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.

Read more from Metsä Group Annual and Sustainability Report 2022

We require all of our suppliers to commit to the Metsä Group Code of Conduct for Suppliers. This includes our minimum requirements for respecting the environment, human rights and responsible business practices. In 2022, 98% of our procurement will come from suppliers committed to these principles.

Background checks, assessments and auditions push our suppliers to act more responsibly. In 2022, in some contracts, we required the supplier to develop their operations.

Read more about responsible supply chain in the 2022 Annual Report and Sustainability Report starting on page 36.

Our main methods to ensure the sustainability of our suppliers are presented in the picture above. In 2022, 98% of our purchases were made form committed suppliers. In addition, further sustainability requirements are agreed in individual contracts.

We target supplier background checks and supplier assessments and audits especially to risk suppliers. In 2022, 48% 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 89% obtained from certified sources. We also know the origin of the pulp we purchase externally. Wood and pulp cover 96% of our raw material used. 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 2022, we knew the origin of 91.9% of raw materials.