ECONOMY

In recent years, the Company has proceeded with the necessary actions to redesign its supply chain strategy, having developed a more modernized overall management model. In the aforementioned direction, we have established a central Purchasing and Procurement Department, anticipating the further optimization of internal operations regarding the efficiency of supply chain structures. The specific department reports directly to the Financial Director of the Company and has undertaken the gradual gathering and processing of all relevant procedures defined by the Company. The Purchases and Procurement Department, together with the Procurement Committee and the Executive Committee have overall responsibility for managing all of supply chain processes, with objectives which are summarized in the following:

• Optimizing the level of service to the Company's internal customers, combined with the effective management of the respective budget.
• Ensuring compliance with all terms of transparency, integrity, regulatory compliance and business continuity of each department or Company.
• Ensuring compliance with INTERAMERICAN's Supplier Code of Ethics, as detailed on the company website (www.interamerican.gr/providers-code-of-ethics).
• Equal management of the suppliers participating in the Company's processes, with the aim of creating long-term strategic partnerships, where this is deemed necessary.
• The equal access and management of suppliers, which is ensured during the purchasing and procurement procedures, is a major parameter in order to develop a healthy climate of cooperation between the Companies and approved suppliers. These collaborations can either take the form of long-term collaboration in cases where there are reasons, e.g. business continuity, or occasional collaborations for e.g. purchases of goods and services of the INTERAMERICAN Companies.

Regulation of Purchases and Supplies

The Purchases and Procurement Regulation, which was approved and entered into force in 2014, records and codifies the rules that regulate the procurement of any material or service to meet the needs of all INTERAMERICAN subsidiary companies. The regulation is posted on the internal company website, with the aim that every employee can refer to it and be informed at any time. The goal is to constantly have corrective additions based on ever-increasing needs and developments.

For the implementation of the model, the implementation of the appropriate supply chain management procedures and the selection of the final supplier, the competent bodies are the Purchases and Procurement Department and the Procurement Committee. At INTERAMERICAN procurement is conducted in the following three ways:

• Procurement without Tender: This procedure is carried out in purchases of items or services for which the estimated cost is less than 15,000 euros. In these cases, the process requires the receipt of a sufficient number of offers (at least three) which are evaluated accordingly.
• Closed Tender Procurement: This procedure is carried out in purchases of goods or services with an estimated cost of more than 15,000 euros and less than 500,000 euros.
• Open Tender Procurement: This procedure is carried out in purchases of items or services with an estimated cost of more than 500,000 euros

In 2015, the "Supplier Code of Conduct" was incorporated into the Purchases and Procurement Regulation, which is an integral part of any contractual cooperation between INTERAMERICAN and its suppliers. By signing an agreement with INTERAMERICAN, each supplier of products and services must respect and align with:

• with the Corporate Responsibility principles adopted by INTERAMERICAN,
• with the Social and Environmental Responsibility commitments undertaken by the Company, such as the "Principles for Sustainable Insurance" of the UN Environment Programme. (UNEP Finance Initiative – “Principles for Sustainable Insurance”),
• to observe the ten principles and conditions of Corporate Responsibility included in the Universal Covenant of the U.N. (UN Global Compact).

INTERAMERICAN systematically monitors suppliers' compliance with the above contractual obligations. Failure to comply with them will result in the termination of their cooperation with the Company. The supplier's contractual obligations are described mainly with SLAs (Service Level Agreements) which have been formulated in the contract in a detailed manner, and which are monitored by the business owner of the project on a daily basis and in collaboration with the Company's Procurement Department when required ( e.g. in some escalation, major issue, etc.).

Developing responsible relationships in the supply chain

INTERAMERICAN is governed by the Code of Conduct and Ethics, as well as the Integrity and Anti-Fraud Policy, with the aim of becoming the most trusted insurance company and always with the client's best interests in mind. The corporate culture of transparency and integrity applies to all employees and partners of the Company, without exception. For this reason, INTERAMERICAN promotes collaborations exclusively with partners who are committed to the same principles and values as it, in terms of combating all forms of fraud and corruption such as conflict of interest, facilitation payments, bribery, money laundering and financing of terrorism, tax evasion , internal and external fraud. The parties undertake not to accept any type of corruption and, in addition, they are bound by the rules of professional ethics as described in the PEE of the Council of Ministers 86/5.4.2016 and included in the new draft law adopting the Directive on IDD Insurance Mediation.

Green Supplies

INTERAMERICAN during the process of selecting and evaluating its suppliers, in addition to economic and technical criteria, also applies criteria based on the principles of green procurement.

These criteria concern, on behalf of suppliers:

the existence of a certified Environmental Management System (ISO 14001 or EMAS),

in the implementation of environmental policy, in compliance with environmental legislation,

in the implementation of initiatives and commitments regarding the protection of the environment.

Human Rights in the Supply Chain As mentioned above, the Company's partners are selected according to strict criteria. Nevertheless, in the agreements and contracts that the Company concludes with them, it does not include special terms regarding human rights. Respect for human rights is protected by Greek and international legislation and, by extension, the agreements that the Company enters into are subject to the current legislative framework.