Valmet has around 100 key suppliers, of which ca. 30 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 these important suppliers, Valmet has created a sustainability engagement program.
The program supports and monitors these 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.
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. The launch included internal training and conducting a virtual key supplier sustainability day for the participating suppliers, introducing the importance of and approach to sustainability at Valmet and insights and best practices to develop more sustainable business operations. There was a focus on Valmet’s new climate program and the growing expectations for companies to transform their operations to reduce emissions and eliminate fossil fuels.
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.
During 2022, also Valmet’s most CO₂-intensive suppliers will be invited to join the program to support them in setting and aligning with Valmet's climate program emission reduction targets.
The program has given the participating suppliers knowledge and tools to evaluate their sustainability impacts and performance, and to take tangible improvement actions. It has also created add-ed value by engaging new customers, increasing order volumes from existing customers, and enhancing employee engagement and visibly improved operational safety.