Sustainable supply chain targets and actions

Action plan 2019-2021

Main actions

We develop our existing processes that create the foundation for a sustainable supply chain

  • 100% of new direct suppliers go through supplier approval process
  • 40 supplier sustainability audits conducted per year
  • 100% of selected key suppliers engaged in Valmet’s sustainability program
  • Continue supplier sustainability audits while ensuring high quality audit follow-up process
  • Continue to increase traceability in supply chain
  • Develop carbon footprint calculation of our supply chain
  • Continue to implement sustainability gates and guidance in site works purchasing
  • Continue to implement sustainability engagement program for key suppliers globally
  • Launch sustainability e-learning for key suppliers to increase awareness on sustainable business practices

We create new approaches to reduce the environmental impacts of our supply chain

  • Set CO2 reduction targets for highest emitting suppliers
  • Reduce emissions from transportation and increase transportation unit fulfillment rates
  • Reduce weight and raw materials of packaging
  • Increase collaboration with highest emitting suppliers to reduce CO2 emissions
  • Create guidance, increase collaboration and investigate the alternative shipping modes
  • Develop lightweight packaging and standardization for more sustainable packaging solution to reduce CO2 emissions, increase use of renewable materials and decrease use of raw materials

Main achievements in 2020

  • 92 percent of new direct suppliers went through the supplier approval process and were automatically screened for sustainability
    – Updated supplier sustainability self-assessment survey
  • 34 supplier sustainability audits conducted by Valmet and a third-party auditor
    – Piloted two remote audits due to COVID-19-related travel restrictions
  • Continued to implement sustainability engagement program for key suppliers in China, Asia-Pacific and EMEA
    – Engaged 100 percent of key suppliers in China, Asia-Pacific and EMEA
    – Launched two sustainability e-learning courses for key suppliers to increase awareness and give practical guidance on more sustainable business practices
  • Enhanced the quality of data of purchased goods and services and identified the most energy intensive purchasing categories that enable a more impactful approach to carbon reduction planning in our supply chain
  • Actively worked with suppliers to develop environmental reporting and to find ways to further reduce CO2 emissions together
  • Created new procurement guidance to give preference to more sustainable transportation and logistics service providers in purchasing decisions
  • Total weight of air shipments decreased by 19 percent
  • New packaging processes were developed and piloted to decrease repackaging and reduce packaging waste
  • Emissions caused by business travel decreased remarkably due to COVID-19 related travel restrictions