and reduce waste produced through our operations.
  • We are committed to continually pursuing sustainability-related programs and initiatives to adopt at our locations.
Social and Community Engagement

We aim to use our position as a North America business to support the development of our communities, including through volunteer initiatives; training and career development; and engaging with community and industry partners.

  • Diversity, Equity, and Inclusion: We recognize that diversity in our workforce drives a strong competitive advantage and benefits our employees, customers, vendors, stockholders, and the planet. To the extent permissible under applicable laws, Canlak will seek to ensure that its commitment to diversity, equity, and inclusion will be implemented throughout its practices, including, for example, with respect to the following:
    • Creating a workplace culture that is free from discrimination, harassment, and hostility.
    • Promoting respectfulness, cultural awareness, and inclusivity by fostering a collaborative work environment in which all employees participate and contribute.
    • Welcoming feedback about how we can be more inclusive and address and improve diversity issues.
    • Continually seeking to improve our diversity, equity, and inclusion efforts to fully live by our mission.
  • Diversity in Leadership: We seek to enhance diversity at the highest levels of management.
  • Professional Training and Development: Company is committed to investing in the growth, development, and well-being of our employees. This strategy consists of a combination of on-the-job training and internal and external training courses and helps us achieve our goal that employees reach their full potential.
  • Community: We are dedicated to giving back to our communities, and to the people who live and work within them. We aim to provide educational and other resources to support healthy environments and communities. Additionally, we have sponsored and seek to continue to sponsor volunteer initiatives. We are actively seeking to increase the time to further expand our community efforts and encourage our workforce to do the same.
Governance Matters
  • Ethics & Responsibility: We believe that the successful business operation and reputation is built upon the principles of fair dealing and ethical conduct of our employees. In connection with this commitment, Canlak has adopted a Code of Business Conduct, in addition to other policies and procedures applicable to our workforce.
    • Employees: To ensure our employees have received and will comply with the requirements of our policies, we require our employees to be educated on topics critical to our ethical operations, including principles of anti-corruption and anti-bribery; diversity, equity, and inclusion; and anti-harassment.
    • Suppliers: To ensure that each of our suppliers shares our values and principles, Canlak has developed a Supplier Code of Conduct, which reflects some of our most important values and principles. The Supplier Code applies to all suppliers, including service providers, and contractors. We require each Supplier to support the requirements set forth in the Supplier Code, as well as all applicable laws and regulations. The Supplier Code is available online and incorporated into supplier agreements.

Compliance with Laws, Rules, and Regulations: We are committed to conducting our business with honesty and integrity, and in full compliance with all applicable laws, rules, and regulations. In accordance with the Code, no officer, director, or employee may commit an illegal or unethical act, or instruct others to do so, for any reason.  This includes, but is not limited to, bribery and corruption of U.S. and foreign officials.

  • Human Rights and Labor Practices: Canlak prohibits the use of any forced or compulsory labor, including human trafficking and slavery, in its operations. We comply with state and federal child labor laws through our hiring and human resources practices. To the extent any employee sees anything of concern, the employee is advised to raise a complaint to their supervisor and/or human resources department. We take all reports seriously to ensure a safe and ethical environment for all.
  • Privacy and Cybersecurity: We aim to build a comprehensive global data privacy program based upon our commitment to protect the personal data of employees, customers, suppliers, and other stakeholders. In connection with this commitment, Canlak has adopted data privacy policies concerning the collection of information related to current employees, candidates applying to work, visitors of our websites, and service providers who provide products or services that may involve the use or collection of, or access to, personally identifiable information.
  • Health, Safety, and Wellness: Canlak recognizes its responsibility to promote the health, safety, and wellness of our employees. In connection with this commitment, Canlak maintains health and safety related policies in its Employee Handbook and provides a range of benefits to cover employee time off, health care, financial security, and other benefit needs.
    • Health, Safety, and Environment: Canlak has implemented a comprehensive system for HSE initiatives. Our internal programs are managed by team members with knowledge in occupational health, engineering, safety, materials management, and energy efficiency. We seek to continually improve our HSE processes thru consultant support to maintain the industry’s best practices.
Oversight and Administration
  • Executive Leadership Team: The Executive Leadership Team is responsible for the management and objectives of this Policy.
  • Daily Administration: The Executive Leadership Team also holds the administration rights of this Policy. The team is responsible for reviewing the Policy no less than annually and revising or supplementing the Policy as it deems appropriate, in line with changes in industry demands and regulations.
    • Duties: The duties of the Team include:
      • Implementing Company’s ESG priorities and strategy.
      • Reviewing Company’s disclosures, procedures, and policies for consistency with industry standards and best practices.
      • Identifying and assessing new ESG risks and opportunities.
      • Managing internal and external communications of ESG matters.
      • Engaging third parties, such as accounting firms, industry specialists, or consultants, on an as needed basis or as otherwise determined in the best interests of the Company

This ESG Policy was last updated April 22, 2025 and is subject to change, as Company considers necessary or appropriate.