Valmet is continuously supporting its suppliers’ sustainability operations. To further strengthen the cooperation with suppliers, Valmet launched a sustainability engagement program for selected key suppliers in 2018. The program was piloted in China. In 2020, the program was launched in EMEA, and in 2021, the program will be introduced both in North and South America.
We have around 100 key suppliers, of which ca. 30 percent are identified as possible sources of potential sustainability risks for Valmet, based on country of origin and purchasing category. Our program supports and monitors these suppliers’ performance and ensures they can take the most critical steps to develop their sustainability in practice.
The program is based on the principles of Valmet’s Sustainable Supply Chain Policy: ethical business practices and compliance, human and labor rights, occupational health and safety, and environmental management. It is also an integral part of our supplier relationship management (SRM) program.
As part of the program, individual targets and KPIs are set and followed up for each participating supplier, resulting in visible improvements in their operations.
In addition, the suppliers are offered training and exclusive access to development tools. These include professional training on compliance 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 take the first steps and proceed with the issues. The suppliers are also provided access to a capacity-building library with concrete development tools and e-learning courses, which aim to increase awareness and give practical guidance on more sustainable business practices.
The program has given the participated suppliers awareness and tools to evaluate their sustainability performance and to make concrete improvements. It has also produced added value for them in the form of new customers, increased order volumes from existing customers and enhanced satisfaction among other stakeholders.