Ensuring a sustainable supply chain

​Ethical business practices are the foundation of Metsä Board’s purchasing operations. This helps our customers, as it’s also their interest to know the whole chain. But what does a sustainable supply chain mean for us?
1/2015 Q&A WITH JANI SUOMALAINEN, VICE PRESIDENT, PURCHASING METSÄ BOARD

Jani Suomalainen

 

1. How do you ensure that Metsä Board’s supply chain is both ethical and sustainable?

We buy goods and services from reliable suppliers who are willing to adhere to our Supplier Code of Conduct. We also use renewable and traceable raw materials whenever possible. Additionally, more than 90 per cent of Metsä Board’s raw materials come from Finnish suppliers. This reduces our risks and carbon footprint.

2. How do you do this in practice?

We do risk mappings based, for example, on the origin of the raw material or on the likelihood of environmental or social problems in the supplier’s home country. In addition, we also have an internal supplier rating tool whereby we rank our suppliers against numerous demanding criteria.

Moreover, regular audits are performed to ensure that our suppliers’ operations are continuously improving. The Supplier Code of Conduct is attached to all new contracts.

3. Why do you put so much emphasis on ensuring a sustainable supply chain?

First and foremost, we want to be prepared for the potential risks, and of course we always want to minimise risks systematically. For us, it’s crucial that our suppliers are reliable and operate in an ethical manner.

We also strive to increase transparency throughout all our operations, and therefore we do business only with suppliers we know.

As many of them are long-term partners, we also know many of their suppliers. If there are gaps between actual performance and our criteria, we help our supplier to make the required changes.

A sustainable and ethical supply chain lowers risks and means our operations run smoothly. Ultimately this translates into reduced costs and a good brand reputation.

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