Sustainable supply chain

Ensuring a sustainable supply chain is one of our five sustainability focus areas. Together with our suppliers, we work for a transparent and sustainable supply chain. We continuously develop our procurement processes and engage our suppliers to develop their sustainability performance. 

Supply chain management 

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.   

Global supplier network 

Valmet has an extensive supplier network including around 17,000 active direct suppliers in over 50 countries. 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. 

Sustainability criteria for suppliers 

Valmet’s Sustainable Supply Chain Policy applies to all suppliers globally. The policy addresses Valmet's requirements for its suppliers regarding business ethics, compliance, human rights and labor rights, occupational health and safety, environmental management and sustainability in 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. 

Supply chain risk management 

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. 

As a part of Valmet’s sustainable supply chain action plan 2019-2021, Valmet’s target is to have 100% of new direct supplier screened on sustainability by the end of 2021.  

Environmental impacts of value chain 

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 2020:

of new direct suppliers were automatically screened for sustainability
supplier sustainability audits
countries where sustainability audits were conducted
air shipment reduction

Related articles