Valmet has around 600 strategically important suppliers, of which ca. 20 percent are identified as possible sources of potential sustainability risks for Valmet based on the country of origin and the purchasing category. To further strengthen the cooperation with suppliers in the field of sustainability, Valmet has implemented a Sustainability Engagement Program since 2018.
The program supports and monitors suppliers’ performance and provides hands-on concrete tools and training for them to take the most critical steps to develop their sustainability practices. The program is based on the principles of Valmet’s Sustainable Supply Chain Policy, and it is an integral part of our Supplier Relationship Management (SRM) program. SRM is used to evaluate, manage and improve suppliers’ sustainability in a globally aligned manner.
The program was piloted in China in 2018, and it has since been launched in Asia-Pacific and EMEA. In 2021, the program was launched in North and South America. Since the launchof Valmet’s Climate Program in 2021, we have been developing our Supplier Engagement Program further to cover climate related topics more fully. During 2022, 15 suppliers from India, from China and EMEA with the most CO2-intensive operations were invited to join the new engagement program. By working together based on open dialogue about the impacts of climate change, we can reduce the emissions in the supply chain and meet the growing market expectations for carbon neutral products and services and reach the supply chain’s CO2 reduction target of 20 percent by 2030.
We also aim to increase data quality for more precise and transparent sustainability reports by introducing supplier specific emissions reporting for these selected suppliers. Our suppliers not only benefit from Valmet’s experience in sustainable operations, but they are able to achieve operational cost savings through lower emissions and better energy efficiency, improving business performance and contributing to customer satisfaction and trust.
The Sustainability Engagement Program includes internal training and a virtual supplier sustainability day for the participating suppliers to introduce the importance of sustainability at Valmet, identify collaboration areas and share best practices. The aim is to increase awareness and give practical advice on how to develop more sustainable business operations.
All Valmet suppliers are provided access to a competence building library with concrete development tools, several e-learning courses, and practical handbooks. We aim to increase awareness and give practical advice on how to develop more sustainable business practices. In 2022, Valmet launched a new Climate e-learning course for suppliers to specifically address emissions, and how to reduce them.
As part of the program, supplier-specific targets and KPIs are set, and related actions are followed up for each participating supplier, resulting in visible improvements in their operations. The suppliers are also offered training and exclusive access to development tools. These include professional training related to the different areas of sustainability, the sharing of inspirational case studies and best practices, and having a dialogue and giving guidance on how to proceed with the issues. The suppliers are also provided access to a capacity-building library with concrete development tools, e-learnings and practical handbooks, which aim to increase awareness and give practical advice on how to develop more sustainable business practices.