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Have you ever felt or are currently feeling that you are being pressurised in the performance of your work duties, in order for you to do something that in your opinion is not in conformity with your own beliefs, ethical business practices and Merko’s Code of Business Ethics? Have you noticed that anyone else (your colleague, a cooperation partner) is doing something that in your opinion should not be done?

In order to prevent the continuation of unethical conduct, you should report such incidents. This is important in order to prevent damage to the company as a whole and to inform people as quickly as possible of the unethical nature of their conduct/activities, so that they would not continue such conduct and would not make further decisions deriving from such conduct.

How can you recognise situations that should be reported?

Situations, events and activities that concern individual employees or larger groups and which may entail negative consequences (financial or other damage, damage to reputation, etc.) for the relevant Merko group company, its shareholders, managers, employees or the entire Merko Ehitus group, or may affect work motivation, productivity or the safety of people.

Process of analysing reports

1. source of information

An employee, cooperation partner, shareholder or investor of the enterprise or other parties may hold information concerning suspected or factual unethical conduct.

2. Forwarding information

The person holding such information shall forward it via his/her chosen channel (e-mail, reporting hotline, report form on the homepage). All the channels ensure confidentiality and, should the person so wish, anonymity. It is also possible to directly contact Merko’s managers or audit committee.

3. Analysis of information

The information forwarded via any channel is received by an independent cooperation partner, Merko’s contractual cooperation partner Ernst & Young, who will analyse the information and coordinate the forwarding thereof.

4. INFOrmation to MERKO

Ernst & Young will forward the summaries of the content of reports that are relevant and require investigation to Merko without any references to sources. Depending on the level of the potential incident, information will be forwarded to the manager of Merko’s Estonian, Latvian or Lithuanian subsidiary or to the management of AS Merko Ehitus or directly to the audit committee of AS Merko Ehitus.

5. decision on further actions

Every incident will be handled individually; Merko performs an analysis of the report and takes necessary additional measures. If the person who made the report has given his/her contact details and consent to being asked for further information in the course of the investigation, Merko may ask him/her additional questions via Ernst & Young.




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