Sustainable supply chain

Metsä Group is committed to acting responsibly and we want to ensure sustainability in our supply chain. Our target is for all our suppliers to be sustainable. 

We require all of our suppliers to commit to the Metsä Group Code of Conduct for Suppliers, and we will further develop our supplier sustainability practices in order to verify that all suppliers act according to our environmental, social and economic responsibility requirements. We employ a risk-based approach and have a number of tools to aid this. Currently, these practices include risk analysis and background checks, as well as supplier assessments and audits. These tools have been integrated to our procurement processes.

Tools for ensuring the sustainability of our supply chain

Ensuring-suppliers-sustainability.jpg

Our main methods to ensure the sustainability of our suppliers are presented in the picture above. All our suppliers should commit to Metsä Group Supplier Code of Conduct, and by the end of 2021, it covered 96%  of our total spend. In addition, further sustainability requirements are often agreed in individual contracts.  

We target supplier background checks and supplier assessments and audits especially to risk  suppliers. In 2021, 45% of our purchases came from suppliers who answered and passed our risk-based sustainability evaluation. Less than 1% of our spend was from suppliers expected to improve their sustainability practices.

Traceable raw materials

In order to ensure the sustainability of our supply chain, we also want to ensure that we know the origin of our raw materials and packaging materials used in the production of products by Metsä Group. Our main raw material is wood, which has full traceable and 88% obtained from certified sources. We also know the origin of the pulp we purchase externally. Wood and pulp cover over 70% of our raw material spend. We have also developed the traceability of the other raw materials such as process, basic  

The orgin of used materials information is gathered from suppliers with self-assessment sustainability questionnaires. We aim to use the collected
traceability information in sustainability risk analyses, and target
supplier background checks, assessments and audits to suppliers
in risk countries.

Our suppliers are expected to disclose the manufacturing locations of our raw materials in product safety questionnaires. Our main focus currently is to trace the origin of manufacture of the raw materials we purchase, but in the future we plan to extend the analysis further into the supply chain. Currently, not all suppliers disclose this information in the product safety questionnaires. In 2021, we knew the origin of 92.2% of raw materials. 

Traceable raw material