We continuously develop our procurement processes and engage our suppliers to develop their sustainability performance. Together with our suppliers, we work for a transparent and sustainable supply chain.
We have integrated sustainability into our procurement and supply chain processes, and our target is to continuously enhance our supply chain management and our value chain’s transparency. We want to ensure that we operate responsibly throughout the value chain, and that the materials and components we procure are in compliance with relevant local and global regulations and standards.
Valmet has established processes to evaluate and manage the sustainability of its suppliers’ operations in a globally aligned manner, and continues that work according to its Sustainability360º agenda.
Valmet has an extensive supplier network including around 17,000 active direct suppliers in over 50 countries with different sustainability maturity and risk levels. However, over half of our purchases come from Finland and Sweden when measured by supplier spend. 76% of Valmet’s direct purchases come from low sustainability risk countries. Our main purchases consist of metals-based products and components, electronics as well as different services.
Several potential sustainability risks may occur in our complex supply chains. Therefore, we work systematically to ensure responsible business practices in all our partnerships. Our ambition is to support our suppliers’ more sustainable operations and to further strengthen our cooperation with them.
Valmet has a global four-step supplier sustainability management process. All suppliers are required to sign Valmet’s Sustainable Supply Chain Policy, which addresses Valmet's requirements for its suppliers regarding business ethics, compliance, human rights and labor rights, occupational health and safety, environmental management and sustainable products and services. We expect all our suppliers to comply with the principles defined in the policy; it is the starting point for all business relationships with Valmet. The policy also acts as a basis for supplier evaluations, self-assessments and sustainability audits.
In its global supplier selection process, Valmet assesses a wide range of topics ranging from management practices, financial and operative performance to ethical business practices, human and labor rights, occupational health and safety, environmental management and product safety.
Valmet’s supplier sustainability risk assessment concept enables the assessment of suppliers by country of purchase, and by the purchasing category. The aim is to assess the potential negative indirect impacts and risks related to human rights, labor practices, ethical business practices, environmental performance and health and safety.
Valmet strives to develop the transparency and traceability of its entire value chain from sourcing of raw materials to recycling of our products. It is estimated that Valmet’s supply chain accounts for approximately four percent (4%) of the environmental impact of its value chain.
Key figures in sustainable supply chain in 2021: