Compliance

Modern Slavery statement for Fresenius Kabi Limited and Calea UK Limited

1. Introduction

This statement is made pursuant to section 54 of the UK Modern Slavery Act 2015 to set out the steps that FHC Holdings Limited and its subsidiaries (Calea UK Limited and Fresenius Kabi Limited) have taken during the previous financial year to ensure that modern slavery is not taking place in its business or supply chain. 

This statement reflects activity carried out in the financial year up to and including 31 December 2018. This statement has been approved by the Management Board on 28 June 2019. 

2. Organisation and supply chain 

2.1 Our organisation 

Fresenius Kabi is a global healthcare company that specialises in developing, producing and marketing pharmaceuticals and medical devices for the therapy and care for critically and chronically ill patients worldwide. Our products are vital in the treatment in hospital and outpatient care. 

We're part of the Fresenius healthcare group and our ultimate parent is Fresenius SE & Co KGaA (Fresenius Group). 

2.2 Our supply chain

Our responsibility as a healthcare group goes beyond our business operations. Responsible and sustainable management is an integral part of our culture and our daily business. 

More than 80% of the products that we buy are purchased from within the Fresenius Group. The remainder of our products are sourced from third-party providers who are mainly located in the UK. 

3. Due diligence processes and risk assessment

Our aim is to conduct business with individuals and organisations who share our commitment to the highest ethical standards and share common principles of social accountability. 

We carry out due diligence checks on suppliers relating to the labour standards within the supply chain of the products and services they supply to us including a Corporate Social Responsibility questionnaire.

Our suppliers are expected to comply with all applicable national and international laws and regulations with the requirements and standards set out in the Fresenius Kabi Supplier Code of Conduct Business conduct and ethics which can be found out at  https://www.fresenius-kabi.com/responsibilities/suppliers-code-of-conduct .

We include obligations in agreements with our key suppliers (for it and its supply chain) to comply with the requirements of the Modern Slavery Act and our Code of Conduct. If we become aware of any actions or conditions within supply chains that are not in compliance with the Code, we reserve the right to demand corrective action measures and to terminate agreements with any supplier who does not comply with these requirements. 

4. Training for staff

Everyone who works at Fresenius receives training on our Group Code of Conduct which includes compliance with laws and a prohibition to agreeing to, using or supporting compulsory or illegal child labour. E-learning on our Code of Conduct is carried out by our staff. This is mandatory e-learning is repeated every 2 years. 

In 2018, we introduced Code of Conduct training as a part of our induction for all new starters. 

5. Measuring effectiveness 

We will be assessing the effectiveness of our measures by reviewing:

  • If there are any reports to our Compliance Hotline and/or Compliance Team; and 
  • Feedback from our Supply Chain team

Next Steps 

Over the next 12 months, we will continue to improve and refine our approach to modern slavery including:

  • Assessing the need for further policies and procedures
  • Extending our due diligence exercise to further suppliers
  • Including detailed provisions relating to anti-slavery and human trafficking in all contracts with suppliers
  • Continue to provide training to our people as well as including key points on modern slavery in our Compliance Matters bulletin which is available to all staff

Our next statement will follow the year ending 31 December 2019. 

Kriss Swinnerton 
General Manager, Operations

Compliance

UK Tax Strategy

In accordance with UK legislations, Schedule 19 of Finance Act 2016, the company is publishing its tax strategy for the Year Ended 31st December 2018, which will be refreshed annually. We confirm that this strategy will apply to the following UK companies for all UK taxes:

  • Fresenius Kabi Limited 
  • Calea UK Limited 
  • FHC (Holdings) Limited
  • Fresenius Kabi Oncology plc

Approach to Tax Risk Management & Governance
We aim for our tax affairs to be compliant with UK tax legislation and the Board of Directors in the UK are committed to the delivery of tax compliance.
 
We employ the services of a professional tax advisor to prepare our Corporate Tax Computations and, Returns and to provide other services including tax technical updates and flagging new legislation to help reduce the risk of non-compliance. We also ensure that we employ appropriately qualified and experienced staff to prepare and submit relevant returns, for example VAT and PAYE.

Level of Tax Risk we are prepared to accept
Our appetite for tax risk is low and the UK Board of Directors sees compliance with tax legislation as key to managing our tax risk by using principals of reasonable.
 
Due to the size and complexity of the business there is an inherent degree of tax risk. We recognise that eliminating tax risk entirely is impossible, but we aim to manage our tax risk as far as practically possible.
 
In areas of uncertainty where tax risk arises from the complexity of tax legislation and differences in interpretation, we will seek appropriate external advice before engaging with HMRC.
 
Our approach is to aim to be compliant and understand our responsibilities with regard to tax and we will claim legitimate tax incentives, exemptions and reliefs offered by the UK Government to all tax payers.

Attitude towards Tax Planning
We will consider a range of tax outcomes based on the underlying commercial intention of any business activity or transaction that supports our business activities and the Group’s code of conduct, rather than looking for ways to aggressively avoid the payment of tax. We seek to balance the shareholders’ interest of managing business expenses, which include taxation, with ensuring that any arrangements comply with current UK tax legislation.
 
We have a responsibility to minimise our tax risk and our exposure to negative publicity through non-compliance.

Approach towards dealing with HMRC
We seek to ensure that our engagement with HMRC is professional, open and honest by having a co-operative and proactive working relationship with them. We also aim to undertake our filing requirements in a timely manner, by meeting relevant filing and payment deadlines for taxes that the company pays.