Metsä Board, as part of Metsä Group, focuses on working with ethical, reliable and environmentally sustainable suppliers, whose responsibility and quality will facilitate long-term cooperation and responsible profitability. We strive to develop cooperation based on trust with our selected key suppliers.
We see no scope for compromise on responsible purchasing and sustainability throughout our supply chains. This enables us to guarantee long-term success both for us and for our business partners, helping us to be a profitable and responsible business operator.
Efficient supply chain management and on-time deliveries are key elements in our business operations. For this reason, we ensure reliable, safe and efficient logistics. Efficiency is attained by maximising delivery volumes using optimised modal selection, return load utilisation and by minimising ‘empty’ kilometres. As our mills are located close to our main raw materials, we are always able to optimise our transport routes. Increased efficiency reduces costs as well as emissions to air.
All our wood purchases come from Northern Europe, and our target is to use local suppliers whenever feasible.
Supplier Code of Conduct included in contracts
Whilst wood and fibre are our main raw materials, we also purchase chemicals and other materials, machinery, equipment and services.
All the wood we need is procured through the operations of Metsä Forest and the pulp we use is manufactured by ourselves or by the associated company Metsä Fibre. Responsibility of our wood suppliers is always assured through the PEFC™ or FSC® Chain of Custody systems that cover all our operations. Chain of custody systems safeguard that the wood does not originate from illegally harvested forests and that the rights of the supply chain workers and indigenous people are respected.
Responsibility of suppliers of all other materials and services is ensured by a group-wide process in Metsä Group’s centralised purchasing function.
Metsä Group expects all of its suppliers to commit themselves to responsibility and sustainability, to high standards of business ethics, and good working practices. Our Supplier Code of Conduct emphasises a respect for human rights and the need for a safe working environment, as well as actions against corruption and bribery. For forced or child labour we have a zero-tolerance.
In 2020, suppliers that were committed to our Supplier Code of Conduct covered 96% of our total purchasing spend. The Code of Conduct is nowadays included in all our new and renewed contracts, and the key personnel in our purchasing department have passed specific training on our purchasing policy including ethical and environmental aspects.
Supplier risk assessment and auditing process
As a member of Metsä Group, we continuously develop a common monitoring process for our suppliers, conduct risk assessments, and prepare audit plans for each of our purchasing categories. Audits are conducted either by Metsä Group's own personnel or by a third-party. One of the most important issues is to ensure is that there are no incidents of child, forced or compulsory labour in our suppliers' operations.
Each supplier is subject to an assessment of the country risk. In addition, 84% of our suppliers, measured by costs, have been subject to a Know your supplier check which checks suppliers’ backgrounds in terms of trade sanctions, money laundering, corruption, human rights violations and other key risks. Metsä Board also has a corresponding process applicable to customers. In addition, 54% of suppliers, measured by spend, have completed a sustainability evaluation, which includes a supplier self-assessment questionnaire and the required development actions when necessary.
Every year, Metsä Group and external parties audit some of the suppliers. These audits also include questions pertaining to the environment and social responsibility.
All our mills comply with existing chemical legislation when procuring and utilising chemicals in our production processes. We hold regular discussions with our external material suppliers to verify their REACH pre-registration and registration status. We maintain a detailed database on the most important chemicals used in our production processes, containing key environmental, health and safety information on each of the chemicals concerned.